XBRL filings for MCA

By: IRIS Business Services Ltd.

Our presentation today

• About IRIS• What & Why of XBRL?• What is MCA mandate all about?• Approaches • IRIS offerings

XBRL - not new to India

2005

2006

20092007

ICAI develops XBRL taxonomy based on Indian GAAP (built by

IRIS)

IRIS is awarded project to

convert the historical filings

of US Companies into XBRL

format

India becomes a provisional

jurisdiction of XBRL

International

Corpfiling – IRIS’ XBRL based filing platform is

made mandatory by SEBI

1998

ICERS – IRIS’ XBRL based filing

platform was developed for BSE

Corpfiling – XBRL based

filing platform adopted by BSE

and NSE

IRIS develops MF taxonomy

for SEBI

2010

RBI launches IRIS’ XBRL based filing

platform for Capital Adequacy Returns

MCA & SEBI adopt XBRL

IRIS does a Pilot for SEBI for MF

20112008

Entered XBRL domain

2005

2006

2009 The Reserve Bank of India launches IRIS’ XBRL

based filing platform

IRIS’ XBRL based filing platform for stock exchanges is modified to meet filing

requirements of the Bombay Stock Exchange and National Stock Exchange

The Institute of Chartered Accountants of India ICAI asked IRIS to build the Indian XBRL

taxonomy

iFile pilot is implemented at the JSE

2007

2004

Developed FinX, software platform to create XBRL

instance documents

Built Indian XBRL database ( 20000+ Documents)

Outsourced XBRL Services offering to help create XBRL repository in

US for Edgar Online

Developed iFile, XBRL based filing solution first deployed at the

Bombay Stock Exchange

2008

Entered into a strategic partnership with Merrill Corporation in the US

Awards full scale iFile implementation by JSE

Worked on developing Proton, as its next generation application for XBRL document

creation

IRIS – our rich XBRL experience

Awarded project by the State of Nevada, USA for Debt Collections and Accounts

Receivables (iFile)

Project in Macedonia for XBRL solution for the business registry

Launched iXBRL conversion services for UK to meet HMRC requirement; converted over

100 documents

Won contract from the Emirates Securities and Commodities Authority to implement

iFile

2010

IRIS’ XBRL practice

• XBRL practice of ~ 700 people, including taxonomy specialists, XBRL analysts and XBRL technologists

• Closely involved with the XBRL standard setting at the international level, hold the Chair of Taxonomy Architecture Working Group at XBRL International, and present in several other committees

• Involved with every single regulatory XBRL implementation in India, and have clients across 8 countries in the XBRL space.

• Rich experience in conversion services in Indian , US and UK markets; with strong established practices over the past four years.

• Own several software applications in the XBRL space for XBRL document creation, validation, end to end XBRL filing platform and mapping from legacy systems to XBRL formats

ABOUT XBRL

What is XBRL?

XBRL (eXtensible Business Reporting Language)• XBRL is Tagged Data (Meta-Data - Machine Readable)

– Standard way to communicate business and financial information– Defined by meta-data set out in taxonomies which capture the definition of

individual reporting concepts and the relationships between them.

XBRL - The “Bar Code” of the Business Reporting World.

Key Benefits

Standardization - Standardized, yet extensible • Reduce costs by standardizing the reporting format

Accuracy - Validation at the point of data generation itself• Immediate validation through XBRL as well as business rules

Re- purposability - Enter data once, render in many forms • Quick generation of information and reports by end users

Technology independent - Open, royalty free standard• Reduces cost

Inclusion - Language properties of XBRL can be leveraged to render same data in multiple languages

• Allows firms to reach out to a larger community of investors

THE MCA MANDATE

What is the MCA mandate..

MCA mandate • Circular issued on March 31,2011 to mandate financial reporting in XBRL

from the year 2010-2011. • Listed companies and their subsidiaries (excluding overseas subsidiaries), as well as unlisted companies

having paid up capital of Rs. 5 Crore and above or a turnover of Rs. 100 Crore or above. • Excludes banking companies, insurance companies, power companies, Non Banking Financial Companies

(NBFCs).

Important Dates to rememberCompanies can start filing their XBRL documents by August, 2011. The last date of filing for companies is November 30, 2011 or within 60 days of their due date, whichever is later without paying any additional filing fee.

The MCA Taxonomy

• Based on– Schedule VI, Companies Act– Accounting Standards– MCA specific requirements– Other regulatory requirements

• Around 3000 concepts included in taxonomy• Broad industry classification

– Commercial and Industrial companies– Banking companies*– NBFC*– Insurance & Power*

* Not required to file by November 30, 2011

What do Companies need to file in XBRL?

Balance Sheet and Profit & Loss Account• Balance sheet and its schedules, • Income statement and its schedules, • Cash flow statement

Selective information from Notes to accounts• Subsidiary related information• Related party information• Foreign Exchange earnings and outgo• Debenture details• Information on associates/joint ventures• Director details• Share capital information

What do Companies need to file in XBRL?

Block tag the following information blocks• Auditor’s report• Directors’ report• All notes (every individual note)

Block Tagging means capturing group of information as one single fact, using one single tag from the taxonomy

What options companies can explore

Use internal resources - Buy Software to create the XBRL documentAdvantages: Cost, ability to manage the process internallyDisadvantages: Need fair amount of XBRL expertise, which takes time to build. Also, software applications will not facilitate tag selection or help in resolving validation errors. This typically could result in a larger ‘Total Cost of Ownership’ of the XBRL document creation than anticipated.

Outsource to XBRL expertsAdvantages: End to end service providers, assure filing ready document with quality, available for clarifications and discussions during review processDisadvantages: Perceived initial cost is higher, since it includes software + services of XBRL experts

Approach - Using Internal Resources

A firm must be prepared to:• Establish the internal team responsible for the work, which will generally

include representatives from external reporting, legal, IT and investor relations.

• Review all applicable MCA rules. • Purchase and become proficient in using XBRL software. • Become familiar with the MCA's XBRL filing manual • Become familiar with the XBRL Preparer’s Guide. • Review and validate that document. • File the data with the MCA

Approach – Outsource to XBRL Experts

• Identify an XBRL firm experienced in filing.• Provide current year’s annual report to the XBRL Firm.• Ensure that the vendor is adequately staffed and the turnaround time is to

your satisfaction.• Receive the XBRL Documents and file the same.

IRIS offerings

• Conversion Services

Outsourced

Services

• Web Application• Intelligent Spreadsheets

Internal Resour

ces

Suggested XBRL Road Map for Companies

• Start with outsourcing MCA related XBRL compliance to experts in the first year

IRIS - with an experience of converting more than 20,000 documents in XBRL across Indian, US and UK Markets - is ideally suited to meet your filing requirements

• Create the infrastructure by building core XBRL competencies within the organization– XBRL training– Develop Internal Team to facilitate the company’s XBRL plans– Evaluate the use of XBRL at a deeper level within your own enterprise for

operational efficiencies

Conversion Service - Credentials

• IRIS has over 7 years of experience in XBRL conversions, and has an XBRL expert pool of 400+ resources

• IRIS already supports large number of companies in India, US, UK and other countries in generating XBRL filings, which are required to be filed with the regulators including the US SEC and UK HMRC.

• Well qualified, trained and experienced accounting professionals along with the technical experts in the core conversion team is our strength.

• Extensive experience in developing taxonomies and have built the C & I and Banking Taxonomy for India on behalf of the Institute of Chartered Accountants of India.

• Large scale, well established and robust processes

Conversion Service - Features

• Receive a completely high quality, validated document that is filing ready.• Filing validated both against the XBRL rules and MCA filing rules, ensuring

complete compliance• High level of quality, with separate domain and XBRL tech related quality

specialists that review each document, as well a final QC lead that signs off on each document

• Relationship Managers and Project Managers that interact with clients through the conversion process, for any tagging decisions that need review

• A strong pool of XBRL analysts with experience in handling documents across industries and sectors

Conversion Service - Benefits

• Personalized attention to every client• No worries of additional compliance for the companies• Not required to evaluate and implement any software• No training required for the workforce• Tools will be provided to view and review the XBRL document• Cost Effective• Timely and accurate output

Conversion Service - Process

What IRIS will deliver ?

• Validated XBRL Document as per the MCA mandate. • Excel report, enabling easy audit review of tag selection• Ability to load and review the document on the IRIS Web rendering

service• Relationship Managers, who will facilitate the entire process as well as

interactions with clients on tagging decisions that need review

Conversion Service –Your Firm’s Role

• Organize a kick off meeting with IRIS• IRIS RM might call you for clarifications, if any.• Once the Validated XBRL Document is given along with the Excel report,

you may like to check the mapping and seek any clarifications from IRIS on specific mapping decisions.

• Upload the document at the MCA’s Portal

THANK YOU

Contact us:IRIS Business Services LimitedT-131, Tower 1, 3rd Floor,International Infotech Park,Vashi, Navi Mumbai 400703,Maharashtra,India.