mca filings 2dec2011

7/31/2019 MCA Filings 2Dec2011

1/26


2/26

2


3/26

3

Data Reporting

23 AC, Form 23 ACA

Attachment to the forms in .pdf format

Limitations to Reporting

Data was not system understandable

Misrepresentation couldnt be identified until manualintervention

Due to the limit of 2.5 MB, entire data reporting couldnt takeplace

Data Analysis was a time consuming process.

The burden of ensuring the correctness of data was on theregulators end.


4/26

PDF

XLS

Paper

format

Doc

Financial

systems

Explanatory

Disclosure

Other

informationsources

formats

receivers

Regulators

Proprietary

methods

Analysts

Investors LendersRating

agencies

Multiple Formats in Reporting

4


5/26

Company Property, Plant and Equipment Sales Cost of Goods Sold

Tata Total property and equipment Sales Cost of goods sold and

occupancy costs

Reliance Industries Property, plant, and equipment, at

cost, less accumulated depreciation

Total revenue and

other income

Crude oil and product

purchases

Wipro Property, plant and equipment, net Net revenue Cost of sales

Infosys Fixed assets, net Net sales Cost of sales

L & T Plant, rental machines and other

property

Total revenue Total cost

M & M Property and equipment, net Net sales Cost of sales

Non-Standardization

5


6/26

6


7/26

Form 23 AC XBRL , Form 23 ACA XBRL

Attachment of XBRL Document ( Instance Document) in .xml format

The Instance Document is prepared on the basis of MCA Taxonomy.

It consists of Actual facts,

Values and information pertaining to the entity

Contextual details like period

Unit of measurement

Footnotes etc.

Have data for multiple periods or for multiple entities. Contains the "code" for the tags and the structure that belongs to

the tagged data.

7


8/26

What is Taxonomy?

MCA taxonomy

What is an instance document?

The information which will go in instance documentHow to use the XBRL data

Business rules, and checks on data

Interpreting in data

8


9/26

9 9


10/26

Taxonomy available on

http://mca.gov.in/XBRL/

Based on

Schedule VI, Companies Act

Accounting Standards

MCA specific requirements

Other regulatory requirements

Current version designed for Commercial

and industrial entities

10
http://mca.gov.in/MCA21/http://mca.gov.in/MCA21/


11/26

11

MCA Specific

(ca)

Elements

Data types

Schedule VI and

Accounting Standards

(In-gaap)

Elements

Commercial and

Industrial

(CI)

Relationships

Entry -point

Additional folders as and when other

industry taxonomies are developed

NBFC/ Power


12/26

More than 3187 concepts defined

Fixed taxonomy would be followed

Use of 24 tuples for data modelling

Custom data types E.g. SRN, CIN, DIN etc.

Enumerations for certain elements included

E.g. Type of related parties, content of report etc.

Business Rules are also included.

12


13/26

13


14/26

Business report in electronic format

Contains data based on taxonomy used

Includes additional data like Period of reporting

Unit of measurement

Scale of reporting

Footnotes

Validated against taxonomy and business rules

14


15/26

Information disclosed in the following sections of the

Annual Report

Balance Sheet

Profit and Loss Statement

Cash Flow Statement

Schedules related to Balance Sheet and P&L Account

Notes to Accounts

Statement pursuant to Section 212 of the CompaniesAct,1956 relating to subsidiary companies

15


16/26

Disclosures specific to MCA requirements

Auditor's Report

Directors' Report

Signatories to balance sheet

General information about company and document

submitted

16


17/26

Block Text tagging Capturing group of information

as one single fact, using one single tag from the

taxonomyDetailed tagging Capturing the granular fact

(numeric or textual)

17


18/26

Detailed tagging

18

Financial statements BS, P&L and CF

Schedules to financial statements

Selected notes Related party transactions

Subsidiary information

Details of debentures

Segment reporting

Directors remuneration

Selective information from notes/reports

Auditors qualification

Directors comments on qualification


19/26

Block tagging

19

All notes to accounts

Auditors report

Directors report


20/26

20


21/26

Data is pre-validated due to Business Rules and Pre

Scrutiny by companies done through MCA Validation Tool

There are business rules for mandatory reporting Pre-validation of correctness of CIN, DIN, SRN, Auditor Names,

Director Names etc

Arithmetic Accuracy by Calculation Rules

Consistency Across the data reported.

21


22/26

Benefits around Error : Unintentional misstatement in financial

statements, including the omission of an amount or a disclosure,

such as the following:

Mathematical or clerical mistakes.

Unreasonable accounting estimate

Mistake in the application of accounting principles

Benefits in detecting Fraud: Intentional act by one or more

individuals among management, employees or third parties

involving the use of deception to obtain an unjust or illegal

advantage. Two forms of the same could be:

Fraudulent financial reporting and;

Misappropriation of assets.

22


23/26

23


24/26

24

Mandate Requirement Possible Issues

Fixed Taxonomy

Use of Tuples

Block Text Tagging

of Notes

Extensive reporting by companies under Others category

will lead to misrepresentation of facts. XBRL output is not the exact representation of data

reported by companies.

Dimensional tagging is better for analysis purpose.

Block Text tagging of notes will not help in analyzing

aggregating mistakes

24


25/26

Updating the taxonomy to reflect the new

developments in XBRL standards

Dimensions

Formula linkbase

Rendering

Consider allowing extensions by company

XBRL document can then mirror annual report

Considering Detailed Tagging of Notes to Accounts

Help in detailed analysis

26


26/26

2626

mca filings 2dec2011

Documents