1. Transforming Data into Knowledge:
leveraging XBRL tools
ANIL KUMAR BHARDWAJ
DIRECTOR E-Governance
Ministry of Corporate Affairs
Government of India

2. Challenges in Current Financial Reporting
Financial Explanatory Other
sources systems Disclosure information
XLS Doc
formats
PDF Paper Proprietary
format methods
receivers
Rating
Investors Analysts Lenders Regulators
agencies
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3. XBRL - An idea whose time has come...
“XBRL is ..perhaps the most revolutionary change in financial reporting
since the first general ledger”
- Accounting Today
“A Breakthrough Idea”
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4. XBRL
 XBRL stands for Extensible Business Reporting
Language.
 XBRL was developed specifically to communicate
information between businesses and other users of
financial information, such as analysts, investors and
regulators.
 XBRL provides a common, electronic format for
business reporting.
 XBRL improves the quality of data reported as there are
build-in validation checks in the XBRL taxonomy &
business rules. XBRL enables quick and accurate data
analysis.
 XBRL could also enable development of Single
Reporting Platform for all Govt compliance by
companies.

5. Key Benefits
Generation
Enter data once, Render in many forms Standardized, yet extensible
 Reduce costs by automating tasks
Transmission
Facilitates electronic exchange
 Automates collection, immediate validation through flexible rules
Consumption
Potentially real time information
Interactive, flows into proprietary applications
 Shifts focus to analysis, facilitates judgement, quick generation of
information and reports
Technology independent
 Open, royalty free, independent standard, low cost
Quality, Efficiency, Cost Savings
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6. Business Benefits from XBRL
Improved Ease of
Central
data quality Corporate Exchange of
repository standardized
data
Other Govt.
Compliance
Departments
Improved - Standardized
as per XBRL
required in Reporting
the
taxonomy
Ease in data
mining /
Ease of data
Technical Business EWS
availability Scrutiny Intelligence

7. Beneficiaries Of XBRL Data
• Regulators
• Auditors
• Corporate Finance and
Control
• Equity and Credit Analysts
• Investment Bankers
• Investors
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8. Benefits of XBRL - Regulators
Provides a common framework of definitions and facilitates easier
comparison of multiple companies
Use of standard taxonomy
Improve the accuracy, quality and transparency of corporate
information
Business rules and inbuilt validations help to ensure data quality
Makes data more granular, more extractable
Data becomes machine readable and so data analysis can be
automated
Early availability of processed information
Quick generation of information and reports
Collaborative nature of XBRL process provides regulators with input
on the standards via enhanced communication and cooperation
between regulators and respective industry organisations
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9. Benefits of XBRL – Regulators contd.
Improved Early Warning System, Sophisticated Technical Scrutiny
can be designed
Enables development of Single Reporting Platform for all
Government compliance by companies
Automated analysis
Helps to establish the flow of funds within the group and
discrepancies, if any, can be flagged
Ensures cross verification of data
Information submitted across companies
Information submitted over a period by the same company
Depicting the hierarchy structure of the group companies is made
easy
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10. XBRL Implementation in MCA
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11. MCA’s XBRL Notification
 Ministry has mandated compulsory filing of Financial
Statements (Balance Sheet, Profit & Loss Account,
Director’s Report, etc) filling in XBRL format for:
◦ All Listed Companies and their Indian Subsidiaries
◦ All companies with paid up capital more than Rs. 50
Million
◦ All companies with turnover more than Rs. 1 Billion
 Power Companies, Non Banking Finance Companies,
Insurance Companies and Banking Companies were
exempted from XBRL filing in FY 2010-11.

12. XBRL – Information Content
Financial Information
Balance Sheet and detailed Schedules of Balance sheet
Profit and Loss account and detailed Schedules of P&L
account
Cash Flow Statement
Accounting Standard disclosures
Subsidiary Information
Related party Information
Non-Financial Information
Notes to Accounts
Directors’ Report
Auditor’s Report
Accounting Standard disclosures
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13. XBRL Process
• Map a/c concepts with Taxonomy
elements.
• Instance Document Generation.
 XBRL Validations, inbuilt in the software.
 Pre-scrutiny, Server validations by MCA.
 In-built Viewer to check accuracy.
 Separate e-Form 23AC & 23ACA for filing
XBRL attachment.
 Submit e-Forms on MCA portal.
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14. MCA Initiatives on XBRL
• Notification of XBRL Rules, 2011, Taxonomy and new e-forms
were issued in October 2011.
• Based upon mandatory requirements and Business Rule, MCA
has developed a validation tool to accept only complete and
accurate XBRL document on MCA21 portal. Validation tool
also contains a XBRL viewer to enable filer to see the ‘human
readable’ format of XBRL document.
• Filings of XBRL documents started on 06.10.2011 and till date
more than 23600 companies have filed their financial
statements in XBRL. This is more than 85 % of target
companies.

15. XBRL data – Analysis by MCA
Generation of alerts
System based rules to identify potential problem areas
Comprehensive company page
Detailed financial information, alerts, XBRL documents, etc.
Holding - Subsidiary details
Detailed relationship structure can be analysed
Related party transactions
Analysis of Inter-company transactions
Group company information
Identification of group companies based on criteria like
common directors, common addresses, common auditors
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23. Implementation Approach – way forward
XBRL taxonomy for C&I companies being
modified for changes based on Revised
Schedule VI and suggestions received from stake
holders
Taxonomies being finalised/ under development
for banking, insurance, power companies and
NBFCs
Taxonomy also being prepared for Cost Audit
reporting
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24. THANK YOU
A GREEN PROJECT
SAVES 100 MILLION PAGES EACH YEAR!
anil.bhardwaj@mca.gov.in
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