Annual Secretarial Compliance Report for FY 2022-23: Now to be Filed in XBRL Format

The landscape of compliance reporting in India has undergone a significant transformation. As per the latest directive from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), the Annual Secretarial Compliance Report for the financial year 2022-23 must now be filed in the eXtensible Business Reporting Language (XBRL) format. This move is expected to enhance the accuracy, efficiency, and transparency of compliance reporting. This blog delves into the implications of this change, the benefits of MCA XBRL, and how DataTracks can assist in ensuring a seamless transition to the new reporting requirements.

BSE and NSE have now vide their circulars dt: June 14, 2023 asked listed companies to submit ASCR for FY 22-23 in XBRL mode by June 30, 2023

Refer:

BSE Circular: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20230614-44

NSE circular: https://static.nseindia.com//s3fs-public/inline-files/NSE_Circular_14062023.pdf

Understanding the Shift to XBRL

XBRL is a global standard for exchanging business information. It allows the expression of semantic meaning commonly required in business reporting. By adopting XBRL for the Annual Secretarial Compliance Report, regulatory bodies aim to streamline the process, making it more efficient and reducing the scope for errors.

The primary reasons behind this shift include:

• Enhanced Data Accuracy: XBRL reduces the chances of manual errors that are common in traditional reporting formats.
• Improved Efficiency: The automation of data collection and validation processes speeds up the reporting cycle.
• Greater Transparency: XBRL enables a standardized format that enhances comparability and transparency in financial reporting.

Implications for Companies

For companies, this shift means adapting to a new way of reporting. The Annual Secretarial Compliance Report, which includes details about the compliance of a company with various laws and regulations, will need to be meticulously converted into XBRL format.

Key Challenges

1. Technical Expertise: Companies will need to invest in acquiring or developing the necessary technical expertise to convert reports into XBRL.
2. Initial Setup: There will be an initial setup cost and time investment required to implement XBRL reporting systems.
3. Training: Staff will need to be trained on the new reporting format and tools to ensure smooth implementation.

Benefits of XBRL Reporting

Despite the initial challenges, the benefits of XBRL reporting far outweigh the drawbacks:

1. Accuracy and Reliability

XBRL minimizes human errors by automating the data entry and validation processes. This ensures that the data submitted is accurate and reliable, reducing the risk of compliance breaches.

2. Efficiency

The automated nature of XBRL allows for faster report processing and submission. This is particularly beneficial for companies with complex compliance requirements, as it reduces the time spent on report preparation and validation.

3. Standardization

XBRL provides a standardized reporting format, which enhances comparability across companies and industries and facilitates easier analysis and benchmarking.

4. Transparency and Accessibility

XBRL improves the transparency of financial reports, making it easier for stakeholders to access and interpret the data. This increased transparency can lead to better decision-making and enhanced investor confidence.

How DataTracks Can Help

DataTracks is at the forefront of providing XBRL tagging services, helping companies transition smoothly to the new reporting requirements. Here’s how DataTracks can assist:

Expertise in XBRL

With years of experience in XBRL reporting, DataTracks has the expertise to ensure accurate and compliant conversion of reports into XBRL format. Our team of professionals is well-versed in the intricacies of XBRL, ensuring that your reports meet all regulatory standards.

Data security is a top priority for DataTracks. Our XBRL services are built on secure platforms that ensure the confidentiality and integrity of your data. You can trust DataTracks to handle your compliance reporting with the utmost care and reliability.

Steps to Get Started

Transitioning to XBRL reporting with DataTracks is straightforward. Here’s a quick overview of the process:

1. Sign Up: Contact DataTracks to discuss your specific requirements and get started with our XBRL Services.
2. Upload AFS: Upload your Annual Financial Statements (AFS) and other necessary documents through our secure portal.
3. XBRL Conversion: Our MCA XBRL experts will convert your reports into the XBRL format, ensuring compliance with regulatory requirements.
4. Validation: We validate it to ensure that your XBRL reports are accurate and compliant.
5. Download and Submit: Download your validated XBRL reports and submit them to the relevant authorities.

Conclusion

The move to XBRL for the Annual Secretarial Compliance Report represents a significant step forward in enhancing the efficiency, accuracy, and transparency of compliance reporting in India. While the transition may pose some initial challenges, the long-term benefits are substantial. With the right partner, like DataTracks, companies can navigate this change smoothly and reap the rewards of improved reporting processes.

Embrace the future of compliance reporting with DataTracks and ensure your company stays ahead of the curve. Contact us today to learn more about our MCA XBRL preparation services and how we can help you achieve seamless AFS filing with MCA in XBRL format.