An Introduction to E-Governance and Xbrl

An Introduction to E-Governance and Xbrl

1. Mr.N.Devaram ., M.Com ., NET., TNSET Assistant Professsor Sri Ramakrishna College of Arts & Science An Introduction to E-Governance and Xbrl

2. MCA-21 is an e-Governance initiative by the Ministry of Corporate Affairs (MCA), Government of India. It was launched in 2006 to facilitate easy and secure access to MCA services for corporate entities, professionals, and the public. MCA

3. E-governance E-governance or Electronic Governance is the application of Information Technology to the Government functioning in order to bring about Simple, Moral, Accountable, Responsive & Transparent (SMART) Governance

4. Important Aspects of MCA-21 Old Role (Before MCA-21) New Role (Under MCA-21) Physical filing center Acts as a Back Office Processed paper documents Processes electronic documents received via the MCA-21 system

5. Structure of MCA-21: Front Office vs Back Office 1. Front Office – User Interface This is the "public face" of the system. It's how companies and professionals interact with the MCA for filing purposes. There are two types of Front Offices: Virtual Front Office (VFO Registrar’s Front Office (RFO)

6. Front Office – User Interface It's an online platform accessible through the internet at www.mca.gov.in Users can: Log in Fill and digitally sign e-forms Upload documents Pay filing fees online Virtual Front Office (VFO) Physical offices set up by MCA to help users file online. Located across various cities in India. Provide: Free help for online filing Trained staff Computers, internet, printers, scanners Free of cost and managed by officials from MCA and TCS/Infosys. Registrar’s Front Office (RFO)

7. Feature RFO (Registrar’s Front Office) CFC (Certified Filing Centre) Run by MCA and TCS/Infosys officials Professional bodies and members Cost Free Paid service Equipment/Facilities Available Available Services Offered E-filing support E-filing support Staff Trained by MCA Trained professionals

8. Term Meaning MCA-21 E-Governance system for companies under MCA Front Office Where users file documents (Virtual or Physical) Back Office Where MCA staff process the filed documents Virtual Front Office Online filing through the MCA portal Registrar’s Front Office Free physical centers to help with e-filing Certified Filing Centres Paid filing support by professionals

9. Segment Meaning 1st digit Listed/Unlisted Next 5 Business activity Next 2 State code Next 4 Year of incorporation Next 3 Ownership type (e.g. PTC for Private Ltd) Last 6 Registration number by ROC

10. MCA Services Category Key Services Company Services Incorporation, Name Change, Registered Office Change Director Services DIN Allotment, KYC Filing, Appointment/Resignation Compliance Filings AOC-4, MGT-7, ADT-1, DIR-12, etc. LLP Services LLP Incorporation, Change in LLP Agreement Charge Management Registration, Modification, Satisfaction of Charges Investor Services View Public Documents, Company Master Data XBRL Filings Financial Statements in Standard Format Help & Grievances MCA Service Desk, FAQs, Online Help Support

11. Features of e-Forms Feature Explanation Digital Format e-Forms are available in electronic formats such as PDF, HTML, XML, or web forms, eliminating the need for physical paperwork. Pre-Filled Data Many e-forms are auto-filled with data already available in government databases, reducing manual entry and errors. Mandatory Field Validation Built-in checks ensure that all required fields are filled and data formats (e.g., date, PAN) are correct. Attachments and Uploads Users can upload supporting documents (PDFs, images, etc.) along with the form.

12. Features of e-Forms Feature Explanation Digital Signature Integration e-Forms can be digitally signed using DSC (Digital Signature Certificate), ensuring authentication and security. Barcode/QR Code Support Some e-Forms generate a unique barcode/QR code for tracking and verification. Save and Resume Feature Users can partially fill and save forms to complete submission later. Language Support Available in multiple languages to ensure accessibility for a broader audience.

13. XBRL XBRL ( eXtensible Business Reporting Language) is a global standard for exchanging business and financial data electronically. It uses XML-based syntax to tag financial information, making it machine-readable and easy to analyze . XBRL enables companies to prepare, publish, and share financial statements and regulatory filings in a standardized digital format.

14. MCA Mandate XBRL Filing of Annual Accounts To ensure accuracy and consistency in financial reporting. To enable easy validation and analysis by MCA and other regulators. To improve transparency and accessibility of company financial data. To facilitate easier public access to reliable financial information. To reduce manual intervention and errors in data handling

15. Who Needs to File Annual Accounts in XBRL? As per MCA rules, the following companies are required to file XBRL Annual Accounts: Listed companies. Companies with paid-up capital of ₹5 crore or more . Companies with turnover of ₹100 crore or more . Other prescribed companies under specific rules.

16. Process of Preparing XBRL Annual Accounts Prepare Financial Statements in your accounting system. Map financial data to XBRL taxonomy provided by MCA (i.e., tagging each data item with standard codes). Use an XBRL software tool (certified by MCA) to convert financial statements into XBRL instance documents. Validate the XBRL file using the tool to ensure compliance with MCA taxonomy. Upload the validated XBRL file on the MCA portal with other required forms (e.g., AOC-4).

17. Thank You.