Riya Setia & Ravi Prakash Mishra, Bharati Vidyapeeth New Law College, Pune
ABSTRACT
The MCA-21 is virtually designed to remove the physical interface between businesses, ROCs, RDs, and even MCAs. The focus of the MCA-21 program is to strike a delicate balance between trade facilitation on the one hand, and enforcement requirements on the other. Not only did it save time and energy for company representatives, but it also enabled them to focus on other creative tasks. MCA-21 has also proven to be environmentally friendly as the paperwork involved in filing forms and documents has been eliminated. The problem of default by the company for not filing annual returns due to long queues at ROC offices through electronic filing has now been eliminated. Thus, law enforcement has become easier and will ultimately benefit the investors, stakeholders and regulators involved. With specific details of companies and their directors available in electronic form, it ensures proactive and effective compliance with the relevant laws and in turn enhances corporate governance.
MCA-21 is the Government of India's first mission-setting e-governance project based on XBRL.1 XBRL can be used by any type of organization to save expenses and enhance efficiency when managing business and financial data. Automation, cost savings, faster, more reliable, and accurate data processing, improved analysis, and increased information and decision-making quality are all advantages. XBRL allows financial data producers and consumers to divert resources away from time-consuming manual tasks including data comparison, aggregation, and re-entry. Thanks to technologies that can validate and process XBRL data, they can focus their efforts on analysis.2 However, the size of the balance sheet is sizeable, the XML will be in capsule form to display such details, thus consuming less file size compared to regular pdf attachments. Related data is tagged and selective information may be fetched for specific purposes by various government and regulatory agencies. It is compatible with global reporting standards, which helps in improving data mining and searching for relevant information. XBRL Under the previous rules, namely the Corporate (Filing of Documents and Forms in Extended Business Reporting Language) rules 2011, you must continue to apply in XBRL-only mode. In short, “once XBRL, always XBRL” companies in banking, insurance, non-bank financial firms and housing finance firms are, however, exempted from submitting XBRL until further applications.
Keywords: XBRL, compliance, governance, regulators, reporting.
