Module: | Specialized Audits, Tech & ESG Disclosures
Q76: Consider the following statements regarding the filing of financial statements in XBRL (eXtensible Business Reporting Language) format under MCA rules for the FY 2025-2026 cycle:
1. All public companies listed on a recognized stock exchange in India and their Indian subsidiaries must file their financial statements in XBRL format.
2. Unlisted private companies with a paid-up share capital of Rupees 2 Crore or more are mandatorily required to file their financials using the XBRL taxonomy.
3. Non-Banking Financial Companies (NBFCs) and housing finance companies are explicitly exempted from filing their financial statements in XBRL format with the MCA.
Which of the above statements is/are incorrect?
2. Unlisted private companies with a paid-up share capital of Rupees 2 Crore or more are mandatorily required to file their financials using the XBRL taxonomy.
3. Non-Banking Financial Companies (NBFCs) and housing finance companies are explicitly exempted from filing their financial statements in XBRL format with the MCA.
Which of the above statements is/are incorrect?
✅ Correct Answer: B
🎯 Quick Answer:
B. Only 2 is incorrect.Structural Breakdown: Statement 1 is correct; listed entities and their subsidiaries form the core base of XBRL filers.
Statement 2 is incorrect; the threshold for unlisted companies to fall under the XBRL mandate is a paid-up capital of Rupees 5 Crore or more, or a turnover of Rupees 100 Crore or more, not Rupees 2 Crore.
Statement 3 is correct; NBFCs, banks, and insurance companies are exempted from the MCA's XBRL filing because they already submit highly specialized, sector-specific digital returns to their primary regulators (RBI/IRDAI). Historical/Related Context: The MCA introduced XBRL to phase out PDF balance sheets, enabling the use of Artificial Intelligence to automatically scan thousands of corporate filings for tax evasion and related-party circular trading.
Causal Reasoning: Forcing small private companies (like a Rs 2 Crore capital business) to map their accounts to complex XBRL tags requires hiring specialized consultants, imposing an unjustified compliance cost on micro-enterprises with low public risk.