AUBSP Description

Filing of Cost Audit and Compliance Report in XBRL mode without penalty

Till now, XBRL International Members includes only three members from India viz. a) Aptara and b) IRIS Business Services Ltd. and both are XII Direct Member and third member is the Institute of Chartered Accountants of India (ICAI) which is under the jurisdiction of XBRL India.

Filing of Cost Audit and Compliance Report
The Ministry of Corporate Affairs (MCA) has already made it mandatory for select group of companies to file their Cost Audit Report (Form-II) and Compliance Report (Form-A) in the eXtensible Business Reporting Language (XBRL) mode vide MCA’s General Circular No. 8/2012 dated 10th May, 2012.

The above circular was amended on 29th June, 2012 to allow Cost Auditors and concerned companies to file Form-II and Form-A with Central Government (CG) in XBRL mode after 31st July, 2012 and The Institute of Cost Accountants of India (ICAI) was requested to circulate that for the information of all concerned.


Now, the said circular has further been amended on 26th July, 2012 for giving relaxation and therefore all cost auditors and concerned companies will be allowed to file their Cost Audit Reports and Compliance Reports for the year 2011-12 with the CG in XBRL mode without any penalty, upto 31st December, 2012.

Note: These reports will also include all overdue reports relating to any previous year.

XBRL, an open standard and free of licence fees, is being developed by XBRL international non-profit consortium of over 600 major companies, organisations and government agencies which is promoting its worldwide use.  It is already being put to practical use in a number of countries and implementations of XBRL are growing rapidly around the world.

Till now, XBRL International Members includes only three members from India viz. a) Aptara and b) IRIS Business Services Ltd. and both are XII Direct Member and third member is the Institute of Chartered Accountants of India (ICAI) which is under the jurisdiction of XBRL India.

ICAI’s views on MCA’s Circular

Following are the observations of the Institute of Cost Accountants of India (ICAI) on MCA’s circular for filing Cost Audit Reports and Compliance Reports with CG in XBRL mode in connection with the provisions contained in the relevant Rules read with the aforesaid further amended Circular dated 26th July, 2012:

A) Approval and submission of Cost Audit Report: Rule 5 of the Companies (Cost Audit Report) Rules, 2011 says that the Cost Auditor shall forward his cost audit report to the Central Government within 180 days from the close of the company’s financial year to which the report relates. Rule 7 prescribes that the Annexure to the cost audit report shall be approved by the Board of Directors.

B) Approval and submission of Compliance Report: Rule 6 of the Companies (Cost Accounting Records) Rules, 2011 says that every company shall submit compliance report to the Central Government within 180 days from the close of the company’s financial year to which the report relates. Rule 7 prescribes that the Annexure to the compliance report shall be approved by the Board of Directors.

C) Extended Time Limit: The above time limit of 180 days has been prescribed for submission of the cost audit report by the cost auditor and for submission of the compliance report by the company, with the Central Government. For filing such reports for the financial year 2011-12 [including the overdue reports relating to any previous year(s)], MCA vide their General Circular No. 18/2012 dated 26th July, 2012 has extended this period of 180 days to 31st December 2012.

D) XBRL Taxonomy: MCA is yet to notify the applicable XBRL taxonomy, business rules, validation tools, etc. and also the “Product Group” classification required for preparing the cost audit reports and compliance reports.

Thus, in view of above, audit of cost records, approval by the Board, and filing of cost audit report & compliance report with the Central Government should be completed by 31st December 2012.

How to file Financial Statements in XBRL format on MCA portal

Step-1: Create XBRL instance document
Step-2: Download XBRL validation tool
Step-3: Load the instance document
Step-4: Validate the instance document
Step-5: Pre-scrutiny of the instance document
Step-6: Convert to PDF and verify the contents of the instance document.
Note that this step is indispensable to confirm that the textual information entered in the instance document is clearly viewable or not.
Step-7: Attach instance document to the Form 23AC-XBRL and Form 23ACA-XBRL
Step-8: Submitting the Form 23AC-XBRL and Form 23ACAXBRL on the MCA portal.


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