XBRL (eXtensible Business Reporting Language) is a standardized digital reporting format mandated by the Ministry of Corporate Affairs (MCA) for filing financial statements with the Registrar of Companies (ROC). It ensures consistency, accuracy, and comparability of financial data across companies, improving transparency for regulators, investors, and stakeholders.

Certain classes of companies are required to file their financial statements in XBRL format using Form AOC-4 XBRL. Typically, this includes listed companies, their subsidiaries, companies with paid-up capital of ₹5 crore or more, or those with annual turnover of ₹100 crore or more. The key documents filed in XBRL include the Balance Sheet, Profit & Loss Account, Cash Flow Statement, Notes to Accounts, and Directors’ Report.

The process involves converting audited financial statements into XBRL taxonomy, validating the data through MCA tools, and uploading the form on the MCA portal within the prescribed timelines. Non-compliance may lead to heavy penalties and legal consequences.

XBRL filing not only fulfills statutory compliance but also enhances data usability, ensuring financial information is accurate, uniform, and reliable for analysis.