lco Cooscltlo lvt. Ltu.

A |loooco 8 Accocots Octsocrclo Coooy

1cly l3' 2009
Blue Consulting Pvt. Ltd.
Consulting F&A Outsourcing nternal Audit
De|oiIed resen|o|ion on X8kl
conversion services
oing common things, Uncommonly well.
Blue Consulting Pvt. Ltd.
www.xbrlconsulting.co.in ouo
51
2
8ack
ground
need for
x88L
x88L ln
lndla
MCA
MandaLe
Common
Lerms
1agglng
requlre
menL
Pow Lo
Lag?
rocess
llow
lee
facLors
Pow Lo
declde a
servlce
provlder?
lnLeresLlng
facLs abouL
x88L ln
lndla
on|oc| us Abou| us
Blue Consulting Pvt. Ltd.
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1. Backgrou51
x88L sLands for eOLenslble uslness eporLlng anguage
As Lhe name suggesLs x88L ls a |anguage for Lhe elecLronlc communlcaLlon of
buslness and flnanclal daLa whlch ls revoluLlonlslng buslness reporLlng around Lhe
world
1he sLandardlsaLlon lnbullL ln Lhe x88L documenLs provldes s|gn|f|cant benef|ts
ln Lhe preparaLlon analysls and communlcaLlon of buslness lnformaLlon
x88L was started |n 1998 by an Amerlcan CA Charles Poffman lL ls belng
promoLed all over Lhe world by O Internat|ona| a nonproflL organlsaLlon of
approx 430 enLlLles lL ls successfully be|ng used |n USA Uk Iapan S|ngapore
and many other countr|es globally
3
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Blue Consulting Pvt. Ltd.
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2. N1 for XBRL
no sLandard formaL of reporLlng
Language dependency
LxLenslve manual efforLs on daLa analysls
loundaLlon for ll8S lmplemenLaLlon
4
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3. XBRL i5 51ia
ln lndla Lhe 8eserve 8ank of lndla (I) has already lmplemenLed (slnce CcL 2008)
x88Lbased reporLlng for Lhree reLurns caplLal adequacy daLa as per 8asel ll norms
lorm A and Lhe C8 8eLurn by banks
lurLher lL ls mandaLory for Lhe top 100 ||sted compan|es ln lndla Lo reporL Lhelr
quarLerly resulLs eLc Lo 8SL nSL ln x88L lL ls called Corpflllng
now lL ls MCA's Lurn Lo lmplemenL lL on a wlder canvas ln Lhe 1
sL
phase around
30000 companles ln lndla need Lo reporL Lo Lhe MCA ln x88L Lhls year Colng
ahead (from l? 201213) lL ls expecLed LhaL almosL 9 lakh companles would need
Lo reporL ln x88L ln Lhe nexL Lhree years
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Blue Consulting Pvt. Ltd.
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4. NCA ma51at
1he MlnlsLry of CorporaLe Affalrs (MCA) has mandaLed flnanclal reporLlng ln x88L
from Lhe llnanclal ?ear 20102011 for
V a|| ||sted compan|es and Lhelr subs|d|ar|es (excludlng overseas subsldlarles)
V all unllsLed companles havlng pa|d up cap|ta| of s S Crore and above
V all unllsLed companles havlng a turnover of s 100 Crore or above
1he above companles are permlLLed Lo flle x88L compllanL documenLs up to
30112011 or wlLh ln 60 days of Lhelr due daLe whlchever ls laLer wlLhouL any
addlLlonal flllng fee
1he currenL mandaLe exc|udes banklng companles lnsurance companles power
companles non 8anklng llnanclal Companles (n8lCs)
A pract|c|ng CharLered AccounLanL or Company SecreLary or CosL AccounLanL ls
requlred Lo cert|fy the O document
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Blue Consulting Pvt. Ltd.
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S. Commo5 trms
@axonomy
1axonomy ln general means a caLalogue or seL of rules for classlflcaLlon ln x88L
Laxonomy ls referred yo as an elecLronlc dlcLlonary of Lhe reporLlng concepLs
conLalnlng compuLerreadable deflnlLlons of buslness reporLlng Lerms as well
relaLlonshlps beLween Lhem and llnks connecLlng Lhem Lo resources
|ements
An elemenL ls a buslness or a flnanclal concepL whlch ls deflned ln Lhe Laxonomy
accordlng Lo x88L speclflcaLlons Lach elemenL has a Lype lL ls ldenLlfled by name
and may have a seL of aLLrlbuLe speclflcaLlons as per Lhe x88L sLandards
7
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Blue Consulting Pvt. Ltd.
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...co5t1. (Commo5 trms)
ata types
1hls aLLrlbuLe lndlcaLes Lhe daLa expecLed for concepLs Common daLa Lypes are
moneLary sLrlng LexL block eLc
Instance documents
1he flnal ouLpuL whlch ls converLed ln x88L formaL ls called an lnsLance documenL
1wo lnsLance documenLs are generaLed 8alance SheeL and lncome SLaLemenL
(roflL Loss a/c)
lor a llsLed company havlng subsldlary companles Lwo seLs of lnsLance documenLs
are generaLed le one on a sLandalone basls and Lhe oLher on a consolldaLed basls
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Blue Consulting Pvt. Ltd.
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6. Taggi5g r8uirm5t
9
8alance sheeL and lLs
schedules
roflL and loss a/c and lLs
schedules
Cash flow sLaLemenL
8elaLed parLy LransacLlons
(parLy wlse)
SegmenL reporLlng
Subsldlary and Poldlng
company lnformaLlon
AssoclaLes and !olnL venLures
eta||ed tagg|ng
lrecLor's reporL
AudlLor's reporL
noLes Lo accounLs
@ext |ock tagg|ng
Note
ln our experlence deLalled Lagglng Lakes
approx 90 of LoLal Lagglng Llme
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Blue Consulting Pvt. Ltd.
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7. How taggi5g is 1o5
lor Lagglng one need Lo have a good knowledge of llnanclal SLaLemenLs (le
Schedule vl and AccounLlng SLandards) and famlllarlLy wlLh Laxonomy and lLs
relaLed concepLs
MosL sofLware comes can lmporL llnanclal SLaLemenLs ln Lxcel and Word
formaL Lo sLarL Lhe Lagglng process
1yplcally on one slde Lhere are llnanclal SLaLemenLs and on Lhe oLher slde
elemenLs (Lags) are dlsplayed Cne needs Lo choose an approprlaLe Lag and
conLlnue Lagglng Lhe enLlre llnanclal SLaLemenLs
?ou can see a deLalled vlew of Laxonomy you can access lL here
blgfooLcoreflllngcom
10
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Blue Consulting Pvt. Ltd.
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8. Procss flow of co5rsio5
11
CllenL CllenL provldes sofL copy of Annual 8eporL of l? 201011
x88L converslon
servlce provlder
Analysls of
Annual 8eporL
Mapplng and
Lagglng
8evlew and
valldaLlon
x88L lnsLance
documenL
CllenL 8evlew and upload of x88L documenLs Lo MCA webslLe
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Blue Consulting Pvt. Ltd.
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3. F factors
12
x88L converslon fee ls based on Lhe Llme spenL on Lhe converslon process 1hls
varles across dlfferenL cllenLs because of Lhe volume of daLa and level of
complexlLy ln llnanclal SLaLemenLs
1he Lagglng efforL ln Lhe case of Lwo companles wlLh a slmllar number of pages ln
Lhelr Annual 8eporL can vary as drasLlcally as from 30 Lo 100
1he professlonal fee for x88L converslon ls normally based on Lhe followlng
facLors
V no of pages ln Lhe annual reporL
V no of subsldlarles of Lhe company
V volume of relaLed parLy LransacLlons
V Level of complexlLy ln Lhe llnanclal SLaLemenLs
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Blue Consulting Pvt. Ltd.
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10. How to slct a sric proi1r
13
xper|ence
V Ask servlce provlders abouL Lhelr experlence ln handllng llnanclal SLaLemenLs across varlous
lndusLrles
V Ask abouL Lhe number of years ln exlsLence LoLal Leam slze 1he naLure of servlces
provlded by Lhe servlce provlder can be a good lndlcaLlon of lLs knowledge of llnanclal
SLaLemenLs
O convers|on process
V Ask Lhe servlce provlder abouL lLs x88L converslon process WhaL lnpuLs shall be requlred
from Lhe cllenL and aL whaL sLages?
V 1he amounL of addlLlonal lnformaLlon requlred for accuraLe converslon and flllng varles from
company Lo company lL could lnclude lnformaLlon oLher Lhan LhaL provlded ln Lhe Annual
8eporL
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Blue Consulting Pvt. Ltd.
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.co5t1. (How to 1ci1 a sric proi1r)
14
O @eam
Lnqulre abouL Lhe followlng from a prospecLlve servlce provlder
V no of people ln x88L Leam
V 1helr quallflcaLlons
V o Lhey have prlor experlence on Lhe x88L converslon process
V ls Lhere a separaLe Leam or person for revlew of Lagglng quallLy?
1hls lnformaLlon wlll help you Lo assess wheLher a parLlcular servlce
provlder can handle volumes or noL
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Blue Consulting Pvt. Ltd.
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.co5t1. (How to 1ci1 a sric proi1r)
15
C||ents references
V Ask abouL Lhe servlce provlders' exlsLlng cllenL llsL
V Ask for aL leasL Lwo reference for whom Lhe servlce provlder has converLed flnanclal
reporLs lnLo x88L Cne phone call can provlde you an assurance abouL Lhe compeLence
and quallLy of an x88L servlce provlder
Conf|dent|a||ty of |nformat|on
V A cllenL should enqulre abouL Lhe daLa handllng process aL servlce Lhe provlder's offlce
V oes Lhe servlce provlder have a pollcy of slgnlng a confldenLlallLy agreemenL or an nA
(nondlsclosure agreemenL)?
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Blue Consulting Pvt. Ltd.
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11. 5trsti5g facts about XBRL i5 51ia
16
1o converL llnanclal SLaLemenLs ln x88L formaL one needs Lo have a professlonal
undersLandlng of llnanclal SLaLemenLs and 8uslness 8ules deflned for 1axonomy
SofLware ls jost oo eooblet lL cannoL replace or repllcaLe domaln knowledge
resenLly Lhere ls no sofLware avallable ln Lhe markeL whlch can Lag
auLomaLlcally
x88L sofLware prlces range from 8s 3400 Lo 8s 400000
Slmllarly converslon fees range from 8s 9000 per company Lo 8s 43000 per
company and 8s 300 per page Lo 8s 3000 per page
resenLly Lhere ls noL much dlfference ln Lhe efforL lnvolved ln Lagglng a llsLed
company and an unllsLed company
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Blue Consulting Pvt. Ltd.
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.co5t1. (5trsti5g facts.)
17
1here are servlce provlders who quoLe Lhelr fee over Lhe phone wlLhouL
ascerLalnlng Lhe naLure and complexlLy of llnanclal SLaLemenLs lnvolved
1he quallLy of Lagglng (le chooslng a parLlcular Lag) plays an lmporLanL role ln
maklng Lagged llnanclal SLaLemenLs useful for analysls Powever Lhls area ls
normally overlooked by cllenLs whlle engaglng any servlce provlder for converslon
servlce
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Blue Consulting Pvt. Ltd.
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12. About us
18
8lue ConsulLlng vL LLd (8C) ls a ||sted serv|ce prov|der for x88L converslon by
MCA
8C has lLs rooLs ln a well esLabllshed four decade o|d chartered accountants f|rm
8C provldes value added and h|gh qua||ty serv|ces ln Lhe domaln of llnance
AccounLs
ConsulLlng servlces
llnance AccounLs CuLsourclng Servlces
lnLernal AudlLs
We have a separate d|v|s|on for O convers|on servlces
We spec|a||ze |n statutory comp||ance ouLsourclng servlces
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Blue Consulting Pvt. Ltd.
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.co5t1. (About us)
19
ey assoclaLes aL 8C have rlch experlence ln Lhe area of llnance 1axaLlon
AccounLs ManagemenL and lnformaLlon 1echnology Cur x88L Leam
members also have experlence of O f|||ng for Uk and US compan|es as
well
DLlllzlng forLy years of lndusLry experlence and funcLlonal experLlse 8C looks
lnnovaLlvely beyond sLandard soluLlons Lo develop new lnslghLs drlve
Langlble resulLs and empower cllenLs Lo achleve greaLer resulLs
rovldlng quallLy servlce wlLh compleLe responslblllLy ls naLural Lo our
corporaLe culLure
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Blue Consulting Pvt. Ltd.
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l3. Cootoct cs
Blu Co5sulti5g proi1s alu a111 a51 high
8uality Fi5a5c S Accou5ts rlat1 srics through
its ast pool of pri5c1 profssio5als. Our goal
is to b a trust1 part5r i5 your busi5ss by
bri5gi5g alu a51 sri5g as a5 i5tgral part of
your st up.
Blu Co5sulti5g, or BC, has its roots i5 a wll
stablish1, four 1ca1 ol1 chartr1 accou5ta5ts
firm. Utilizi5g forty yars of i51ustry pri5c a51
fu5ctio5al prtis, BC looks i55oatily byo51
sta51ar1 solutio5s to 1lop 5w i5sights, 1ri
ta5gibl rsults, a51 mpowr cli5ts to achi
gratr rsults.
For furthr 1tail, plas log o5 to:
www.bluco5sulti5g.co.i5
20
Chandan Coyal
Chif Ecuti Officr
cha51a5.goyal@bluco5sulti5g.co.i5
+31 38104 10421
+31 120 4230643
Delhi Pune
dream is not that
which you see in sleep
dream is that
which does not let you sleep"
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