Guj cos gear up to file statements in XBRL format

Several companies located in central Gujarat today participated in an interactive session on XBRL (Extensible Business Reporting Language)"  organised by Confederation Of Indian Industry and KPMG today.

Talking to newsmen, Nitin Mankad chairman, CII central zonal council and managing director of Innovative Tyre and Tubes Ltd said "the purpose was to create awareness among companies about XBRL as Ministry of Corporate Affairs (MCA) has directed all listed companies and certain unlisted companies to file their financial statements for the year ended 31 March 2011 onwards using XBRL format.

Mankad said, "With the mandatory use of XBRL, the industry needs to quickly gear-up for the challenges and opportunities that they would counter while adopting XBRL." 

In the first phase, about 30,000 companies across the country including about 400 from Gujarat have been asked to file their balance sheet and profit & loss account for the year ended March 31, 2011, using EXBRL format before November 30, 2011.

There are about eight lakh companies across the country who will have to file their financial statements using XBRL format over the next couple of years.

Mankad said about 2.80 lakh industrial units are located in 182 industrial estates across Gujarat who will have to switch over to this XBRL format.

The key benefits of XBRL are transparent filing of financial statements, quick analysis of financial data, improved monitoring by regulators, easier detection of errors and inconsistencies,  significant cost reduction in data collection among others, CII said.