If you have visited the MCA website you will find prices ranging from a few thousands to millions of Rupees! Why should there be such a variance and what are the factors which decide the price?
Well clearly it is a case of how much effort goes into the creation of a xbrl document. In case of a company, what decides the cost of converting are the following factors:
1. Number of pages: not just the total number of pages but the number of pages to be tagged. It is the P&L a/c, B/sheet, Cash flow, Notes on accounts, ….that are to be tagged.
2. The industry to which it belongs – now normally C&I is the industry in the current year, because the taxonomy is fixed!
3. Is it standalone or a consolidated filing. Obviously if it is consolidated, the effort level increases.
4. How many schedules are there in the annual report of the company.
5. The number of transactions with related parties – it requires a lot of detailed tagging, and is therefore time consuming.
6. The number of subsidiaries that a company has
7. The number of associates, the number of branches, the number of JV partnerships,
….all these factors play an important role in the pricing of a XBRL tool.
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