In the current year with the deadline of 30th November, 2011 staring at us in the face, is it possible for companies to comply with Mca norms?

I mean do we have the time to convert all our companies, accurately, and file it with MCA – if we do it on our own?

This is a question that every CFO / Co. secretary should be asking. I was personally training the MCA staff about XBRL reports – and this took me to Delhi, Kolkatta, Hyderabad, Chennai, Bengaluru, Ahmedabad….and the most important feedback was the poor quality of filing in almost all the locations. The mistakes made by BIG HUGE foreign listed companies (one could assume that they SHOULD be quality conscious or well aware went for a toss!!).

Is it easy to buy the tool? Yes of course…write a cheque and the software will be yours. Simple, is it not?

Not so fast…you will have to learn how to tag. Ask somebody who has done it…it is boring, and time consuming. So there is a good chance that you will try to delegate…and that is tough.

The ICAI says it takes 90 hours to do one company. That means about 15 days – so you can do 2 companies a month – Sep, Oct, Nov you can do 6 companies! What about the 15 days salary of a CA or inter CA? Let us say that will be Rs. 25000? So if you CANNOT CHARGE Rs. 25k + 25k+ margin FOR ONE Company…think hard, real hard.

Next year – the taxonomy may change dramatically – so the tool may have to be upgraded paying a nice amount – so again think hard.

While outsourcing, please visit the team that is going to do the outsourcing – and be doubly sure BEFORE – you choose your o/sourcing partner. Frankly you do not have the luxury of going with a wrong guy and then retracing and finding the right guy – 30th November is too close by!

When talking to the team check for some knowledge of taxonomy, tagging and technology support – just in case something goes wrong.

Well these can only be guidelines…all the best.

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