More frequent filing of annual accounts for big unlisted firms?
Back in Dec 2019, Times of India reported that the Indian government is considering amendments to the Companies Act which will require large unlisted companies to file their annual accounts with the Registrar of Companies (RoC) on a quarterly or half yearly basis rather than annually.
There was however no further developments on this front until recently when media again published articles on this subject. According to sources from the government, XBRL was expected to be effective in early fraud detection but scrutiny of XBRL filings has not been as successfully implemented as expected.
To deliberate on which category of companies should be asked to file frequently and the qualifying criteria, the MCA is expected to call for a meeting towards the end of October 2020.
This change is expected to allow the companies regulator keep a check on financial assertions of large unlisted firms, and bring in better compliance and more transparency
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