MCA-21 technical glitch may have affected 2L e-filings

Written by Ashish Sinha | New Delhi | Updated: Feb 8 2013, 07:33am hrs
The continued technical glitch on the corporate affairs ministrys MCA-21 e-governance website has impacted around 1.6 to 2 lakh e-filing of balance sheets, annual reports and other mandatory documents, and resulted in considerable e-stamp revenue loss to the exchequer, said experts. The MCA-21 glitch has come at a time when there has been a high double-digit growth in e-filings of documents on the portal till December 2012 from 15 lakh filings in December 2011, the MCA-21 portal witnessed 17.40 lakh filings, of which 15.76 lakh filings were made in October and November alone.

As a result of the technical glitch, corporates want the government to extend the last date of filing of financial statements in XBRL mode, a language for the electronic communication of business and financial data, from February 15 by at least another month or so. MCA-21 is the e-governence site of the ministry of corporate affairs hosting close to nine lakh companies. Incidentally, MCA-21 will be completing 7-years on February 18.

The MCA-21 website ran into technical glitches post January 17, when IT major Infosys took charge of the portal from another IT major TCS. MCA-21 website is still down impacting even e-stamp revenue collection (average collection of R1.2 crore/day), estimates from various chartered accountancy firms said. The MCA-21 portal is the key platform for companies for submitting the required documents and filings to the registrar of companies (RoC). Besides, the website provides public access to corporate information. The government has made it mandatory for companies to file in XBRL format since past two years. Now, the companies can not meet the MCA-21 deadline on XBRL. This is a serious problem, which if not rectified quickly, would send out bad signals to the corporates, said a senior chartered accountant asking not to be identified.

When contacted, the help-desk for MCA-21 said they have been told to communicate that the problems with the website should be fixed in one-week, something which was communicated even last week. We have been told to communicate that the portal will start working in one week. We have urged the ministry to communicate the same on their website, said an executive in the newly-created help-desk team operating from Gurgaon.