ICAI - Advance ITT - Project on XBRL, Digital Signatures, Cryptography and Digital Certificates

1. Project
on
XBRL, Digital Signatures,
Cryptography, Digital Certificates
Submitted to:
ICAI – ADVANCE ITT

2. Table of Contents
PARTICULARS PAGE NO.
 Introduction to XBRL 5
 Contents of XBRL 6-7
 Applicability of XBRL 8
 Advantages of XBRL 9-10
 Intro to XBRL Instance document 11
 Chart for creating XBRL Instance Document 12
 Steps for creating XBRL Instance document 13
 Chart for validation of XBRL Instance Document 14
 Steps for validating XBRL Instance document 15

3. PARTICULARS PAGE NO.
 Definition of Digital Signature 16-17
 Basic Requirements 18
 Process of Digital signatures 19
 DSC Issuing Authority 20
 Classes of digital signature 21
 Need for Cryptography 22
 Cryptography 23
 Encryption and Decryption 24
 How Cryptography Works 25
 Categories of Cryptography 26
 Cryptography in Digital Signatures 27

4. PARTICULARS PAGE NO.
 Meaning – Digital Certificates 28
 Types of Digital Certificates 29-32
 Advantages 33
 Disadvantages 34

5. Introduction to XBRL
XBRL stands for extensible Business Reporting Language.
Language for the electronic communication of business
and financial data.
Provides major benefits in the preparation, analysis and
communication of business information.
Offers cost savings, greater efficiency and improved
accuracy and reliability to all those involved in supplying
or using financial data.
Being put to practical use in a number of countries.
5

6. What does it contain?
 XBRL documents filed by the companies should include
the following information reported by the companies as
per the existing provisions of law.
Information disclosed in the following sections of the
Annual Report
Balance Sheet
Profit and Loss Statement
Cash Flow Statement
6

7. Schedules related to Balance Sheet and Profit and
Loss Statement
Notes to Accounts
Statement pursuant to Section 212 of the
Companies Act, 1956 relating to subsidiary
companies
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8. Who is it applicable for ?
 Following class of companies have to file the Financial
Statements in XBRL Form from the year 2010-2011:
 All companies listed in India and their subsidiaries,
including overseas subsidiaries
 All companies having a paid up capital of Rs. 5
Crore and above or a Turnover of Rs 100 crore or
above
8

9. Advantages of XBRL
Offers major benefits at all stages of business reporting
and analysis
Benefits are seen in automation, cost saving, faster, more
reliable and more accurate handling of data, improved
analysis and in better quality of information and decision
making
Switch resources away from costly manual processes
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10. Concentrate effort on analysis, aided by software
which can validate and process XBRL information
10

11. 2
An XBRL instance document is a business report in an
electronic format created according to the rules of XBRL. It
contains facts that are defined by the elements in the
taxonomy it refers to, together with their values and an
explanation of the context in which they are placed.
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12. Creation of XBRL instance
document
12

13. The first step in creation of an instance document is to do
tagging of the XBRL taxonomy elements with the various
accounting heads in the books of accounts of the company. This
would create the mapping of the taxonomy elements with the
accounting heads so that the accounting information can be
converted into XBRL form.
Once the tagging of financial statement elements with the
published taxonomy elements is done, the next step is to create
the instance document. An instance document is a XML file that
contains business reporting information and represents a
collection of financial facts and report-specific information using
tags from the XBRL taxonomy.
Once the instance document is prepared, it needs to be ensured
that the instance document is a valid instance document and all
the information has been correctly captured in the instance
document.
Steps for creating XBRL
instance document
13

14. Validation of XBRL instance
document
14

15.  Once the instance document is prepared, it needs to be ensured that the
instance document is a valid instance document and all the information has
been correctly captured in the instance document.
 There shall be a tool provided at the MCA portal for validating the generated
XBRL instance document. Validating the instance document is a pre
requisite before filing the balance sheet and profit & loss account on MCA
portal. You are required to download the tool from the MCA website and
validate the instance document before uploading. There shall also be a
facility to view and search the taxonomy.
 Once the tool has been downloaded, the next step is to validate the instance
document. The following validations shall be performed by the tool-
 Validating that the instance document is as per the latest and correct
version of taxonomy prescribed by MCA
 All mandatory elements have been entered
 Other validations as per taxonomy
Process of validating XBRL
instance document
15

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INTRODUCTION: DIGITAL SIGNATURE
 The authenticity of many legal, financial, and other
documents is done by the presence or absence of an
authorized handwritten signature
 “Digital Signature” is the best solution for authenticity
in various fields.
 A digital signature is nothing but an attachment to any
piece of electronic information, which represents the
content of the document and the identity of the owner
of that document uniquely.

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What is digital signature
 Hash value of a message when encrypted with the private key of
a person is his digital signature on that e-Document.
 Digital Signature of a person therefore varies from document to
document thus ensuring authenticity of each word of that
document.
 As the public key of the signer is known, anybody can verify the
message and the digital signature.

18. Basic Requirements:
The Private Key is one which is accessible only to the
signer. It is used to generate the digital signature
which is then attached to the message.
The Public Key is made available to all those who
receive the signed messages from the sender. It is
used for verification of the received message.
Digital Signature Certificates looks like Pendrive
which has software installed for proper working. The
Certifying Authorities (CAs) issue digital signature
certificates for electronic authentication of users.
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19. Process of Digital Signature:
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20. DSC Issuing Authority
20
 The Controller of Certifying Authorities (CCA) has established the
Root Certifying Authority (RCAI) of India under section 18(b) of the
IT Act to digitally sign the public keys of Certifying Authorities (CA)
in the country. The RCAI is operated as per the standards laid down
under the Act.
 The CCA certifies the public keys of CAs using its own private key,
which enables users in the cyberspace to verify that a given certificate
is issued by a licensed CA.

21. Classes of DSC
21
CLASSES APPLICABILITY ASSURANCE LEVEL
Class 1
Certificate
Less risky
environment
Basic Level
of
assurance
Class 2
Certificate
Moderate
risky
environment
Moderate
Level of
assurance
Class 3
Certificate
High risky
(Fraud)
environment
High Level
of
assurance

22. Need for Cryptography
22
 Confidentiality
 Authentication
 Non-repudiation

23. What is Cryptography
 Cryptography derived its
name from a Greek word
called “Kryptos” which means
“Hidden Secrets”
 Cryptography is the practice
and study of hiding
information
 It is the science of converting
a plain intelligible data into an
unintelligible data and again
retransforming that message
into its original form
23

24. What is Encryption & Decryption
 Encryption is the process of converting plain text into an
unintelligible format (cipher text)
 Decryption is the process of converting cipher text back into its
original form
24

25. How Cryptography Works
25

26. Categories of Cryptography
Cryptography
Symmetric
Key
Cryptography
Asymmetric
Key
Cryptography
26
Symmetric Key
Cryptography
Asymmetric Key
Cryptography
Encryption and
decryption using
the same key
Two different
keys are used
They key must
be kept secret
One of the two
key must be
kept secret
Simpler and
faster
Relatively
complex
Less secured More secured.

27. Cryptography in Digital Signatures
 Digital signatures are primarily used for
 Authentication
 Non-repudiation
27
Bill(digitally
signed)
ENCRYP
TION
DECRYP
TION

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What are Digital Certificates?
A digital certificate (DC) is a digital file that
certifies the identity of an individual or
institution, or even a router seeking access to
computer- based information. It is issued by a
Certification Authority (CA), and serves the same
purpose as a driver’s license or a passport.

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Types Digital Certificates
There are four main types of digital certificates :-
Server Certificates
Personal Certificates
Organization Certificates
Developer Certificates

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Server Certificates
Allows visitors to exchange personal
information such as credit card numbers, free
from the threat of interception or tampering.
Server Certificates are a must for building and
designing e-commerce sites as confidential
information is shared between clients,
customers and vendors.

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Personal Certificates
Personal Certificates allow one to authenticate
a visitor’s identity and restrict access to
specified content to particular visitors.
Personal Certificates are perfect for business to
business communications such as offering
suppliers and partners controlled access to
special web sites for updating product
availability, shipping dates and inventory
management.

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Organization & Developer
Certificates
Organization Certificates are used by corporate
entities to identify employees for secure e-mail
and web-based transaction.
Developer Certificates prove authorship and
retain integrity of distributed software
programs e.g. installing a software on a
computer system in most instances requires
what is called a “serial key”.

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Advantages
1. Authentication: By using digital certificates the
identity of the entity can be verified.
2. Secure: It assures that the public key belongs to the
owner of the certificate an so a secure
communication can established for confidential
email, e-commerce and online transactions.
3. Integrity: Integrity is guaranteed a long as the CA’s
signature on the digital certificate can be verified.
4. It prevents man-in-the-middle attacks, where a
malicious user pretends to be the web site that the
user wants to connect with.

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Disadvantages
1. When a certificate authority is compromised,
hackers can create websites or send emails that look
genuine and pass certification tests, but are actually
fraudulent.
2. A browser does not give a warning when a web site
changes the certificate.
3. A user has to blindly trust that the developer of the
OS has installed genuine root certificates and not
fraudulent certificates.

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