🧷 Authentic Classroom Explanation by IAS Monk

📌 The Question:

Consider the following statements:

I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).
II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature.

Which of the statements given above is/are correct?

(a) I only
(b) II only
(c) Both I and II
(d) Neither I nor II

✅ Correct Answer: (b) II only

🧠 Curiosity Raiser

Why is the market suddenly interested in how companies behave, not just how much they earn?
Because modern investing tracks sustainability, ethics, and long-term risk, not merely quarterly profits.

📘 Enrichment Notes (Prelims Essentials)

🔹 What is BRSR?

Business Responsibility and Sustainability Report (BRSR) is an ESG-based reporting framework introduced by SEBI, not RBI.

• Introduced via amendment to Regulation 34(2)(f) of SEBI LODR Regulations
• Replaced the earlier Business Responsibility Report (BRR)

Statement-wise analysis

• Statement I ❌ Incorrect
  ▸ BRSR is mandated by SEBI, not by the Reserve Bank of India
• Statement II ✅ Correct
  ▸ BRSR focuses on non-financial disclosures, especially:
  • Environment (emissions, energy, resource use)
  • Social (labour, community, human rights)
  • Governance (ethics, transparency, board practices)

These disclosures are quantitative, standardized, and comparable across companies and sectors.

🧘‍♂️ IAS Monk Whisper

In the new economy, numbers reveal profits — values reveal futures.