Let's carefully examine the given statements regarding the Business Responsibility and Sustainability Report (BRSR) in India.

Understanding the Business Responsibility and Sustainability Report (BRSR)

The Business Responsibility and Sustainability Report (BRSR) is a reporting framework introduced by the Securities and Exchange Board of India (SEBI). It is designed to encourage companies to report their performance on environmental, social, and governance (ESG) aspects. This reporting goes beyond traditional financial reporting to provide stakeholders with a more comprehensive view of a company's impact and sustainability practices.

Analyzing Statement I: BRSR Mandate Authority and Scope

Statement I says: The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).

Let's break down this statement:

• Authority: The BRSR framework was introduced by the Securities and Exchange Board of India (SEBI), not the Reserve Bank of India (RBI). RBI is primarily the central banking institution and regulatory body for the banking sector in India, while SEBI is the regulator for the securities market.
• Scope: The mandate initially applied to the top 1000 listed companies in India based on market capitalization, effective from the financial year 2022-23. It does not currently apply to *all* listed companies.

Based on the correct authority (SEBI vs. RBI) and the scope (Top 1000 listed vs. all listed), Statement I is incorrect.

Analyzing Statement II: Nature of BRSR Disclosures

Statement II says: In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature.

Let's look at the content of the BRSR:

• The BRSR requires disclosures across various principles and core elements related to environmental, social, and governance factors.
• Examples of disclosures include information on resource consumption (energy, water), emissions, waste management, employee well-being, diversity and inclusion, supply chain sustainability, consumer relations, business ethics, anti-corruption measures, and grievance redressal mechanisms.
• While these practices can have financial implications or be linked to financial performance, the disclosures themselves are primarily metrics and qualitative information about the company's impact and practices in these non-financial areas.

Therefore, the disclosures required under BRSR are indeed largely non-financial in nature, focusing on a company's ESG performance and impact rather than just its financial results.

Based on the content covered by the BRSR, Statement II is correct.

Conclusion on Statements

Based on our analysis:

• Statement I is incorrect because the BRSR mandate is from SEBI, not RBI, and it applies to the top listed companies, not all.
• Statement II is correct because the BRSR disclosures focus on non-financial ESG aspects.

Therefore, only Statement II is correct.

The correct option is the one stating that only Statement II is correct.

Revision Table: Key Facts about BRSR in India

Additional Information: Significance of Non-Financial Reporting

Non-financial reporting, like the BRSR, is becoming increasingly important globally. It helps stakeholders, including investors, customers, employees, and the community, understand a company's impact beyond its financial performance. This transparency allows for better assessment of long-term risks and opportunities related to sustainability. ESG factors can significantly influence a company's reputation, operational efficiency, and future viability. Reporting frameworks like BRSR standardize how companies disclose this information, making it easier to compare performance across different entities.