Page |1

Shri Vile Parle Kelavani Mandal’s

Narsee Monjee College Of Commerce And Economics(Autonomous)

A.Y 2021-22

Name Of The Course : Financial Accounting And Auditing – Paper VII

TYBCOM
Semester V

Title of the project/Assignment:

Business Responsibility Reporting

Submitted By: Vaibhav Nagpal

[Link] Full Names Of The SAP ID Number Division Contact Content

Learners [Link] Number Contributed
1. Vaibhav Nagpal 45208190475 C061 9867667054 Types

2. Suhasi Nakhat 45208190477 C062 9833023215 Guidelines

3. Akshay Nandu 45208190480 C063 9930270899 Importance

4. Samidha Nayak 45208190485 C064 9321329116 Case study

5. Rashmi Nayee 45208190486 C065 8422811622 Introduction

Teacher In Charge:
Kedar Bhide Sir
 Page |2

Table of Contents:

Sr. No TOPIC [Link]

1. Introduction (Rashmi Nayee) 3

2. Core Content- A) Guidelines Issued On BRR (Suhasi Nakhat) 4

B) Importance Of BRR (Akshay Nandu) 5
C) Types Of BRR (Vaibhav Nagpal) 6

3. Case Study - Reliance Industry (Samidha Nayak) 8

4. Conclusion 10

5. Bibliography 10

AVERAGE PLAGIARISM OF THE PROJECT : 3+6+8

3

= 5.66%
 Page |3

INTRODUCTION

What is the Business Responsibility Report (BRR)?

 Business Responsibility Report is a disclosure of the adoption of responsible business
practices by a listed company to all its stakeholders.
 This is very important considering the very fact that these companies have a component of
public interest involved and have accessed funds from the public, and are obligated to make
exhaustive disclosures on a regular interval basis.
 BSR is to be submitted as a vicinity of the Annual Report.
 It contains a similar standardized format for firms to report the actions undertaken by them
towards the adoption of responsible business practices.
 It has been designed to provide basic information related to its performance and processes,
information about the company, and information on principles and core elements of the BSR.
Ministry Of Corporate Affairs Initiative on Business Responsibility
The ‘voluntary guidelines on corporate social responsibility’ was issued by the MCA, in 2009, as a
step towards mainstreaming the idea of business responsibility. In 2012, the Securities And
Exchange Board Of India (SEBI) mandated to file Business Responsibility Reports (SEBI-BRR)
through the listing agreement by all the top 100 listed companies by market capitalization. Later, the
BRR demand was further extended to the top 1000 listed firms in December 2019, by market
capitalisation from the financial year 2019-20.
Formation of the committee on business responsibility reporting:
When the NGV’s were being updated, in 2018, a decision was created that the SEBI- BRR
framework should also be revised to replicate the changes created within the base document. Under
the Chairmanship of Joint Secretary, MCA, a committee was constituted by The Secretary of
Corporate Affairs to prepare the business responsibility reporting (BRR) formats for both, unlisted
and listed companies. Its terms of reference and the order constituting the committee is provided in
Annexure-1.
Business responsibility report can be subdivided into 5 sections below:
Section A : General Information Of The Corporate
Section B : Monetary Details Of The Company
Section C : Other Details About The Company
Section D : BR Information Data
Section E : Principle-Wise Performance
 Page |4

GUIDELINES
Companies are required to submit a business Responsibility Report as per the SEBI requirement, but
this was limited to companies that were listed on a recognized exchange. Otherwise, the overview of
the Business responsibility report serves to ensure effective compliance for the Business governance
standards of listed companies.
The Business responsibility report to be submitted by the companies had to be approved and
implemented in stages; to avoid confusion about the breakdown, the SEBI had split the requirement
into two levels. The phases are as follows:

Phase I- In this phase, the SEBI had taken into account the obligation to submit a Business
responsibility report. The obligation to submit the commercial responsibility report only applied to
the top 100 listed companies that were included in the SEBI regulation (list of obligations and
disclosure obligations) of 2015, the SEBI LODR regulation in the previous law, based on Regulation
34(2) f - The 100 main companies must include the Business responsibility report in their annual
report in the prescribed format.

Phase II- In this phase, the expansion of the Business Responsibility Report was based on the
market capitalization of the 500 most important listed companies. This phase began in 2016.
Aside from the previous two phases commissioned by SEBI, there have been many such notices and
regulations to improve a company's requirements when filing the commercial responsibility report.
These notifications were introduced and are now in effect.

Previous changes to the Business Responsibility Report

• December 22, 2015- This is a significant change in the regulations of the SEBI LODR. The main
change in this announcement was that the 500 largest publicly traded companies by market
capitalization are required to file Business responsibility reports.
• May 25, 2016- SEBI has made some necessary changes to a company's Business responsibility
reporting requirements.
• July 8, 2016- This change resulted in the necessity of an appropriate dividend distribution with
certain parameters.
• January 4, 2017- In this amendment, no director or shareholder of a publicly traded company was
required to enter into an agreement to negotiate the securities of the publicly traded company.
• May 9, 2018- This change brought many changes; the key change, however, was the requirement to
have non-executive directors in a public company.
From the above changes it can be deduced that there are regulations for the management and
governance framework of an organization, so that the presentation of Business governance reports is
one of the central and mandatory provisions of the Business responsibility report. Companies have
90 days for determinations.

Latest amendment to SEBI LODR regulation

In 2019, SEBI had increased the limit from 500 companies to 1000 company responsibility (BRR). It
was presented in an organization for reasons of transparency. The goals of the organization must be
brought into line with those of the business prospects, companies must take on more social
responsibility towards their stakeholders, the main requirement for the preparation of the Business
responsibility report is that companies balance their priorities. Business Responsibility Report in the
annual report, monitoring bodies like SEBI would have information about companies that have
complied with LODR regulations.
 Page |5

Importance of BRR
Companies play an integral part in the progress of the Society and this has been tested by time.
Companies aren’t solely accountable towards well-being of its employees and to the extent of paying
dividends to its investors but their responsibility also extend towards betterment of stakeholders at
large. Their impact on society and environment is as deep as its financial and operational
performance. BRR reports also present insights about a company’s overall approach, economically
and socially, helping various stakeholders make wiser decisions.
A socially responsible organization has several instruments available to use in the areas of the
environment, society and employment. The extent to which an organization is involved in social
activities often depend on the scale of its business and its financial potential. It is important to note
that any business may engage in social activities in their own way, depending on its resources,
stakeholder relations, as well as cultural traditions, the social context and environmental situation in
the territory in which it operates
The business’s stakeholders, both internal external, as the beneficiaries the business’s activities a role
for organization. For this reason, BRR reporting seems to be issue in socially responsible business
activities. Delivering information to its employees or business partners helps a business to build its
positive image and reputation. BRR is prepared by a business to present itself as a socially,
ecologically and environmentally responsible organization. The report presents the business’s key
values and its business model based on the idea of sustainable development. Business responsibility
reporting also means disclosing non-financial information, i.e., in areas such as the environment,
society and corporate governance
This reports usually includes non-financial information relating to steps taken by organization
regarding environmental issues, employee development activities, activities for preserving human
rights, activities undertaken for anti-corruption, anti-bribery matters and other social issues. A true
and fair BRR report helps the company in increasing their investment attractiveness and management
processes. BRR reporting can bring many benefits to the reporting organization as well as its
stakeholders. For stakeholders, BRR reports acts as a source of information on the organization’s
activities. If the stakeholder does not know that their organization is giving some support to social
and environmental issues, they are missing out on some key elements about their relationship with
their organization. BRR reporting allows stakeholders to compare the economic, social, and
ecological performance of companies, and helps them to react accordingly.
 Page |6

BRR reporting gives stakeholders an instrument to take action against organization that are
performing poorly or do not take the adequate steps in their processes. Moreover, they can put
pressure on companies to disclose and to improve their way of conducting various activities.
Businesses engaged in BRR reporting are more transparent and more likely to receive feedback from
the market about their products and/or services which in turn helps them to improve their future
performances. Business responsibility reporting may help the organization to win consumers trust
and thereby build loyalty towards a company. In contrast, if a company is not engaged in Business
responsibility reporting, consumers may change their preferences and stop using its products and/or
services due to lack of transparency about the organization activities. Business responsibility
reporting helps the organization to improve its business processes and in turns build trust in a
company and creates a positive image in the eyes of various stakeholders. This, in turn, makes a
company more investment attractive. A company engaged in Business responsibility reporting on a
regular basis will be more transparent in terms of its risks, opportunities and impact. This will help
the organization to build closer relations with other business and social partners, and can find an ease
to establish relations with new stakeholders. Business responsibility reporting can also encourage
innovation and the necessary changes at a company. It can also help companies to identify gaps in
their processes and to take steps to address these issues. Another benefit of Business responsibility
reports is that they offer investors an insight into and an analysis of the reporting company’s situation
and the prospects for its future development.
Business responsibility reports help companies to grow their business and in turn increase the
organisation’s financial value. When a company has a good reputation among investors and other
stakeholders, it helps them to be more competitive in the market.
Types of Business Responsibility Reporting
Business responsibility reporting is a broad concept and every business conducts it in their own way.
However, we can classify it into four main categories-
 Environmental responsibility – It is the most common forms of corporate social
responsibility and many companies focus their responsibility reporting efforts towards
reducing their impact on the environment. Harmful effects on the environment were once
dismissed as a necessary and unavoidable expense of doing business, pollution and excessive
consumption of resources now also pose a social and political concern on a global level.
Environmental responsibility tends to focus on a business cutting down its emissions of greenhouse
gas and waste. This involves re-assessment of a business’s manufacturing processes in order to
identify wasteful acts and cut these from the company’s business plan.
Example:
The largest deodorant manufacturer in the United Kingdom, Unilever, in 2014 began compressing
the cans of their deodorants, cutting the carbon footprint of each aerosol spray by 25% per can.
The business achieved this by using only 50% of propellant gas and 75% of aluminium. The
deodorants last the same amount of time as the older designs, however are half the size, meaning that
 Page |7

54% more cans fit into pallets and therefore fewer carriers are required, meaning a cut in emissions
from transport as well.
 Philanthropic responsibility- Corporate philanthropic responsibility involves making
investments in the local community, for educational purposes, scholarship programs, health
causes and supporting notable issues.
Companies that don't see the people in their communities just as sources of revenue, understand the
role the community plays in their success outside of the business. Customers today want to know
that companies care about them outside of the money they spend.
Most companies choose to donate money to causes that are meant to bring about social change.
Some may choose to attach their brand to the cause, others may choose to remain entirely in the
background and not take any credit for the money or resources offered.
A number of large companies have in-house departments devoted to coordinating and managing
the company's altruistic endeavours. These companies will usually have a few causes that they
promote and commit their resources to.
Example, Microsoft donates a large amount of their earning to the Gates Foundation founded by Bill
and Melinda Gates. Google is known for its corporate philanthropy, running numerous charity
programmes through [Link] that have provided more than $100 million in grants and
investments.
Google runs an initiative which allows employees to dedicate up to 20 hours of work time to
volunteering in their communities each year. They also have a programme in place where donations
made by employees that are between $50 and $12,000 are matched at a 1:1 ratio.

 Ethical or Human Rights responsibility- It is concerned with ensuring a company is operating in a

fair and ethical way. Associations that ensure moral responsibility aim to achieve fair treatment of all
shareholders, including administration, investors, employees, vendors, and consumers. Ethical
responsibilities are self-authorised initiatives that an organisation implements because they believe it
is the morally right thing to do rather than out of any obligation. Businesses consider how
stakeholders will be affected by their decisions and work to have the best impact. Ethical
responsibilities are aimed to enforce fair treatment for all employees, examples including paying
higher wages, employment opportunities to the individuals who might otherwise struggle to find
work, ensuring that decent conditions are maintained in factories and refusing to collaborate with
companies with unscrupulous activities.
Example:
Lush is famous for its global campaigning against animal testing and strong ethical initiatives. The
company sources their ingredients from producers directly, allowing them to ensure that their
vendor’s working conditions are fair and they receive fair compensation for their products.
This allows the company to ensure that they source the safest and most suitable raw materials for
their products, ensuring that customers receive the best quality products.
 Economic responsibility- It is the practice of a firm backing all of its monetary decisions in its
commitment to do good. The ultimate goal is not to simply maximize profits, but positively impact
the environment, people, and society. Economic responsibility for organisations constitutes finding
and executing the most efficient practices for reducing wasted capital and efficient use of
resources. This can be done through new manufacturing processes that improve efficiency or
investing in new equipment.
 Page |8

EXAMPLE OF BUSINESS RESPONSIBILITY REPORT OF RELIANCE FOR THE YEAR

2020-21
 Section A: General Information about the Company
 1. Corporate Identity Number (CIN) of the Company: L17110MH1973PLC019786 2. Name of the
Company: Reliance Industries Limited 3. Registered Address: 3rd Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai 400 021, India 4. Website: [Link] 5. E-mail id:
[Link]@[Link] 6. Financial Year Reported: 2020-21
Section B: Financial Details of the Company
1. Paid-up capital: ` 6,445 crore 2. Total turnover: ` 2,78,940 crore 3. Total profit after taxes: `
31,944 4. Total spending on Corporate Social Responsibility (CSR) as a percentage of profit
after tax: ` 922 crore 2021 5. List of activities in which Corporate Social Responsibility (CSR)
expenditures have been incurred: . Rural Transformation 2. Health (including COVID-19) 3.
Education 4. Sports for Development 5. Disaster Response (including COVID-19) 6. Arts, Culture,
Heritage and Urban Renewal
 Section C: Other Details
1. Subsidiary companies: The number of RIL’s subsidiary companies as on March 31, 2021 was
181. [Link] of subsidiary company/companies in the BR Initiatives of the parent
company: RIL undertakes various Business Responsibility (BR) initiatives throughout the year and
encourages its subsidiary companies to participate in its groupwide BR initiatives. All subsidiaries
are aligned with the Group’s CSR agenda and philosophy, which are implemented through the
Reliance Foundation (RF), Reliance Foundation Institution of Education and Research (RFIER),
Reliance Foundation Youth Sports (RFYS)
 Section D: BR Information
a. Details of the Director/Director responsible for the implementation of the BR policy/ policies
The Corporate Social Responsibility and Governance (CSR&G) Committee of the Board of
Directors is responsible for the implementation of BR policies. The following are the members of the
CSR&G Committee: • DIN Number: 00001879 Name: Shri Yogendra P. Trivedi (Chairman)
Designation: Non-Executive Director • DIN Number: 00001620 Name: Shri Nikhil R. Meswani
Designation: Executive Director • DIN Number: 00074119 Name: Dr. Raghunath A. Mashelkar
Designation: Non-Executive Director • DIN Number: 02787784 Name: Dr. Shumeet Banerji
Designation: Non-Executive Director
b. Details of the BR head DIN Number (if applicable) 00001620 Name Shri. Nikhil R. Meswani
Designation :Executive Director, Telephone Number 022 – 3555 5000 E-mail ID
[Link]@[Link]
 Page |9

 Section E: Principle Wise Performance

 Annexure 1: Details Of Compliance

Annexure 2:
Annexure 2 explains the “Linkage of Policies of RIL with BR Principles as per National
Voluntary Guidelines (NVG) on Social, Environmental & Economic Responsibilities”.
Principle no. Reference Section
1 Section 2,3,5 and 7
Customer Value

2 Section 6 and 3
Customer Value
3 Section 3,4,6 and 8
Excellence value
4 Section 5 and 6
Section 5
Section3
5 Section 6 and 8
Section 5
6 Section 3

7 Section 5 and 6
8 Section5
Section 3
9 Customer Value
Section 2 & 5
Section 5
 P a g e | 10

Conclusion
Business entities cannot be separated from the society that they operate in. A business is run for
earning profit by utilising resources available in the society. It is a general principal that when you
are taking something to do business from society and making profit, then it is your duty to return to
the society. It is the corporate responsibility of an entity to develop social, environment and
infrastructural facilities in the area it conducts business. The government, through various
legislations, makes businesses accountable to act in welfare of society as well as their stakeholders.
They have to utilise a part of their profits in development of society, eradication of poverty, removal
of illiteracy, providing of drinking water, education and other social causes.

Bibliography

[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]