Each business utilizes the resources – natural and human - available to it less all potential limitations so as to support and impart financial execution and success. As they make utilization of the natural and societal assets it is their duty to report and record for the costs forced on the environmental framework.

Late years have seen rising worry for ecological damage occurring because of expanding modern and industrial exercises. This maybe a direct result of the fact that natural debasement and pollution cause horrendous misfortunes to human wellbeing, economic productivity, and community courtesies.

In the Indian setting, business houses and industrial ventures still face the dilemma of natural bookkeeping and reporting without obvious tenets and strategies. The paper endeavors to comprehend the idea of environmental accounting, its fundamental importance to the economy and biological community and the current lawful system and gauges of environmental accounting and reporting predominant in India.

KEYWORDS: ecological damage, economy, environmental accounting, natural debasement, pollution.