1. Social audit vs Commercial Audit
Social AUDIT Commercial AUDIT
1. Study of all social activities under taken
by business
Examination of financial records of business
2. Evaluates Social performance of the biz Evaluates economic position of biz
3. Provides social balance sheet of Co. Provides Financial balance sheet of Co.
4. Qualified auditors not required for
approval of report
Qualified Auditor must for approval of report
5. Does not have a prescribed standard
format of reporting
Has to be reported in prescribed format
6. Must be done once in two yrs Must be done at the end of every financial yr
7. It is voluntary in nature It is compulsory as per Companies Act 1956
8. Wider scope inclusive of all social
activities
Narrow Scope as involves only financial activities
9. Submitted to top management n should
b e mentioned in annual report
Submitted before AGM n also approved thereof
10. Internal auditor / consultant conducts
social audit under direction of mgtm
Conducted by auditor appointed by shareholders
in AGM
Types of social Audit
Marketing Audit Studies Consumer friendly approach of company
Aspects such as Product, pricing, promotion ,
advertising strategies
Studies how co. Copes up with the promotions
made in ads, personal selling, after sales
services, Pricing policies
Personnel Audit Study the relationship status between employer
n employee
Helps remove Conflicts n miscommunication
Studies personnel policies of the organisation-
recruitment, training, career growth,
compensation, welfare & recreation, industrial
relation, sharing of knowledge, Labour welfare,
redressal policies, etc
Shareholders Audit Evaluates policies in reference to shareholder
Checks fairness of proposal, safety of
investment, Conduct regular meeting, Fair
returns on investment, Clear disclosures, Protect
interest of shareholder, proper usage of funds as
promisied, etc
Issues Audit Aims to find out whether business has fulfiied its
obligations or not.
Social welfare scheme, Environment protection
mearsure, Contri. to social issues , Rural
development program, et c

2. What iS carbon credit?
Ans:
Defines a carbon credit as “a certificate showing that a government or company has paid to have a
certain amount of carbon dioxide removed from the environment”.[
A carbon credit is a generic term for any tradable certificate or permit representing the right to emit
one tonne of carbon dioxide or the mass of another greenhouse gas(GHGs) with a carbon dioxide
equivalent (tCO2e) equivalent to one tonne of carbon dioxide.
Carbon credits and carbon markets are a component of national and international attempts to
mitigate the growth in concentrations of greenhouse gases (GHGs).
One carbon credit is equal to one metric tonne of carbon dioxide, or in some markets, carbon
dioxide equivalent gases. Carbon trading is an application of an emissions trading approach.
The goal is to allow market mechanisms to drive industrial and commercial processes in the direction
of low emissions or less carbon intensive approaches than those used when there is no cost to
emitting carbon dioxide and other GHGs into the atmosphere. Since GHG mitigation projects
generate credits, this approach can be used to finance carbon reduction schemes between trading
partners and around the world.
Mechanism of Carbon Credit:
Under Kyoto Protocal Developed countries have to commit to bring down Levels of GHGs by 2012
Possible in two ways:
Energy efficient
technology
Use of natural /
recyclable energy
Reducing wastage
Optimum use of energy
Changing to new clean
technology
Upgradating systems
Swtich to sustainable
development
Reduce Emmission

3. In Simple words Companies are given certain percent of carbon credits. The emission of the
company if goes beyond 1 tonne of carbon or GHGs then they have to buy Carbon Credits from
another company which has surplus CC. The pricing is done on mutual bases. Companies also invest
in projects to earn carbon offsets.

4. For example : Delhi metro railways
The BOMBARDIER MOVIA metro trains used by the Delhi Metro Rail
Corporation (DMRC) incorporate the advanced BOMBARDIER MITRAC
propulsion system and regenerative braking, which can generate up to 30% in
energy savings. This environmental technology has contributed to Delhi Metro
earning more than 20 million Indian Rupees – the equivalent of $ 446,000 US
(308,000 euro) – under a United Nations-backed initiative to combat climate
change.
Within the United Nations Clean Development Mechanism (CDM), the Delhi
Metro Rail Corporation has claimed Certified Emission Reductions (CERs) –
normally referred to as carbon credits. The CDM enables emission-reduction
projects to earn carbon credits, each equivalent to one tonne of CO2. These
carbon credits can then be traded and sold, thereby stimulating sustainable
development and emission reductions. Through the sale of carbon credits over
two years as part of the scheme, Delhi Metro has received the cumulative
remuneration of 20 million Indian rupees. The initiative has also led Delhi Metro
to become the first railway project based on regenerative braking to be
registered by the United Nations Framework Convention on Climate
Change (UNFCCC).
“The money earned from the sale of carbon credits will be used to offset the
investment and operation costs in the implementation of our extensive network
development, as well as furthering our efforts in combating climate change.”
About Bombardier
A world-leading manufacturer of innovative transportation solutions, from commercial
aircraft and business jets to rail transportation equipment, systems and services,
Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the
fiscal year ended January 31, 2011, were $ 17.7 billion, and its shares are traded on the
Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the
Dow Jones Sustainability World and North America Indexes. For more
information, visit www.bombardier.com.