PROJECT REPORT

(Submitted for the degree of B.Com. (Honours) in accounting &

finance under University of Calcutta)

TITLE OF THE PROJECT

Corporate Social Responsibility Of Coal Industry
(Comparative Study on CSR activities of WCL and CMPDI)

SUBMITTED BY

NAME OF THE CANDIDATE: RAJSHREE

CU REGISTRATION NUMBER: 034-1221-1262-16

CU ROLL NUMBER:

NAME OF THE COLLEGE: SHRI SHIKSHAYATAN COLLEGE

COLLEGE ROLL NO: 438

SUPERVISED BY

NAME OF THE SUPERVISOR: PROF. SANCHITA ROY CHOWDHURY

NAME OF THE COLLEGE: SHRI SHIKSHAYATAN COLLEGE

Month & Year of submission

February, 2019

1
ANNEXURE-1A

Supervisor’s Certificate

This is to certify that Ms RAJSHREE, a student of B.Com. Honours in Accounting &

Finance of SHRI SHIKSHAYATAN COLLEGE under THE UNIVERSITY OF
CALCUTTA has worked under my Supervision and guidance for her project work and
prepared a project report with the title CORPORATE SOCIAL RESPONSIBILITY
OF COAL INDUSTRY (COMAPRATIVE STUDY ON CSR ACTIVITIES OF WCL
AND CMPDI) which she is submitting in her genuine and original work to the best of
my knowledge.

Signature:
Name: SANCHITA ROY CHOWDHURY
Designation: Faculty
Name of the College: Shri Shikshayatan College

Place: Kolkata

Date:

2
ANNEXURE -1B

Student’s Declaration

I hereby declare that the Project work with the title CORPORATE SOCOAL
RESPONSIBILTY OF COAL INDUSTRY (COMAPARTIVE STUDY ON CSR
ACTIVITIES OF WCL AND CMPDI) submitted by me for the partial fulfilment of
the degree of B.Com. Honours in Accounting & Finance under the University of
Calcutta is my original work and has not been submitted earlier to any other
University/Institution for the fulfilment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated
in this report from any earlier work done by others or by me. However, extracts of any
literature which has been used for this report has been duly acknowledged providing
details of such literature in the references.

Signature:
Name: Rajshree
Address: 267, Rabindra Sarani, Morijawala House
Registration No.: 034-1221-1262-16

Place: Kolkata

Date:

3
 ACKNOWLEDGEMENT
First of all I would like to express my sincere gratitude to SHRI SHIKSHAYATAN
COLLEGE and UNIVERSITY OF CALCUTTA for giving me the platform and
opportunity to do a project and providing me with an enriching experience, with the
right blend of theoretical as well as practical exposure.

I would like to extend my sincere thanks to my College supervisor, SANCHITA ROY

CHOWDHURY, B.Com (H) Morning Head, Smt. PAPIYA DUTTA, H.O.D.,
SWAGATHA MUKHERGEE, Principal, Dr ADITI DEY for not only facilitating me
to take a meaningful project but also, providing the necessary academic and professional
guidance. They have been very kind and co-operative during the entire duration of my
completion of this project.

Last, but not the least, I would like to thank all others who, in one way or another have
helped me so much along the way.

RAJSHREE

4
 Contents
Chapter Chapter name / topics Page no.
no.
01 Introduction 6-13
Corporate Social Responsibility 7-9
Literature review 10
Objectives 11
Research Methodology 12
Limitations of the Study 13
02 Conceptual Framework 14-17
About WCL 15
About CMPDI 16
CIL’s Policy for CSR 17
03 Data Analysis 18-29
CSR activities and investments 19-26
Trend Analysis 27-28
Comparisons between CSR investments 29
04 Conclusion 30-31
Conclusion 31
Recommendation for further study 31
05 Reference/Bibliography 32

5
 Chapter I-
Introduction

6
Corporate Social Responsibility
With the enactment of the Companies Act, 2013, India has become the forerunner to
mandate spend on Corporate Social Responsibility (CSR) activities through a statutory
provision.
While many corporate houses have been traditionally engaged in doing CSR activities
voluntarily, the new CSR provisions put formal and greater responsibility on companies
in India to set out clear framework and processes to ensure strict compliance. However,
what the Companies Act does is bring more companies into the fold and increase the
total CSR spend. Three main reasons to invest in CSR activities are as follows:
1) Recruit and retain staff.
2) Enhance the company’s reputation and social standing in the community.
3) Generate new revenue streams.

Corporate Social Responsibility Applicability:

Section 135(1) of Company Act 2013 mandates the CSR expenditure / CSR
Applicability for the following companies– Every company having
a) Net worth of Rs.500 crore or more

b) Turnover of Rs.1000 crore or more

c) Or net profit of Rs.5 crore or more

Where net profit excludes income from overseas branch & divided distributed by
company on which this section applies.
If any company on which CSR provisions were applicable cease to come in above
criteria for consecutive three years, they are not required to follow the provision of CSR.

Mandatory Expenditure:
Section 135(5) mandates 2% of the Average net profit during the three immediately
preceding financial years.
For Financial Year 2014-15 Calculation: Average net profit of FY 2011-12, 2012-13 &
2013-14 needed to be considered.
Average Net Profit is calculated as per section 198 i.e. Calculation done for managerial
calculation. General query- Is admin expenditure & salary of dedicated CSR staff is to
be included in CSR expenditure-

7
Clarification: Expenditure of the Company personnel/Agencies (Good track Record in
3 FY) & Administration overhead should not exceed 5% of the Total CSR expenditure
of the whole Financial Year.

Activities for CSR Expenditure:

1) Eradicating hunger, poverty and malnutrition, promoting preventive health care and
sanitation and making available safe drinking water.

2) Promoting education, including special education and employment enhancing

vocation skills especially among children, women, elderly, and the differently abled and
livelihood enhancement projects.

3) Promoting gender equality, empowering women, setting up homes and hostels for
women and orphans; setting up old age homes, day-care centres and such other facilities
for senior citizens and measures for reducing inequalities faced by socially and
economically backward.

4) Ensuring environmental sustainability, ecological balance, protection of flora and

fauna, animal welfare, agro forestry, conservation of natural resources and maintaining
quality of soil, air and water.

5) Contributions or funds provided to technology incubators located within academic

institutions which are approved by the Central Government.

6) Rural development projects.

7) Slum Area Development.

Note-
 Expenditure only on the employees of the company & their families will not form
part of CSR activity. It means CSR can be incurred on the employee but not fully
only part of the whole

 It must be expended in India. Preference must be given to the local area in which
the company

 Any surplus arise of the CSR project will not form part of the Business income.

8
Non-applicability
Any company which ceases to be a company covered as per criteria mentioned under
sub-section (1) of section 135 of the Companies Act, 2013 as mentioned above for three
consecutive financial years shall not be required to –

 Constitute a CSR committee, and

 Comply with the provisions contained in sub-section (2) to (5) of the Companies
Act, 2013 till such time it meets the criteria specified in sub-section (1) of section
135

9
 Literature Review
 Investigating CSR communication in SME’s: a case study among Danish
middle managers- by Anne Ellerup Nielsen, Christa Thomsen. This paper
seeks to analyse small- and medium size enterprise (SME) mangers’
representations of corporate social responsibility (CSR) and CSR communication
in a corporate communication perspective.

 Corporate Social Responsibility (CSR): Models and theories in stakeholder

dialogue: - by Linda O’riordan , Jenny Fairbrass. This paper seeks to analyse
the models and theories of stakeholders’ response and CSR expectations of their
stakeholders.

 CSR communication strategies for organizational legitimacy in social media-

by Elanor Colleoni. The goal of this paper is to investigate which corporate
communication strategy adopted in online social media is more effective to create
convergence between corporations’ corporate social responsibility (CSR) agenda
and stakeholders’ social expectations, and thereby, to increase corporate
legitimacy.

 Value- Enhancing Capabilities of CSR: A Brief Review of Contemporary

Literature- by Mahfuja Malik. This paper argues that firms align their social
goals where CSR is strategic tool to maximize value and to increase Shareholder
value as well as the value of other stakeholders.

 Vaaland, Heide (2008), paper based on a case methodology. – The paper

purpose was to handle the CSR critical incidents and utilize this experience in
enforcing CSR activities.

 Shah, Bhaskar (2010), had taken a case study of public sector undertaking.
The research has discussed that there is a broad relationship between the
organization and society.

 Mallen(2012)- In this article the researchers depicted how the trends of CSR have
changed from last so many years. And how this change has affected both the
society and business.

10
Objectives
CSR aims to ensure that companies conduct their business in a way that is ethical. This
means taking account of their social, economic and environmental impact, and
consideration of human rights. The main purpose of this study is:

 To understand the kind of CSR activities done by coal industry in India.

 To compare between the amounts invested by coal industry for the various CSR
activities.
 To Study their trend of investment in CSR activities and explore the reasons for
the same.

11
Research Methodology
There are two ways of data collection; Primary and secondary. I am choosing the
secondary data collection method given the various limitations and constraints of the
project because primary data collection is not possible. The data collected for the project
is based on the secondary information which includes Annual reports, auditor’s reports,
and CSR reports and information from companies’ websites, etc.

I have used statistical tools for explaining my topic. For giving more clarity and
understanding, I have used tables and graphs to present my topic. Various comparisons
have been made using the statistical tools (Bar Graphs).

12
Limitations of the Study
In every project work there is some kind of limitation which affects the accuracy of
work. In this project work some of limitations are as follows:

 Since the source of primary data i.e. data collected from the companies could not
be collected. The project is based on Secondary data collection. The reason being,
we were unable to have any direct contact with the employees, managers and
executives of the company.
 Since the accounting data and key information of each company in this project
are secondary source, there may be possibility that the data might be a little
different due to accounting policies.
 Since the companies I have chosen are subsidiaries of another company, the
balance sheet data was not available, which is one of the main constraints of this
project.
 The topic I have selected is very vast in respect of scope in the corporate sector
and the word limit of our study project is limited. Thus, limiting the scope of this
project.

13
 Chapter II-
Conceptual Framework

14
 Western Coalfield
Limited (WCL)
Western Coalfields Limited (WCL) is one of
the eight Subsidiary Companies of Coal India
Limited (CIL) which is under administrative
control of Ministry of Coal. The Company
incorporated under the Companies Act, 1956
has its registered office at Coal Estate, Civil
Lines, Nagpur–440001. WCL has been
conferred "Miniratna" status on 15th
March'2007. The Company has contributed about 7.02% of the national coal production
during 2015-16. It has mining operation spread over the states of Maharashtra (in
Nagpur, Chandrapur & Yeotmal Districts) and Madhya Pradesh (in Betul and
Chhindawara Districts). The Company is a major source of supplies of coal to the
industries located in Western India in the States of Maharashtra, Madhya Pradesh,
Gujarat and also in Southern India in the States of Andhra Pradesh, Tamil Nadu,
Karnataka and Kerala. A large number of Power Houses under Maharashtra, Madhya
Pradesh, Gujarat, Karnataka, Punjab and Uttar Pradesh - Electricity Boards are major
consumers of its coal along with cement, steel, chemical, fertilizer, paper and brick
Industries in these states.

Mr. Rajiv Ranjan Mishra is the present Chairman-cum-

Managing Director of Western Coalfields.[2] The total
production of the Western Coalfields limited stood at
41.15 MT during 2014-15 against 39.73 MT during
2013-14, an increase of 3.6%.[3] The firm has set up
three new coal projects of 7 MT per annum capacity
during 2014-15 and has set a target to establish 10 new
coal projects of 16.62 MT per annum capacity during
2015-16. The
Mr. Rajiv Ranjan Mishra
company has
revised its target from 60 MT to 100 MT by end of
2020.

15
 Central Mine
Planning and Design
Institute (CMPDI)

The Central Mine Planning and Design Institute (CMPDI) is a fully owned
subsidiary of Coal India Limited, engaged in the field of environmental engineering and
provides consultancy and engineering services across the globe. It is a public sector
undertaking under the Government of India and is rated as a Schedule-B and Mini
Ratna-II company.

The Central Mine Planning and Design Institute Limited was established in 1974, under
Coal Mines Authority Limited (CMAL) (former name of Coal India Limited), out of
the planning division of now defunct National Coal Development Corporation (NCDC)
as a single window set up to consolidate all aspects of Indian mining industry under one
roof. Subsequent to the nationalisation of coal mining in India, CMPDI was
reconstituted as a public sector undertaking in 1975.The company has its headquarters
in Ranchi, Jharkhand and is involved in mineral exploration, resource evaluation,
resource management, mining geology, hydro-geological and geophysical studies and
engineering geology investigations. CMPDI is qualified to offer consultancy services in
the fields of environmental engineering such as open pit and underground mine planning
and design in coal, lignite and other minerals. The Institute is active in geological
exploration, geological, geotechnical and allied support, mine planning and design,
environmental management and training services.

Shri Shekhar Saran is the present Chairman-cum-managing

Director of CMPDI. CMPDI has regional institutes (RIs) at
Asansol, Dhanbad, Ranchi, Nagpur, Bilaspur, Singrauli and
Bhubaneswar to extend its coverage nationwide and has
various field units and exploration camps.

Shri Shekhar Saran

16
CIL’S POLICY FOR CORPORATE SOCIAL
RESPONSIBILITY (CSR)

I. Preamble:
The concept of Corporate Social Responsibility has gained prominence from all
avenues. Organizations h a v e realized that Govt. alone will not be able to get
success in its endeavour to uplift the downtrodden of Society. With the rapidly
changing corporate environment, more functional autonomy, operational
freedom etc. Coal India has adopted CSR as a strategic tool for sustainable
growth. For Coal India in the present context, CSR means not only investment
of funds for Social Activity but also Integration of Business processes with
Social processes. Even much before the issue of CSR became global concern,
Coal India was aware of its Corporate Social Responsibility and was fulfilling
the aspiration of the Society through well-defined “Community Development
Policy” within the periphery of 8 Kms. of the Project sites. This has resulted into
a harmonious relationship between Coal India and the peripheral Communities

II. Introduction:
The Mines of Coal India and its subsidiaries are located in different parts of the
country spread in 8 States, and relatively in isolated areas with little contact to
the outside society. Mining of coal has profound impact on the people living in
and around the areas where the mines are established. The obvious impact of the
introduction of any production activity in such areas change the traditional
lifestyle of the original inhabitants and indigenous communities and also change
the socio-economic profile of the Area. Hence, the primary beneficiaries of CSR
should be land oustees, PAP and those staying within the radius of 25 Kms of
the Project. Poor and needy section of the society living in different parts of India
should be second beneficiaries.

17
Chapter III-
Data Analysis

18
 CSR activities and amount spent over last 5 years
by CMPDI
200
180
160
140
120
2013-14
100
2014-15
80
60 2015-16
40 2016-17
20 2017-18
0

(In lakhs)

2013- 2014- 2015- 2016- 2017-18

14 15 16 17
Education 33.39 53.27 36.78 31.65 41.4
Rural development and infrastructure 119.7 56.78 143.04 41.46 4.8
Water Supply 6.18 2.32 3.39 6 0
Health 0 51.7 10 10 182.4
Women Empowerment 0.12 2.46 2.08 3.19 0
Environment 7.85 0.82 2.97 0.32 11.9
Source: compiled from Annual CSR reports of CMPDI

The chart shows various investments made by CMPDI in different CSR activities over
the period of last five years. The graph shows low investments in CSR activities. The
reason for such a trend is:

CMPDI is located in urban areas which is already developed and has different health
facilities and Infrastructure. The business area of CMPDI is small hence the profit is
low which in turn leads to low investments in CSR activities.

19
 CSR activities and amount spent over last 5
1800 years by WCL
1600
1400
1200
1000
800
600 2013-14
400 2014-15
200
2015-16
0
-200 2016-17
2017-18

(In lakhs)

2014- 2015- 2016- 2017-

2013-14 15 16 17 18
Education 158.92 66.6 7.59 114.83 111.94
Rural development and
Infrastructure 1694.36 59.97 17.92 225.23 473.4
Water Supply 171.04 134.74 116.96 30.57 39.33
Health 111.18 23.03 22.34 3.87 8.66
Women Empowerment 0 0.18 83.52 32.75 1.99
Environment 56.08 207.59 492.76 476.21 -74.85
Source: compiled from Annual CSR reports of WCL

The Chart shows various investments made by WCL in various CSR activities over the
period of last five years. The graph shows high investment in CSR activities.

The reasons for high investments are:

The area of business of WCL is large. Therefore, the investments made by WCL in CSR
activities. The area where WCL operates is rural in nature, so there is huge investment
in infrastructure, education and other CSR activities.

20
 Education
180
158.92
160
140
114.83111.94 2013-14
120
2014-15
100
2015-16
80 66.6 2016-17
60 53.27
41.4 2017-18
33.39 36.78
40 31.65

20 7.59
0
WCL CMPDI

(in lakhs)

2013-14 2014-15 2015-16 2016-17 2017-18

WCL 158.92 66.6 7.59 114.83 111.94

CMPDI 33.39 53.27 36.78 31.65 41.4

Source: compiled from Annual CSR reports of WCL and CMPDI

The above chart shows the comparisons between the investments (CSR) made by WCL
and CMPDI in the field of education. The Chart shows a dynamic and high investments
for WCL whereas an unvarying and low investments for CMPDI.

The reason for such a trend is:

CMPDI is located in Ranchi and its units are also located in town areas where already
education facility exists. Therefore, quantum of investment in education is
comparatively low when compared to WCL.
Whereas, in WCL the business area is widespread particularly in rural areas and villages
where infrastructure for education or the education facilities are less compared to
CMPDI locations.

21
 Infrastructure and Rural Development
1800 1694.36

1600

1400

1200 2013-14
2014-15
1000
2015-16

800 2016-17
2017-18
600
473.4

400
225.23
200 119.7 143.04
59.97 56.78 41.46
17.92 4.8
0
WCL CMPDI

(In lakhs)

2013-14 2014-15 2015-16 2016-17 2017-18

WCL 1694.36 59.97 17.92 225.23 473.4

CMPDI 119.7 56.78 143.04 41.46 4.8

Source: compiled from Annual CSR reports of WCL and CMPDI

The above chart shows the comparisons between the investments (CSR) made by WCL
and CMPDI in the field of Rural development and Infrastructure. The chart shows high
investments by WCL and very low investments by CMPDI.

The reason for such a trend is:

In WCL, the quantum of investment in infrastructure and rural development is large

because it is civil construction based involving high value capital investment.

Whereas, CMPDI is located in urban areas where infrastructure already exists. Hence,
the investments are comparatively low.

22
 Water Supply and Drinking water
180 171.04

160

140 134.74

116.96
120
2013-14
100 2014-15

80 2015-16
2016-17
60
2017-18
40 39.33
30.57
20

0 6.18
2.32 3.39 6
0
WCL
CMPDI

(In lakhs)

2013-14 2014-15 2015-16 2016-17 2017-18

WCL 171.04 134.74 116.96 30.57 39.33

CMPDI 6.18 2.32 3.39 6 0

Source: compiled from Annual CSR reports of WCL and CMPDI

The above chart shows the comparisons between the investments (CSR) made by WCL
and CMPDI in the field of Water supply and Drinking water. The chart shows high
investments by WCL and very low investments by CMPDI.

The reason for such a trend is:

Water Supply covered by CMPDI is mostly in town area which is already developed
and the requirement is minimal. Therefore, the requirement of fund is less.

Whereas, in WCL the areas covered are rural in nature catering large population base.
Therefore, investment is large.

23
 Health
200
182.4
180

160

140 2013-14
120 111.18 2014-15

100 2015-16
2016-17
80
2017-18
60 51.7

40
23.03 22.34
20 8.66 10 10
3.87 0
0
WCL CMPDI

(In lakhs)

2013-14 2014-15 2015-16 2016-17 2017-18

WCL 111.18 23.03 22.34 3.87 8.66
CMPDI 0 51.7 10 10 182.4
Source: compiled from Annual CSR reports of WCL and CMPDI

The above chart shows the comparisons between the investments (CSR) made by WCL
and CMPDI in the field of Health. The chart shows high investments by WCL and very
low investments by CMPDI.

The reason for such a trend is:

In case of health, CMPDI already covers town area which has many hospitals. However,
investment in health is need based.

Whereas in WCL, business areas covers villages where there are population located
demanding substantial investment in health sector.

24
 Women Empowerment
90
83.52
80

70
2013-14
60
2014-15
50 2015-16
40 2016-17
32.75
2017-18
30

20

10
1.99 2.46 2.08 3.19
0.18 0
0
WCL CMPDI

(In lakhs)

2013-14 2014-15 2015-16 2016-17 2017-18

WCL 0 0.18 83.52 32.75 1.99
CMPDI 0.12 2.46 2.08 3.19 0
Source: compiled from Annual CSR reports of WCL and CMPDI

The above chart shows the comparisons between the investments (CSR) made by WCL
and CMPDI in the field of Women Empowerment. The chart shows high investments
by WCL and very low investments by CMPDI.

Women empowerment involves literacy of women and skill development for

employment. Since, the area covered by CMPDI are urban areas (towns and cities)
where already element of women empowerment is covered, hence the investment year-
wise is low.

Whereas in WCL, the areas covered by the company are of rural in nature. Thereby
demanding more investment towards education and skill development to enhance
women empowerment in rural areas covered under CSR.

25
 Environment
492.76
500 476.21

400
2013-14
300 2014-15
207.59
2015-16
200
2016-17
100 56.08 2017-18

0 7.85 0.82
2.97 0.32 11.9
WCL
-100
-74.85 CMPDI

(In lakhs)

2013-14 2014-15 2015-16 2016-17 2017-18

WCL 56.08 207.59 492.76 476.21 -74.85
CMPDI 7.85 0.82 2.97 0.32 11.9
Source: compiled from Annual CSR reports of WCL and CMPDI

The above chart shows the comparisons between the investments (CSR) made by WCL
and CMPDI in the field of Environment. The chart shows high investments by WCL
and very low investments by CMPDI.

The reason for such a trend is:

The area covered by CMPDI is small and mostly urban hence the investment on CSR
activities related to Environment is low compared to WCL.

Whereas, the area covered by WCL for environmental upgradation is large and mostly
rural in nature. Therefore, investment in the CSR activities related to environment is
more. From the chart, it can be noticed that the investment for the year 2017-18 is
negative. It can be due to the backlogs from the previous years or due to local disputes.

26
 CSR Amount spent by WCL over 5 years
7000 6526.61

6000
2013-2014
5000
2014-2015
4000
2015-2016

3000 2016-2017
2379.56
2014.83
2000 2017-2018
1081.32
1000 723

0
CSR Amount Spent

(in lakhs.)

2013-14 2014-15 2015-16 2016-17 2017-18

CSR Amount 2379.56 2014.83 6526.61 1081.32 723

Spent
Source: compiled from Annual CSR reports of WCL

Trend Analysis
Over the period of last 5 years, the total amount spent on CSR activities has been
dynamic. There has been high investment in CSR for the first three years i.e. for the
years 2013-14, 2014-15, and 2015-16. On the other hand, there has been decline in CSR
for the last two years (for the years 2016-17 and 2017-18).

There can be various reasons for such a decline but the main causes are as follows-

 Decrease in profit due to decrease in production.

 Due to diverse cash flow
 Local problems like disputes over land, etc. due to which CSR implementation
has taken a backseat.

The trend was in a rise for the first three years because of huge profits and because in
the year prior, the backlogs were cleared.

27
 CSR Amount Spent by CMPDI over 5 years
300
273.9

250

200.73
200 180.92 180.92 2013-14
2014-15
150 2015-16

102.05 2016-17
100 2017-18

50

0
CSR Amount spent

(In lakhs)

2013-14 2014-15 2015-16 2016-17 2017-18

CSR Amount 180.92 180.92 200.73 102.05 273.90

Spent
Source: compiled from Annual CSR reports of CMPDI

Trend Analysis
Over the period of last 5 years, the total amount spent on CSR has been a constant
increase from 2013 – 2016. However, there is a decrease in the year 2016-17 and a
sudden increase in the year 2017-18.

There can be various reasons behind the sudden decline in CSR in the year 2016-17.
Some of the reasons are as follows: -

 Decrease in the profits of the company.

 Due to diverse cash flow.
 Local Problems and disputes due to which CSR implementations have taken a
backseat.as shown in the graph, the CSR amount spent in the year 2017-18
suddenly increases to 273.90 lakhs from 102.05 lakhs. This sudden increase can

28
 be because of the increase in profits and also, because of the backlogs that had
been cleared.

Comparison between the CSR investments of WCL and CMPDI.

7000 6526.61

6000

5000
2013-14

4000 2014-15
2015-16

3000 2016-17
2379.56
2014.83 2017-18

2000
1081.32
723
1000
180.92180.92200.73102.05273.9

0
WCL CMPDI

(In lakhs)

2013-14 2014-15 2015-16 2016-17 2017-18

WCL 2379.56 2014.83 6526.61 1081.32 723
CMPDI 180.92 180.92 200.73 102.05 273.9
Source: compiled from Annual CSR reports of WCL and CMPDI

The chart shows a comparison between the investments in CSR activities of WCL and
CMPDI. The graphs clearly show that WCL invests more in CSR activities as compared
to CMPDI. WCL‘s CSR performance is much better than CMPDI.

WCL has a huge area of business as compared to CMPDI, so the production done by
WCL is more which leads to higher profits. Whereas, CMPDI has a smaller area of
business compared to WCL. Hence the production is low which leads to low profits and
low investments in CSR. WCL works mostly in rural areas. Whereas, CMPDI works in

29
cities and towns which have proper or better infrastructure than the rural areas. So, the
investments in CSR activities of WCL are higher than CMPDI.

30
 Chapter IV-
Conclusion &
Recommendations

31
Conclusion
The main objective of CSR policy is to lay down guidelines for the coal companies to
make CSR a key business process for sustainable development for the Society. It aims
at supplementing the role of the Govt. in enhancing welfare measures of the society
based on the immediate and long term social and environmental consequences of their
activities. CIL will act as a good Corporate Citizen, subscribing to the principles of
Global Compact for implementation.

Recommendations
This project is a comparative study of CSR activities of WCL and CMPDI and their
CSR investments trends. There is further scope to examine the CSR investment effects
on their balance sheet, other activities that can be taken up as CSR activities and how
they can improve their corporate social responsibility, because there is a possibility that
other approaches may get different conclusions.

In addition, a comparative study can be done for two different industries, the effect of
CSR on the economy and the shareholders and other stakeholders, comparison of pre-
CSR scenario and post-CSR scenario. In other words, there are many other aspects in
this topic which deserve a deeper investigation.

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References/Bibliography
Books and Newspapers
 ^ "Western Coalfields Ltd to produce 100 million tonnes by 2020". Times of India-economic
times.
 ^ "Western Coalfields Ltd reports growth after a gap of five years". Times of India-economic
times.
 Company law for CS Executive programme – by Sangeet Kedia

Websites
1. ^ "Western Coalfield Limited (WCL) | Western Coalfields Limited".- www.westerncoal.gov.in.

2. ^ "Management Profile | Western Coalfields Limited". www.westerncoal.gov.in.

3. Corporate social responsibility of CMPDI -www.cmpdi.co.in/csr.php

4. Corporate social responsibility of WCL-http://www.westerncoal.in/?q=node/692

CSR references

https://taxguru.in/company-law/corporate-social-responsibility-companies-act-2013-2.html

https://www.ey.com/in/en/issues/governance-and-reporting/ey-compass-on-companies-act-
2013/ey-cfo-companies-act-2013-corporate-social-responsibility

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