World is facing serious consequences of global warming. Last few decades may be blamed for increased human activities which results in climatic fluctuations. Average earth’s temperature had been increased dramatically. Emission of carbon di oxide is mainly responsible for the situation. Burning of fossil fuels emits carbon di oxides in the atmosphere resulting in rise in temperature of the earth’s surface. The term ‘Carbon credits’ got its existence from implementation of Kyoto Protocol through Clean Development Mechanism. Under this, companies who emit less CO2 than their set limit, got carbon credit for the same. Carbon Credits are certificates issued for less emission of carbon di oxide in environment during production process. One certificate is equal to one tonne of CO2. Having such certificate allow entities to emit ‘purchased limit’ to fulfil their target. Thus, carbon credits are tradeable commodity. A guidance note on accounting treatment of self-generated CERS had been issued by ICAI in 2012. The purpose of this paper is to analyse Carbon Credit accounting practices followed in Shree Cement Ltd. for a period of five years from 2019-2023. After analysing annual reports of the company, it is concluded that company is not generating revenue from self- generated CER’s. Cumulative CER’s are not recorded into final accounts of the company either.