ESG: corporate governance

    CSR spend as % of average net profit

    Formula

    CSR spend as % of average net profit

    CSR Spend (%) = (CSR amount spent in the year ÷ Average net profit of the three preceding years) × 100

    Variables

    CSR amount spent in the yearMoney actually spent on CSR projects during the financial year, including administrative overheads within the 5% limit
    Average net profit of the three preceding yearsAverage of net profit calculated under Section 198 of the Companies Act for the three immediately preceding financial years

    Finding the inputs

    Both figures are in the annual report on CSR activities, an annexure to the board's report, which states the average net profit, the 2% obligation, the amount spent and any unspent amount.

    Reading the number

    The legal minimum is 2%. A figure below 2% is not automatically a breach if the gap relates to ongoing projects and has been moved to the Unspent CSR Account on time. A figure above 2% can be set off against the next three years' obligations. Compare the trend over several years, and check whether unspent balances are growing.

    Illustrative example

    Glossary terms

    From the research

    Valuation

    A Comparative Financial Analysis of Three Listed Companies

    Three IT services leaders, five years of numbers: similar growth, very different margins and returns on capital, and their October 2026 valuations.

    Markets

    IPO Issue Price vs. Listing Price vs. Subsequent Performance

    Seven of India's most talked-about IPOs since 2021, tracked from issue price to listing to October 2026. Buying on listing day lost money in six of seven.

    Valuation

    Paytm: Valuing a Company With No Clean Comparable

    Paytm is part payments processor, part device business, part loan distributor. Why no single peer fits, and how to value it in parts and in reverse.