As per Sec 135 of the Companies Act, 2013 and rules framed thereunder, the provision of Corporate Social Responsibility (CSR) obligations shall be applicable to Hitachi Solutions India Private Limited (the Company / HSIN) in the event of net profits exceeding INR 50 Million in the immediately preceding financial year. Accordingly, it becomes necessary to have a CSR policy in place and the Board to supervise the implementation of the same.
Corporate Social Responsibility (CSR) at HSIN goes beyond business and extends to the implementation of socially relevant activities for the benefit of society at large.
HSIN CSR Policy intends to:
- Strive for economic development that positively impacts the society at large.
- Embrace responsibility for the Company’s actions and encourage a positive impact through its activities on hunger, poverty, malnutrition, environment, communities, stakeholders and the society.
3. FOCUS AREAS
In accordance with the requirements under the Companies Act, 2013, HSIN CSR activities, amongst others, will focus on:
- HUNGER, POVERTY, MALNUTRITION AND HEALTH: Eradicating extreme hunger, poverty and malnutrition, promoting healthcare including preventive healthcare and sanitation and making available safe drinking water.
- EDUCATION: Promoting education, including special education and employment-enhancing vocational skills especially among children, women, elderly and the differently abled, and livelihood enhancement projects; monetary contributions to academic institutions for establishing endowment funds, chairs, laboratories, etc., with the objective of assisting students in their studies.
- GENDER EQUALITY, EMPOWERMENT OF WOMEN & SUPPORT OF THE ECONOMICALLY BACKWARD GROUPS: Promoting gender equality and empowering women; supporting initiatives for women, orphans, senior citizens and other socially and economically backward groups as may be identified from time to time.
- ENVIRONMENTAL SUSTAINABILITY: Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro-forestry, conservation of natural resources and maintaining the quality of soil, air and water.
- NATIONAL HERITAGE, ART AND CULTURE: Protecting national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promoting and developing traditional arts and handicrafts.
- PROMOTE SPORTS: Training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports.
- GOVERNMENT FUNDS: Contribution to the prime minister’s national relief fund or any other fund set up by the central govt. for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women.
- RURAL DEVELOPMENT PROJECTS: Contribution to the Rural development Projects and Slum area development projects.
Note: For the purposes of this item, the term `slum area’ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.
- CSR may include other activities as laid down in Schedule VII of the Companies Act, 2013 and amended from time to time.
CSR activities will not, however include the following:
- activities undertaken in pursuance of normal course of business of the company.
- any activity undertaken by the company outside India except for training of Indian sports personnel representing any State or Union territory at national level or India at international level;
- Contribution directly or indirectly to political parties.
- activities benefitting employees of the Company
- activities supported by the company on sponsorship basis for deriving marketing benefits for its products or services;
- activities carried out for fulfilment of any other statutory obligations under any law in force in India.
4. UNDERTAKING CSR ACTIVITIES
The Board of Directors of HSIN shall formulate an annual action plan pursuant to this CSR Policy which would include listing of CSR projects, manner of execution of such projects, modalities of utilization of funds and implementation schedules, monitoring and reporting. HSIN will undertake its CSR activities as may be approved by the Board of Directors through following methods:
- CSR activities will be undertaken either by Company itself or through a trust or section 8 Company (under the Companies Act, 2013) to be established by the Company.
- A Company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80G of the Income Tax Act, 1961, and having an established track record of at least three years in undertaking similar activities.
- Every entity whether a trust or section 8 Company who intends to undertake any CSR activity, shall register itself with the Central Government by filing the form CSR-1 electronically with the Registrar w.e.f. 01 April 2021.
- A Company may also collaborate with other Companies for undertaking projects or programmes or CSR activities in such a manner that the Boards or CSR committees of respective companies are in a position to report separately on such projects or programmes in accordance with these rules.
- In case of ongoing project, the Board of a Company shall monitor the implementation of the project with reference to the approved timelines and year-wise allocation and shall be competent to make modifications, if any, for smooth implementation of the project within the overall permissible time period.
- The Board of a Company shall satisfy itself that the funds so disbursed have been utilised for the purposes and in the manner as approved by it and the Chief Financial Officer or the person responsible for financial management shall certify to the effect.
5. LOCATION OF CSR EFFORTS
The Board will decide the locations for CSR activities.
6. GOVERNANCE & RESPONSIBILITIES OF THE Board
CSR implementation shall be periodically reviewed and monitored by the Board as per the requirements of Section 135 of the Companies Act, 2013.
The responsibilities of Board include:
- Formulating the CSR Policy and deciding activities to be undertaken,
- Approving the amount of expenditure for the CSR activities, and
- Monitoring CSR activities from time to time.
7. FUNDING, SELECTION AND MONITORING PROCESS
HSIN will receive requests for funding of projects throughout the financial year (April to March). The Board will evaluate proposals received under the CSR focus areas and projects will be prioritized by assessing their impact. The Board will deliberate on the proposals and approve proposals for implementation at its discretion.
HSIN representatives will collaborate with stakeholders to monitor the status of each project and will report its findings to the Board periodically.
The CSR Policy referred to above is to be read in conjunction with Companies Act, 2013 and Companies (CSR Policy) Rules, 2014.
Any or all provisions of the CSR Policy would be subject to revision / amendment in accordance with the guidelines on the subject as may be issued from the Government from time to time or as decided by the Board of Directors of the Company.
The above Policy Guidelines are subject to review at suitable intervals and subject to revision accordingly.