Policy Statement

HPY strives to contribute to solve social issues through sustainable CSR initiatives. By recognizing, identifying and prioritizing social issues, HPY aims to implement well-planned local CSR initiatives through collaboration with employees, consultation and communication with various stakeholders.

Purpose

The purpose of this policy is to:

• Define what CSR means to us and the approach adopted to achieve HPY’s and Hitachi Group’s CSR objectives
• Identify broad areas of intervention in which the company will undertake CSR projects
• Serve as a guiding document to help execute and monitor CSR projects. 

CSR Projects

HPY’s CSR policy contributes to the Company and Hitachi Group’s objectives by focusing on one or more of the activities as defined in Schedule VII of the Company’s Act 2013 (please refer Annexure). HPY’s primary objective would be align itself with the CSR activities pursued by Hitachi Group in the Country towards accomplishing the One Hitachi mission.

Criteria for Initiatives

HPY will emphasize, focus, select and plan CSR initiatives in accordance with new Company’s Act, 2013 (11 activities outlined in Schedule VII) by referring to the following selection criteria :

1. The CSR initiatives must adhere to the New Company’s Act 2013 covering activities specified under schedule VII thereof.
2. The CSR initiatives must emphasize Mission, Values and Vision of Hitachi Group Identity. The CSR Initiatives should be sustainable and capable of evaluation at different phases of execution.
3. Mechanism for measuring the impact of CSR initiative must be well defined. Identifiable differences between pre and post implementation of the initiative must be examined.
4. CSR initiatives should also take into consideration, social values which can be shared and jointly implemented through collaboration and extension with Hitachi group companies in India.
5. Relevance to Company’s theme of Social Innovation business should also be considered.

CSR Committee

The Board of Directors will nominate three Directors as CSR Committee Members. Once the CSR Committee is formed, following will be its responsibilities:

1. Propose and recommend CSR Policy and initiatives.
2. Have the CSR policy reviewed and approved by BOD.
3. Put monitoring mechanisms in place to track the progress of each project.
4. Monitor and develop report on CSR activities to the Board of Directors.
5. The CSR Committee will monitor the implementation of the CSR Plan within specified budgets and timeframes.
6. The overall administration of the CSR policy and execution of the CSR projects carried out by individuals/teams assigned for this purpose will be supervised by the CSR Committee
7. The CSR Committee will shall review the implementation of the CSR Programmes once a quarter and issue necessary directions from time to time to ensure orderly and efficient execution of the CSR Programmes in accordance with this Policy.
8. It shall be the responsibility of the CSR Committee to review such reports and keep the Board apprised of the status of implementation of the same.
9. At the end of every financial year, the CSR Committee will submit its report to the Board.

CSR Expenditure & Approval Process

1. The total amount of CSR spent on all initiatives during any financial year should be at least 2% of the average net profits (as defined in the Companies Act, 2013) but not exceeding 5% during the 3 immediately preceding financial years.
2. The CSR Committee of HPY is empowered by the Board of Directors to approve any CSR initiatives under this policy, as long as they adhere to the criteria’s and the expenditure limits as listed out in this policy.
3. CSR expenditure exceeding 5% of the average net profits must be presented before the Board of Directors for seeking necessary approvals.
4. The CSR Committee should keep the Board of Directors updated and informed about such CSR initiatives at frequent intervals.

Surpluses

Any surplus arising from the CSR projects or activities undertaken by HPY will be tracked and channelized into the CSR corpus. These funds will be further used in development of the CSR projects.

Any or all of the provisions of HPY’s CSR Policy would be subject to amendment/revision by the Board of Directors based on the recommendations of the CSR Committee that may be issued from time to time.