Agenda for Approval Committee meeting for Pune Cluster to be held on 30 May-2023. — 02-3-quadron-business-park-pvt-ltd-sez

SEEPZ SPECIAL ECONOMIC ZONE ANDHERI (EAST), MUMBAI.

AGENDA FOR

MEETING OF THE APPROVAL COMMITTEE FOR SECTOR SPECIFIC SPECIAL ECONOMIC ZONE FOR IT/ITES AT PUNE OF M/S. QUADRON BUSINESS PARK PVT. LTD.-SEZ

Via Video Conferencing

DATE : 30.05.2023

TIME : 04.00 P.M.

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MEETING OF THE APPROVAL COMMITTEE FOR SECTOR SPECIFIC SPECIAL ECONOMIC ZONE FOR IT/ITES AT PUNE, UNDER THE CHAIRMANSHIP OF DEVELOPMENT COMMISSIONER, SEEPZ-SEZ ON 30.05.2023

INDEX

Agenda Item No.

Subject

Agenda Item No. 01 :- Confirmation of the Minutes of the meeting held on 23.12.2022 Agenda Item No. 02 :- Monitoring of Performance of M/s. eClerx Services Ltd.

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1 Minutes of the 84thMeeting of the Approval Committee held under the Chairmanship of Development Commissioner SEEPZ-SEZ for Sector Specific Special Economic Zone for IT-ITES of M/s. Quadron Business Park Pvt. Ltd.- SEZ, Hinjewadi Phase-II, Pune, held on 23.12.2022via video conference. 1 Name of the SEZ M/s. Quadron Business Park Pvt. Ltd.-SEZ, Pune 2 Sector IT-ITES 3 Meeting No. 84th 4 Date 23.12.2022 Members present S r Name and Designation (S/Shri.) Department 1 Smt. Mital Hiremath Joint Development Commissioner Pune Cluster SEZ, Pune 2 Smt. Pradnya R. Gholap, DCIT (TDS) Pune Nominee of Income Tax, Pune 3 Dr. Dileeraj Dabhole Dy. DGFT Nominee of DGFT, Pune 4 Smt. Sunita Jagtap, Superintendent Nominee of Customs, Pune Special Invitee S r Name and Designation Department 1 Shri B. Ajay Kumar Specified Officer M/s. Quadron Business Park Pvt. Ltd- SEZ Agenda Item No.01: Confirmation of Minutes of the 83rdmeeting held on 28.11.2022 The Committee, after deliberation confirmed the minutes of the 83rd meeting of the Approval Committee meeting held on 28.11.2022. Agenda Item No.02: Application for leasing out built up space to Canteen Vendor submitted by M/s. Quadron Business Park Pvt. Ltd. (Developer) After deliberation, the committee in principal approved the proposal of the Developer for leasing out built up space to the vendor for setting up of cafeteria under Rule 11(5) of SEZ Rules, 2006 subject to the submission of Fire NOC from Fire Department for the specific area as detailed below : Sr. No . Area to be leased Location Purpose of use Name of the Entity/Operato r under Brand Name. Phase 1. 1553 Sq. Ft. Block No. 4, First Floor, Plot

No. 28,Rajiv Food

& Beverages M/s

South Parks Cafe Phase - II File No.S-SEZ-MINS0QBPL/1/2022-JDCP I/1319/2023 48

2 Gandhi Infotech Park, Phase II, Hinjewadi, Pune 411 057. Further, the approval is subject to the following terms and conditions:

1. The Service Provider will not be eligible for any exemptions, drawback, concessions or any other benefit available under Section 7 or Section 26 of the SEZ Act for creating or operating such facilities.
2. The Developer/ Service provider shall adhere all the necessary approvals / NOCs/ Clearance from the Fire Dept., FASSAI and other statutory authorities, as required for setting up / running of such facility.
3. The facilities will only be utilized for exclusive use of the employees of the units. Further, the Committee has directed to put up Fire NOC from Fire Department for specific area where developer wants to set up / run canteen / cafeteria in the UAC for record purpose.
   Meeting ended with a vote of thanks to the Chair. (Shyam Jagannathan, IAS) Chairman-cum- Development Commissioner File No.S-SEZ-MINS0QBPL/1/2022-JDCP I/1319/2023 49

1 GOVT. OF INDIA, OFFICE OF THE ZONAL DEVELOPMENT COMMISSIONER, SEEPZ – SEZ (PUNE CLUSTER)

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AGENDA NOTE FOR CONSIDERATION OF THE UNIT APPROVAL COMMITTEE

a) Proposal: Monitoring of the performance of M/s. eClerx Services Ltd. an IT/ITES unit located in Quadron Business Park Pvt. Ltd-SEZ, Pune, for last year i.e., 2017-18 of 2nd block period and 4 years i.e, 2018-19 to 2021-22 of 3rd block period.
b) Specific Issue on which decision of UAC is required: Monitoring of the performance of the unit for (i) for last year i.e., 2017-18 of 2nd block period and (ii) for 4 years i.e, 2018-19 to 2021-22 of 3rd block period in terms of Rule 54 or SEZ Rules 2006. c) Relevant provisions: - As per Rule 54 of SEZ Rules, 2006 “Performance of the Unit shall be monitored by the Approval Committee as per the guidelines given in Annexure appended to these rules”. I. Approved export Projections for 2nd Block Period: (Rs. in Lacs)

2013-14 2014-15 2015- 16 2016- 17 2017- 18 Total FOB Export 25098 26353 27671 29054 30507 138683 FE Outgo 4870 4704 4815 4818 4982 24189 NFE 20228 21649 22856 24236 25525 114494 (A) For 2nd Block Period i.e. 2017-18 Performance as compared to projections: (Rs. In Lacs) File No.S-SEZ-MONT0QBPL/2/2023-JDCP I/2049/2023 37

2 (B) Cumulative NFE Achieved (Rs. In Lakhs) II. Approved export Projections for 3rd Block Period: (Rs. in Lakhs)

2018-19 2019-20 2020-21 2021-22 2022- 23 Total FOB Export 33929.00 41295.00 51072.00 54939.00 61916 243151 FE Outgo 8715 7003 7117 7279 8037 38151 NFE 25214 34292 43955 47660 53879 205000 (C) For 3rd Block Period i.e. from 2018-19 to 2021-22 Performance as compared to projections: (Rs. In Lakhs) (D) Cumulative NFE Achieved (Rs. In Lakhs) Year Export F.E. OUTGO Projected Actual Raw Material (Goods/Servic es) C.G. import Other outflow Proje cted Actual Project ed Actual Actual 2017-18 30507.00 31561.25 0.00 0.00 1835 102.22 6033.69 Total 30507.00 31561.25 0.00 0.00 1835 102.22 6033.69 Year Cumulative NFE Achieved Cumulative % NFE Achieved 2017-18 128524.36 81.85% Year Export F.E. OUTGO Projected Actual Raw Material (Goods/Services) C.G. import Other outflow Project ed Actual Projected Actual Actual 2018-19 33929 33,821.65 0.00 0.00 5882.50 544.35 7814.43 2019-20 41295 28,535.66 106.9 7815.99 2020-21 51072 37,457.95 136.10 7557.9 2021-22 54939 42,745.35 316.30 8417.28 Total 181235 142560.61 0.00 0.00 5882.50 1103.65 31605.60 Year Cumulative NFE Achieved Cumulative % NFE Achieved 2018-19 25689.42 75.96% 2019-20 46102.07 73.93% 2020-21 75694.21 75.83% 2021-22 109702.78 76.95% I/2049/2023 38

3 (E) Other Information: LOA No. & Date LOA

No.

SEEPZ/NEWSEZ/DLF- PUNE/01/LOA-01/2007-08/144 dated 04.01.2008 Location of Unit 5th Floor Block No1, Phase-1-2, Block No.4, LG F&3rd Floor of Block 1A, 4th Floor, of Block 1A&B, Quadron Business Park Pvt Ltd-SEZ, Hinjewadi, Phase-II, Pune-411-57 Validity of LOA 31.03.2028 Item(s) of manufacture/ Services IT/ITES Date of commencement of production 01.04.2008 Execution of BLUT Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement

Pending CRA Objection, if any NA Pending Show Cause Notice/ Eviction Order/Recovery Notice/ Recovery Order issued, if any NA a) No. of employees as on 31.03.2022 3706(Male:2281, Female:1425) Area allotted (in sq.ft.) 203930 Sq.ft. Area available for each employee per sq.ft. basis (area / no. of employees) 55 Sq.ft per employee Investment

till date Building NA Plant & Machinery NA Quantity and value of goods exported under Rule 34 (unutilized goods) NA Value Addition during the monitoring period NA Whether all the APRs being considered now has been filed well within the time limit, or otherwise. If no, details of the Year along with no of days delayed to be given. Yes The Specified Officer vide letter dated 21.04.2023 has reported as under: (a) Export
Details of year-wise export as per the prescribed format: I/2049/2023 39

4 From the year 2017-2018 to 2021-2022 (Rs. in Lakhs ) Year/ Period Figures reported in APR (FOB Value) Figures as per Softex / Customs Records

Difference, if any Reason for Difference / Remarks 2017-2018 31561.25 18648.86 12912.39 During the year 2017- 2018, we have provided our services within India and payment in Foreign Currency

for

Rs. 12,888.87 Lakhs. Balance difference of Rs. 23.52 Lakhs is due to exchange rate variation. 2018-2019 33821.65 20259.26 13562.39 During the year 2018- 2019, we have provided our services within India and payment in Foreign Currency

for

Rs. 13721.93 Lakhs. Balance difference of Rs. (159.54) Lakhs is due to exchange rate variation. 2019-2020 28535.66 18598.74 9936.92 During the year 2019- 2020, we have provided our services within India and payment in Foreign Currency

for

Rs. 10100.08 Lakhs. Balance difference of Rs. (163.16) Lakhs is due to exchange rate variation. 2020-2021 37457.95 26249.77 11208.18 During the year 2020- 2021, we have provided our services within India and payment in Foreign Currency for Rs. 11109. Balance difference of Rs. 98.86 Lakhs is due to exchange rate variation. 2021-2022 42745.35 31506.84 11238.51 During the year 2020- 2021, we have provided our services within India and payment in Foreign Currency

for

Rs. 11206.98 Lakhs. I/2049/2023 40

5 Balance difference of Rs. 31.53 Lakhs is due to exchange rate variation. (b) Import (i) (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis: From the year 2017-2018 to 2021-2022 (Rs. in Lakhs) Year/ Period Figures as per Revised APR Figures as per SEZ Online / Customs Records Difference, if any Reason for Difference / Remarks 2017-2018 102.22 102.22 Nil NA 2018-2019 544.35 544.35 Nil NA 2019-2020 106.90 106.90 Nil NA 2020-2021 136.10 136.10 Nil NA 2021-2022 316.30 316.30 Nil NA (c) BLUT
(Rs. In Lakhs) 1 Value of BLUT Executed (Duty foregone) (including for CG / Raw Material / Services) Value of Additional BLUT executed TOTAL Duty value of BLUT Executed in Lakhs: 2434.60 18111.61 20,545.60 2 Total Duty Foregone on goods & services procured Category Wise: Year Wise F.Y. Goods Services Imp. & Ind. 2017-18 51.88 0.00 2018-19 248.09 761.37 2019-20 30.44 546.67 2020-21 160.49 466.15 2021-22 246.12 483.54 Total 737.02 2257.73 3 Has the Unit procured goods and No I/2049/2023 41

6 or services without having sufficient balance in their BLUT. If yes, Month & Year when the BLUT was exhausted Details of the consignments and Total value of Goods procured without having sufficient or nil balance in BLUT (d) Employment made as on date (as on end of block period / year up to which monitoring is being done) As on 31st March, 2022: Man: 2281 Woman: 1425 Total: 3706 (e) Details of pending Foreign Remittance beyond Permissible period, if any (as on 31.03.2022) To cross-check the same and verify whether necessary permission from AD Bank / RBI has been obtained. NIL Checked from CA certified APR copy (f) Whether all softex has been filed for the said period. If no, details thereof. SO to also check whether unit has obtained Softex condonation from DC office / RBI and if approved, whether they have filed such pending Softex. Yes (g) Whether all Softex has been certified, if so till which month has the same been certified. If not, provide details of the Softex and reasons for pendency. All the Softex Forms till March, 2022 has been certified. (h) Whether unit has filed any request for Cancellation of Softex No (i) Whether any Services provided in DTA / SEZ/EOU/STPI etc. against payment in INR in r/o IT/ITES Unit during the period. If yes, details thereof (year wise details to be provided) No I/2049/2023 42

7 (k) Has the unit cleared any Capital Goods procured duty free in DTA against payment of Duty, or otherwise? Full details to be provided along with value of assets and duty discharged

Following are the details of removal of capital goods: (Rs. In Lakhs) FY A.V. Duty Payable 2017-18 1.68 0.30 2018-19 2.07 0.46 2019-20 71.29 23.48 2020-21 4.67 1.45 2021-22 5.06 1.01 Total 84.77 26.70

(l) Is the unit sharing any of their infrastructures with other units or are utilizing infrastructure of another unit in the same or other SEZ? If so, details thereof, including the details of the unit with whom the sharing is being made, and the payment terms If approval for sharing of common infrastructure has been obtained from UAC / DC office, the date of UAC / Approval letter to be indicated No (m) Whether all DSPF for services procured during the said monitoring

period

under consideration has been filed by the unit and whether the same has been processed for approval by the SO Office. Yes (n) Whether unit has filed all DTA procurement w.r.t. the goods procured by them during the monitoring period for the relevant period. If no, details thereof Yes (o) Details of the request IDs pending for OOC in respect of DTA procurement on the date of submission of monitoring report No Request ID is pending for OOC. (p) Has the unit set up any cafeteria / canteen / food court in unit premises? If yes, whether permission from No, they have set-up only dry pantry with no cooking facility. I/2049/2023 43

8 UAC / DC office has been issued, or otherwise office has been issued, or otherwise Whether unit has availed any duty paid goods / services for setting up such facility? If yes, whether unit has discharged such duty / tax benefit availed? details to be given including amount of duty / tax recovered or yet to be recovered No (q) Whether any violation of any of the provisions of law has been noticed / observed by the Specified Officer during the period under monitoring NA ADC’s observations:  The unit has achieved NFE of Rs. 128524.36 Lakhs i.e., 81.85% on cumulative basis in last year i.e., 2017-18 of 2nd block period.  The unit has achieved NFE of Rs. 1,09,702.78 Lakhs i.e., 76.95% on cumulative basis in 4th year i.e., 2021-22 of 3rd Block period.  As per SO report, the unit has achieved Employment of 3706 employees (Men-2281, Women-1425)  As per office records and calculations made therein, discrepancies have been noticed in respect of Amortization considered in the respective in APR of FY 2017-18, FY 2018.19 filed by the Unit. If agreed, the unit may be directed to revise their APRs accordingly.  Approval Committee may like to monitor the performance of the Unit for 5 years i.e. last year of 2 Block period (i.e. 2017-18) and first 4 years of 3rd Block (i.e. FY 2018-19 to FY 2021-22). I/2049/2023 44