Agenda for meeting of Approval Committee meeting for Pune-Cluster to be held on 27 June 2023. — 14-9the-manjri-stud-farm-pvt-ltd

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. MANJARI STUD FARM PVT. LTD.-SEZ.

Via Video Conferencing

DATE : 27.06.2023

TIME : 03:30 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 27.06.2023

INDEX

Agenda Item No.

Subject

Agenda Item No. 01 :- Confirmation of the Minutes of the meeting held on 30.05.2023 Agenda Item No. 02 :- Monitoring of Performance for M/s. Honeywell Automation India Ltd.

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1 Minutes of the 92nd Meeting of the Approval Committee meeting held under the Chairmanship of Zonal Development Commissioner SEEPZ-SEZ, Mumbai for Sector Specific Special Economic Zone for IT/ITES of M/s. The Manjari Stud Farm-SEZ, Pune held on 30.05.2023 via video conferencing. 1 Name of the SEZ M/s. The Manjari Stud Farm Pvt. Ltd.-SEZ 2 Sector IT/ITES 3 Meeting No. 90th 4 Date 30.05.2023 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. The Manjari Stud Farm Pvt. Ltd.- SEZ Agenda Item No. 01: Confirmation of the Minutes of the 91st Meeting held on 25.04.2023 After deliberation, the Committee confirmed the minutes of the 90th Approval Committee meeting held on 25.04.2023 Agenda Item No.02: Monitoring of Performance for M/s. Amdocs BPO Pvt Ltd. After deliberation, the committee noted the performance of the Unit, in terms of Rule 54 of SEZ Rules, 2006. As detailed below: (i) The Unit has achieved export of Rs. 13957.53 lakhs against the projected export of Rs 14,104.95 Lakhs i.e. 98.95 % at end of FY 2021- 22 on cumulative basis. (ii) The unit has achieved positive NFE of Rs. 12362.95 lakhs on cumulative basis i.e. 88.58% at the end of FY 2021-22. File No.S-SEZ-MINS0TMSF/1/2022-JDCP I/2121/2023 137

2 (iii) The unit has achieved Employment of 201 employees (Men 129, Women 72) Meeting ended with a vote of thanks to the Chair. (Shyam Jagannathan, IAS) Chairman-cum- Development Commissioner Email- dcseepz-mah@nic.in File No.S-SEZ-MINS0TMSF/1/2022-JDCP I/2121/2023 138

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

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AGENDA NOTE FOR CONSIDERATION OF THE APPROVAL COMMITTEE

a) Proposal: Monitoring of the performance of M/s. Honeywell Automation India Ltd. an IT/ITES unit located in The Manjri Stud Farm Pvt. Ltd-SEZ, Pune, for 1 year i.e., FY 2021-22 of 1st block period i.e. 2021-22 to 2025-26. b) Specific Issue on which decision of Approval Committee is required: Monitoring of the performance of the unit for 1 year i.e., FY 2021-22 of 1st block period i.e. 2021-22 to 2025-26, in terms of Rule 54 of 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 1st Block Period: (Rs. in Lacs)

2021-22 2022-23 2023-24 2024-25 2025-26 Total FOB Export 2691 9901 12743 14670 14996 55001 FE Outgo 2359 1651 2124 2446 2500 11080 NFE 332 8250 10619 1224 12496 43921 (A) Performance as compared to projections: for 2021-22 (Rs. In Lacs) Year Export F.E. OUTGO Projected Actual Raw Material (Goods/Services ) C.G. import Other outflow Projecte d Actua l Projecte d Actual Actual 2021- 22 2691.00 1945.21 0.00 0.00 9170.00 875.31 1235.54 Total 2691.00 1945.21 0.00 0.00 9170.00 875.31 1235.54 (B) Cumulative NFE Achieved (Rs. In Lakhs) Year Cumulative NFE achieved Cumulative NFE in % 2021-22 622.57 32.00% File No.S-SEZ-MONT0TMSF/38/2023-JDCP I/2214/2023 28

2 (C) Other Information: LOA No. & Date LOA

No.

SEEPZ-SEZMSF- SEZ/HAIL/2019-20 dated 28.08.2019 Location of Unit 1st Floor, Building 5B, S. No.209, SP Infocity,

Pune-Saswad

Road, Phursungi, Pune-412308 Validity of LOA 30.11.2026 Item(s) of manufacture/ Services IT/ITES Date of commencement of production 01.12.2021 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 367 employees (Men-267, Women- 100) Area allotted (in sq.ft.) 50198.03 Sq.ft. Area available for each employee per sq.ft. basis (area / no. of employees) 136 sq.ft. 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 01.05.2023 has reported as under: a. Export: (Figures INR in Lakhs) Year Figures as per APR Figure as per Customs Records Difference (if any) Reason for Difference/Remark 2021-22 1945.21 1381.17 564.04

1. Onsite service Export-Rs561.47
2. Exports made under Rule 53(A) (a) to k- Rs.2.57 b. Import: (Figures INR in Lakhs) File No.S-SEZ-MONT0TMSF/38/2023-JDCP I/2214/2023 29

3 Year Figures as

per APR CIF Figures as per Customs Records Difference (if any) Reasons for Difference/Remark 2021-22 875.31 890.34 15.03 Erroneously considered value of 15.03 in Customs Records. It will be considered in next APR 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:

1. BLUT Amount: Rs.3093.82 lacs executed dated 07.01.2020
2. BLUT Amount: Rs. 96.03 lacs executed dated 17.02.2020
3. BLUT Amount: Rs.2146.28 lacs executed dated 10.03.2022 Total BLUT Amount: Rs. 5336.14 Lacs 2 Total Duty foregone on goods & services procured category wise: Year Wise F.Y Goods Imported & Indigenous Services 2021-22 Imported Goods- 230.20 Indigenous – 156.51s Indigenous Goods- 12.99 Total 243.19 156.21 3 Has the unit procured goods 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 No d. Employment made as on date (as on end of block period/ year up to which monitoring is being done Men: 267 Women: 100 e. Details of pending foreign remittance beyond permissible period, if any (as on ……) To Cross Check the same and verify whether necessary permission from AD bank/ RBI has been obtained 6 invoices amounting to Rs.2.62 lakhs pending for remittance beyond permissible period. The unit has not taken necessary permission from AD Bank/RBI File No.S-SEZ-MONT0TMSF/38/2023-JDCP I/2214/2023 30

4 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. The unit have filed all the SOFTEX

forms

for

the monitoring period.i.e., FY 2021- 22 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 Yes. All the SOFTEX forms are certified for the monitoring period i.e. 2021-22 h. Whether unit has filed any request for cancellation NO i. Whether any services provided in DTA/SEZ/EOU/STPI etc. against the payment in INR in r/o IT/ITES unit during the period Yes. The unit has provided services to EOU against the payment in INR during the monitoring period Services provided to M/s. UOP India Pvt ltd.(EOU) amounting to Rs. 2.57 lacs during FY2021- 22 j. SO to verify and certify whether the unit has updated the BLUT ledger Module in SEZ online Kept in abeyance as per office order No.SEEPZ/JDC/PUNE/01/202 2-23/215 dated 16.03.2023 k. Has the unit cleared any capital goods procured duty free in DTA against payment of Duty of otherwise? Full Details to be provided along with value of assets and duty discharged NO 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. All DSPF for services procured during the said monitoring period for FY2021- 22 has been filed and approved n. Whether unit has filed all DTA procurement w.r.t. the goods procured by them during the Yes. All DTA procurement has been filed and approved for the monitoring period i.e. FY 2021- File No.S-SEZ-MONT0TMSF/38/2023-JDCP I/2214/2023 31

5 monitoring period for the relevant period. If no, details thereof 22 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 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 Yes. The unit has provided service to EOU against payment in INR of Rs. 2.57 Lacs during the monitoring period (2021-22) ADC’s observations:  The Unit has achieved export of Rs. 1945.64 lakhs against the projected export of Rs.2691.00 i.e. 72.30% in FY 2021-22.  The unit has achieved NFE of Rs.622.57 lakhs on cumulative basis i.e. 32.00%  The unit has achieved employment of 367 employees (Men-267, Women-100)  Further, it is observed that the unit has provided services in EOU against the payments received in INR as detailed below: (Rs. In Lakhs) FY Sales Value 2021-22 2.57 Total 2.57 As per Section 2(z) of SEZ Act, 2005, the definition of Services is given as below : “Services means such tradable services which, - (i) Are covered under the General Agreement on Trade in Services annexed as IB to the Agreement establishing the World Trade Organisation concluded at Martrakesh on the 15th day of April 1994 ; (ii) May be prescribed by the Central Government for the purpose of this Act ; and (iii) Earn foreign exchange ; File No.S-SEZ-MONT0TMSF/38/2023-JDCP I/2214/2023 32

6 As the unit has been granted LOA for providing IT/ITES Services from their SEZ Unit, and since the services provided by them to EOU against INR does not classify as a ‘Service’ as per definition as given in Section 2(z) of SEZ Act, 2005, the unit has violated the provisions of the SEZ Acts / Rules. As per Rule 54(2) of SEZ Rules, 2006 “(2) In Case the Approval Committee comes to the conclusion that a Unit has not achieved positive Net Foreign Exchange Earning, or stipulated Value Addition as specified in rule 53 or failed to abide by any of the term and conditions of the Letter of Approval or Bond-cum- Legal Undertaking, without prejudice to the action that may be taken under any other law for the time being in force, the said Unit shall be liable for penal action under the provisions of the Foreign Trade Development and Regulation) Act, 1992.”  The unit has calculated wrong amortization value in the APR of 2021-22, Accordingly, the unit may be asked to revise their APR of 2021-22.  Approval Committee may like to monitor the performance of the Unit for 1 year i.e., 2021-22 of 1st block period, in terms of Rule 54 of SEZ Rules, 2006. File No.S-SEZ-MONT0TMSF/38/2023-JDCP I/2214/2023 33