Agenda for Approval Committee meeting for Pune-Cluster to be held on 10 August 2023. — 00-10eon-kharadi-infrastructure-pvt-ltd-phase-i

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. EON KHARADI INFRASTRUCTURE PVT. LTD.-SEZ, PHASE I.

Via Video Conferencing

DATE : 10.08.2023

TIME : 12:30 P.M.

---

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 10.08.2023

INDEX

Agenda Item No.

Subject

Agenda Item No. 01 :- Confirmation of the Minutes of the meeting held on 25.07.2023 Agenda Item No. 02 :- Monitoring of Performance for M/s. S. G. Analytics Pvt. Ltd Agenda Item No. 03 :- Monitoring of Performance for M/s. Cybage Software Pvt Ltd Agenda Item No. 04 :- Monitoring of Performance for M/s. UBS Business Solutions (India) Pvt. Ltd

---

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

---

AGENDA NOTE FOR CONSIDERATION OF THE APPROVAL COMMITTEE

a) Proposal: Monitoring of the performance of M/s. S. G. Analytics Pvt. Ltd., an IT/ITES unit located at 601 & 602, 6th Floor, Wing 2, Cluster C, EON Kharadi Infrastruc ture Pvt Ltd-SEZ , MIDC Kharadi Knowledge Park, Kharadi, Pune - 411014 for the following period:
1st Block Period i.e. for FY 2016-17 to FY 2020-21 &
1 year of 2nd Block period i.e. FY 2021-22

b) Specific Issue on which decision of Approval Committee is required: Monitoring of the performance of the unit for 1st Block period i.e. FY FY 2016-17 to FY 2020-21 and 1st year of 2nd Block i.e. FY 2021-22 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) Performance as compared to projections: 1st Block FY 2016-17 to FY 2020-21 Approved Projections (Rs. in Crores)

2016-17 2017-18 2018-19 2019-20 2020-21 Total
FOB Value of Exports 25.00 28.00 32.00 36.00 40.00 161.00 FE Outgo 0.93 0.49 0.55 0.61 0.52 3.10 NFE 24.07 27.51 31.45 35.39 39.49 263.18

Performance as compared to projections: 
                                                                                           (Rs. in Crores) 

Year Export F.E. OUTGO

Projecte d

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projecte d Actual Actual 2016-17 25.00 6.67 0.00 0.00 0.00 0.00 1.22 2017-18 28.00 25.74 0.00 0.00 0.05 3.20 2018-19 32.00 49.10 0.00 0.00 0.06 1.82 2019-20 36.00 46.75 0.00 0.00 0.07 1.77 2021-22 40.00 70.78 0.00 0.00 0.03 4.36 Total
161.00 199.05 0.00 0.00 0.00 0.21 12.38

Cumulative NFE achieved:

     (Rs. in Crores) 

(II) Performance as compared to projections: 1st year of 2nd Block i.e. FY 2021-22

    Approved Projections 
                                                                    (Rs. in Crores) 

2021-22 2022-23 2023-24 2024-25 2026-27 Total
FOB Value of Exports 71.16 72.58 74.03 75.51 77.02 370.3 FE Outgo 3.42 3.49 3.55 3.62 3.69 17.77 NFE 67.74 69.09 70.48 71.89 73.33 352.53

Performance as compared to projections: (Rs. in Crores)

  Cumulative NFE achieved:   



     (Rs. in Crores) 

(III) Employment Achievement (Direct): FY 2021-22

The Unit has achieved employment of 399 employees (Men-240, Women-159)
as on 31.03.2022 .

(d) Relevant provisions: 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”

Year Cumulative NFE Achieved Cumulative % NFE Achieved 2016-17 5.44 81.65% 2017-18 27.97 86.31% 2018-19 75.24 92.30% 2019-20 120.19 93.71% 2020-21 186.58 93.74% Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projecte d Actual Actual 2021-22 71.16 91.11 0.00 0.00 1.00 0.22 4.53 Total
71.16 91.11 0.00 0.00 1.00 0.22 4.53 Year Cumulative NFE Achieved Cumulative % NFE Achieved 2021-22 86.55 95%

(e) Other Information:

LOA No. & Date SEEPZ-SEZ/EKIPL-SEZ/ SGAPL/28 /2015-16 dated 26.02.2016 Location of Unit 601 & 602, 6th Floor, Wing 2, Cluster C, EON Kharadi Infrastruc ture Pvt Ltd-SEZ , MIDC Kharadi Knowledge Park, Kharadi, Pune - 411014 Validity of LOA 26.06.2026 Item(s) of manufacture/ Services IT & ITES Date of commencement of production 27.06.2016
Execution of BLUT 22.97 Crores
Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement 10 years
Pending CRA Objection, if any NA Pending Show Cause Notice/ Eviction Order/Recovery Notice/ Recovery Order issued, if any NA Projected employment for the block period No. of employees as on 31.03.2023 399 Area allotted (in sq.ft.) 23,030 Sq.ft (2139.55 Sq. mt) Area available for each employee per sq.ft. basis (area / no. of employees) 57.72 Sq. Ft.
Investment till date

Building NA Plant & Machinery 1.45 Crore 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 Officers vide letter dated 07.08.2023 has submitted APR verification report for the period FY 2016-17 to FY 2021-22, in the prescribed which is as detailed below;

Based on the information/documents submitted by the Unit and the data of the unit available online, the APR verification report for the period FY 2022-23 in the prescribed format is as under:

(a) Details of year-wise export as per the prescribed format:

(A) EXPORT

(Rs. In crores)

Year/ Period Figures reported in APR Figures as per Softex/Custo ms Records Differen ce if any Reason for Difference/ Remark (1) (2) (3) (4) (5) 2016-17 6.67 0.14 6.53 Softex for total 142 invoices amounting to Rs.6.53 crores has not been filed by the unit
2017-18 25.74 19.10 6.64 Softex for total 50 invoices amounting to Rs.5.40 crores has not been filed by the unit
2018-19 49.10 46.07 3.03 Softex for total 35 invoices amounting to Rs.1.42 crores has not been filed by the unit. 2019-20 46.75 40.37 6.38 Softex for total 91 invoices amounting to Rs.6.64 crores has not been filed by the unit. 2020-21 70.78 50.51 20.27 Softex for total 78 invoices amounting to Rs.8.86 crores has not been filed by the unit. 2021-22 91.11 58.76 32.35 Softex for total 258 invoices amounting to Rs.30.99 crores has not been filed by the unit.

It is seen that Softex for 654 invoices amounting to Rs.59.84 crores has not been filed by the unit. For all the above invoices application for condonation for delay in filing of Softex has been submitted to JDC office on 21.06.2023. The reason given is that they have revised all their Annual Performance Reports from 2016-17 to 2021-22. However, this does not appear to be a justifiable reason for

the delay in filing of Softex. It is further seen that the unit had for the period from January, 2016 to December, 2016 had also taken condonation for delay in the filing of Softex from RBI.

As all the Softex has not been filed the verification of exact exports undertaken by the unit could not be completed.

(B) IMPORT i) (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis.)

(Rs. In crores) Year/Period Figures reported in APR (FOB Value) Figures as per Customs Records Difference if any Reason for Difference/Remar k (1) (2) (3) (4) (5) 2016-17 0 0 Nil Nil 2017-18 0.05 0.05 Nil Nil 2018-19 0.06 0.06 Nil Nil 2019-20 0.07 0.07 Nil Nil 2020-21 0.03 0.03 Nil Nil 2021-22 0 0 Nil Nil

ii) Raw Material

(Rs. In crores) Year/Period Figures reported in APR (FOB Value) Figures as per Customs Records Difference if any Reason for Difference/Remark (1) (2) (3) (4) (5) 2016-17 to 2021-22 0.00 0.00 0.00

(C) BLUT

                  (Amount in ‘crores’) 

1 Value of BLUT Executed (Duty foregone) (including for CG/ Raw Material/ Services) Value of Additional BLUT executed

Year: Date of acceptance

BLUT amount: TOTAL value of BLUT Executed On 21.04.2016 - Rs.0.62 crores On 11.08.2022 – Rs.22.35 crores

Total - 22.97 crores

2 Total Duty Foregone on goods & services procured Category Wise:

Year Wise: FY Import & Ind. Goods (Rs. in crores) Service s (Rs. in crores) 2016- 17 0.00 0.00 2017- 18 0.06 0.52 2018- 19 0.04 1.44 2019- 20 0.08 2.17 2020- 21 0.09 3.05 2021- 22 0.36 3.87 Total 0.63 11.05 3 Has the Unit procured goods and 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 (31.03.2022) (as on end of block period/ year up to which monitoring is being done) As on 31st March, 2022 Man : 240 Women : 159 Total : 399 (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. As all the Softex has not been filed the same could not be reconciled

(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. Softex for 654 invoices amounting to Rs.59.84 crores has not been filed by the unit for the period from 2016-17 to 2021-22 as detailed in ‘Exports’ above.
(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. No. Deficiency has been raised for mapping of Gist of Contract. (h) Whether unit has filed any request for Cancellation of softex Yes
(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) Year Amount in crores 2016-17 0.27 2017-18 0.78 2018-19 0.41 2019-20 9.55 2020-21 14.21 2021-22 12.29 Total 37.51

(j) SO to verify and certify whether the unit has updated the BLUT ledger Module in SEZ Online. NA (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 No (l) Is the unit sharing any of their infrastructure with other units or are utilizing infrastructure of another unit in the same or other No.

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 (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.
No. Filing of DSPF is in process

(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 IDs pending for OOC in respect of DTA procurement. (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. 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 There is only dry pantry without any active cooking

(q) Whether any violation of any of the provisions of law has been noticed/ observed by the Specified Officer during the period under monitoring. It is seen that the unit has not been regular in filing of SOFTEX from 2016-17 onwards. As per Part 2, B.16 (iii) of Master Circular No. 14/2015-16 dated 01.07.2015 issued by RBI, an exporter is required to submit declaration in Form SOFTEX in respect of export for certification not later than 30 days from the date of invoice/the date of last invoice raised in a month and accordingly have contravened the provisions of Rule 46(3)(i) of the SEZ Rules, 2006.

ADC’s observations:

 The Unit has achieved export revenue of Rs. 199.05 Crores as against projected export of Rs. 161 Crores and achieved cumulative NFE of Rs. 186.58 Crores which is 93.74% in 1st block period i.e. during FY 2016-17 to FY 2020-21.

 The Unit has achieved export revenue of Rs. 91.11 Crores as against the projected export of Rs. 71.16 Crores and achieved cumulative positive NFE of Rs. 86.55 Crores which is 95% in 1st year of 2nd Block period i.e. in FY 2021- 22.

 The Unit has achieved employment of 399 employees (Men-240, Women-159) as on 31.03.2022

 The Unit has not filed Softex for 654 invoices amounting to Rs. 59.84 Crores
during the period FY 2016-17 to FY 2021-22.

 The Unit has not filed DSPF for the services procured during the monitoring period.
 It is observed that the unit has provided services in DTA against the payments received in INR as detailed below: Year DTA Sale in INR Amount in Crores 2016-17 0.27 2017-18 0.78 2018-19 0.41 2019-20 9.55 2020-21 14.21 2021-22 12.29 Total 37.51

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 ;

 As the unit has been granted LOA for providing IT/ITES Services from their SEZ Unit, and since the services provided by them to DTA 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 received payment in INR instead of Foreign Currency, hence contravened the provision of Section 2(z)(iii) of SEZ Act, 2005. If agreed by the Approval Committee, SCN may be issued.

 It is seen that the Unit has not been regular in filing of SOFTEX from 2016-17 onwards hence contravened the provisions of Rule 46 (3) (i) of the SEZ Rules, 2006.

Approval Committee may monitor the performance of the Unit, in terms of Rule 54 of SEZ Rules, 2006 for the following period
 1st Block Period i.e FY 2016-17 to FY 2020-21 (5 years)
 1st year of 2nd Block i.e. FY 2021-22 (1 year)

---

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

---

AGENDA NOTE FOR CONSIDERATION OF THE APPROVAL COMMITTEE

a) Proposal: Monitoring of the performance of M/s. Cybage Software Pvt. Ltd., an IT/ITES unit located at 7th floor, Tower B,EON Kharadi Infrastructure Private Limited SEZ, Phase II, Survey No. 72/2/1, Kharadi PUNE - 411014 for first 3 years of 1st block period i.e. for FY 2019-20 to FY 2021-22

b) Specific Issue on which decision of Approval Committee is required: Monitoring of the performance of the unit for first 3 years of 1st Block period i.e. FY FY 2019-20 to FY 2021-22 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) Performance as compared to projections: FY 2019-20 to FY 2023-24 (i) Actual Export / Approved Projections (Rs. in Crores)

2019-20 2020-21 2021-22

2022-23

2023-24

Total
FOB Value of Exports 65.10 98.67 114.03 119.73 125.71 523.24 FE Outgo 7.67 3.51 3.64 4.91 4.32 24.05 NFE 57.43 95.16 110.39 114.82 121.39 499.19

(I) Performance as compared to projections:
(Rs. in Crores)

Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projecte d Actual Actual 2019-20 65.10 105.19 0.00 0.00 8.36

2.42 0.00 2020-21 98.67 174.61 0.00 0.00 0.00 0.01 2021-22 114.03 173.24 0.00 0.00 0.00 0.49 Total
277.80 453.04 0.00 0.00 8.36 2.42 0.50

(II) Cumulative NFE achieved: (Rs. in Crores)

(III) Employment Achievement (Direct): FY 2022-23

The Unit has achieved employment of 594 employees (Men-430, Women-164)
as on 31.03.2022 .

(d) Relevant provisions: 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”

(e) Other Information:

LOA No. & Date SEEPZ-SEZ/EKIPL-SEZ/ CSPL/ 41/ 2019-20 dt. 25.01.2019 Location of Unit 7th floor, Tower B,EON Kharadi Infrastructure Private Limited SEZ,Phase II, Survey No. 72/2/1, Kharadi PUNE, 411014 Validity of LOA 11.06.2024 Item(s) of manufacture/ Services IT & ITES Date of commencement of production 10.06.2019
Execution of BLUT 37.78 Crores
Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement 10 years
Pending CRA Objection, if any NA Pending Show Cause Notice/ Eviction Order/Recovery Notice/ Recovery Order issued, if any NA Projected employment for the block period No. of employees as on 31.03.2023 594 Area allotted (in sq.ft.) 58,632 Sq.ft (5447.09 Sq. mt) Area available for each employee per sq.ft. basis (area / no. of employees) 98.70 Investment till date

Building NA Plant & Machinery 16.28 Crore Year Cumulative NFE Achieved Cumulative % NFE Achieved 2019-20 104.95 99.77% 2020-21 279.31 99.82% 2021-22 451.82 99.73%

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 Officers vide letter dated 07.08.2023 has submitted APR verification report for the period FY 2019-20 to FY 2021-22, in the prescribed which is as detailed below;

(a) Details of year-wise export as per the prescribed format: (b)
Year/ Period Figures reported in APR (FOB Value)
Figures as per Softex / Customs Records

Difference, if any
Reason for Difference / Remarks 2019-2020 105.19 108.33 3.14 The Unit has provided Onsite Service for Rs. 0.06 crores. Hence, Softex for the same was not filed.

During the year Credit Notes of Rs.0.96 crores have been raised.

Balance difference of Rs. 2.12 crores is due to Exchange Rate variation. 2020-2021 174.62 174.99 0.39 Difference of Rs.0.39 crores is due to Exchange Rate variation. 2021-2022 173.24 175.39 2.15 During the Year Credit Note of Rs 0.37 crores has been raised.
Balance difference of Rs. 1.78 crores is due to Exchange rate variation.

(c) Import

(i) (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis:

From the year 2019-2020, 2020-2021 and 2021-22

(Rs. in crores) Year/ Period Figures as per APR Figures as per SEZ Online / Customs Records Difference, if any Reason for Difference/ Remarks 2019-2020 2.42 2.42 0.00 NA

2020-2021 0.00 0.00 0.00 NA 2021-2022 0.00 0.00 0.00 NA

(C) BLUT

             (Amount in ‘crores’) 

1 Value of BLUT Executed (Duty foregone) (including for CG/ Raw Material/ Services) Value of Additional BLUT executed Year: Date of acceptance BLUT amount: TOTAL value of BLUT Executed On 20.02.2019 - Rs. 20.92 crores

On 14.03.2020 - Rs. 13.86 crores

Total - Rs. 34.78 crores 2 Total Duty Foregone on goods & services procured Category Wise:

Year Wise: FY Imported & Ind. Goods (Rs.Crore) Services (Rs.Crore) 2019-20 1.94 2.15 2020-21 0.18 1.48 2021-22 0.04 2.43 Total
2.16 6.06 3 Has the Unit procured goods and 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 (31.03.2022) (as on end of block period/ year up to which As on 31st March, 2022: Man: 430 Woman: 164

monitoring is being done) Total: 594 (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. No foreign remittance is pending beyond permissible period till 31.03.2022. (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.

(j) SO to verify and certify whether the unit has updated the BLUT ledger NA

Module in SEZ Online. (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 No (l) Is the unit sharing any of their infrastructure 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.
No. The filing of DSPF is in process (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 (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. 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 Only dry pantry is there.
(q) Whether any violation of any of the provisions of law has been noticed/ observed by the Specified Officer during the period under monitoring. No

ADC’s observations:

 The Unit has achieved export revenue of Rs. 453.05 Crores as against projected export of Rs. 277.80 Crores i.e. 163.08 % in first 3 years of the 1st block period i.e. during FY 2019-20 to FY 2021-22.

 The Unit has achieved cumulative positive NFE of Rs. 451.82 Crores which is 99.73% at the end of FY 2021-22

 Approval Committee may monitor the performance of the Unit for 3 years i.e. FY 2019-20 to FY 2021-22 for 1st block period, in terms of Rule 54 of SEZ Rules, 2006.

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

---

AGENDA NOTE FOR CONSIDERATION OF THE APPROVAL COMMITTEE

a) Proposal: Monitoring of the performance of M/s. UBS Business Solutions (India) Pvt. Ltd., an IT/ITES unit located at 9th and 10th Floor, Building Tower A, EON Free Zone SEZ, , Tower B,EON Kharadi Infrastructure Private Limited SEZ, Phase II, Survey No. 72 Kharadi PUNE - 411014 for first 4 years of 1st block period i.e. for FY 2018-19 to FY 2021-22

b) Specific Issue on which decision of Approval Committee is required: Monitoring of the performance of the unit for first 4 years of 1st Block period i.e. FY FY 2018-19 to FY 2021-22 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) Performance as compared to projections:
(i) Actual Export / Approved Projections (Rs. in Crores)

2018-19 2019-20 2020-21 2021-22

2022-23

Total
FOB Value of Exports 40 230 300 330 340 1240 FE Outgo 123 0 0 0 0 123 NFE (83) 230 300 330 340 1117

Performance as compared to projections:
(Rs. in Crores)

[[[ (II) Cumulative NFE achieved: (Rs. in Crores)

Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projecte d Actual Project ed Actual Actual 2018-19 40 95.08 0 0 123 0 0 23.77 5.16 2019-20 230 495.95 0 0 9.29 33.08 2020-21 300 799.33 0 0 0.27 72.07 2021-22 330 1027.74 0 0 0 0.51 88.25 Total 900 2418.10 0.00 0.00 0.00 33.84 198.57 Year Cumulative NFE Achieved Cumulative % NFE Achieved 2018-19 87.54 92.07% 2019-20 547.09 92.57% 2020-21 1271.02 91.42% 2021-22 2207.13 91.28%

(III) Employment Achievement (Direct): FY 2022-23

The Unit has achieved employment of 2654 employees (Men-1751, Women-903)
as on 31.03.2022 .

(d) Relevant provisions: 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”

(e) Other Information:

LOA No. & Date SEEPZ/EKIPL-SEZ/UBSPL/31/ 2018- 19 dated 09/05/2018 Location of Unit 9th and 10th Floor, Building Tower- A, EON Free Zone SEZ, Phase - II, Survey No 72, Kharadi, Pune - 411014

Validity of LOA 30.09.2023 Item(s) of manufacture/ Services IT & ITES Date of commencement of production 01.10.2018 Execution of BLUT 208.12 Crores
Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement 10 years
Pending CRA Objection, if any NA Pending Show Cause Notice/ Eviction Order/Recovery Notice/ Recovery Order issued, if any NA Projected employment for the block period No. of employees as on 31.03.2023 2654 (Men-1751, Women-903) Area allotted (in sq.ft.) 2,01,482 Sq.ft
Area available for each employee per sq.ft. basis (area / no. of employees) 75.91 Sq. ft.
Investment till date

Building 77.65 Crore
Plant & Machinery 213.22 Crore 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 Yes

limit, or otherwise.

If no, details of the Year along with no of days delayed to be given.

The Specified Officers vide letter dated 07.08.2023 has submitted APR verification report for the period FY 2018-19 to FY 2021-22, in the prescribed which is as detailed below;

(A) EXPORT

(Rs. In crores)

Year/Period Figures reported in APR
Figures as per Softex/Customs Records Difference if any Reason for Difference/Remark (1) (2) (3) (4) (5) 2018-19 95.08 93.07 2.01 The Difference is basically due to Exchange rate.

2019-20 495.95 492.43 3.52 2020-21 799.33 791.44 7.89 2021-22 1027.74 1021.58 6.16

(B) IMPORT (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis.)

(Rs. In crores) Year/Period Figures reported in APR (FOB Value) Figures as per Customs Records Difference if any Reason for Difference/Remark (1) (2) (3) (4) (5) 2018-19 23.77 23.25 0.52 One BOE No. 1000125 dated 26.09.2018 was cancelled amounting to Rs.0.52 crores 2019-20 9.29 9.29 0.00

2020-21 32.05
0.27 32.27 As per the APR format the value reported is cumulative value, i.e. total value of CG imported for the past 10 years (incl. this year). The Import as per CUSTOMS Record for the Year is only 0.27 crores 2021-22 32.56 0.51 32.05 As per the APR format the value reported is cumulative value, i.e. total value of CG imported for the past 10 years (incl. this year). The Import as per CUSTOMS Record for the Year is only 0.51 crores.

Raw Material

(Rs. In crores)

Year/Period Figures reported in APR (FOB Value) Figures as per Customs Records Difference if any Reason for Difference/Remark (1) (2) (3) (4) (5) 2018-19

--

-- 2019-20

--

-- 2020-21

--

-- 2021-22

--

--

(C) BLUT

         (Amount in ‘crores’) 

1

Value of BLUT Executed (Duty foregone) (including for CG/ Raw Material/ Services)

Value of Additional BLUT executed Year: Date of acceptance BLUT amount:

TOTAL value of BLUT Executed

Rs. 42.12 crores
Dt: 01.07.2018

Rs. 166.00 crores
Dt: 02.07.2019

Total- Rs. 208.12 crores

2 Total Duty Foregone on goods & services procured Category Wise:

Year Wise:

F.Y. Imported goods and services (Rs. in crores) Indigenous goods and services (Rs. in crores) 2018-19 10.55

7.52 2019-20 9.61 6.29 2020-21 13.10 40.34 2021-22 15.98 55.58 3 Has the Unit procured goods and 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 (31.03.2022) (as on end of block period/ year up to which monitoring is being done) Men: 1751 Women: 903

Total No Employment : 2654 (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. No

(f) Whether all Softex has been filed for the said period. If no, details thereof. SO to also check whether unit has obtained Softex Yes

condonation from DC office / RBI and if approved, whether they have filed such pending Softex. (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 (h) Whether unit has filed any request for Cancellation of softex Yes. Unit has filed request for Cancelation of SOFTEX for the Month of April-2020 having online Request ID No. 142000133855. There was error in reporting the figure in Softex of approx. USD 1000. (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.

(j) SO to verify and certify whether the unit has updated the BLUT ledger Module in SEZ Online. NA (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

No (l) Is the unit sharing any of their infrastructure 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.
No. The filing of DSPF is in process (n) Whether unit has filed all DTA procurement w.r.t. the goods procured by them during the Yes

monitoring period for the relevant period: If no, details thereof (o) Details of the request IDs pending for OOC in respect of DTA procurement on the date of submission of monitoring report No (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. 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 It is learnt that there is cafeteria in the unit wherein a vendor has been appointed who brings in cooked meal which is served to the employees. The unit has been asked to submit application for regularization of the cafeteria.
(q) Whether any violation of any of the provisions of law has been noticed/ observed by the Specified Officer during the period under monitoring. No

ADC’s observations:

 The Unit has achieved export revenue of Rs. 2,418.10 Crores as against projected export of Rs. 900 Crores and achieved cumulative positive NFE of Rs.
2207.13 Crores in first 4 years of the 1st block period i.e. during FY 2018-19 to FY 2021-22.

 The Unit has achieved employment of 2654 employees (Men-1751, Women-903) as on 31.03.2022

 Approval Committee may monitor the performance of the Unit for 4 years i.e. FY 2018-19 to FY 2021-22 for 1st block period, in terms of Rule 54 of SEZ Rules, 2006.