SEEPZ SPECIAL ECONOMIC ZONE ANDHERI (EAST), MUMBAI.

AGENDA FOR

MEETING OF THE APPROVAL COMMITTEE FOR SECTOR SPECIFIC SPECIAL ECONOMIC ZONE FOR MANUFACTURING MIDC-SHENDRA-SEZ, AURANGABAD.

Via Video Conferencing

DATE : 10.08.2023

TIME : 12:30 P.M.

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MEETING OF THE APPROVAL COMMITTEE FOR SECTOR SPECIFIC SPECIAL ECONOMIC ZONE FOR MANUFACTURING MIDC-SHENDRA-SEZ, AURANGABAD, 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. Cosmo First Ltd.

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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. Cosmo First Limited., a Manufacturing unit located at AL-24/1, Shendra MIDC SEZ, Shendra Industrial Area, Aurangabad, 431201. b) Specific Issue on which decision of UAC is required: Monitoring of the performance of the unit FY 2018-19 to F.Y 22-23 of 2nd block period, 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”. d) Previous reference: The said proposal of the unit was placed before the 44th Meeting of the Approval Committee held on 25.07.2023 wherein the committee deferred the Monitoring of performance of the unit with directions to submit detailed reconciliation of the import and export figures reported by the Specified Officer. (I) Performance as compared to projections: FY 2018-19 to FY 2021-22 (i) Approved Projections (Rs in crores) 2018-19 2019-20 2020-21 2021-22 2022-23 TOTAL FOB Value of Exports 440.00 450.00 460.00 650.00 675.00 2675.00 FE Outgo 340.00 350.00 360.00 370.00 380.00 1800.00 NFE 100.00 100.00 100.00 280.00 295.00 875.00 (ii) Performance as compared to projections: FY 2018-19 TO FY 2022-23 (Rs. in crores) File No.S-SEZ-MONT0MIDA/1/2023-JDCP

(II) Cumulative NFE achieved: FY 2018-19 TO FY 2022-23 (Rs. in crores) (III) Employment Achievement (Direct): FY 2021-22 The Unit has achieved employment of 528 employees (Men-238, Women-03, Indirect Employment -287) in 5th year of the 2nd block period. (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/NEWSEZ/MIDC- AURBD/04/2010-11 dt. 26.08.2010 Location of Unit AL-24/1, Shernda MIDC SEZ, Shernda Industrial Area, Aurangabad, 431201. Validity of LOA 15.09.2023 Item(s) of manufacture/ Services Authorized Laminated BOPP Date of commencement of production 19.08.2013 Year Export F.E. OUTGO Projected Actual Raw Material (Goods/Service s) C.G. import Other outflo w Proje cted Actual Project ed Actual Actual 2018-19 440.00 507.76 1500 217.60 70.00 18.41 0 2019-20 450.00 543.82 106.50 11.42 0 2020-21 460.00 603.56 98.47 17.90 0.83 2021-22 650.00 907.70 216.37 3.44 9.77 2022-23 675.00 861.41 180.52 7.81 10.83 Total 2675.00 3422.46 1500 819.48 70.00 59.00 21.45 Year Cumulative NFE Achieved Cumulative % NFE Achieved 2018-19 71.24 14.03% 2019-20 309.78 29.46% 2020-21 632.22 38.20% 2021-22 1016.49 39.66% 2022-23 1414.12 41.30%

Execution of BLUT 03.06.2022 Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement NA Pending CRA Objection, if any NA Pending Show Cause Notice/ Eviction Order/Recovery Notice/ Recovery Order issued, if any NA a) Projected employment for the block period b) No. of employees as on 31.03.2022 290 528 Area allotted (in sq. ft.) 96,000 sq. mtrs Area available for each employee per sq. ft. basis (area / no. of employees) 181.82 Sq. mtrs 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 Vide PUC, the Specified Officer has submitted a revised report vide letter dated 07.08.2023, in the prescribed format along with point-wise reply to the discrepancies as follows:

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

(Figures INR in crores) Year/Per iod (1) Figures as per APR
(FOB Value) (2) Figures as per NSDL Customs Records (FOB Value)(3) Differe nce (If any) [(2)-(3)] (4) Reason for Difference/Remarks (5) 2018-19 505.47 505.84

• 0.37 An amount of Rs. 0.37 crores is actually pertains to export of Chill Rolls (i.e. parts of Machinery) sent for pre- refurbishment/ refurbishment. Hence, it was not considered in APR. Therefore, the said differential amount has been observed. 2019-20 539.95 540.14 -0.18 An amount of Rs. 0.18 crores is actually pertains to export of Chill Rolls (i.e. parts of Machinery) sent for pre- refurbishment/ refurbishment. Hence, it was not considered in APR. Therefore, the said differential amount has been observed. 2020-21 598.82 599.79 -0.97 An amount of Rs. 0.97 crores is actually pertains to export of Chill Rolls (i.e. parts of Machinery) sent for pre- refurbishment/ refurbishment. Hence, it was not considered in APR. Therefore, the said differential amount has been observed. 2021-22 896.18 896.80
• 0.61 An amount of Rs. 0.61 crores is actually pertains to export of Chill Rolls (i.e. parts of Machinery) sent for pre- refurbishment/ refurbishment. Hence, it was not considered in APR. Therefore, the said differential amount has been observed. 2022-23 852.24 852.65 -0.41 An amount of Rs. 0.41 crores is actually

pertains to export of Chill Rolls (i.e. parts of Machinery) sent for pre- refurbishment/ refurbishment. Hence, it was not considered in APR. Therefore, the said differential amount has been observed. (b) Import- Raw material in respect of manufacturing unit including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis: (Figures INR in crores) Year/Period (1) Figures as per APR
(2) AV Figures as per NSDL Customs Records (3) Differenc e (If any) [(2)-(3)] (4) Reason for Difference/Remarks (5) 2018-19 404.32 407.56 -3.23 An amount of Rs. 3.23 crores is of finished goods which were exported and later rejected and then re- imported by the Importer. Hence, this is reflected in NSDL, but not considered in APR. 2019-20 286.69 293.69 -7.00 An amount of Rs. 7.00 crores is of finished goods which were exported and later rejected and then re- imported by the Importer. Hence, this is reflected in NSDL, but not considered in APR. 2020-21 268.45 299.81 -31.36

1. An amount of Rs. 0.59 crores is of finished goods which were exported and later rejected and then re-imported by the Importer. Hence, this is reflected in NSDL, but not considered in APR.
2. Raw material of Rs. 30.7740 crores (Zone to Zone import) which were assessed in Feb.2021 and

March 2021 but out of charge was given in the next Financial year i.e. 2021-22(April-2021). Hence, this is reflected in NSDL for 2021-22, but not considered in APR. 2021-22 519.05 494.33 24.71

1. An amount of Rs. 1.14 crores is of finished goods which were exported and later rejected and then re-imported by the Importer. Hence, this is reflected in NSDL, but not considered in APR.

2. Raw material of Rs. 24.7160 crores (Zone to Zone import) which were assessed in Feb.2022 and March 2022 but Out of charge was given in the next Financial year i.e. 2022-23(April-2022). Hence, this is reflected in NSDL for 2022-23, But not considered in APR 2022-23 411.96 412.74 -0.77 An amount of Rs. 0.77 crores is of finished goods which were exported and later rejected and then re- imported by the Importer. Hence, this is reflected in NSDL, but not considered in APR. (C’) BLUT 1 Value of BLUT Executed (Duty forgone) (Including for CG/Raw material/services) Value of Additional BLUT executed

Year: Date of acceptance

BLUT amount Unit has filed the following additional BLUT during the reporting period. 1.Letter ref. No. SEEPZ/NEWSEZ/MIDC- AURBD/04/2010-11/VOL-

TOTAL value of BLUT executed III/2053 Dtd 17.09.2021, Request ID No. 131900008192 Rs. 386,88,00,000/- (Imported Raw material/Consumable Rs. 332,88,00,000/- and Indigenous Raw material/consumable Rs. 54,00,00,000/-) 2. Letter ref. No. SEEPZ/NEWSEZ/MIDC- AURBD/04/2010-11/VOL-IV258 Dtd 07.06.2022 Request ID 132200003305 Rs. 230,50,00,000/- (Imported capital Goods Rs. 37,86,51,000/, Imported Raw material Rs. 166,44,00,000/-, Indi. Capital Goods Rs. 8,46,00,000/- and Indi. Raw material Rs. 17,73,49,000/-) Total amount of all BLUTs- Raw material Rs. 571,05,49,000/- Capital Goods Rs. 46,32,51,000/- 2 Total Duty Forgone on goods & services procured (Category-wise BLUT value utilized separately for imported and indigenous goods and services) This should be based on BLUT worksheet which provides for estimated value and duty forgone separately for each category of procurement. Duty forgone for procured goods during the reporting period. Imported goods Rs.569.79/- crores Indigenous Goods Rs.176.81 crores Imported services Rs. Nil 3 Has the Unit procured goods and or services without having sufficient balance in their BLUT ? No Unit has sufficient balance at the time of additional BLUT executed

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 in 2018-19, Balance available Rs. 7.79 crores. Also unit has executed additional BLUT in the year 2022- 23, at the time unit has Rs. 3.95 crores. No SCN has been issued to the unit for contravention of provision of Rule 22 of the SEZ rules, 2006 or for having any such sufficient balance at the time of execution of additional BLUTs. (d) Employment made as on date(as on end of the block period/year upto which monitoring is being done) As per MPR report Men: 238 Women: 03 Indirect Employment : 287 (‘e) Details of pending foreign remittance beyond permission period, if any (as on 31.03.2023) To cross check the same and verify whether necessary permission from AD Bank/RBI has been obtained. So, to certify that the same has been verified An amount of Rs. 34.68 Crores shown pending realization as 0n 31.03.2023 and has been recovered by the unit in the month of April-23 and May-23. (f) Whether all softex has been filed for the said period. If no, details thereof. SO to also whether unit has obtained softex condonation from DC office/RBI and if approved, whether they have filed such pending Softex. NA (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. NA

(h) Whether unit has filed any request for cancellation of Softex NA (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 therof (year wise details to be provided) The unit has not provided services into DTA/SEZ/EOU/STPI etc unit (j) SO to verify and certify whether the unit has updated the BLUT ledger module in SEZ online The unit has executed additional BLUT wide Request ID No 131900008192 in the period 2018- 19 wide Letter ref. No.SEEPZ/NEWSEZ/MIDC- AURBD/04/2010-11/VOL- III/2053 Dtd 17.09.2021 and Request ID No132200003305 in the period 2022-23 wide Letter ref. No. SEEPZ/NEWSEZ/MIDC- AURBD/04/2010-11/VOL-IV258 Dtd 07.06.2022 (k) Has the unit cleared any Capital Goods procured duty free in DTA against payment of Duty, or other- wise. Full details to be provided along with value of assests
and duty discharged In the year 2018-19 the unit has cleared the capital goods (SRC slitter machine) wide DTA sale BOE No 2001613 Dtd 15.12.2018. (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 therof, 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 No such case notices

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 for by the SO office. The unit filed the DSPF form in the SEZ online system, the same has been out of charge from the SO office. No remaining DSPF request from the SO office. (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 therof As per the records, DTA filed on SEZ online system, by the unit, have been processed and approved till date. (o) Details of the request IDs pending for OOC in resoect of DTA procurement on the date of submission of monitoring report. As per the records on SEZ online system, there are no pending requests for Out of charge. (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 Yes, SEEPZ/NEWSEZ/MIDC- AURBD/04/2010-11/Voll-II/5771 Dtd 13.04.2012 No such case noticed No such case noticed (q) Whether any violation of any of the provision of law has been noticed/observed by the Specified Officer during the period under monitoring No such case noticed

(f) ADC’s observations:  The Unit has achieved export revenue of Rs. 3422.46 crores as against projected export of Rs. 2675.00 crores i.e. 127.94 % in 5th year of the 2nd block period.  UAC may like to monitor the performance of the Unit for FY 2018-19 to F.Y 22-23 for 2ndblock period, in terms of Rule 54 of SEZ Rules, 2006.