20/09/2023 — 02-2-magarpatta-city-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. MAGARPATTA TOWNSHIP DEVELOPMENT AND CONSTRCTION COMPANY LTD.- SEZ, HADAPSAR, PUNE.

Via Video Conferencing

DATE : 21.09.2023

TIME : 11:00 A.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 21.09.2023

INDEX

Agenda Item No.

Subject Agenda Item No. 01: - Confirmation of the Minutes of the meeting held on 10.08.2023. Agenda Item No. 02: - Monitoring of Performance for M/s. Accenture Solutions Pvt Ltd. (Unit-I) Agenda Item No. 03: - Application of Approval for merger of LOAs of Unit A and Unit B submitted by M/s. E-Infochips Pvt Ltd.

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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. Accenture Solutions Pvt Ltd.-Unit-I an IT/ITES unit located in Magarpatta City-SEZ, Pune, of FY 2017-18 i.e., last year of 2nd Block period (2013-14 to 2017-18) and FY 2018-19 to 2021- 22 i.e., 4 years of 3rd Block period (2018-19 to 2022-23). b) Specific Issue on which decision of Approval Committee is required: Monitoring of the performance of the unit for :

1. FY 2017-18 i.e., last year of 2nd Block period (2013-14 to 2017-18) &
2. FY 2018-19 to 2021-22 i.e., 4 years of 3rd Block period (2018-19 to 2022- 23), 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 2nd Block Period: (Rs. In Cr.)

2013-14 2014-15 2015-16 2016-17 2017-18 Total FOB Export 431.35 448.61 470.55 708.63 782.31 2839.45 FE Outgo 24.77 25.66 37.02 64.02 56.05 207.52 NFE 406.58 422.95 433.53 644.61 726.26 2633.93 (A) Performance as compared to projections: (Rs. In Cr.) Year Export F.E. OUTGO Projected Actual Raw Material (Goods/Services ) C.G. import Other outflow Projecte d Actua l Projecte d Actual Actual 2017- 18 782.31 690.14 0.00 0.00 24.17 3.88 13.69 Total 782.31 690.14 0.00 0.00 24.17 3.88 13.69 (B) Cumulative NFE Achieved (Rs. In Crores) Year Cumulative NFE achieved Cumulative NFE in % 2017-18 2967.32 96.64 II. Approved export projections for 3rd Block Period: (Rs. In Cr.) File No.S-SEZ-MONT0MTDC/3/2023-JDCP

2

2018-19 2019-20 2020-21 2021-22 2022-23 Total FOB Export 636.54 587.28 587.28 587.28 587.28 2985.66 FE Outgo 36.41 36.77 37.50 32.51 29.92 173.11 NFE 600.13 550.51 549.78 554.77 557.36 2812.55 (C) Performance as compared to projections: (Rs. In Crores) Year Export F.E. OUTGO Projected Actual Raw Material (Goods/Services ) C.G. import Other outflow Projecte d Actua l Projecte d Actual Actual 2018- 19 636.54 639.38 0.00 0.00 26.73 0.36 6.61 2019- 20 587.28 655.93 0.00 4.11 11.82 2020- 21 587.28 621.80 0.00 -2.18 11.14 2021- 22 587.28 661.32 0.00 7.90 8.32 Total 2398.38 2578.43 0.00 0.00 26.73 10.19 37.89 (D) Cumulative NFE Achieved (Rs. In Crores) Year Cumulative NFE achieved Cumulative NFE in % 2018-19 626.09 97.92 2019-20 1263.49 97.54 2020-21 1867.98 97.44 2021-22 2514.19 97.51 (E) Employment: As per SO report Year Men Women Total 2021-22 2695 2727 5422 (F) Other Information: LOA No. & Date SEZ/PUNE/19/2007-08/12 dated 05.02.2008 Location of Unit Tower B4, Magarpatta Township Development and Construction Company Ltd-SEZ, IT & ITES-SEZ, Magarpatta City, Hadapsar, Pune-411 013 Validity of LOA 06.04.2028 Item(s) of manufacture/ Services IT/ITES Date of commencement of production 07.04.2008 Execution if BLUT Date of Acceptance Goods (in Rs.) Services (in Rs.)

3 25.02.2008 22.00

31.10.2018 10.85

20.07.2022 1.41 64.53 26.04.2023 21.81 105.61 Total 56.07 170.14 Outstanding Rent dues No Labour Dues No Validity

of

Lease Agreement 30.11.2030 Pending CRA Objection, if any No Pending Show Cause Notice/

Eviction Order/Recovery Notice/ Recovery Order issued, if any No a) No. of employees as on 31.03.2022 Year Men Women Total 2021-22 2695 2727 5422 Area allotted (in sq.ft.) 201732.3 Sq.ft. Area available for each employee per sq.ft. basis (area / no. of employees) 37.20 sq.ft. Investment till date Building 30.37Cr Plant & Machiner y 54.55Cr Quantity and value of goods exported under Rule 34 (unutilized goods)

Value Addition during the monitoring period

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 28.08.2023 has reported as under: A. EXPORT DETAILS (Fig. in Cr.) Year/Period Figures reported in APR Figures as per Softex/Customs Difference if any Reason

for Difference/Remark

4 (FOB Value) Records 2017-18 690.14 646.65 43.49 The reason for the difference of Rs 43.49 Cr. are as under; i.e (1+2+3)

1. 1. Rs. 3.63 Cr. is on account of Exchange rate fluctuation.
2. 2. Rs 38.94 Cr. is on account

of
Onsite export which is being considered in APR only. 3) Unit follow an accrual-based accounting system. The difference is on account of unbilled revenue of Rs 0.92 Cr., which is accounted for at the end of the financial year considered in APR due to realization out of last year invoices. 2018-19 639.38 604.13 35.25 The reason for the difference of Rs 35.25 Cr. is as under; i.e. (1+2) minus (3) 1)Rs. 1.65 Cr. is on account of Exchange rate fluctuation. 2)Rs 33.77 Cr. is on account

of
Onsite export which is being considered in APR only. . 3) 3)Unit

follow

an accrual-based accounting system. The difference is on account of advance revenue Rs 0.17 Cr., which is accounted for at the end of the financial year not considered in APR due to less realization of the of the current year invoices. 2019-20 655.93 618.84 37.09 The reason for the difference of Rs 37.09 Cr. is as under; i.e.

5 (1+2) minus (3) 1)Rs. 7.55 Cr. is on account of Exchange rate fluctuation. 2)Rs 30.59 Cr. is on account

of
Onsite export which is being considered in APR only. . 3)Unit

follow

an accrual-based accounting system. The difference is on account of advance revenue Rs 1.05 Cr., which is accounted for at the end of the financial year not considered in APR due to less realization of the of the current year invoices. 2020-21 621.80 605.60 16.20 The reason for the difference of Rs 16.20 Cr. is as under; i.e. (1+2+3) 1)Rs. 5.35 Cr. is on account of Exchange rate fluctuation. 2)Rs 9.82 Cr. is on account

of
Onsite export which is being considered in APR only. . 3)Unit

follow

an accrual-based accounting system. The difference is on account of advance revenue Rs 1.03 Cr., which is accounted for at the end of the financial year considered in APR due to realization out of last year invoices. 2021-22 661.32 652.73 8.59 The reason for the difference of Rs 8.59 Cr. is as under; i.e. (1+2+3)

6 1)Rs. 7.03 Cr. is on account of Exchange rate fluctuation. 2)Rs 1.43 Cr. is on account

of
Onsite export which is being considered in APR only. . 3)Unit

follow

an accrual-based accounting system. The difference is on account of advance revenue Rs 0.13 Cr., which is accounted for at the end of the financial year considered in APR due to realization out of last year invoices. B. IMPORT DETAILS (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis. (Fig. in Cr.) Year/Period Figures reported in APR (CIF Value) Figures as per NSDL/Custo ms Records Difference if any Reason for Difference/Remar k 2017-18 5.63 5.63 Nil

2018-19 1.17 1.17 Nil

2019-20 4.74 4.74 Nil

2020-21 2.81 2.81 Nil

2021-22 8.33 8.33 Nil

C. BLUT DETAILS 1 Value of BLUT Executed (Duty foregone) (including for CG / Raw Material / Services) Value of Additional (Fig in Cr.) Date of Acceptance Goods (in Rs.) Services (in Rs.) 25.02.2008 22.00

31.10.2018 10.85

7 BLUT executed

Year: Date of acceptance

BLUT amount: TOTAL value of BLUT Executed 20.07.2022 1.41 64.53 26.04.2023 21.81 105.61 Total 56.07 170.14 Total BLUT Rs. 226.21 Cr. 2 Total

Duty Foregone 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

foregone separately for each category

of procurement. (Fig in Cr.) Year Import Duty Forgo ne (in Rs.) Impor ted Servic es duty forgon e (in Rs.) Indigeno us Goods Duty Forgone (in Rs.) Indige nous Servic es Duty Forgo Ne (in Rs.) Total (in Rs.) 2017- 18 1.31 3.47 0.56 11.66 17.0 0 2018- 19 0.31 2.18 0.97 13.19 16.6 5 2019- 20 1.26 2.68 1.59 11.55 17.0 8 2020- 21 0.59 2.27 1.95 9.11 13.9 2 2021- 22 1.74 2.34 0.88 9.04 14.0 0 d Empliymeont made as ion date (as ion eond if blick periid / year up ti which mionitiriong is beiong dione) Year Men Women Total 17-18 3214 1782 4996 18-19 2787 1841 4628 19-20 2548 2050 4598 20-21 2011 1688 3699 21-22 2695 2727 5422 e Details of pending There is no foreign remittance pending beyond

8 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 permissible period 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 has been filed till Mar-22. No case of filing condonation noticed. 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 filed have been certified for the period from 17-18 to 21-22. 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. No such case noticed.

9 If

yes,

details thereof (year wise details

to

be provided) j SO to verify and certify whether the unit has updated the BLUT ledger Module in SEZ Online. Up-loading of the BLUT Module on SEZ online Portal Kept in abeyance as per office order No. 02/2023 dated 16-03-2023. 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 Yes, (Fig in Cr.) FY 2017-18: Duty Paid : Rs. 0.36 FY 2018-19: Duty Paid : Rs. 0.34 FY 2019-20: Duty Paid : Rs. 0.19 FY 2020-21: Duty Paid : Rs. 0.83 FY 2021-22 : Duty Paid :Rs. 0.29 (The Capital goods is removed to DTA on payment of duty for the destruction/scrap purpose) 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. The unit is not sharing any of its infrastructure with other units or utilizing another unit’s infrastructure in the same or other SEZ.

10 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. DSPF filed online for services procured during the period October, 2018-19 to 21-22 has been filed and processed. 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 As per the record, 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 respect of

DTA procurement on the date of submission of monitoring report As per the record on SEZ Online, no Out of Charge is pending. 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? SEZ Approval letter No. SEEPZ-SEZ/MTDCCL- SEZ/ASPL/31/2015-16/ 516 dtd 12.09.2022 Total Café Area : 10600 Sq. feet, has been taken from UAC/DC in terms of instruction no. 95. As regards to duties on the services used for cafeteria area, unit has agreed to pay the duties after due clarification from the BOA and ministry. As regard to the goods utilized in the cafeteria, it has been confirmed that the said goods were procured without claiming any duty benefit.

11 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 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 such case noticed ADC’s observations:  The unit has achieved Export of Rs. 690.14 Cr. Against the projected export of Rs. 782.31 Cr. i.e, 88.21% in the FY 2017-18 i.e., last year of 2nd Block period (2013-14 to 2017-18)  The unit has achieved positive NFE of Rs. 2967.32 Cr. i.e, 96.64% in the FY 2017-18 i.e., on cumulative basis.  The unit has achieved Export of Rs. 2578.43 Cr. against the projected export of Rs.2398.38 Cr. In FY 2018-19 to 2021-22 i.e. 107.50%, 4 years of 3rd Block period (2018-19 to 2022-23)  The unit has achieved positive NFE of Rs. 2514.19 Cr. i.e, 97.51% in the FY 2021-22 i.e., on cumulative basis.  Vide SO repot the unit has achieved employment as detailed below: Year Men Women Total 2021-22 2695 2727 5422  Approval Committee may kindly monitor the performance of the Unit for FY 2017-18 i.e., last year of 2nd Block period (2013-14 to 2017-18) and FY 2018-19 to 2021-22 i.e., 4 years of 3rd Block period (2018-19 to 2022-23), in terms of Rule 54 of SEZ Rules, 2006.

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: - Proposal submitted by M/s. E-Infochips Pvt Ltd-Unit B. an IT/ITES unit located at M/s. Magarpatta Township and Constructions Company Ltd- SEZ, for merger of LOA of their Unit A with that of their Unit-B located in the same SEZ. b) Specific Issue on which decision of Approval Committee is required: - Approval of the Committee for merger of two LOAs of M/s. E-Infochips Pvt Ltd., Unit A with that of their Unit-B, in terms of 4th proviso of Rule 19(2) of SEZ Rules, 2006. c) Previous reference: The said proposal of the unit was placed before the 103rd Meeting of the Approval Committee held on 10.08.2023 wherein the committee deferred the proposal and committee observed that the proposal should include the actual/achieved export during the financial years i.e. 2018-19 to 2021-22. Committee directed to amend the proposal accordingly and resubmit the same. d) The Unit has submitted the revised projection at actual as under I. Comparison of Projections and Achieved Investment and employment (Unit A and B) (Rs. In Cr.) Sr. No Descripti on Existing Approved Projections of Unit A Actuals of Unit A Existing Approved Projections of Unit 2
Actuals of Unit B Revised Projection s post- Merger of both the LOA’s 1 Area (Built up area) 11124.15sq. ft.

11124.15sq. ft.

22248.30s q.ft 2 Employ ment (Actual as per MPR) Men Wo men Men Wo me n Men Wo men Men Wo me n Me n Wo men 163 75 197 78 80 44 85 37 282 115 Total 238 275 124 122 397 File No.S-SEZ-PRO0MTDC/8/2023-JDCP

3 Investment-Plant and Machinery/Capital Goods i. Indigeno us Capital Goods 3.90 5.95 3.20 2.53 10.00 ii. Imported Capital Goods 3.81 1.42 3.54 0.99 5.00 Total 15.00 4 Input of Services i. Imported Services 77.07 3.85 32.40 0.94 7.50 ii. Indigeno us Services 16.46 17.60 10.43 5.11 35.00 II. Approved foreign exchange projections (Unit-A): (Rs. In Cr.)

2018-19 2019-20 2020-21 2021-22 2022-23 Total FOB Export 34.08 74.99 84.36 94.96 106.93 395.32 FE Outgo 7.12 15.39 17.19 19.36 21.79 80.85 NFE 26.96 59.59 67.17 75.59 85.14 314.45 III. Comparison of Projections and Achieved Export: (Rs. In Cr.) IV. Approved foreign exchange projections (Unit-B) (Rs. In Cr.) Description 2018-19 2019-20 2020-21 2021-22 2022-23 Total FOB value of Exports 14.62 32.16 36.18 40.73 45.85 169.55 FE Outgo 3.17 6.74 7.65 8.68 9.72 35.95 NFE Earnings 14.45 25.43 28.54 32.05 36.14 136.60 Year Export Projected Actual 2018-19 34.08 25.60 2019-20 74.99 17.63 2020-21 84.36 25.72 2021-22 94.96 34.82 2022-23 106.93 APR not Filed Total 395.32 103.77 File No.S-SEZ-PRO0MTDC/8/2023-JDCP

V. Comparison of Projections and Achieved Export: (Rs. In Cr.) VI. Approved Projections for 3rd Block period of Unit B (at the time of Renewal): (Rs. in Cr.) Description 2023-24 2024-25 2025-26 2026-27 2027-28 Total FOB value of Exports 48.71 107.16 120.55 135.69 152.79 564.90 FE Outgo 10.30 22.13 24.84 28.04 31.51 116.83 NFE Earnings 38.41 85.02 95.71 107.65 121.28 445.07 VII. Projected foreign exchange projections of Unit B after merger: (Rs. In Cr.) Description 2023-24 2024-25 2025-26 2026-27 2027-28 Total FOB value of Exports 33.85 31.03 38.16 57.32 75.57 235.94 FE Outgo 2.30 2.40 2.50 2.60 2.70 12.50 NFE Earnings 31.55 28.63 35.66 54.72 72.87 223.44 The projections of the Unit B after Merger are less than the Projections Approved for 3rd Block period i.e. FY 2023-24 to 2027-28. After the deficiency raised by the Approval Committee in its meeting held on 10.08.2023, the unit has revised their projections for post-merger period considering their Achieved Export/NFE in last 4 years i.e, FY2018- 19 to 2021-22 by both the units in last block period e) Relevant Provisions: - As per the 4th proviso of Rules 19 (2) of SEZ Rules, 2006; “Provided also that the Approval Committee may also approve proposal for merger of Letter of approvals of two units of the same company or firm subject to the conditions that these Units falls within the same Special Economic Zone and after merger, Block Period for calculation of Year Export Projected Actual 2018-19 14.62 8.25 2019-20 32.16 13.41 2020-21 36.18 12.44 2021-22 40.73 22.50 2022-23 45.85 APR not Filed Total 169.55 56.60 File No.S-SEZ-PRO0MTDC/8/2023-JDCP

Net Foreign Exchange shall be from the date of commencement of production of Unit which commenced operation first and the Income tax exemption period shall be considered from the date start of operation of the first Unit.”
f) Other Information: - Details of the Unit-A:  Letter of Approval No. SSEEPZ-SEZ/MTDCCL-SEZ/EIL/27/2012-13/934 dated 22.01.2013  Date of Commencement of Production: 20.12.2013  Validity of LOA: 19.12.2023  Current Block Period: 2018-19 to 2022-23  Area: 11,124.15 Sq. ft  Location: Level-3, Wing-B (Part), Tower-9, Magarpatta Township Development and Construction Company Ltd-SEZ, IT & ITES-SEZ, Magarpatta City, Hadapsar, Pune-411 013  The Approval Committee noted the performance of the unit for 4 years i.e. from 2018-19 to 2021-22 of 2nd block period, in terms of Rule 54 of SEZ Rules,2006. The unit has achieved export revenue of Rs. 103.76 Crores and positive NFE of Rs. 99.93 Cr. i.e., 96.31% In FY 2021-22 on cumulative basis. The unit has achieved employment of 135 employees (Men-88, women-47). Details of the Unit-B:  Letter of Approval No. SEEP-SEZ/MTDCCL-SEZ/EIL/28/2012-13/913 dated 22.01.2013  Date of Commencement of Production: 05.08.2013  Validity of LOA: 04.08.2013  Current Block Period: 2018-19 to 2022-23  Area: 11,124.15 Sq. ft  Location: Level-3, Wing B (part), Tower 9, , Magarpatta Township Development and Construction Company Ltd-SEZ, IT & ITES-SEZ, Magarpatta City, Hadapsar, Pune-411 013.  As per Rule 19 (2) of SEZ Rules, 2006, for calculation of Net Foreign Exchange the date of commencement of production of Unit which commenced operation first and the Income tax exemption period shall be considered from the date start of operation of the first Unit. In this case the date of commencement of Unit B i.e. 05.08.2013, is earlier than Unit A, the commencement date being 20.12.2013, thus upon merger of both the LOAs, the block period of Unit-B is being considered for calculating NFE

 Reason for Merger:

1. The main intent of the management is to consolidate their operations under one unit only instead of maintaining two separate units with separate books of accounts and records keeping, so that compliances, operations, administration etc can be handled effectively with common team.

2. Cost Optimization: Both Units shall be merged, thereby reducing operational and maintenance cost and effectively due to consolidation as only one support team can take care of all admin related activities. File No.S-SEZ-PRO0MTDC/8/2023-JDCP

3. Better control and monitoring: When both the units will be merged, it will be easier for operational team members to work effectively as a single team rather than two separate teams sitting in two different units. This will help in faster and timely completion of project.

4. Working Together: Since their teams works on various projects at the same time, therefore if they bifurcate teams at two different locations in two separate units, then it creates a hindrance in terms of working together at one place and then project gets affected. The unit has also agreed to the other terms and conditions mentioned in said rules from tax benefit perspective and they understand that for all purposes the date of commencement of operations shall be treated as 05.08.2013, the date of which their first unit started commercial operations  In support of the above unit has submitted the following documents: o Form F3 filed through SEZ Online system o Copy of board resolution authorizing authorized signatory; o Copy of all Letter of Approval of both units; o Revised Foreign Exchange Balance Sheet; o Copies of Broad Banding Applications submitted when projections were revised. o Copy of all APR of Unit A and Unit B o List of Imported and Indigenous Capital goods; g) ADC scrutiny report :-  As Unit-B commenced its operations first, upon merger of both the LOAs, the block period of Unit-B will be considered for calculating NFE of the merged units i.e., 2018-19 to 202-23.  The approval committee may kindly consider the proposal of the units for merger of their LOAs, in terms of 4th proviso of Rule 19(2) of SEZ Rules,

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File No.S-SEZ-PRO0MTDC/8/2023-JDCP