Agenda for Approval Committee meeting for Pune-Cluster to be held on 05-Dec.- 2023. — 06-6syntel-international-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. SYNTEL INTERNATIONAL PVT. LTD. SEZ PUNE.

Via Video Conferencing

DATE : 05.12.2023

TIME : 11:00 A.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 05.12.2023

INDEX

Agenda Item No.

Subject

Agenda Item No. 01 :- Confirmation of the Minutes of the meeting held on 19.10.2023 Agenda Item No. 02 :- Monitoring of Performance for M/s. State Street Syntel Services Pvt Ltd- LOA-25

---

Minutes of the 46s Meeting of the Approval Committee held under the Chairmanship of ZoneJ DeveloPment Commissioner SEEPZ-SEZ for Sector Specific Special Economic Zane for IT-ITES of M/s. Syntel International Rrt. Ltd., Pune held on 19.10.2023 via video conference. ame of the SEZ /s. Syntel International Rrt. Ltd., Pune. 2 ctor ITES 3 eeting No. 6th 4 9.ro.2023 File No.S-SEZ-MINS0SIPL/1/2023-.JDCP Members present lnvitee Agenda Item No.Ol: 25.Ot.2022 Conf::mation of Minutes of ttre 456 meeting held on The Committee, after deliberation confirmed the minutes of the 45ft meeting of the Approval Committee held. or:. 25 .O1' .2022 Agenda Iteo No.02: Monitoring of Performaace in r/o M/s State Street Syatel Serrdces R/t Ltd. The performance of the unit for the FY 2017-18 of the Sft year of lst block period (i.e., FY 2013-14 TO 2017-18) and 4 years of2nd Block period (i'e', FY 2018- 79 to 2}22-231was placed before the Committee for Monitoring purpose' The Committee observed that the Unit has achieved export revenue of Rs' 42.94 Crores against the projected export of Rs 97.57 Crores and achieved positive cumulative NFE of 160.0O Crores which is 98.74 % in last year of the lst block period i.e. FY 20 17- 18. The unit has achieved emplo5rment of 540 emptoyees (Men-384, Women-156) Sr a.me and Designation t /Shri.) 1 t. Mital Hiremath e Cluster SEZ, Pune oint Development Commissioner 2 r. Sandeep Sathe, ominee of Income Tax, Pune CIT-Circle 4, Pune J hri. Krishna Das Nair, FTDO ominee of DGFT, Pune 4 mt. Malathi Nair uperintendent ominee of Customs, hlne Sr a:ne and Designation epartmeot 1 /s. Syntel International F/t. Ltd.-SEZ pecified Oflicer 1 Satbir Sharma

File No.S€EZ-MlNS0SlPUl/2023JDCP in the Sth year of the l"t block period. The Unit has achieved export revenue of Rs. 259.52 Crores against the projected export of Rs 133.97 Crores and achieved positive cumulative NFE of 256.10 Crores which is 98.68 o/o in 46 year of the 2nd block period i.e. FY 2018-19 to 2027-22. The unit has achieved employment of 740 employees (Men-503, Women- 237) in the 46 year of the 2nd block period as on date 37.03.2022. After deliberation, the Approval committee noted the performance of M/s Strect Syfltel Serrrices P\zt Ltd for the FY 2017-18 of the Sth year of 1st block period and 4 years of 2nd Block period in terms of Rule 54 of SEZ Rules, 2006. Meeting ended with a vote of thanks to the Chair. a4ff)du> (Rajesh Kumar Mishra, IRS) Chaiman-cum- Derrelopment Commissioner

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 State Street Syntel Services Pvt Ltd), an Information Technology Software Unit, for the 5th year of FY 17-18 of 1st block period i.e., FY 2013-14 to 2017-18 and 4 years of 2nd Block Period i.e., FY 2018-19 to 2022-23.

b. Specific Issue on which decision of Approval Committee is required: Monitoring of the performance of the unit for FY 17-18 of 5th year of 2nd block period and 4 years of 3rd 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”.

5 th year of 2

nd Block period i.e. FY 2017-18

The details of the export projections for 2ND block period, is as detailed below:

I. Approved Project (Rs In Crores)

2013-14 2014-15 2015-16 2016-17 2017-18 TOTAL FOB Value of Exports 48.82 44.06 39.76 35.89 32.39 200.93 FE Outgo 4.29 2.66 2.60 2.53 2.47 14.57 NFE 44.53 41.40 37.16 33..35 29.92 186.37

(II) Performance as compared to projections: FY 2017-18
(Rs. In crores)

Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projected Actual Actual 2017-18 32.39 95.71 0.00 0.00 11.30 0.04 0.97 Total 32.39 95.71 0.00 0.00 11.30 0.04 0.97 File No.S-SEZ-MONT0SIPL/3/2022-JDCP I/3303/2023 109

(III) Cumulative NFE achieved: FY 2017-18 (Rs. In crores)
Year Cumulative NFE Achieved Cumulative % NFE Achieved 2017-18 517.13 97.64%

4. years of year of 3

rd Block period i.e. FY 2018-19 to 2021-22.

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 96.68 31.55 31.55 31.55 7.45 198.78 FE Outgo 2.57 2.18 2.28 0.68 1.35 9.05 NFE 94.12 29.37 29.27 30.87 6.10 189.73

ii. Performance as compared to projections: FY 2018-19 to 2021-22
(Rs. In Crores)

Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projected Actual Actual 2018-19 96.68 96.69 0.00 0.00 1.10 2.39 2.03 2019-20 31.55 46.73 0.00 0.07 0.59 2020-21 31.55 44.55 0.00 0.18 5.78 2021-22 31.55 39.77 0.00 -0.13 3.92 Total 191.33 227.74 0.00 0.00 1.10 2.51 12.32 iii.Cumulative NFE achieved: FY 2018-19 to 2022-23 Year Cumulative NFE Achieved Cumulative % NFE Achieved 2018-19 94.04 97.26% 2019-20 139.58 97.32% 2020-21 177.81 94.59% 2021-22 213.17 93.60% (Rs. In Crores)

(III) Employment Achievement (Direct): FY 2018-19 to 2022-23

The Unit has achieved employment of 487 employees (Men-321, Women-166) I/3303/2023 110

in 4th year of the 3rd block period as on 31.03.2022 upto which the monitoring is being done. 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 SEZ/PUNE/25/2007-08/53

dt. 28.03.2008.

Location of Unit Block S-1, Plot No. B1/B2, IT Park, Dehu-Alandi Road, MIDC Software Technology Park, Talawade, Pune- 412062 Validity of LOA 05.10.2023 Item(s) of manufacture/ Services IT/ITES Date of commencement of production 06.10.2008
Execution of BLUT 25.11 crores Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement 5 years 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 Total: - 487 Female: -166 Male: - 321 Area allotted (in sq.ft.) 88450 Sq. Ft

Area available for each employee per sq.ft. basis (area / no. of employees) 181.62 Sq. Ft Investment till date

Building NA Plant & Machinery 20.61crores I/3303/2023 111

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 had submitted a report vide letter dated 04.12.2023 for the FY 2017-18 to 2022-23, in the prescribed format along with point-wise reply to the discrepancies as follows: -

The report in the prescribed format is as under: -

a. EXPORT
(Rs. All figures in crores) Year/Pe riod Figures reported in APR (FOB Value) Figures as per Softex/Customs Records Difference if any Reason

for Difference/Remark FY 2017- 18 95.7147 97.1441 -1.4294 Reconciliation

sheet submitted by the Unit is as below. FY 2018- 19 96.6876 89.3309

7.3567 FY 2019- 20 46.7334 56.7288

• 9.9954 FY 2020- 21 44.5505 45.9069 -1.3564 FY 2021- 22 39.7702 37.9906

1.7796

b. Reconciliation statement (Rs. all figures in Crores.)

Years As

per APR (A) SOFTEX filed (B) Diff. [A-B] (C) (C)

Accrual Credit Note/ Chargeback Volume Rebates/Disc ount

I/3303/2023 112

FY 2017- 18

95.7147

97.1441

-1.4294 0 0.4533 -1.8828 Note- 1 FY 2018- 19

96.6876

89.3309

7.3567 7.3567 0 0 Note -2 FY 2019- 20

46.7334

56.7288

-9.9954 0 1.5168 -11.5122 Note- 1 FY 2020- 21

44.5505

45.9069 -1.3564

1.4696

1.6621 -4.4880 Note- 1 FY 2021- 22

39.7702

37.9906

1.7796 1.2697 0.5099 0 Note -2

Note: As the discrepancies in the values reflected in the SOFTEX forms and in the Annual Performance Reports (APRs) for specific years (2017-18, 2018-19, 2019-20, 2020-21, and 2021-22) due to certain accounting treatments and revenue recognition practices. Note1: - Year 2017-18, Year 2019-20 and Year 2020-21 Unit informed that the SOFTEX forms were filed for the full invoice amounts, but some discounts and rebates were given and the said adjustments were made at the year-end. Thus, the values shown in the SOFTEX forms are higher than the values reported in APR, s due to the expenses are reimbursements by the parties which is not qualified as export revenue and same amount were not included in the SOFTEX forms. Note- 2 – 2018-19 and 2021-22: - During the financial years the export revenue shown in APR, s is higher than the values reported in SOTEX forms, due to accrual revenues for which were not shown filled the SOFTEX forms because the billing of said amount / transaction were not completed Similar to the other years, revenue from expenses (reimbursed by parties), which were not considered as export revenue and same were not included in the SOFTEX form for fillings. Hence, this revenue is not Export revenue hence Softex forms are not filed for the same however same is included in revenue as per Financial Statement.

IMPORT: (Rs. In Cr.)

Year/Per iod Figures reported in APR (CIF Value) Figures as per Customs Records Difference if any Reason

for Difference/Remark FY 2017-18 0.00 0.00 0.00

FY 2018-19 2.5547 2.5547 0.00

FY 2019-20 0.0682 0.0682 0.00

FY 2020-21 0.1799 0.1799 0.00

FY 2021-22 0 0 0.00

I/3303/2023 113

(d) BLUT (Rs. 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: -

BLUT Amount - Rs 25.11 crores Date

of

acceptance 22/11/2019

Total Value of BLUT – Rs. 25.11 crores 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. Figures in Rs. crores FY 2017-18 Goods Imported – 0.00 Indigenous – 0.0124 Services Imported – 0.00 Indigenous – 0.00

FY 2018-19 Goods Imported – 1.0238 Indigenous – 0.0349 Services Imported – 0.00 Indigenous – 1.1504

FY 2019-20 Goods Imported – 0.0123 Indigenous – 0.0678 Services Imported – 0.00 Indigenous – 1.57

FY 2020-21 Goods Imported – 0.0324 Indigenous – 0.8907 Services Imported – 0.00 Indigenous – 0.6715

FY 2021-22 Goods Imported – 0.00 Indigenous – 0.3232 Services Imported – 0.00 Indigenous – 0.6583 I/3303/2023 114

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 i.e. 31.03.2022 (as on end of block period/ year upto which monitoring is being done) Total: - 487 Female: -166 Male: - 321 (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 (f) Whether all Softex has been filed for the said period. If no, details thereof. Unit informed that they have filed all the Softex forms. (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. One Softex under detailed scrutiny and one softex pending due to condonation of delay. Details as per Annexure enclosed. (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 DTA sales are recorded as per APR (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. F.No. SEEPZ/JDC PUNE/01/2022-23/2151 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 Nil (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 I/3303/2023 115

(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. Unit informed that they are in the process of filing DSPF forms. (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 NIL (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 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 No

List of SOFTEX Pending

SNo. Softex Request ID Month & Year Amount in USD Amount in Rs. Reason for pending 1 141800172172 June- 2018 577,590.71 39,113,669.10 Under

Special Scrutiny 2 142100169013 May 2021 418,937.21 30,770,938.08 Condonation

for delay in submission

ADC’s observations: i. The Unit has achieved export revenue of Rs 95.71 crores as against projected export of Rs 32.39 crores i.e. 295.49% and has achieved positive NFE of Rs. 517.13 Crores i.e. 97.64% in the 5th year of FY 2017-18 on cumulative basis at the end of 2nd Block period. ii. The Unit has achieved export revenue of Rs 227.74 crores as against projected export of Rs 191.33 crores i.e. 119.02% and has achieved positive NFE of Rs. 213.17 Crores i.e., 93.60% in the 4th year of 3rd Block period i.e. during FY 2018-19 to 2021-22 on cumulative basis. iii.Approval Committee may monitor the performance of unit for the 5th year of 2nd block period i.e. 2017-18 and first 4years of 3rd block period i.e., F.Y 2018-19 to 2021-22 in terms of Rule 54 of SEZ Rules, 2006. I/3303/2023 116

---

I/3303/2023 117