Agenda for Approval Committee meeting for SEZ Pune-Cluster to be held on 18 Dec. 2023. — 02-3-embassy-agenda-18122023

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. EMBASSY PUNE TECHZONE PVT. LTD.-SEZ

DATE : 18.12.2023

TIME : 11:30 A.M.

VENUE : SEEPZ, SEZ OFFICE, PUNE

---

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 18.12.2023

INDEX

Agenda Item No.

Subject

Agenda Item No. 01: - Confirmation of the Minutes of the meeting held on 05.12.2023 Agenda Item No. 02: - Application for Approval of regularization of Cafeteria in the SEZ Unit-premises Submitted by
M/s. Volkswagen Group Technology Solutions India
Agenda Item No. 03: - Monitoring of Performance for M/s. Virtusa Consulting Services P Ltd.

---

File No.S-SEZ-MINSOEPTP/1/20224DCP Members present t9.to.2023 After deliberation, t1.e Committee confirmed t1.e minutes of the 896 Approval Committee meeting held on 19.10.2023' Agenda IteE No. O2: Application for Approval of Revision in Projections submitted by M/s. Connectwise IIP. After deliberation, the committee approved the proposal of the unit for revision in projections, in terms of Rule 19(2) of SEZ Rule' 2OO6' as detailed below: Minutes of the 9OS Meeting of the Approval Committee held under the chairmanship of Shri R. K. Mishra, Zonal Development commissioner SEEPZ-SEZ, Mumbai for Sector Specific Special Economic 7.one for IT/ITES of M/s' Embassy held on 05.12.2023 via video conferencing. Pune TechZone Pvt. Ltd.-SEZ, Pune, R/t -SEZ Ltd. Teclflane Pune Em s. bassy ame of the SEZ /ITES or oth eeting No 5.t2.2023 te EzEg Sr ame arrd Designation t /shd.) I t. Mital Hiremath ne Cluster SEZ, Pune oint Development Commissioner 2 hri. Sandeep Sathe, ominee of Income Tax, Pune CIT-Circle 4, Pune 3 . Dileeraj Dabhole, ominee of DGFT, Pune puty DGFT 4 mt. Malathi J. Nair ominee of Customs, Pune perintendent t arne and Designatioa Sr A\UZ-SLZ, Pune Cluster 1 hri Satbir Sharma pecified Officer Special lnvitee Agenda Item No.Ol: Contrrmation of Minutes of the 896 meeting held on

File No.S-SEZ-MINS0EPTP/I/20224DCP Approved Revised Projections: (Rs. In Cr.) Agenda Itcm No. O3: Application for Approval of Change in Directors/ I(ey Managerial Personnel (IO{p) submitted by M/s. Kyndryl Solutions R/t. Ltd. After deliberation, the committee approved the proposal of the unit for change in Directors/Key Managerial personnel (KMp), in terms of Instruction No. 109. Dated 78.70.2021, issued by MOC&I, as detailed below: Approved Ust of Directors and KMps: 2022-23 2023-24 2024-25 2025-26 2026-27 FOB value of export r02.36 124.83 143.18 156.46 661_ FE outgo 43.59 15.57 88.85 NFE 95.36 117 .67 91.55 127.65 140.88 573. r I of Capital Goods Imported Capital Goods 1.00 Indigenous Capital Goods 15.10 Imported Capital Goods 0.85 Indigenous Capital GoodC 42. 3E E E g Sr. No of Directors/ KMPs after change 1 , Director & Managing Director r. Lingraju Sawkar 2 Venkitaraman, Additional Director . Subash 3 s. Rajita Singh, Additional Director 4 umar Saha, Company Secretar5r Pradeep K The approval is subject to the conditions as laid down in Instnrction No. r09, as applicable, issued by MOC&I a, Scamless continuili of the sEZ activities with unaltered responsibilities and obligations for the altered entity; b. Fulfiknent of ar eligibility criteria applicable, incruding security clearances etc. by the altered entity arrd its constituents; of Services

File No.S-SEZ-MtNSOEpTp/1 /2022-JDCp Meeting ended with a vote of thanks to the Chair. Coomissioner c. Applicability-of -and compliance with all Revenue/Company Affairs/SEBI etc. Act/Rules which regulate issues like capital gains, equity change, t ".r.f"r, taxability etc. d. FuIl financial details relating to. . change in equity/merger, demerger, amalgamation or transfer in ownership etc.-shal be iurnished-immeaiatet| io Member (IT&R), CBDT, Department of Revenue and to the .;".isJrctiJrar Authority. e' The assessing officer shal have the right to assess the taxab ity of the gain/loss arising out of the transfer- of equity or merger, demerger, amalgamation, transfer in ownerships etc. as "may be ipplicabte ind eligibility for deduction under relevant sections of the Income tax ect, t ge i . f. The applicant shall comply with relevant state Govemment laws, including those relating to lease of land, as applicable. g. The applicant shall furnish details ;f pAN and jurisdictional assessing oIIice of the unit to CBDT. h. The applicant shall be recognized by the new name or such arrangement in a.ll the records. t 2''t) (Rajesh Mishra, IRS) Chairmarr-cum-

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

---

AGENDA NOTE FOR CONSIDERATION OF THE APPROVAL COMMITTEE

a. Proposal:

Proposal submitted by M/s. Volkswagen Group Technology Solutions India an IT/ITES Unit located at Embassy Pune TechZone Pvt. Ltd. SEZ, for regularization of Cafeteria in the SEZ Unit-premises

b. Specific issue on which decision of Approval Committee is required:

Approval for regularization of cafeteria as per Instruction No 95 dated 11-06- 2019, as detailed below:

Details of location, service providers and area allocated for Cafeteria:

Name of Vendor Activity Location of Cafeteria Area in Sq.ft M/s. Basil Hospitality Pvt. Ltd. Cafeteria for providing food and Beverages to the SEZ Unit Employees 9th Floor, wing A Embassy Pune Tech Zone-SEZ. 2500 10th Floor, wing B Embassy Pune Tech Zone-SEZ. 1800

c. Relevant provisions:

As per para 3 of Instruction No.95 dated 11.06.2019 “3. The issue was examined in this department and with the approval of competent authority, it is conveyed that the same could be allowed subject to the following condition

The facilities as envisaged under the proviso to Rule 11(5) of the SEZ Rules could also be created by a Unit for its exclusive use subject to obtaining a NOC from the Developer as well as necessary NOCs/clearances/approvals from the relevant statutory authorities.

The UAC shall not be eligible for any exemptions, drawback, concessions or any other benefit available under Section 7 or Section 26 of the SEZ Act, for creating or operating such facilities”.

d. Report submitted by the Senior Authorized Officer:

The Senior Authorized Officer vide his report dated 14.12.2023 had informed that the unit has paid the duty amounting to Rs. 23,235/- on the duty free File No.S-SEZ-PRO0EPTP/2/2023-JDCP

goods installed in the canteen/canteen facility located at 9th & 10th Floors, Embassy Pune Tech Zone-SEZ.

The details of the items installed in cafeteria is as detailed below; Description Invoice No. & Date Amount in INR GST Rate Duty Amount in INR UV Lamps 20202101731

dt. 01.12.2020 63000 18% 11340.00 Q Manger 20202101731

dt. 01.12.2020 5382 18% 968.76 Water Dispenser 20202101731 dt.01.12.2020 43200 18% 7776.00 Spoon Sterilizers 20202101731

dt. 01.12.2020 17500 18% 3150.00 TOTAL

23234.76

e. Other information:

• The unit was issued LOA No. SEEPZ/PEPPL-SEZ/VIPL/08/2014-15/5846 dated 07.11.2010 Dtd. 15.05.2014 located at Embassy Pune Techone Pvt. Ltd. Plot No. 03, 8th Floor of A Wing, 9th & 10th Floor, Wing B, Block Congo, Mississippi Bldg, RGIP, Hinjewadi, Phase-II, Pune-411057 • Date of commencement: 06.06.2014
• LOA valid up to: 05.06.2024 • The unit has submitted following documents: • The vendor will not be using any gas/inflammable equipment in the cafeteria • Fire NOC issued by the MIDC dated 24.07.2023 for their office on 9th & 10th Floor in IT-3 Building area admeasuring 6724.43 Sq. Mtrs. • Copy of NOC from the Developer. • Undertaking for non-availing of any tax, duty benefits. • Provisional offer letter for availability of Retail space to the vendor M/s Basil Hospitality Pvt. Ltd. • Letter to the vendor to provide cooked food & will be provided to its employees. • Floor map of the area allotted for cafeteria. • Letter dated 13.12.2023 from M/s. Volkswagen Group Technology Solutions India to Specified Officer enclosing the Copies of Invoices and informing that they have paid back the duty benefit availed during the setting up of the cafeteria. • Copies of Tax Invoices

f. ADC’s Observations:

• The unit had setup the said Cafeteria prior to issuance of approval letter in terms of Instruction No. 95. Now, based on the said instruction, they intend to regularize the said facility. • The unit has clarified that vendor will bring only precooked food which are ready to serve. • Approval Committee may like to consider the proposal of the Unit for regularizing of Cafeteria and appointment of service provider, in the Unit premises, in terms of Instruction No. 95 issued by MOC&I. File No.S-SEZ-PRO0EPTP/2/2023-JDCP

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. Virtusa Consulting Services Pvt. Ltd., an IT/ITES unit located at Embassy Pune TechZone Pvt Ltd.-SEZ for 5 years of 1st 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 5 years of 1st block period i.e. FY 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) Performance as compared to projections for 5 years of 1 st Block period
FY 2018-19 to FY 2022-23 (i) Approved Projections (Rs. In Crores)

2018-19 2019-20 2020-21 2021-22 2022-23 TOTAL FOB Value of Exports 7.49 25.40 36.78 43.21 51.08 163.96 FE Outgo 4.44 4.19 0.79 0.64 0.44 10.50 NFE 3.05 21.21 35.99 42.57 50.64 153.46 (II) Performance as compared to projections: FY 2018-19 to FY 2022-23

(Rs. In Crores) File No.S-SEZ-MINS0EPTP/1/2023-JDCP

(II) Cumulative NFE achieved: FY 2018-19 to FY 2022-23 (Rs. in Crores)

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

The Unit has achieved employment of 451 employees (Men-318, Women-133) in 5 years of the 1st block period (d) Other Information:
LOA No. & Date SEEPZ-SEZ/EOPPL- SEZ/VCSPL/24/2018-19

dated 11.10.2018 Location of Unit Block 1.2(Mississippi), 2nd and 4th Floor, Wing-B, Embassy Pune TechZone Pvt Ltd.-SEZ, Plot No.03, RGIP, Phase-II, Hinjewadi, Pune-411 057 Validity of LOA 20.01.2024 Item(s) of manufacture/ Services IT/ITES Date of commencement of production 21.01.2019 Execution of BLUT 23.03.2023 Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement 5 Years i.e 15.10.2018 to Year Export F.E. OUTGO Projected Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projected Actual Actual 2018-19 7.49 3.86 0 0.00 10.50 1.39 0.00 2019-20 25.40 46.99 0.00 3.12 0.00 2020-21 36.78 100.35 0.00 0.66 1.57 2021-22 43.21 106.56 0.00 0.90 1.62 2022-23 51.08 126.43 0.00 4.17 2.96 Total 163.96 384.20 0.00 0.00 10.50 10.24 6.15 Year Cumulative NFE Achieved Cumulative % NFE Achieved 2018-19 3.73 96.38 2019-20 50.26 98.84 2020-21 148.52 98.22 2021-22 252.85 98.09 2022-23 375.30 97.68 File No.S-SEZ-MINS0EPTP/1/2023-JDCP

14.10.2023 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 31.03.2023 451 Area allotted (in sq.ft.) 25457 Area available for each employee per sq.ft. basis (area / no. of employees) 56.44 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 his report dated 13.12.2023 has reported that
SEZ Unit has submitted the following (a) Details of year-wise export as per the prescribed format: (a) Export                                                                                                                                                   (Rs. In Crores)     Year /  Period Figures  as per  APR (In  Crores)  Figures as per Softex/SB  /  Customs  Records (In  Crores) Differenc e if any (In  Crores) Reason for Difference/Remark (1) (2) (3) (4) (5) 2018­19 3.86 3.86 0.00 No Difference File No.S-SEZ-MINS0EPTP/1/2023-JDCP

2019­20 46.99 47.00 0.01 Difference is due to currency conversion rate 2020­21 100.35 100.35 0.00 No Difference 2021­22 106.56 106.56 0.00 No Difference 2022­23 126.43 126.43 0.00 No Difference (b) Import:  (i) (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP)  basis.                                                                                                 (Rs. In Crores)                    Year/Period Figures as  per APR (In  Crores) Figures as per  Customs Records / Bond Register (In  Crores) Difference if  any Reason for  Difference/Remark 2018­19 1.39 1.39 0.00 No Difference 2019­20 3.12 3.12 0.00 2020­21 0.66 0.66 0.00 2021­22 0.90 0.90 0.00 2022­23 4.17 4.17 0.00 (ii) Raw material                                                                                                                                         (Rs. In Crores)     Year/Period Figures as  per APR (RM  Imported) Figures as per  Customs Records / Bond Register Difference if  any Reason for  Difference/Remark 2018­19 0.00 0.00 Nil 2019­20 0.00 0.00 Nil 2020­21 0.00 0.00 Nil 2021­22 0.00 0.00 Nil 2022­23 (c) BLUT 1 Value of BLUT Executed (Duty foregone)  (including for CG / Raw Material / Services) Value of Additional BLUT executed TOTAL value of BLUT Executed :  Total Rs.10.92 Crores F. No. SEEPZ­SEZ/EOPPL­ SEZ/VCSPL/24/2018­19/3737 dt.  18.12.2020 3.23 Crores  F. No. SEEPZ­SEZ/EOPPL­ SEZ/VCSPL/24/2018­19/2163 dt.  23/03/2023  7.69 Crores 2 Total Duty Foregone on goods & services  procured                                                  (Rs. In  Crores) Year  Goods  Services File No.S-SEZ-MINS0EPTP/1/2023-JDCP

Category Wise Year Wise wise Imported &  indigenous 2018­19 0.56 0.37 2019­20 0.92 0.82 2020­21 0.61 1.72 2021­22 0.31 1.59 2022­23 1.74 3.09 Total  4.15 7.62 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 (as on end of block  period / year up to which monitoring is being  done) Men        318 Women  133   e Details of pending Foreign Remittance beyond  Permissible period, if any (as on 31.03.2022) To cross­check 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 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 has been filed and certified   (h) Whether unit has filed any request for  Cancellation of Softex Yes, Reconciliation done and found to be  matching with APR’s File No.S-SEZ-MINS0EPTP/1/2023-JDCP

(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. ­­ (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  The unit have cleared Scrap in DTA.                                     (Rs. In Crores) DTA sale  value (Rs. In Crores) Duty paid  (Rs. In  Crores) FY 18­ 19 0.00 0.00 FY 19­ 20 0.00 0.00 FY 20­ 21 0.00 0.00 FY 21­ 22 0.12 0.02 FY 22­ 23 0.00 0.00 Total 0.12 0.02 (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. Only some DSPF has been filed. The unit  has not submitted the relevant details. (n) Whether unit has filed all DTA procurement w.r.t. Yes. File No.S-SEZ-MINS0EPTP/1/2023-JDCP

the goods procured by them during the monitoring period for the relevant period. If no, details thereof (o) Details of  the request IDs pending for Out Of  Charge  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’s 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 No. (e) ADC’s observations:  The Unit has achieved export revenue of Rs. 384.20 Crores as against projected export of Rs. 163.96 Crores for FY 2018-19 to 2022-23 in 05 years of 1st Block period i.e 234.26%  The unit has achieved positive NFE of Rs. 375.30 Crores in the fifth year of 2022-23 on cumulative basis. i.e. 97.68%  Approval Committee may Monitor the performance of the unit for 5 years i.e. FY 2018-19 to 2022-23 of 1st Block period, in terms of Rule 54 of SEZ Rules, 2006. File No.S-SEZ-MINS0EPTP/1/2023-JDCP