IN FORCE SEZ / EOU / FTWZ 2024-02-28

Agenda for Approval Committee meeting for SEZ Pune Cluster to be held on 29 February 2024. — 00-1-eon-khardi-phase-i

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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.

DATE : 29.02.2024

TIME : 12:00 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 29.02.2024 INDEX

Agenda Item No.

Subject

Agenda Item No. 01 :- Confirmation of the Minutes of the meeting held on 09.02.2024 Agenda Item No. 02 :- Monitoring of Performance for M/s. CitiCorp Services India Pvt Ltd. Agenda Item No. 03 :- Monitoring of Performance for M/s. Eaton Technologies 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. Citicorp Service India Pvt. Ltd an IT/ITES unit located in M/s., EON Kharadi Infrastructure Pvt. Ltd. Phase-I -SEZ, Pune, for 5 years i.e. FY. 2017-18 to 2021-22 for the 2nd Block period

b. Specific Issue on which decision of Approval Committee is required: Monitoring of the performance of the unit by the committee for FY. 2017-18 to 2021-22 for the 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”.

I. Approved Projections for 2nd Block Period: (Rs. In Cr)

2017-18 2018-19 2019-20 2020-21 2021-22 Total FOB Export 970.76 1148.51 1213.57 1312.37 1348.70 5993.91 FE Outgo 71.69 66.80 68.21 68.21 68.21 343.11 NFE 899.07 1081.71 1145.36 1244.17 1280.50 5650.81

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 Projected Actual Projected Actual Actual 2017-18 970.76 1013.65 0.00 0.00 71.59 15.64 22.54 2018-19 1148.51 1315.67

4.48 54.48 2019-20 1213.57 1473.55

9.03 81.39 2020-21 1312.37 1717.34

2.17 126.49 2021-22 1348.70 2093.22

9.01 155.11 Total 5993.91 7613.46 0.00 0.00

40.33 440.01

B. Cumulative NFE Achieved (Rs. In Cr) Year Cumulative NFE achieved Cumulative NFE in % 2017-18 983.75 97.05 % File No.S-SEZ-MONT0EON1/9/2022-JDCP I/3940/2024 76

2018-19 2237.12 96.04 % 2019-20 3620.56 95.21 % 2020-21 5202.47 94.24 % 2021-22 7130.75 93.66 %

A. Other Information:

LOA No. & Date SEEPZ-SEZ/EKIPL-SEZ/CSIL/16/2012- 13/11.19 Dated 13.08.2012 Location of Unit Ground to 2nd Floor, Wing 3, Cluster B, 2nd to 5th Floor, Wing 4, Cluster B, 6th & 7th Floor, Wing 1, Cluster E 2nd to 6th Floor, Wing 2, Cluster E, EON Free Zone, Plot No.1, S. No. 77, MIDC Knowledge Park, Kharadi, Pune- 411014 Validity of LOA 16.09.2027 Item(s) of manufacture/ Services IT/ITES Date

commencement

of production 17.09.2012 Execution of BLUT 232.98 Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement 30.12.2029 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 5888 employees (Men-4024, Women-1864) Area allotted (in sq.ft.) 4,42,392 Sq.ft. Area available for each employee per sq.ft. basis (area / no. of employees) 75 sq.ft. Investment till date

Building NA Plant & Machinery 250.54 Crores 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.

Yes I/3940/2024 77

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

The Specified Officer vide letter dated 13.02.2024 has reported as under:

(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) 2017- 18 1013.65 996.95 16.70

Rs 12.51 Cr. against foreign exchange fluctuation.
Rs 4.19 Cr. against billing of services to DTA, not accounted in SOFTEX data.
2018- 19 1315.67 1330.50 -14.83
Rs 10.95 Cr. against foreign exchange fluctuation.
Rs 4.75 Cr. against billing of services to DTA, not accounted in SOFTEX data.
Rs -30.51 Cr. against credit notes issued due to revision of rates in the invoices i.e. value reduced than actually appeared in invoice. Diff+ (1+2) minus 3
2019- 20 1473.55 1467.95 5.60
Rs 9.68 Cr against foreign exchange fluctuation.
Rs 6.38 Cr. against billing of services to DTA, not accounted in SOFTEX data.
Rs 10.46 Cr. against credit notes issued Diff+ (1+2) minus 3
2020- 21 1717.34 1686.66 30.68
Rs 23.49 Cr. against foreign I/3940/2024 78

exchange fluctuation. 2) Rs 7.19 Cr. against billing of services to DTA, not accounted in SOFTEX data.
2021- 22 2093.21 2065.50 27.71

Rs 21.25 Cr against foreign exchange fluctuation.
Rs 6.46 Cr against billing of services to DTA, not accounted in SOFTEX data.

B. IMPORT i. (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis.) (Rs. In Crores) Year/P eriod Figures reported in APR (FOB Value) Figures as per Customs Records Difference if any Reason for Difference/Remark (1) (2) (3) (4) (5) 2017- 18 15.64 13.17 2.47 Unit has considered the figures in APR of those capital goods only, which have been capitialised in the books of accounts during the subject year and whereas the Customs figures are purely of imports effected during the year. Thus, difference is on account of the value of goods, which were procured but not capitialised. 2018- 19 4.48 4.98 -0.50 2019- 20 9.03 7.09 1.94 2020- 21 2.17 0.04 2.13 2021- 22

9.01 5.94 3.07

Figures for 20-21 and 21-22 arrived at actual, out of cumulative value reported in APR.

ii. Raw Material (Rs. In Crores) Year/Per iod Figures reported in APR (FOB Value) Figures as per Customs Records Difference if any Reason

for Difference/Remark (1) (2) (3) (4) (5) I/3940/2024 79

2017-18 0.00 0.00 0.00

2018-19 0.00 0.00 0.00

2019-20 0.00 0.00 0.00

2020-21 0.00 0.00 0.00

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

Sr No. BLUT Value (Rs

in Crores) Date

of Acceptance 1 11.16 28.09.2012 2 4.37 20.02.2014 3 6.87 02.06.2015 4 11.73 18.01.2016 5 9.30 10.05.2018 6 172.26 20.01.2020 7 17.29 26.07.2021 Total232.98 Crores

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

Year Wise:

FY Import Goods Ind. Goods Services Imported & Indigenous 17- 18 3.91 0.85

I/3940/2024 80

18- 19 1.17 0.39

19- 20 1.71 0.19

20- 21 0.00 3.41 83.68 21- 22 2.48 0.53 44.45 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:4024 Women: 1864 Total No Employment : 5888 (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. 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. Yes I/3940/2024 81

(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 Module in SEZ Online. Uploading of BLUT module on SEZ online kept in abeyance as per Office Order No. 02/23 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 EScrap cleared as detailed below. Fig in Cr. YEAR VALUE DUTY 18-19 0.05 0.007 21-22 0.32 0.06

(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.
DSPF filed on SEZ online system by the unit, has been processed and approved till date
(n) Whether unit has filed all DTA procurement w.r.t. the goods procured by them during the monitoring period for the relevant period: DTA procurement filed on SEZ online system by the unit, has been processed and approved I/3940/2024 82

If no, details thereof 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 record, 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. 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 such case noticed.

(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 of Rs. 7613.46 Cr. Against the projected export of Rs. 5993.91 Cr. i.e, 126.98% in the FY 2017-18 to FY 2021-22 in the 2nd Block period. • The unit has achieved positive NFE of Rs. 7130.75Cr. i.e, 93.66 % in the FY 2021-22 on cumulative basis. • The unit has achieved employment of 5888 employees (Men-4024, Women- 1864). • The Unit has not correctly filed import figure for FY 2020-21 and FY2021-22 and need to revise the APR for the same period. • Approval Committee may kindly monitor the performance of the Unit for 5 years i.e. FY. 2017-18 to 2021-22 for the 2nd Block period, in terms of Rule 54 of SEZ Rules, 2006.
I/3940/2024 83

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. Eaton Technologies Pvt. Ltd., an IT/ITES unit located at 601 & 602, 6th Floor, Wing 2, Cluster C, EON Kharadi Infrastructure Pvt Ltd-SEZ, MIDC Kharadi Knowledge Park, Kharadi, Pune - 411014 for the following period: Last year of the 1st Block Period i.e. for FY 2011-12, 2nd Block Period i.e. for FY 2012-13 to 2016-17 3rd Block period i.e. for FY 2017-18 to FY 2021-22

b. Specific Issue on which decision of Approval Committee is required: Monitoring of the performance of the unit for last year of 1st Block period i.e. FY FY 2011-12, 2nd Block i.e. FY 2012-13 to 2016-17 and 3rd Block period i.e. FY 2017-18 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:1st Block FY 2007-08 to 2011-12 Approved Projections (Rs. in Crores)

2007-08 to 2011-12 FOB Value of Exports 670.08 FE Outgo 48.64 NFE 621.89

 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 Projected Actual Actual File No.S-SEZ-MONT0EON1/3/2022-JDCP I/3944/2024 126

2011-12 252.05 512.39 0.00 0.00 48.19 8.02 20.20 Total 252.05 512.39 0.00 0.00 48.19 8.02 20.20

  Cumulative NFE achieved:                                  (Rs. in Crores)

Year Cumulative NFE Achieved Cumulative % NFE Achieved 2011-12 1400.53 88.20%

II.Performance as compared to projections: 2nd Block FY 2012-13 to 2016-17

                     Approved Projections                     (Rs. in Crores)

2012-13 to 2016-17 FOB Value of Exports 4575.55 FE Outgo 262.72 NFE 4312.83

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 Projected Actual Actual

2012-13 664.94 658.53 0.00 0.00 262.72 8.18 375.22

2013-14 756.53 791.83 11.79 140.12

2014-15 895.26 941.29 17.17 534.41

2015-16 1037.57 1101.17 9.14 82.59

2016-17 1221.25 928.68 7.58 37.96

Total 4575.55 4421.5 0.00 0.00 262.72 53.86 1170.3

  Cumulative NFE achieved:                                 (Rs. in Crores)

Year Cumulative NFE Achieved Cumulative % NFE Achieved I/3944/2024 127

2012-13 278.85 42.34% 2013-14 924.93 63.77% 2014-15 1324.46 55.38% 2015-16 2334.77 66.84% 2016-17 3216.47 72.75%

III.Performance as compared to projections: 3rd Block FY 2017-18 to 2021-22

Approved Projections (Rs. in Crores)

2017-18 2018-19 2019-20 2020-21 2021-22 Total FOB Value of Exports 786.18 697.33 636.11 581.64 406.10 3107.36 FE Outgo 29.70 71.64 57.77 67.39 52.53 279.03 NFE 756.48 625.69 578.34 514.25 353.57 2828.33

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 Projected Actual Actual

2017-18 786.18 786.18 0.00 0.00 19.99 5.93 21.18

2018-19 697.33 697.33 6.69 63.76

2019-20 636.11 636.11 6.28 49.69

2020-21 581.64 563.88 3.76 28.00

2021-22 406.10 472.60 0.69 327.46

Total 3107.36 3156.1 0.00 0.00 19.99 23.35 490.09

  Cumulative NFE achieved:                                                (Rs. in Crores)

I/3944/2024 128

Year Cumulative NFE Achieved Cumulative % NFE Achieved 2017-18 756.49 96.22% 2018-19 1381.85 93.15% 2019-20 1959.78 92.46% 2020-21 2487.20 92.68% 2021-22 2624.63 83.16%

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

The Unit has achieved employment of 1,534 employees (Men-990, Women-544) 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/NEW- SEZ/EON/01/2006-07 Dated 22.03.2007 Location of Unit Cluster C, Wing-1, EON Free Zone, Plot No. 1, Sr. No.77, MIDC- Kharadi Pune-411014. Validity of LOA 18.04.2027 Item(s) of manufacture/ Services IT & ITES Date of commencement of production 19.04.2007 Execution of BLUT 29.39 Crores Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement 15 years Pending CRA Objection, if any NA I/3944/2024 129

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 31.03.2022 1534 Area allotted (in sq.ft.) 1,86,390 Sq.ft Area available for each employee per sq.ft. basis (area / no. of employees) 121.50 Sq. Ft. Investment till date

Building 51.03 Crores Plant & Machinery 161.04 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 have 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 04.12.2023 has submitted APR verification report for the period FY 2007-08 to FY 2021-22, in the prescribed which is as detailed below; a. Details of year-wise export as per the prescribed format: A. EXPORT

1st Block Period 2007-08 To 2011-12 (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) 2007- 08 84.42 77.61 6.81 Description Amount Unbilled revenue at March end Rs.1.61

I/3944/2024 130

Other adjustments such

as unearned, transfer pricing and credit notes Rs.5.20 Total Rs.6.81 2008- 09 243.70 220.96 22.74

Description Amount Unbilled revenue at March end Rs.17.7 3 Opening unbilled reversal (-) Rs.1.61 Other adjustments such

as unearned, transfer pricing and credit notes Rs.6.62 Total Rs.22.7 4

2009- 10 333.95 330.77 3.18

Description Amount Unbilled revenue at March end Rs.2.26 Opening unbilled reversal (-) Rs.0.75 Other adjustments such

as unearned, transfer pricing and credit notes Rs.1.67 Total Rs.3.18

2010- 11 427.07 425.74 1.33

Description Amount Unbilled revenue at March end Rs.7.98 Opening unbilled reversal (adjustment for the

previous year) (-) Rs.4.71 Other adjustments such

as (-) Rs.1.94 I/3944/2024 131

unearned, transfer pricing and credit notes Total Rs.1.33

2011- 12 512.39 506.11 6.28

Description Amount Unbilled revenue at March end Rs.10.7 0 Opening unbilled reversal (-) Rs.6.60 Other adjustments such

as unearned, transfer pricing and credit notes Rs.2.18 Total Rs.6.28

2nd Block Period 2012-13 To 2016-17 (Rs. in Crores)

Year/P eriod Figures reported in APR Figures as per Softex/Cus toms Records Difference if any Reason

for Difference/Remark (1) (2) (3) (4) (5) 2012- 13 658.53 661.80 (-) 3.27

Description Amount Unbilled revenue at March end Rs.9.51 Opening unbilled reversal (-) Rs.10.57 Other adjustments such

as unearned, transfer pricing and credit notes (-) Rs.2.21 Total (-) I/3944/2024 132

Rs.3.27

2013- 14 791.83 796.31 (-) 4.48

Description Amount Unbilled revenue at March end Rs.10.7 2 Opening unbilled reversal (-) Rs.8.67 Other adjustments such

as unearned, transfer pricing and credit notes (-) Rs.6.53 Total (-) Rs.4.48

The difference in the unbilled revenue for the period from 2007-08 to 2013-14 was adjusted through raising of service invoice details of which are as under : Year Unbilled at march end Unbilled reversal in subsequent year Unbilled reversal through invoice Total 07-08 1.61

1.61 08-09 17.73 (1.61)

16.12 09-10 2.26 (0.75) (15.89) (14.39) 10-11 7.99 (4.72)

3.27 11-12 10.70 (6.60)

4.10 12-13 9.51 (10.57)

(1.06) 13-14
(8.67) (0.98) (9.65) Total 49.81 (32.93) (16.87) 0.01

2014- 15 951.32 950.51 0.81 Description Amount Unbilled revenue at March end Rs.13.3 7

I/3944/2024 133

Opening unbilled reversal (-) Rs.10.72 Other adjustments such

as unearned, transfer pricing and credit notes (-) Rs.1.84 Total (-) Rs.0.81 2015- 16 1101.17 1111.01 (-) 9.84

Description Amount Unbilled revenue at March end Rs.14.4 5 Opening unbilled reversal (-) Rs.13.37 Other adjustments such

as unearned, transfer pricing and credit notes (-) Rs.10.92 Total (-) Rs.9.84

2016- 17 928.68 935.36 (-)6.68

Description Amount Unbilled revenue at March end Rs.12.6 6 Opening unbilled reversal (-) Rs.14.45 Other adjustments such

as unearned, transfer pricing (-) Rs.4.88 I/3944/2024 134

and credit notes Total (-) Rs.6.68

3rd Block Period 2017-18 To 2020-21 (Rs. in Crores)

Year/P eriod Figures reported in APR Figures as per Softex/Custom s Records Difference if any Reason for Difference/Remark (1) (2) (3) (4) (5) 2017- 18 786.18 795.23 (-) 9.05

Description Amount Unbilled revenue at March end Rs.10.5 8 Opening

unbilled reversal (-) Rs.12.66 Other adjustments such as unearned, transfer pricing and credit notes (-) Rs.6.97 Total (-) Rs.9.05

2018- 19 697.33 723.09 (-) 25.76

Description Amount Unbilled revenue at March end Rs.6.10 Opening

unbilled reversal (-) Rs.10.58 Other adjustments such as unearned, transfer pricing and credit notes (-) Rs.21.28 Total (-) I/3944/2024 135

Rs.25.76

2019- 20 636.11 626.72 9.39

Description Amount Unbilled revenue at March end Rs.6.26 Opening

unbilled reversal (-) Rs.6.10 Other adjustments such as unearned, transfer pricing and credit notes Rs.9.23 Total Rs.9.39

2020- 21 563.88 604.47 (-)40.59

Description Amount Unbilled revenue at March end Rs.2.93 Opening

unbilled reversal (-) Rs.6.26 Other adjustments such as unearned, transfer pricing and credit notes (-) Rs.37.26 Total (-) Rs.40.59

2021- 22 472.59 454.09 18.50

Description Amount Unbilled revenue at March end Rs.3.33 Opening

unbilled reversal (-) Rs.2.93 Other adjustments such Rs.18.1 I/3944/2024 136

as unearned, transfer pricing and credit notes 1 Total Rs.18.50

B. IMPORT (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis.)
1st Block Period 2007-08 To 2011-12 (Rs. in Crores)

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

for Difference/Remark (1) (2) (3) (4) (5) 2007-08 8.81 8.81 0.00

2008-09 9.78 9.78 0.00

2009-10 3.66 3.66 0.00

2010-11 4.05 4.05 0.00

2011-12 8.02 8.02 0.00

2nd Block Period 2012-13 To 2016-17 (Rs. in Crores)

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

for Difference/Remark (1) (2) (3) (4) (5) 2012-13 8.18 8.18 0.00

2013-14 11.79 11.79 0.00

2014-15 16.67 16.67 0.00

2015-16 9.14 9.14 0.00

2016-17 7.58 7.58 0.00

3rd Block Period 2017-18 To 2020-21 (Rs. in Crores)

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

for Difference/Remark I/3944/2024 137

(1) (2) (3) (4) (5) 2017-18 5.93 5.93 0.00

2018-19 6.69 6.69 0.00

2019-20 6.28 6.28 0.00

2020-21 3.76 3.76 0.00

2021-22 0.69 0.69 0.00

i. Raw Material (Rs. in Crores) Year/Per iod Figures reported in APR (FOB Value) Figures as per Customs Records Difference if any Reason

for Difference/Remark (1) (2) (3) (4) (5) 2007-08 Not Applicable since IT / ITES Unit 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

(‘C) BLUT (Amount in ‘Crores’) 1

Value of BLUT Executed (Duty foregone)

I/3944/2024 138

(including for CG/ Raw Material/ Services)

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

TOTAL value of BLUT Executed Rs. 10.40 Crores
Dt: 14.12.2006

Rs. 18.99 Crores
Dt: 16.04.2012

Total- Rs. 29.39 Crores 2 Total Duty Foregone on goods & services procured Category Wise:

Year Wise:

FY Import Goods Ind. Goods Services Imported & Indigenous 07- 08 2.17 0.20 2.14 08- 09 2.10 0.07 2.21 09- 10 0.58 0.00 2.93 10- 11 0.81 0.04 21.10 11- 12 1.70 0.03 3.64 12- 13 1.66 0.00 67.54 13- 14 2.89 0.12 25.22 14- 15 4.38 0.04 97.61

I/3944/2024 139

15- 16 2.19 0.01 14.87 16- 17 1.56 0.00 6.83 17- 18 1.30 0.04 9.70 18- 19 1.78 0.07 15.05 19- 20 1.26 0.01 23.46 20- 21 1.13 0.64 10.90 21- 22 0.17 0.95 16.23 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:990 Women: 544 Total No Employment : 1,534 (e) Details of Pending Foreign Remittance beyond Permissible period, if any (as on 31.03.2022)

Nil

I/3944/2024 140

To cross-check the same and verify whether necessary permission from AD Bank/ RBI has been obtained. (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. Yes (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) Year Amount in Rs. crores 2009-10 1.98 2010-11 2.23 2011-12 3.16 2012-13 3.85 2013-14 2.74 2014-15 2.27 2015-16 2.93 2016-17 4.17 2017-18 0.14 2018-19 0.17

I/3944/2024 141

2019-20 4.08 2020-21 0.27 2021-22 Nil (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. DSPF for the period from October, 2019 to August, 2022 has been filed and approved.
For further period the filing of DSPF is under 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 I/3944/2024 142

(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 cafeteria. However, only Breakout area for the employees to come and eat their own meals brought from home

(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. 512.39 Crores as against projected export of Rs. 252.05 Crores i.e. 203.28% in FY 2011-12 and achieved positive NFE of Rs. 1400.53 Crores which is 88.20% on cumulative basis in. Last year of 1st Block i.e. FY 2011-12.
The Unit has achieved export revenue of Rs. 4421.5 Crores as against the projected export of Rs. 4575.55 Crores i.e. 96.63 % and achieved positive NFE of Rs. 3216.47 Crores which is 72.75% on cumulative basis in 2nd Block Period i.e FY 2012-13 to FY 2016-17.
The Unit has achieved export revenue of Rs. 3156.1Crores as against the projected export of Rs. 3107.36 Crores i.e. 101.56% and achieved positive NFE of Rs. 2624.63 Crores which is 83.16% on cumulative basis in 3rd Block Period i.e FY 2017-18 to FY 2021-22.
The Unit has achieved employment of 1,534 employees (Men-990, Women-544) as on 31.03.2022
Further, from the SO report dated 04.12.2023, 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 2009-10 1.98 2010-11 2.23 I/3944/2024 143

2011-12 3.16 2012-13 3.85 2013-14 2.74 2014-15 2.27 2015-16 2.93 2016-17 4.17 2017-18 0.14 2018-19 0.17 2019-20 4.08 2020-21 0.27 TOTAL 27.99

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.

The Unit vide email dated 28.02.2024 has submitted the reason for higher FE outgo during 2nd and 3rd block as follows:

The other foreign exchange outgo as per APR is mainly due to below reasons I/3944/2024 144

in 2nd block.

a. Purchase of shares in fellow subsidiaries from the holding companies outside India. b. Buyback of equity from foreign holding company c. Payment of dividend to holding companies outside India d. Crosscharge of software licenses such as Oracle and design softwares etc. e. IT backup servers charges

FE outgo in CG import in 3rd block a. Rs. 3.36 Crores is mainly on account of replacement of IT Server of CISCO which was an urgent requirement due to technical changes. b. Payment of dividend to holding companies outside India c. Cross charge of software licenses such as Oracle and design softwares etc.

The Unit is required to revise the APRs to fill the correct amortization value during FY 2011-12 to FY 2020-21.
The Unit is required to file the pending DSPF.
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. for FY 2011-12, 2nd Block Period i.e. for FY 2012-13 to 2016-17 3rd Block period i.e. for FY 2017-18 to FY 2021-22

I/3944/2024 145

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