Agenda for Approval Committee meeting for SEZ Pune Cluster scheduled on 05 July 2024. — 08-8-syntel-internation-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.

DATE : 05.07.2024

TIME : 11 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 05.07.2024

INDEX

Agenda Item No.

Subject

Agenda Item No. 01 :- Confirmation of the Minutes of the meeting held on 30.05.2024 Agenda Item No. 02 :- Monitoring of Performance for M/s. Syntel Pvt Ltd-LOA-3 (F.Y 18-19 TO 2022-23).

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ममससर सससिंटटल इसिंटरनटशनल पप. सलममिटटड, पपणट , कम आईटट/आईटटईएस कम ललिए समकटटर वविलशिष वविशिमष आलररक कमत, कक जजोनलि वविककस आययुक कक अध्यकतक मम, ससीप्झ एसईजमड, मयुमुंबई मम दद 30.05.2024 कजो आयजोजजत 49 विसी अनयुमजोदन सलमलत कक बबठक कक ककयरविवत्त 1 एसईजटड कप नपमि मिटससर सससिंटटल इसिंटरनटशनल पप. सलममिटटड, पपणट। 2 कटत आईटट/आईटटईएस 3 मिमीमटसिंिं नसिं. 49th 4 तपरमीख 30.05.2024

उपसससत सदसय

क्रमकमुंक न. नकम औटर पदनकम (एस/शसी.)
वविभकग 1 शसीमतसी लमतलि दहिटरमठि समुंययुक वविककस आययुक पयुणम पयुणम कलिसटटर एसईजमड, पयुणम 2 डड. ददलिसीटरकज दकभजोलिम, उप लनदमशिक डटजसीएफटट, पयुणम डटजसीएफटट वविभकग सम नकलमत 3 शसीमतसी अररनक पटरब,
सहिकयक आययुक, आयकटर वविभकग आयकटर वविभकग सम नकलमत

4 शसीमतसी मकलितसी जम. नकयटर, अधसीकक ससीमक शियुल्क वविभकग पयुणम सम नकलमत

मविशटष आमिसिंमतत

क्रमकमुंक न. नकम औटर पदनकम (एस/शसी.)
वविभकग 1 शसी. शिम्भभ दयकलि मसीनक, वविलनददरष अलधककटरट ससीप्ज-एसईजमड, पपणट क्लसटर

एजजडप आइटमि नसिंबर 01: 09.02.2024 कक आयकसजत 48 विव बबठक कट कपयरविवृत कक पपमष:

मविचपर-मविमिशर कट बपद, सममिमत नट 09.02.2024 कक आयकसजत 48 विव यभलनट अनपमिकदन सममिमत कक बबठक कट कपयरविवृत कक पपमष कक।

एजजडप आइटमि नसिंबर: कसिंपनमी कट नपमि, मनदटशक मिसिंडल और शटयरधपारतप पबटनर मिज बदलपवि कट सलए आविटदन: - File No.S-SEZ-MINS0SIPL/1/2023-JDCP I/4389/2024 75

नपमि मिज पारवितरन: पारवितरन सट पहलट कसिंपनमी कप नपमि पारवितरन कट बपद कसिंपनमी कप नपमि ममससर सटट-सटट्मीट सससिंटटल समविरसटज पपइविट सलममिटटड ममससर सटट-सटट्मीट समविरसटज पपइविट सलममिटटड

मनदटशकक कक अनपमिकमदत ससूचमी:

सविमीकवृत शटयर हकसलडसिंिं पबटनर:-

कमिपसिं क शटयरधपरकक कप नपमि शटयरक कप वििंर धपारत शटयरक कक ससिंख्यप पदत शटयर पसूसिंजमी हकसलडसिंिं कप पमतशत

सटट सटट्मीट इसिंटरनटशनल हकसलडसिंिं रपयट कट इसक्विटमी शटयर. 10/- पत्यटक

7

70

0.0013%

सटट सटट्मीट सससिंटटल समविरसटज (मिमॉरमीशस) सलममिटटड रपयट कट इसक्विटमी शटयर. 10/- पत्यटक

3,09,747

30,97,470

99.9987 %

कपल

3,09,754 30,97,54 0 100

अनयुमजोदन एमओससी&आई दकटरक जकटरट अनयुदमशि समुंयक 109 मम लनधकरटरत शितर कम अधसीन हिह,

  अध्यक कजो ध्यविकद जकपन कम सकर बहठिक समकत हियुई्त

कमिपसिंक मनदटशक कप नपमि पद कप नपमि 1. शमी सपसिंदररपज विजकटटशन मनदटशक 2. शमी गटिंरमी चपलसर यमॉकर मनदटशक 3. औनकय बनजर मनदटशक 4. शमी अारसिंदमि बनजर अपर मनदटशक 5. आलकक मिपहटश्विरमी मनदटशक 6. विजकटरपमिटश बपबसू कपजप मनदटशक

Minutes of the 49th Meeting of the Approval Committee held under the File No.S-SEZ-MINS0SIPL/1/2023-JDCP I/4389/2024 76

Chairmanship of Zonal Development Commissioner SEEPZ-SEZ for Sector Specific Special Economic Zone for IT-ITES of M/s. Syntel International Pvt. Ltd., Pune held on 30.05.2024. 1 Name of the SEZ M/s. Syntel International Pvt. Ltd., Pune. 2 Sector IT-ITES 3 Meeting No. 49th 4 Date 30.05.2024

Members present

Sr Name and Designation (S/Shri.) Department 1 Smt. Mital Hiremath Joint Development Commissioner Pune Cluster SEZ, Pune 2 Dr. Dileeraj Dabhole, Deputy DGFT

Nominee of Income Tax, Pune 3 Smt. Archana Parab, Asstt. Commissioner, Income Tax Nominee of DGFT, Pune 4 Smt. Malathi J. Nair, Superintendent, Customs

Nominee of Customs, Pune

Special Invitee

Sr Name and Designation 1 Shri Shambhu Dayal Meena, Specified Officer

Agenda
Item
No.01:
Confirmation
of
Minutes
of
the
48th
meeting held on 0 9.02.2024.

The Committee, after deliberation, confirmed the minutes of the 48th meeting of the Approval Committee held on 09.02.2024.

Agenda Item No.02: Application for Change in name of the company, Board of Director and Shareholding Pattern: -

Change in name: Name of company before Change Name of Company after change M/s. State-Street Syntel Services Private Limited M/s. State-Street Services Private Limited

Approved List of Directors:

File No.S-SEZ-MINS0SIPL/1/2023-JDCP I/4389/2024 77

Name of Directors Designation Mr Sundarraj Venkatesan Director Mr. Gregory Charles York Director Aunoy Banerjee Director Arindam Banerrji Additional Director Alok Maheshwary Director Venkataramesh Babu Kaza Director

Approved share holding pattern:-

Sr . No . Name of Shareholders Class of Shares No. of Shares held Paid up Share capital Percentag e of Holding

1 . State Street International Holding Equity shares of Rs. 10/- each

7

70

0.0013%

2 . State Street Syntel Services (Mauritius) Limited Equity shares of Rs. 10/- each

3,09,747

30,97,470

99.9987 %

Total

3,09,754 30,97,540 100

The approval is subject to the conditions laid down in Instruction No. 109 issued by MOC&I dated 18.10.2021.

Meeting ended with a vote of thanks to the Chair.

(ज्ञानेश्वर ब缣�ी्व.बपाटील, आईएएस) (Dnyaneshwar B. Patil, IAS) अध्यक एरंबवरकासबआयुक् Chairman-cum- Development Commissioner

File No.S-SEZ-MINS0SIPL/1/2023-JDCP I/4389/2024 78

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. Syntel Pvt Ltd. an IT/ITES unit located in Syntel International Pvt Ltd -SEZ, Pune, 5th year of 2nd block i.e. FY 2018-19 and for 4 years of the 3rd block period i.e., from FY 2019-20 to 2022-23.

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

Monitoring of the performance of the unit for 5th year of 2nd block period from i.e. 2018-19 and 4 years of the 3rd block period i.e., from FY 2019-20 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”. A. Approved export Projections for 2nd Block Period: (Rs. in Cr.)

2014-15 2015-16 2016-17 2017-18 2018-19 Total FOB Export 186.66 206.31 225.95 235.78 245.60 1100.30 FE Outgo 5.27 8.80 6.75 6.00 2.15 28.97 NFE 181.39 197.51 219.20 229.78 243.45 1071.33

B. Performance as compared to projections: for FY 2018-19 (Rs. In Cr.)

Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projected Actual Actual 2018- 19 245.60 372.51 0.00 0.00 48.62 for entire Block period of 5 years 0.69 0.00 C. Cumulative NFE Achieved (Rs. In Cr.)

Year Cumulative NFE achieved Cumulative NFE in % 2018-19 1513.25 98.73

File No.S-SEZ-MONT0SIPL/5/2022-JDCP I/4503/2024 43

A. Approved export Projections for 3rd Block Period: (Rs. in Cr.)

2019-20 2020-21 2021-22 2022-23 FOB Export 326.54 329.81 333.11 336.44 FE Outgo 35.13 36.10 34.83 34.83 NFE 291.41 293.71 298.28 302.69

B. Performance as compared to projections: for FY 2019-20 to 2022-23
(Rs. In Cr.)

Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projected Actual Actual 2019-20 326.54 328.34 0.00 0.00 7.02 0.83 0.00 2020-21 329.81 288.71 0.00 (8.12) 1.22 2021-22 333.11 317.25 0.00 0.00 0.41 2022-23 336.44 226.01 0.00 (3.58) 1.82 Total 1325.90 1160.31 0.00 0.00 7.02 (-10.87) 3.45 C. Cumulative NFE Achieved (Rs. In Cr.)

Year Cumulative NFE achieved Cumulative NFE in % 2019-20 324.41 98.80 2020-21 609.24 98.74 2021-22 924.14 98.91 2022-23 1147.21 98.87

A. Other Information:

LOA No. & Date SEEPZ/NEW SEZ/DDPL-PUNE/03/LOA- 3/2007-08/2127 Dated 13.03.2008 Location of Unit Block 6A, Ground Floor Wing A & B, 2nd floor B wing, Block S8, Lower Ground floor A to D wing, Upper Ground Floor A to D wing and First floor A to D wing, of Syntel International Pvt Ltd- SEZ, Plot No B-1, B-2 Software Technology Park, Dehu- Alandi Road, MIDC Talawade, Tal- Haveli, Pune- 411062. Validity of LOA 28.02.2024 Item(s) of manufacture/ Services IT/ITES Date of commencement of production 01.03.2009 Execution of BLUT 10.16 Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement

Pending CRA Objection, if any NA I/4503/2024 44

Pending Show Cause Notice/ Eviction Order/Recovery Notice/ Recovery Order issued, if any NA a. No. of employees as on FY 2022-23 741 employees (Men- 541, Women- 200) Area allotted (in sq.ft.) 201556.59 Sq.ft. (18725.22 Sq.Mtr) Area available for each employee per sq.ft. basis (area / no. of employees) 272 sq.ft. Investment till date

Building NA Plant

& Machinery Rs.73.98Cr. 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 letter dated 24.06.2024 has reported as under:

(a) EXPORT (Rs. in crores)

Year / Period Figures reported in APR (FOB Value) Figures as per Sofex/Customss Records Difference if any Excess

/(Short) reporting comspared to figures shown in APR Reason

for Difference/RemsarkR FY 2018- 19 372.51 372.99 -0.48 Excess in Sofex reporting

Reconciliation statemsent

given below FY 2019- 20 328.34 331.52 -3.18 Excess in Sofex reporting

FY 2020- 21 288.71 279.69 9.02Short Reported in Sofex Forms FY 2021- 317.25 255.00 62.25Short Reported in I/4503/2024 45

22 Sofex Forms FY 2022- 23 226.01 226.67 -0.66 Excess in Sofex reporting

            Reconciliation statemsent
                             (Rs. In Cr.)         

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

(C) Accrual Onsite Reversal of revenue and Unit rectification entry. FY 2018- 19 372.51 372.99 -0.48

-0.48 FY 2019- 20 328.34 331.52 -3.18

-3.18 FY 2020- 21 288.71 279.69 9.02 9.02

FY 2021- 22 317.25 255.00 62.25 89.13 0.25 -27.13 FY 2022- 23 226.01 226.67 -0.66

-0.66

Note 1: Year 2018-19, Year 2019-20 , and Year 2022-23 ( Excess

Revenue reported in Sofex Formss Filing)

SOFTEX formss are filed in for full invoice amsount. However, revenue in bookRs is recorded afer considering unit rectification entry for transfer of revenue to correct unit of the samse entity, and reversal of revenue due to discount offered to customsers. Note 2: Year 2020-21 and 2021-22 (Revenue reported Short in SOFTEX Formss Filing) Export revenue as shown in APR includes entry for accrual of revenue for which SOFTEX formss are not filed as actual billing is not msade. Simsilarly invoices for reimsbursemsent are bookRed as revenue based on chargebackR invoices. This revenue is not Export revenue hence Sofex formss are not filed for the samse however samse is included in revenue as per Financial Statemsent.

b. IMPORT: (Rs. In Cr.) Year/Peri od Figures reported in APR (CIF Value) Figures as per Customss Records Difference if any Reason

for Difference/RemsarkR FY 2018- 19 1.20 1.20 0.00

FY 2019- 20 0.83 0.83 0.00

FY 2020- 21 1.38 1.38 0.00

I/4503/2024 46

FY 2021- 22 0.00 0.00 0.00

FY 2022- 23 0.00 0.00 0.00

(c) BLUT
(Rs. In crores)

1 Value of BLUT Executed (Duty foregone) (including for CG/ Raw Material/ Services) Rs. 4.68 Cr. • Year: Date of acceptance: 14/03/2019
Value of Additional BLUT executed: Rs. 5.48 Cr. • Year: Date of acceptance: 22/12/2020 TOTAL value of BLUT Executed:

BLUT Amsount -: 4.68 Cr

                        5.48. Cr.
                  10.16 Cr.

2 Total Duty Foregone on goods & Services procured (Category-wise BLUT value utiliied separately for imsported and indigenous goods and services) This should be based on BLUT workRsheet which provides for estimsated value and duty foregone separately for each category of procuremsent. Figures in Rs. crores Total Duty Foregone: FY 2018-19 Goods Imsported – 0.31 Indigenous – 1.27 Services Imsported – 0.00 Indigenous – 0.97 FY 2019-20 Goods Imsported – 0.25 Indigenous – 0.71 Services I/4503/2024 47

Imsported – 0.00 Indigenous – 1.12 FY 2020-21 Goods Imsported – 0.28 Indigenous – 0.11 Services Imsported – 0.00 Indigenous – 0.76 FY 2021-22 Goods Imsported – 0.00 Indigenous -0.00 Services Imsported – 0.00 Indigenous – 0.64 FY 2022-23 Goods Imsported – 0.00 Indigenous –0.00 Services Imsported – 0.00 Indigenous – 0.89 3 Has the Unit procured goods and or services without having sufcient balance in their BLUT, If Yes, Month & year when the BLUT was exhausted

No I/4503/2024 48

Details of the consignmsents and Total value of Goods procured without having sufcient or nil balance in BLUT (d) Emsploymsent msade as on date i.e. 31.03.2023 (as on end of blockR period/ year upto which msonitoring is being done) Total :- 741 Femsale:- 200 Male :- 541 (e) Details of Pending Foreign Remsitance beyond Permsissible period, if any (as on 31.03.2023) To cross-checkR the samse and verify whether necessary permsission froms AD BankR/ RBI has been obtained. Nil (f) Whether all Sofex has been filed for the said period. If no, details thereof. Unit informsed that they have filed all the Sofex formss. (g) Whether all Sofex has been certified, if so till which msonth has the samse been certified. If not, provide details of the Sofex and reasons for pendency. The Sofex for said period has been certified except (6 under condonation of delay) Unit informsed that they are in process of filing delay condonation application. (h) Whether unit has filed any request for Cancellation of sofex No (i) Whether

any

Services

provided

in DTA/SEZ/EOU/STPI etc. against paymsent in INR in r/o IT/ITES Unit during the period.

If yes, details thereof (year wise details to be provided) Year Value in Cr. 2020-21 0.0046 2021-22 3.26 IT Services rendered to DTA/SEZ wherein paymsent received in INR. In this regard Unit informsed that SEZ Unit has levied IGST on the services provided in DTA and so collected has been paid to Govt through GSTR3B. Appears to be violation of SEZ Rules. (j) SO to verify and certify whether the unit has updated the BLUT ledger Module in SEZ Online. Kept in abeyance as per Ofce Order No. F.No. SEEPZ/JDC PUNE/01/2022-23/2151 dated 16.03.2023 (kR) Has the unit cleared any Capital Goods procured duty free in DTA against Paymsent of Duty, or otherwise. Sale of Capital Goods- Ewaste – IT assets Year INR Cr. 2018-19 0.64 I/4503/2024 49

Full details to be provided along with value of assets and duty discharged

2022-23 0.02

(l) Is the unit sharing any of their infrastructure with other units or are utiliiing infrastructure of another unit in the samse or other SEZ. If so, details thereof, including the details of the unit with whoms the sharing is being msade, and the paymsent termss If approval for sharing of comsmson infrastructure has been obtained froms UAC/DC ofce, the date of UAC/ Approval leter to be indicated No (ms ) Whether all DSPF for services procured during the said msonitoring period under consideration has been filed by the unit and whether the samse has been processed for approval by the SO Ofce. DSPF for services not yet filed.

(n) Whether unit has filed all DTA procuremsent w.r.t. the goods procured by thems during the msonitoring period for the relevant period: If no, details thereof Yes (o) Details of the request IDs pending for OOC in respect of DTA procuremsent on the date of submsission of msonitoring report NIL (p) Has the unit set up any cafeteria/ canteen/ food court in unit premsises. If yes, whether permsission froms UAC/DC ofce has been issued ,or otherwise Whether unit has availed any duty paid goods/services for setng up such facility ? If yes, whether unit has discharged such duty/ tax benefit availed ? details to be given including amsount 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 No I/4503/2024 50

Ofcer during the period under msonitoring

ADC’s observations:

• The Unit has achieved export revenue of Rs. 372.51 Crores as against projected export of Rs. 245.60 Crores i.e. 151.67% in 05th year of 2nd Block period i.e FY 2014-15 to 2018-19. • The unit has achieved NFE of Rs. 1513.25 i.e, 98.73% on cumulative basis in the FY 2018-19 5th year of 2nd block period. • The unit has achieved export of Rs. 1160.31 Cr. against the Projected export of Rs. 1325.90 i.e. 87.51% on cumulative basis in the FY 2019-20 to FY 2022-23 of 3rd Block. • The unit has achieved NFE of Rs. 1147.21 Cr. i.e, 98.87% on cumulative basis in the FY 2022-23 of 3rd block period. • As per the SO Report the unit has achieved employment of 741 employees (Men-541, women-200) in FY 2022-23. • The unit has provided services in DTA against the payments received in INR as detailed below:

Year Value in Cr. 2020-21 0.0046 2021-22 3.26

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 Organization concluded at Marrakesh 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.

• Approval Committee may kindly monitor the performance of the Unit for 5 years i.e. FY 2018-19 of the 2nd Block Period and FY 2019-20 to 2022-23 of the 3rd block period, in terms of Rule 54 of SEZ Rules, 2006.

I/4503/2024 51