03/01/2018 पर NSEZ के अनुमोदन समिति की बैठक का कार्यवृत्त

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(Minutes of Meeting of ApprovalCommittee of t{olda SEZ held on G/0f/20f8} Pase I of20 Minutes of meeting of the Approval Committee of Noida SEZ held under the chairmanship of Dr. L.B. Singhal, Development Commissioner (DC), Noida SEZ at 12:30 PM on 03/01/20"18 in the Conference Hall of NSEZ. The following members of the Approval Committee were present during the meeting:- 1) Shri S.S. Shukla, Jt. Development Commissioner, NSEZ. 2) Shri Rajesh Sharma, Asstt. Commissioner, Noida Customs. 3) Shri Gobinda Banerjee, FTDO, Office of DGFT, CLA, New Delhi. 4) Shri Jagbir Singh, Office of GM, DlC, Noida. 2. Besides, during the meeting (i) Sh. Rajesh Kumar, Dy. Development Commissioner, NSEZ, (ii) Sh. R.K. Srivastava Dy. Development Commissioner, NSEZ (iii) Md. Salik Parwaiz, Specified Officer, NSEZ, (iv) Sh. Prakash Chand Upadhyay, Asstt. Development Commissioner, NSEZ, (v) Sh.Rajendra Mohan Kashyap, PA to JDC, NSEZ, (vi) Sh.Meher Kumar Verma, SDO, UPPCL, Noida, (vii) Sh. Kapil Muni, JE, UPPCL, Noida and (viii) Sh.J.P. Maurya, AEE, UPPCB, Noida were also present to assist the Approval Committee. 3. At the outset, DC, NSEZ welcomed the participants. After brief introduction, each items included in the agenda were taken up for deliberation one by one. After detailed deliberations as well as interaction with the applicants / representatives of the units, the following decisions were taken:- (i) Ratification of Minutes of last meeting of the Approval Committee held on OGl12l2O17t It was informed that no reference against the decisions of the Approval Committee held on 0611212017 was received and therefore, Minutes of the meeting held on OOI 1212017 were ratified. I 0 /"-m- \e^:*

(Minutes of Meeting of Approval committe€ ot Nolda SEz held on 03/0U2018) Paee 2 of20 Item wise decisions on proposals included in agenda: Proposal for monitoring of performance of M/s. Mectronics Marketing Services. It was informed to the Approval Committee that M/s. Mectroncis Marketing Services has been issued an LOA dated 2511012011 for trading activities. Unit has commenced its operations w.e.f. from 211M12012 and LOA is valid till 2010412022. As per submitted APRs, performance of the unit are as under:- Table-A Values ln Rs. Lakhs Year Export Forex Outgo NFE Earning Physical Under Rule 53A (a to o) 2012-13 4.33 170.92 115.11 60.14 2013-14 15.46 313.71 228.45 100.72 2014-15 9.99 345.99 262.24 93.64 2015-16 27.40 375.8'l 275.74 127 _47 2016-17 1.99 484.21 297.23 188.97 Total 1749.81 1178.77 570.94 It was informed that the Approval Committee in its earlier meeting held on 02.08.2017 had observed that unit has been mainly doing trading in DTA and there has been very less physical export. lt was informed that sale in DTA made by the unit against Rupee is not as per Rules as supply by trading units has to be in foreign exchange in terms of Rule 76 of SEZ Rules, 2006 read with Section 2(z) of SEZ Act, 200s. It was informed that the Approval Committee in its meeting held on O2lOBl2017 directed the unit to provide break up of international trading/supplies to SEZs/EOUs/DTA. As per information submitted by the unit on 0410912017, following sales have been made in INR: Value (lNR) SEZDTA Unit name/Countries of export Sahasra Electronics P\4. Ltd. fl*t"-^eJ9--

{Minutes of Meeting of Approval committee of Noida sEz held on 03/0U2018} Paee 3 of20 o It was further informed that the Approval Committee in its earlier meeting held on 0111112017 has observed that unit has done trading in INR including DTA sale worth Rs.26,05,868/-. The Approval Committee observed that it needs to be relooked into in terms of Section 2(z) ot SEZ Act, 2005 and seen as to whether NFE calculalions are required to be revised. The Approval Committee, after due deliberations, had deferred the proposal with the direction to the unil to submit revised NFE details showing complete break up of international trading/supplies to SEZs/EOUs/DTA, so as to ascertain correct status of NFE achievement. It was informed to the Approval Committee that unit has submitted revised NFE calculation sheet as under:- It has been observed that the cumulative NFE earnings for previous five years have been positive even after removing the DTA sales made in INR from the total exports. Table{ Phy3kal Export Deomed Erport! aspeclfv cateoo.lcallv the ex.ct aub-rulo of Rule 53A le to o| underwticft galet have been made) Total Export Foeign Exchange Total Fo.eign Excnange Outoo NFE Eamin g3 Foleirn Exchan ge (D) DTA S.lo8 not count€d toward! NFE (llko paymeflts not lccelved through EEFC account) (i) SEZ/EOUS (under Rule 53A(m)) (ii) DTA against Foreign Exchang€ under Rule 534(n) (ii0 othec (Physic.l Export in INR) Forcign Exchange INR Foreign Exchnge INR Foreign Exchange INR FOrei9n Exchange INR I 2 1 5 6 I I (2+3+4+s +71 t0 It 12 13 2012- 4.33 169.83 't 09 0 0 0 0 175.25 1t5.fi 60.14 0 0 2013- 14 15.46 304.90 7 _54 0 1-27 0 0 327-90 224i5 99.45 0 1_27 2014- 9't8 337 70 7.30 0.5r 0_48 0 0.8'l 3t1.69 262-21 92.rt5 0.51 0.48 2015- 16 27 _40 345.20 6.32 12.74 0 0 39t.66 2t5.71 'tt5-92 251 't 1.55 2016- 17 37.16 409.37 11.97 '14.96 12.74 0 0 d73.16 297.23 lt6-24 121 12.74 Tot8l 93.53 1567.00 34.22 2A_21 26.04 0 0.8t 1722.44 1178.77 5,{4,19 4.09 26.04 Nepal 81,180 Mectronics Marketing Services (DTA Unit) (value- 22,17,5731 / lntegrated Assembly Solutions (value- 3,88,295) 26,05,868 61,09,298/- [*r^"^r^ A",.(L

Noida Special Economic Zone (Mlnutes ol Meetlnt ol Approval Committee of Nolda SEZ held o n O3|OU2OLS! \ \il^.^--^AJ'; Pase 4 of20 o However, the supplies worth Rs. 61,09,298/- for which payments have been received in INR are not in consonance with the provisions contained in Section 2(z) of the SEZ Act, 2005 which prescribes that tradable "services' are to earn foreign exchange. As such sale of trading goods has to be done only in free foreign exchange. S/Shri Manish Agrawal and Pankaj Saxena, Partners of the unit appeared before the Approval Committee. Shri Agrawal informed that they were under misconception that 30% of the supplies can be done in DTA. He further informed that they supplied those goods to their DTA unit which they were unable to export. The Approval Committee informed to them that in terms of Section 2(z) of the SEZ Act, 2005, tradable "services" are to earn foreign exchange. As such sale of trading goods within the SEZ has to be done only in free foreign exchange. lt was informed to them that there is no doubt that supplies made to SEZ unit in terms of Rule 53(A)(m) will be counted towards NFE and as such the unit has achieved positive NFE to the tune of Rs. 544.19 Lakhs in terms of Rule 53(AXm) of SEZ Rules, 2006. However, traded goods within SEZ in INR are not in line with the provisions as contained in Section 2 (z) of the SEZ Act and Rules made thereunder. Such non-compliance tantamount to violation of Section 2 (z) of the SEZ Act, for which appropriate proceedings are to be initiated against the unit. It was also informed to Shri Agrawal that as per section 11(4) of the Foreign Trade (Development & Regulation) Act, there is a provision to settle the cases where a person admits any contravention. The Approval Committee gave him the option to settle the mafter as per section 11(4) of the FT(D&R) Act, 1992 for violation of SEZ Act and Rules by imposing penalty to regularize authorized operation. Shri Agrawal gave his consent to settle the case under section 11(4) of the Foreign Trade (Development & Regulation) Act. Shri Manish Agrawal, however, requested for a minimum penalty. ln the light of facts & circumstances of the case, DC, NSEZ in discussion with the members of the Approval Committee, imposed a penalty of Rs. 25,000/- on the unit as per section 1 1 (4) of the FT (D&R) Act, 1992 and settled the matter. The Approval Committee also informed to Shri Agrawal that Trading for sale in DTA is not encouraged and SEZ Unit should be allowed Trading for physical export to any other country, for supply to other units and Developers in the same or other SEZ or EOUs, against free foreign exchange and therefore, it is decided to insert a condition

(Mlnutes of Meetlng of Approval Commltte€ of Nolda SEz h€ld on 03/0V2018) Paee 5 of20 o in the Letter of Approval that in general No DTA sale in respect of traded goods will be allowed. Shri Agrawal requested to give them trading permission to clear left over goods in DTA to their own unit with some capping as they are not able to utilize it' The Approval Committee, after due deliberations, took note of positive NFE achieved by the unit. The Approval Committee also decided to incorporate the condition that unit shall make supplies to other SEZ units or EOUs against foreign exchange only and in general No DTA sale will be allowed. However, on the above specific request of the unit, Approval Committee agreed for the same and permitted for DTA sale not exc,eeding 2o/o of the turnover of the preceding year. Proposal for monitoring of performance of M/s. Associated Lighting Company Pvt Ltd. It was informed to the Approval Committee that proposal in respect of M/s Associated Lighting Company for Monitoring of performanc€ was placed before it in its earlier meeting held on 0111112017. The Approval Committee had deferred the matter with a direction to Specified Officer, NSEZ to carry out physical inspection of the premises of the unit. The Approval Committee had also directed to verify the details of export, import from NSEZ Customs and place block wise performance of the unit before it for monitoring. The block wise performance of the unit (as perAPRs) is as under:- Values in Rs. Lakhs Year FOB Value of Export Forex Outqo NFE Earning 2006-07 3012.21 495.10 2517.11 2007-08 8863.65 1483.15 7380.50 2008-09 5201.85 570.92 4630.93 2009-10 5210.03 470.65 4739.38 2010-11 4210.69 637.66 3573.03 Total 26498.43 3657.48 22840.95 First block of five yea rs Second block of five 2011-12 1 119.31 2012-13 (*,^"^^- A

(Mlnutes ol Meeting ot Approval Committee of Noida sEz held on O3lO,.l2OlAl Paee 6 of20 o It was also informed to the Approval Committee that though the unit has defaulted in payment of Lease Rent yet Eviction Notice has not been issued since the LOA is valid till31lO3l2O21 . It was further informed to the Approval Committee that the Specified Officer, NSEZ vide his letter dated 1911212017 has informed that unit has submitted an undertaking on 0511212017 that they will deposit Rs. 1 Lakh in one week and the balance lease rent shall be paid in 2 monthly instalments. As regards, physical inspection of the unit, following have been observed:-

1. There was no electric supply in the unit, however supply was made by DG set.
2. Approx. 8-10 casual labours were found working and making lampshades. The NSEZ Custom has also informed about details of import and export made by the unit as under:- Values in Rs. Lakhs *APRs for the year 201 5-16, 2016-17 have not been submitted till date. 2013-14 2014-15 2010-11 2011-12 2012-13 1209.35616 7012.31058 2013-14 2014-15 3194.08010 2015-16 217.39106 2016-17

Noida Specia! Economic Zone (Minutes of MeetinS of Approval Committee of Noida SEz held on G/0fl2018) Paee 7 of20 o Frr-,t ar" -"*, I 0 23.89049 Shri Rajesh Agarwal, CFO and a before the Approval Committee. Sl though their Company is having rir as their major buyer M/s. IKEA ha resulted in their low performance. write up indicating the details d business plan for future operations The Approval Commiftee observe not match with the data provided APRs for the year 2015-16 & 2016 The Approval Committee, after d data as indicated by them in AF Approval Committee further direct 2016-17 within one week. Shri F submit the same within one week. Shri Aganrual requested to the Ag lease rent in instalments. The App him to ensure that Rs. 'l Lakh tol remaining lease rent be also depor Shri Agaruval assured to comply wi uthorized representative of the rri Agarwal informed to the Appr :h Assets yet they are currently s discontinued to purchase theit The Approval Committee direc ue to which business was in d that the data furnished by Cr in APRs by the unit. Also unil -17 till date. ue deliberations, directed the u )Rs with the data provided Cu ed the unit to submit APRs for lajesh Agarwal, CFO of the ct lproval Committee that they wil roval Committee accepted his n vards lease rent is deposited w ;ited in two equal instalments lat lh the directions of Approval Con company appeared cval Committee that facing cash crunch, 'products. This has led him to submit a terrupted alongwith rstoms, NSEZ does : has not submitted nit to reconcile the stoms, NSEZ. The the year 2015-16 & )mpany assured to I be allowed to pay 3quest and directed ithin one week and est by March, 2018. nmittee. 3. Proposal for Renewal of LOA; Change of directors and Monitoring of performance of M/s, Heuer lnternational It was informed to the Approval Committee that M/s. Heuer lnternational (A division of G.S.T. Corporation Ltd.) has been issued LOA dated 0710712006 for (i) Manufacturing of medical/surgical devices, including manufacture of orthopedic implants, instruments accessories, orthotics aids, resuscitator silicon project and ii) Trading items as per list in file (52 items). The unit has commenced its export production w.e.f .2710712007 and LOA of the unit is valid fll2610212018. ?r^t t^..-,-r^ l"

(Minutes of Meeting of ApprovalCommittee of Noida SEz held o n O3lOrl2OlSl Pase 8 of20 o The Approval Committee observed that unit has made exports worth Rs. 1337.09 Lakhs and has earned positive NFE earnings worth Rs. 889.11 Lakhs during last block of five years. Shri Manu Grover, Director of the company appeared before the Approval Committee. Shri Grover informed that there is no change in shareholding due to change in directors. He also informed that they have achieved negative NFE in respect of the Trading Activities performed by them, as they were not aware that they have to make DTA sale against foreign exchange only otherwise it will not be counted towards NFE. The Approval Committee directed that the unit will not be allowed to do DTA sale in future in respect of Trading Activities. Shri Grover informed the Approval Committee that they have stock of Rs.20 Lakhs and he requested to allow them to sell it in DTA. The Approval Committee allowed clearance of remaining stock of Rs.20 Lakhs only in the DTA against free foreign exchange. The Approval Committee observed that the data furnished by NSEZ Customs does not match with the data indicated in APRs by the unit. The Approval Committee directed the unit to reconcile the data as indicated by them in APRs with the data provided Customs, NSEZ and submit reconciled data to this office. The Approval Commiftee, after due deliberations, decided to take the intimation of unit for change in directors on records and extend the validity of LOA for a period of 3 months subject to condition that no DTA sale will be allowed in respect of Trading Activities except clearance of remaining stock of Rs.20 Lakhs. The Approval Committee also decided that the proposal of unit for renewal of LOA for remaining period of 5 years should again be placed before the Approval Committee, once the required documents are received from them. 4. Proposal for Renewal of LOA; lnclusion of additional authorized operations and Monitoring of performance of M/s. Pertech Exports Pvt. Ltd. It was informed to the Approval Committee that M/s. Pertech Exports Pvt' Ltd. for Renewal of LOA and monitoring of performance was placed before the Approval Committee in its meeting held on O4l1Ol2O17. Shri P.V. Khullar, authorized representative of the company had appeared before the Approval Committee and had il,r^^*-o^(lJU

(Minutes of Meetlng of Approval Commlttee of Nolda sEz held on 03/0V2018) Paee 9 of 20 o informed that they have made exports worth Rs.16,98,6254 of PCB Cards during 2017-18 to Singapore and Dubai. The Approval Committee observed that PCB cards are not part of authorized operations of the unit. Shri Khullar informed that these PCB cards belong to the same tariff head of 8925 and these are the parts of TV sets which are their authorized operations. Shri P.V. Khullar informed to the Committee that he was under the impression that PCBs being a part of their authorized operations viz. "Manufacturing of Electronic Consumer Goods" is also allowed to be exported. Accordingly, his unit has been doing export of PCBs also as part of authorized operations. The manufacturing of these PCBs is done in-house. It was informed to him that for exporting PCBs he will have to get the same specifically included in the authorized operations as 'PCB as part of items namely Electronic Consumer Goods: LCD TV Sets, Plasma TV Sets, Satellite Receiver (DTH), C.A.S.(Set Top Box for W Sets) and RO Water System, CTV, CFL, DVD, VCD, Chasis of Color and B&W TV Sets" in the LOA. Shri Khullar had expressed urgency for inclusion of the same on the ground that he has got export orders for PCBs. He had informed that they have confirmed order for parts of W sets and also of LED Bulbs of approx. Rs.50,000/- per month. The Approval Committee, after due deliberations, had allowed inclusion of "PCB as part of items to be used in their authorized operations" as mentioned in the LOA subject to satisfaction of NSEZ Customs that manufacturing activity is done in-house. The Approval Committee had also decided to extend the validity of LOA of M/s. Pertech Exports Pvt. Ltd. for two months i.e. upto 051012018. The Approval Commiftee had further directed the unit to submit complete list of specific items, which they want to keep in their authorized operations along with ITC HS Code, manufacturing process flow chart of each of the item, list of raw materials/machinery reguired for manufacturing of each of the item. The same was conveyed to unit vide this office letter dated 1611012017. It was informed to the Approval Committee that the unit has submitted a proposal for renewal of LOA as well as for inclusion of Assembly/ manufacturing of (i) Main PCB Board, Power Supply board and operating uniU card for TV, LED TV and Smart TV sets. (lTC HS Code: 8529 & 8528) (ii) LED Bulb, Tubes and its power supply. (lTC HS Code: 9405) (iii) CFL Bulb, Tubes and its power supply. (lTC HS Code: 8539) (iv) Mobile Phones (Bar phone), Touch phone and Smart phones. (lTC HS Code: 8517) (v) :tL.-^A-A

(Minutes of Meeting of ApprovalComminee of Noida SEz held on 03/01/2018) Paee l0 of20 o P.C. Computer and P.C. Tablets (lTC HS Code: 8471 & 8473). Shri P.V. Khullar, authorized representative of the company appeared before the Approval Committee and informed that they have made request for inclusion of additional authorized operation in their LOA. The Approval Committee, after due deliberations, decided to extend the validity of LOA of Pertech Exports Pvt. Ltd. for remaining period of five years i.e. upto 05/08/2022' The Approval Committee also allowed inclusion of Assemblyi manufacturing of (i) Main PCB Board, Power Supply board and operating uniU card for TV, LED TV and Smart ry sets. (lTC HS Code: 8529 & 8528) (ii) LED Bulb, Tubes and its power supply' (lTC HS Code: 9405) (iii) CFL Bulb, Tubes and its power supply. (lTC HS Code: 8539) (iv) Mobile Phones (Bar phone), Touch phone and Smart phones. (lTC HS Code: 8517) (v) P.C. Computer and P.C. Tablets (lTC HS Code: 8471 & 8473), in their authorized operations. Further, the Approval Commiftee was informed them an amount of Rs. 4,40,550/- is pending against the unit towards lease rent. The Approval Committee asked Shri Khullar to deposit the outstanding lease rent. He assured that he will deposit Rs. 2.50 Lakhs within this month and rest will be deposited in the month of Feb, 2018. 5. Proposal of M/s. Bahri paper tndustries for lnclusion of additional items in its authorized operations. It was informed to the Approval Committee that M/s. Bahri Paper lndustries has been issued LOA dated 01/09/2016 for Manufacturing of Greeting Cards; Gift Bags; Fluorescent Paper Packs; Canvas Bags and other above related products. The unit has commenced its export production w.e.f .0210212017 and LOA of the unit is valid till 01t02t2022. It was informed to the Approval Committee that the unit has submitted a proposal for inclusion of manufacturing of (i) All Paper & Board packed items; (ii) All Stationery items; (iii) Leather Diary & PVC Cover Books; (iv) Kraft Stencil items; (v) Poly Propylene(PP) & PVC Plastic items; (vi) All Cloth items bags diary' Shri Vikram Bahri, Partner of the firm appeared before the Approval Committee. He h,r"^*A.-l(=

(Mlnutes o, MeetinS of Approval Commlttee of Noida SEZ held on 0SlOll2OlAl Paee 1l of20 o informed that they have applied for inclusion of additional authorized operation in the LOA. Shri Bahri further informed that right now they have 20 persons employed in their firm and they are currently exporting goods to UK & USA. The Approval Committee observed that Poly Propylene(PP) & PVC Plastic is a raw material which cannot be part of their authorized operation. Shri Bahri informed that they are using Poly Propylene(PP) & PVC stencil/ sheets for manufacturing of their authorized items. The Approval Committee, after due deliberations, granted in-principle approval for inclusion of authorised operations indicated above subject to the condition that ITC(HS) classification part of the above items would be examined by Customs, NSEZ and final approval letter will be issued on the basis of exact name of above items and its appropriate ITC(HS) classification received from Customs, NSEZ. For this purpose, the unit was directed to approach Dy. Commissioner, Customs, NSEZ. 6. Proposal of M/s. lndeutsch Industries Pvt. Ltd. (UnitJ) for lnclusion of additional authorized operations in LOA. It was informed to the Approval Committee that M/s. lndeutsch lndustries Pvt. Ltd. (Unit-l) has been issued LOA dated 2910711987 for (i) Manufacturing of Cosmetic/Artist Brushes and Accessories, Sketch/Drawing/Painting Books, Canvas and Easels. Processed Natural/Synthetic Hair for Painting/Artist Brushes and Trading Activities (ii) Manufacturing of Metallic ferrules, Tufts, Brush Heads, Wooden/Plastic Shafts (Handles) and Metallic Pipe & Tubes (iii) Manufacturing of Apron, Bag & Purse and BOPP Pouches. The unit has commenced its export production w.e.f. 01/10/1988 and LOA of the unit is valid fll 31lO3l2O2O. It was informed to the Approval Committee that the unit has submitted a proposal for inclusion of manufacturing of (i) Pouches & Sleeves (3923) (ii) Packing Boxes' Cards and Stickers (4819) (iii) Painting Knifes/Spatulas (8208). Shri Sanjeev Tyagi, HOD Finance of the company appeared before the Approval Committee. He informed that Pouches & Sleeves are used as brush covers and Painting Knifes/Spatulas is used for painting. He also informed that initially manufacturing of these items will be got done through job work and subsequently it will fu'^*;AJt

(Mlnutes of M€etlng of Approval Commlttee of Nolda sEz held o n o3l0ll20lSl Paee 12 of20 o be manufactured in house. The Approval Committee, after due deliberations, approved the proposal of unit for inclusion of Manufacturing of (i) Pouches & Sleeves (ii) Packing Boxes, Cards and Stickers (iii) Painting Knifes/Spatulas in its authorized operations. 7. Proposal for iltonitoring of performance in view of exit request by unit of M/s. Xavient lnfotech Pvt Ltd. ll was informed to the Approval Committee that M/s. Xavient lnfotech Pvt. Ltd. was issued an LOA dated 2211112010 for Software Development and lT Enabled Services. The unit commenced its activities w.e.l.07lOGl201 1 and LOA was valid till 06/06/2016. It was informed that unit vide this office letter daled 0410212014 was advised to submit requisite documents for compliance with exit formalities. Unit has now submitted all the documents related to exit from SEZ scheme. Besides, NSEZ Customs has also issued NOC to the unit on 25lOBl2O14. lt was further informed that in terms of Rule 54, it is for Approval Committee to arrive at conclusion that unit has achieved positive NFE. Shri Ashish Jain, Director (Finance) of the company appeared before the Approval Committee. He informed that due to lack of business, the management has decided exit of unit from SEZ scheme. He requested to allow them exit, under Rule 74 ol SEZ Rules, 2006. The Approval Committee monitored the performance of the unit on the basis of APRs submitted by it up lo 2014-15 and noted achievement of positive NFE by the unit. The Approval Committee further observed that no foreign exchange is pending for realization as on date. ln view of above, the Approval Committee, after due deliberations, granted final exit to the unit. 8. Folowing cases for monitoring of performance/APRs under Rule 54 of SEZ Rules' 2006 were also placed before the Approval Committee. The unit wise decision of the Approval Committee are indicated below:- i) M/s. NTT Data Global Delivery Solutions Pvt. Ltd. (Unit-l) - The Approval Committee monitored the performance of the unit on the basis of APRs up to 2016-17 and noted achievement of positive NFE by the unit. ,/

o (Minutes of Meeting ot Approval Committee of Noida SEZ held on 03/01/2018) Paqe 13 of20 ii) iii) M/s. Embarc lnformation Technology P!rt. Ltd. - The Approval Committee monitored the performance of the unit on the basis of APRs up to 2016-17 and noted achievement of positive NFE by the unit. M/s. FCS Softuvare Solutions Ltd. - The Approval Committee monitored the performance of the unit on the basis of APRs up to 2016-17 and noted achievement of positive NFE by the unit. 9. Proposa! of M/s. Divya Creations (Unit-ll) for lnclusion of additional authorized operations in LOA It was informed to the Approval Committee that M/s. Divya Creations (Unit-ll) has been issued LOA dated 12109/2014 for Manufacturing & export of (a) Gold Jewellery plain & studded with diamonds, precious, semi-precious & CZ stones, (b) Silver Jewellery plain & studded with diamonds, precious, semi-precious & CZ stones, (c) Platinum Jewellery Plain & Studded with diamonds & precious stones. The unit has commenced its export production w.e.f. 10/09/2015 and LOA of the unit is valid till Ogl0gl2020. It was informed to the Approval Committee that the unit has submitted a proposal for inclusion of manufacturing & Export of Plain & Studded Semi-finished gold, silver & platinum jewellery. Shri Sumit Gupta, Partner of the company appeared before the Approval Committee. He informed that their overseas buyer will solder lock & finished jewellery at their end as per customer requirement. He further informed that in order to keep export orders & to avoid any confusion, they have requested to include Semi-finished jewellery in their authorized operations. He also informed that value addition would be approx. 10%, which is more than the prescribed norms. The Approval Committee, after due deliberations, approved the proposal of unit for inclusion of manufacturing & Export of Plain & Studded Semi-finished gold, silver & platinum jewellery in its authorized operations. 10. Proposal of M/s. Divya Greations (Unit-l) for Revision of authorized operations It was informed to the Approval Committee that M/s. Divya Creations (Unit-l) has been issued LoA dated 1210312003 for Manufacturing of (i) Plain & studded Gold Jewellery and Part & Components Thereof namely push, post, ear-dash wire, leaf, lock; (ii) Plain (r; ** &"-

(Mlnutes of MeetlnS of Approval Committee of Nolda sEz held on 03/0U2018) Pase 14 of 20 o & Studded Silver Jewellery and Part & Components Thereof namely push, post, ear- dash wire, leaf, lock; (iii) Plain & Studded Platinum Jewellery; (iv) Remaking of Outdated/ Old Jewellery; (v) Palladium Jewellery; (vi) Manufacturing of Base Metal Jewellery Clad with precious metal. The unit has commenced its expori production w.e.i.21105D003 and LOA of the unit is valid till 2510512018. It was informed to the Approval Commiftee that the unit has submitted a proposal for inclusion of manufacturing of (i) Plain & Studded Gold Jewellery and Part & Components Thereof; (ii) Part & Components of Gold jewellery; (iii) Plain & Studded Silver Jewellery and Part & Components Thereof; (iv) Part & Components of Silver jewellery; (v) Plain & Studded Platinum Jewellery; (vi) Remaking of Outdated/ Old Jewellery; (vii) Palladium Jewellery (viii) Manufacturing of Base Metal Jewellery Clad with precious metal. Shri Sumit Gupta, Partner of the company appeared before the Approval Committee. He informed that part & components of jewellery are manufactured by them in-house in their factory premises. During transit or use, some parts get damaged and require replacement for which their foreign buyer wants to keep some stock of these parts & components at their end to replace themselves rather than sending the damaged complete product to lndia for replacing/repairing & then re-export. The Approval Committee, after due deliberation, approved the proposal and accordingly the revised authorized operation of the unit shall be manufacturing of (i) Plain & Studded Gold Jewellery and Part & Components thereof namely push, post, ear-dash wire, leaf, lock etc.; (ii) Plain & Studded Silver Jewellery and Part & Components thereof namely push, post, eardash wire, leaf, lock etc. (iii) Plain & Studded Platinum Jewellery; (iv) Remaking of Outdated/ Old Jewellery; (v) Palladium Jewellery; (vi) Manufacturing of Base Metal Jewellery Clad with precious metal. 11. Proposal of M/s. Stable Packaging Pvt. Ltd. (Unit-l) for Exit and Transfer of assets & liabilities under Rule 74A of SEZ Rules, 2006 It was informed to the Approval Committee that M/s. Stable Packaging Pvt. Ltd. (Unit-l) has submitted a proposal for exit from SEZ scheme and transfer of its assets & Building at Plot No. Plot No. 119A, 120 & 121, NSEZ to M/s. Ebix Software lndia Pvt. (* u-"-^ eJL

Ltd. (Unit-lll) under provisions of Rule 74A of SEZ Rules, 2006. It was also informed to the Committee that there are two units in the M/s. Stable Packaging Pvt. Ltd. Details of the same are as below:- Unit-l Unit-ll LOA No. & Date 09/50/2008-Proj/9288 20t11t2008 11t0112013-Prql12650 09t12D013 Plot No. 119A, 120 & 121 149 DCP 08/05/2009 31t03t2017 LOA validity 07105t2019 30t03t2022 It was informed to the Approval Committee that the above proposal of M/s. Stable Packaging Pvt. Ltd. (Unit-l) was placed before the Committee constituted under the chairmanship of JDC, NSEZ to examine the case under Rule 74A and 3d proviso to Rule 19(2) held at NSEZ on2711212017. The Committee noted that Rule 74Aof the SEZ Rules, 2006 inter alia provides as under:- 'The unit may opt out of Special Economic Zone by transfening ifs assefs and liabilities to another person by way of transfer of ownership including sale of Special Economic Zone units inter alia subject to the following conditions:- The unit has held a valid Lefter of Approval as well as /ease of land for nof /ess than a peiod of five years on the date of transfer. The unit has been operaiional for a minimum peiod of two years after the commencement of production as on the date of transfer. Such sa/e or transfer transactlons shall be subject to the apprcval of the Approval Commiftee; The transferee fulfils all eligibility citeia applicable to a unit; and The applicable duties and liabilities, if any, as calculated under rule 74, as well as expott obligations of the transferor Unit, if any, shall stand name & title of (i). (i0. (iii). (iv). (v). Noida Special Economic Zone (Minutes of Me€tlng of Approval Commlttee of Nolda SEz held on 03/0U2018) Page 15 of 20 fu^ u--^a

Noida Special Economic Zone (Minut€s of MeetlnS of Approval Commlttee of t{olda sEz held on 03/01/2018} Paee 16 of20 o transfened to the transferee lJnit which shall be under obligation to discharge the same on the same terms and conditions as the transferor Unit." It was also informed that Board of Approvals in its 69th meeting held on 23.02.2016 has decided to issue clarification / instruction regarding Rule 74A of SEZ Rules, 2006. The extract of minutes of said meeting is reproduced below here:- 'The Joint Secretary (GPM) explained to the Board that representations have been received on the applicability of Rule 74Aot SEZ Rules,2006 in cases where the operational SEZ units continue to operate as such, i.e. on a going concern basis as a result of change of name, court approved mergers/de-mergers, slump sale, change of constitution from proprietorship to partnership & vice-versa, change of constitution from public limited company to private/limited liability company & vice-versa, company to partnership & vice-versa, change in shareholding up to 50 per cent, etc. and per se are not opting ouUexiting out of the SEZ scheme. With a view to promote the ease of doing business in lndia and that restructuring of entity/business is a fairly common occurrence, BOA decided that provisions of Rule 74A shall not apply to SEZ units that do not exit or opt out of the SEZ scheme by transferring its assets and liabilities to another person and the SEZ unit continues to operate as a going concern in the situations mentioned above. The UACs concerned, may consider such requests under Rule 19 (2) of the SEZ Rules, 2006. ln so far as Business Transfer Agreement is concerned, it was explained that certain acquisitions happen globally as a result of Business Transfer Agreement which result in transfer of the SEZ unit of the lndian company on a going conc€rn basis to acquirer. The BOA decided that such cases resulting in change of ownership would be decided on merits by the Board of Approvals on a case to case basis." It was further informed that the said Committee observed that the transferor unit meets all the conditions of Rules 74A i.e. it has valid LOfu valid lease deed for more than 5 : u^-* /"l

(Minutei of MeetlnS of Approval Commtttee of Nolda SEz held on 03/0V20181 Paee 17 of20 o years and has been operating for more than two years. Further, the transferee unit also has valid LOA and has also submitted an undertaking by incoming entrepreneur regarding taking over of all the assets & liabilities of transferor unit. Accordingly the Committee recommended the proposal of M/s. Stable Packaging Pvt' Ltd. (Unit-l) for exit and transfer of assets & Building at Plot No. 119A' 12O & 121' NSEZ to M/s. Ebix Software lndia Pvt. Ltd. (Unit-lll) in terms of Rule 74A of SEZ Rules. Shri Sushil Kant Gupta, Director of M/s. Stable Packaging Pvt. Ltd. appeared before the Approval Committee. He informed that they have also second unit at Plot No.149 in NSEZ and they will transfer the goods of exiting unit to their second unit. The Approval Committee, after due deliberations, accepted the recommendations of the Committee examining the case under Rule 74A and approved the proposal of M/s. Stable Packaging Pvt. Ltd. (Unit-l) for exit from SEZ scheme under Rule 74A ot SEZ Rules, 2006 and transfer of its assets & building at Plot No. 1 1 9A, 120 & '121 , NSEZ to M/s. Ebix Software lndia Pvt. Ltd. (Unit-lll) subject to fulfillment of exit formalities by transferor and payment of applicable transfer charges. ,t2. Proposa! for Monitoring of performance in respect of taking decision on penalty on negative NFE of M/s. Gee Gee Exim hrt. Ltd. It was informed to the Approval Committee that the proposal of M/s' Gee Cee Exim Pvt. Ltd. for monitoring of performance and Renewal of LOA was placed before the Approval Committee in its meeting held on 011'1112017 had observed that during the first block of five years i.e. between 2009-10 lo2013-14 (upto 30/09/2013), unit had made exports worth Rs. 0.69 Lakhs and earned nesative NFE worth Rs. 27 '26 Lakhs. The Approval Committee observed that lease rent amounting to Rs. 5,62,186/- is currently outstanding against the unit. Besides, the unit had taken capital goods out of NSEZ worth approx. Rs. 57 Lakhs for job work which has not been brought back by the unit. Hence, the unit is also liable to pay the custom Duty on the said capital Goods. The Approval Committee in its meeting held on 0111112017, after due deliberations' r l/ J^L^h- Yt^riv..^

lMinutes of Meetlng of Approval Commltte€ ot Nolda SEZ held on 03/0v20fgl Paee 18 of20 had taken following decisions, and aiso defened the case for next meeting: (i) ln respect of negative NFE earnings: Unit shall be liable to pay the duty on the unutilized goods in terms of Rule 54 of SEZ Rules, Paragraph (ii) of AnnexureJ of SEZ Rules, Rule 25 & Rule 37 of SEZ Rules as may be calculated by NSEZ customs. Besides, decision on imposition of penalty on the shortfall of reconciled value of NFE shall be taken up by the Approval Committee. (ii) The unit shall immediately clear entire lease rent in respect of Plot No. 72-73, NSEZ. (iii) The unit shall ensure to deposit Customs duty on capital goods transferred from NSEZ for job work, if the same is not retumed. (iv) The Approval Committee also decided to extend the validity of LOA upto 31103t2018. This office vide letter daled 1011112017, had renewed LOA of the unit for a period upto 3'110312018. Unit vide this office letter dated 1011112017 was requested to clear entire outstanding lease rent and deposit the Custom duty within one month, for further consideration in the matter. The mafter was again placed before the Approval Committee in its meeting held on 0G11212017. However, unit had requested for deferment of the proposal and therefore the Approval Committee had deferred the case with a direction to send a reminder to the unit to clear entire outstanding lease rent and deposit Custom duty, at the earliest. Unit vide this office letter dated 1911212017 was requested to comply with the direction of Approval Committee. However, the unit has not cleared lease rent or deposited custom duty till date. Shri M.M. Mittal, Director of the company appeared before the Approval Committee. He informed that his bank accounts were freezed by lncome Tax Deptt. and it is expected that these bank accounts will be defreezed in next two-three days time. He assured to pay all the dues of lease rent and customs duty within 10 days. The Approval Committee informed Shri Mittal that their unit has achieved negative NFE of Rs.27.26 Lakhs in previous block of five years. lt was also informed to Shri Mittal that as per section 11(4) ot the Foreign Trade (Development & Regulation) Act' t/ t{^^--^AJ^,

(Mlnutes of Meeting of ApprovalCommlttee of Nolda SEz held on 03/0r/2018) Paee 19 of 20 @caSeSwhereaperSonadmitsanycontravention.The Approval Committee gave him the option to settle the matter as per section 11(4) of the FT(D&R) Act, 1992 for violation of SEZ Act and Rules by imposing penalty to regularize authorized operation. Shri Mittal gave his consent to settle the case under section 1 1(4) of the Foreign Trade (Development & Regulation) Act' The Approval Committee, after due deliberation, decided to impose a penalty of 1% on Rs.27.26 Lakhs for achieving negative NFE in previous block of five years and also directed the unit to deposit custom duty on raw material corresponding to un-utilized value of Rs. 27.26 Lakhs. Shri Mittal assured to pay all the dues of lease rent including Customs duty within 10 days. The Approval Committee further deferred the proposal of the unit for renewal of LOA beyond 3110312018 for next meeting' 13. Proposal of M/s, Jai Hanuman Exports for Extension of time for compliance with exit formalities It was informed to the Approval Committee that M/s. Jai Hanuman Exports was issued an LOA daled O4t0212003 for Manufacturing of toothbrushes, Trading of toothpaste, Trading of oral/denture care products i.e. Denture adhesive tube/cream, mouthwash, teeth whitening gel etc. LOA of the unit has already been expired on 10/1212013. Unit has been allotted SDF No. H-3(A) & H-3(B), NSEZ. It was informed that the Approval Committee in its meeting held on 0211112016 had allowed extension of LOA of M/s. Jai Hanuman Exports by 3 months after withdrawal of court case & submission of evidence thereof, only for compliance with exit formalities and for the purpose of export of machinery/goods lying in the premises subject to condition that lease rent beyond 2811012016 is paid by the unit till the period they are allowed access to clear the machines/goods lying in the premises i'e. SDF No. H-3 A&B, NSEZ. Thereafter, on requests of unit, the Approval Commiftee had allowed extension upto 05/01/2018 for the purpose of clearing the machines/goods lying in the premises and to complete exit formalities. Shri Neeraj Kumar, cFo of the company appeared before the Approval committee. He informed that they have cleared first lot of capital goods and had already filed the BOE with the Customs for clearing the wastage & scrap which is under process. He also ' l{"-^ &'^(}

(Minutes of Meeting of Approval Committee o{ Nolda sEz held onOtlOLl2OlSl informed that they will be able to clear one premise by the end of this month and to clear the other premise, they require more time. The Approval Committee, after due deliberations, extended the validity of LOA for a period of 4 months for the purpose of completing all the exit formalities. Meeting ended with thanks to the Chair. /) 'W (S. S. Shukla) Jt. Development Commissioner Development Commissioner Paee 20 of20