minutes of the joint meeting of the approval …vsez.gov.in/app_doc/uac hyd 21.09.2012.pdf · 2...

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MINUTES OF THE JOINT MEETING OF THE APPROVAL COMMITTEES FOR SEZs

The Joint Meeting of the Approval Committees was held on 21.09.2012 at 11.00 AM at VSEZ

Sub-Office, Hyderabad.

Members Present:

1) ShriY.V.S.T. Sai, IRS, Additional Commissioner of Income Tax, Hyderabad-II Commissionerate,

Hyderabad.

2) Shri M. DayaSagar, IRS, Additional Commissioner of Income Tax, Hyderabad-III Commissionerate,

Hyderabad.

3) Shri S. Viswanathan, IRS, Deputy Commissioner of Customs & CE, Hyderabad-III Commissionerate,

Hyderabad.

4) Smt. R. J. Haqqani, Assistant Commissioner (Technical), Hyderabad-IVCommissionerate, Hyderabad.

5) Shri P. V. Prasad, FTDO, O/o. Jt. DGFT, Hyderabad.

6) ShriG. Narsimlu, Assistant Director, District Industries Centre, Ranga Reddy District, Hyderabad.

7) Smt. N. Vijaya Lakshmi, AEE, APPCB, Hyderabad

8) Smt. T. Sri Bharathi, AEE, APPCB, Hyderabad

The Development Commissioner, VSEZ and Chair Person, Approval Committees welcomed the

Members and apprised them briefly about the proposals placed before the Committees for their

consideration. The items listed in the Agenda were discussed and following decisions were taken.

AGENDA Item No. 1: Ratification of the Minutes of the Joint Meeting of the Approval Committees

held on 31.08.2012.

The Approval Committee ratified the Minutes of the Joint Meeting of the Approval Committees

held on 31.08.2012.

APPROVAL COMMITTEE FOR M/s. SUNDEW PROPERTIES PVT. LIMITED, SPECIAL

ECONOMIC ZONE FOR IT/ITES AT MADHAPUR VILLAGE, SERILINGAMPALLY

MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH

AGENDA Item No. 2 (a) :Proposal of M/s. Open Text Technologies Pvt. Limited, unit in M/s. Sundew

Properties Pvt. Limited, IT/ITES SEZ at MadhapurVillage, SerilingampallyMandal, Ranga Reddy

District, Andhra Pradesh for approval for expansion of their unit.

The Unit which is presently operating from 301,3rd

floor, Building no.14 wants to take additional space

of 32562 sft at 9th

floor of Building No.20 and expand its operations.

The Approval Committee discussed and approved the proposal subject to submission of

Additional Bond cum LUT.

AGENDA Item No. 2 (b) :Proposal of M/s. Ybrant Digital Limited, unit in M/s. Sundew Properties Pvt.

Limited, IT/ITES SEZ at MadhapurVillage, SerilingampallyMandal, Ranga Reddy for approval for list

of Services.

The Approval Committee noted the unit’s claim that they have both SEZ and DTA

Operations.

The list of services is approved as under:

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(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the

place where the services are actually performed is within the SEZ

Sl.No Taxable Service

1 Cleaning activity Service

2 Commercial Training or Coaching

Service

3 Courier Service

4 Erection, Commissioning or installation

Services

5 Management, Maintenance or repair

Service

6 Security agency’s Services

7 Technical inspection and certification

service

8 Technical Testing and Analysis Service

(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place

where the property is located or intended to be located is within the SEZ


1 Architect services

2 Interior Decorator’s services

3 Renting of immovable property

(III) Other Services


1 Advertising Agency’s Service

2 Air Travel Agent’s Services

3 Airport Services

4 Banking and other financial service

5 Business support Services

6 Cargo handling service

7 Chartered Accountant’s Services

8 Clearing and forwarding agent’s services

9 Company Secretary’s Service

10 Computer network Service (Online information and

database access or retrieval Service)

11 Consulting Engineer’s Service

12 Cost Accountant’s Service

13 Custom House Agent’s Services

14 Forward Contract Service

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15 General Insurance Service

16 Information Technology Software Services

17 Internet telecommunication services

18 Legal Consultancy Services

19 Man power recruitment or supply agency’s Service

20 Management or business consultant Services

21 Market research agency’s Services

22 Processing and clearing house services

23 Rail travel agent’s Service

24 Telecommunication Services

25 Transport of goods by air Services

26 Transport of goods in by rail Service

27 Transported of goods by road Service

(a) the exemption shall be provided by way of refund of service tax paid on the specified services

received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.

Provided that where the specified services received in SEZ and used for the authorized

operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not

to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of

refund in terms of this notification.

(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed

within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods

and services multiplied by the service tax paid on services other than wholly consumed services to the

total turnover for the given period to which the claim relates.

(c) The above categorization is indicative. The Specified Officer will take decision as per Notification

No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter

to Approval Committee.

AGENDA Item No. 2 (c) :Proposal of M/s. Ojoin Marketing (India) Pvt. Limited, unit in M/s. Sundew

Properties Pvt. Limited, IT/ITES SEZ at MadhapurVillage, SerilingampallyMandal, Ranga Reddy for

approval for change of name to M/s. Calliduscloud (India) Pvt. Limited.

The Approval Committee discussed and approved the proposal.

AGENDA Item No. 2 (d) :Proposal of M/s. Sundew Properties Pvt. Limited, IT/ITES SEZ at

MadhapurVillage, SerilingampallyMandal, Ranga Reddy for approval for list of Services not approved

earlier.

The Approval Committee noted the Developer’s claim that they have both SEZ and DTA

Operations.



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1 Banking and other financial service(based on

invoice)

2 Real Estate Agent Services














APPROVAL COMMITTEE FOR M/s. DLF COMMERCIAL DEVELOPERS LIMITED,

SPECIAL ECONOMIC ZONE FOR IT/ITES AT GACHIBOWLI VILLAGE,

SERILINGAMPALLY MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH

AGENDA Item No. 3 (a) :Proposal of M/s. ValueMomentum Software Services Pvt. Ltd, unit in M/s.

DLF Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal,

Ranga Reddy District, Andhra Pradesh for approval for List of Services.

The Approval Committee noted the unit’s claim that they have only SEZ Operations.





2 Commercial Training and coaching Service

3 Courier Service

4 Erection, Commissioning or installation services

5 Management, Maintenance or repair service ( in

respect of immovable properties)

6 Outdoor caterer’s Service (within the Zone)

7 Packaging Activity services

8 Security agency’s services

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9 Technical inspection and certification service




1 Architect’s Services


3 Works Contract Services



2 Air travel Agent’s Services


4 Business auxiliary services

5 Business Exhibition Services

6 Business support services

7 Cargo Handling service

8 Chartered Accountant’ Service

9 Clearing and Forwarding agent’s services

10 Company Secretary’s Services

11 Computer network Services (Online information and


12 Consulting Engineer’s service

13 Customs House Agent’s Service

14 Forward contract Service




18 Man power recruitment & supply agency’s Service

19 Management or Business consultant’s services

20 Public relation management Service

21 Rail Travel Agent’s Service

22 Scientific or Technical consultancy service

23 Supply of tangible goods services


25 Transport of Goods by Air Services

26 Transport of Goods by Road Service

27 Travel Agent’s service

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AGENDA Item No. 3 (b) :Proposal of M/s. Model N India Software Pvt. Ltd, unit in M/s. DLF

Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal, Ranga

Reddy District, Andhra Pradesh for approval for Additional List of Services.


The Additional list of services is approved as under:
















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AGENDA Item No. 3 (c) :Proposal of M/s. Anthelio Business Technologies Pvt. Ltd, unit in M/s. DLF




Operations.



















AGENDA Item No. 3 (d) :Proposal of M/s. Rockwell Collins (India) Enterprises Pvt. Ltd, unit in M/s.

DLF Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal,

Ranga Reddy District, Andhra Pradesh for approval for Additional List of Services.


Operations.

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AGENDA Item No. 3 (e) :Proposal of M/s. CGI Information Systems and Management Consultants

Pvt. Ltd, unit in M/s. DLF Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage,

SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for approval for List of Services.


Operations.







Service

3 Courier Service


Services

5 Event management service


Service

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7 Outdoor caterer’s Service (within the

Zone)

8 Packaging activity Service



service






2 Industrial or Commercial construction

Services



5 Site formation, clearing excavation and

earthmoving and demolition services

6 Works Contract services





3 Airport Services



6 Business exhibition Services










15 Credit rating agency’s services


17 Design services

18 Foreign Exchange Broker Service


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22 Insurance auxiliary services concerning general

insurance business

23 Intellectual property services






29 Port Services


31 Public relation Management Service


33 Real estate agent’s services

34 Storage & Ware Housing Service

35 Supply of Tangible goods services





40 Travel Agent’s Service














AGENDA Item No. 3 (f) :Proposal of M/s. NGAHR India Pvt. Ltd, unit in M/s. DLF Commercial

Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal, Ranga Reddy

District, Andhra Pradesh for approval for Additional List of Services.


Operations.

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AGENDA Item No. 3 (g) :Proposal of M/s. Covidien Engineering Services Pvt. Ltd, unit in M/s. DLF







1 Courier Service


3 Technical Testing and Analysis service






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8 Market Research agency’s service


















AGENDA Item No. 3 (h) :Proposal of M/s. DLF Assets Pvt. Ltd, Co-Developer for M/s. DLF


Reddy District, Andhra Pradesh for approval for list of Goods for maintenance (transformer protection,

fire control, refilling of BA system, Exhaust, Lifts).

The Approval Committee discussed and approved the list of materials (Appendix-A).

AGENDA Item No. 3 (i) :Proposal of M/s. DLF Assets Pvt. Ltd, Co-Developer for M/s. DLF

Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal,

RangaReddy District, Andhra Pradesh for approval for procurement of 20 KL of Diesel for their SEZ for

ratification and 2400 KL for approval.

The Approval Committee discussed and ratified the procurement of 20 KL of Diesel and

approved 580 KL of Diesel for a period of 3 months. Further approval would be based on consumption

of the approved quantity.

AGENDA Item No. 3 (j) :Proposal of M/s. Pegasystems Worldwide India Pvt. Ltd, unit in M/s. DLF



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1 Cost Accountant’s Services

2 Design services




insurance business















AGENDA Item No. 3 (k) :Proposal of M/s. DLF Assets Pvt. Ltd, Co-Developer for M/s. DLF


Reddy District, Andhra Pradesh for approval for Additional list of services.

The Approval Committee noted the Co-Developer’s claim that they have only SEZ

Operations.




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1 General Insurance Service (based on invoice)

2 Asset Management service


1 Business Exhibition service

2 Business Support service


4 Chartered Accountants Services

5 Clearing and Forwarding Agent services


7 Management or business consultant services

8 Manpower recruitment or supply agency’s

services



11 Health care service ( for emergency medical

care including ambulance service)














APPROVAL COMMITTEE FOR M/s. DIVYASREE NSL INFRASTRUCTURE PVT.

LIMITED, SPECIAL ECONOMIC ZONE FOR IT/ITES AT RAIDURGA VILLAGE,


AGENDA Item No. 4 :Proposal of M/s. Invesco (Hyderabad) Pvt. Ltd. Unit in M/s. Divyasree NSL

Infrastructure Pvt. Limited, IT/ITES SEZ at RaidurgaVillage, SerilingampallyMandal, Ranga Reddy

District, Andhra Pradesh for approval for Additional list of Services.


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APPROVAL COMMITTEE FOR M/s. APIIC LIMITED, SPECIAL ECONOMIC ZONE FOR

IT/ITES AT NANAKRAMGUDA VILLAGE, SERILINGAMPALLY MANDAL, RANGA

REDDY DISTRICT, ANDHRA PRADESH

AGENDA Item No. 5 (a) : Proposal of M/s. TSI Business Parks (Hyderabad) Pvt. Limited, Co-

Developer for M/s. APIIC Limited, IT/ITES SEZ at NanakramgudaVillage, SerilingampallyMandal,

Ranga Reddy District, Andhra Pradesh for approval for leasing out space to retail operators in their SEZ.

The Approval Committee discussed and approved as under:

Name of the Vendor Purpose Approx area

Prizm Payment Services IndusInd Bank ATM 200 sft in Ground Floor

Euronet Services India

Pvt. Limited

Citi Bank ATM 25 sft at Food Court

AGENDA Item No. 5 (b) :Proposal of M/s. TSI Business Parks (Hyderabad) Pvt. Limited, Co-

Developer for M/s. APIIC Limited, IT/ITES SEZ at NanakramgudaVillage, SerilingampallyMandal,

Ranga Reddy District, Andhra Pradesh for approval for Additional list of Services.

The Approval Committee noted the Co-Developer’s claim that they have only SEZ

Operations.




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1 General Insurance (based on invoice)


1 Banking and other Financial Services (based

on invoice)












(c) The above categorization is indicative. The Specified Officer will take decision as per

Notification No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can

refer the matter to Approval Committee.

AGENDA Item No. 5 (c) : Proposal of M/s. Accenture Services Pvt. Limited, unit in M/s. APIIC

Limited, IT/ITES SEZ at NanakramgudaVillage, SerilingampallyMandal, Ranga Reddy District, Andhra

Pradesh for approval for list of Services.


Operations.

The list of services is approved as under and for “air passenger transport service” Development

Commissioner may take the advice of Service Tax Commissioner:






Service

3 Courier Service


Services


17

Service


Zone)




service






2 Industrial or Commercial construction

Services










3 Airport Services














17 Design services


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27 Port Services












Provided that here the specified services received in SEZ and used for the authorized operations

are wholly consumed within the SEZ, the person liable to pay service tax has the option not to pay the

service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of refund in

terms of this notification.








APPROVAL COMMITTEE FOR M/s. PHOENIX INFOCITY PVT. LIMITED, SPECIAL

ECONOMIC ZONE FOR IT/ITES AT GACHIBOWLI VILLAGE, SERILINGAMPALLY


AGENDA Item No. 6 (a) :Proposal of M/s. Phoenix Infocity Pvt. Limited, Developer, IT/ITES SEZ at

Madhapur Village, SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for approval for

Additional list of Services.

The Approval Committee noted the Developer’s claim that they have only SEZ Operations.

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1

Business Support service

2 Banking and other Financial Services (based

on invoice)

3 Cargo handling Services

4 Clearing and Forwarding Agent services


6 Management or business consultant services

7 Manpower recruitment or supply agency’s

services
















AGENDA Item No. 6 (b) : Proposal of M/s. iGate Global Solutions Limited (unit-2) for setting up of a

unit for IT/ITES in M/s. Phoenix Infocity Pvt. Limited, Developer, IT/ITES SEZ at Madhapur Village,

SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh.

The Approval Committee discussed and approved the proposal subject to the exit of Patni

Computers Systems Limited.The exit of Patni Computers Systems Ltd to be informed to the Income Tax

Department.

AGENDA Item No. 6 (c) : Proposal of M/s. ValueMomentum Software Services Pvt. Limited, unit in

M/s. Phoenix Infocity Pvt. Limited, Developer, IT/ITES SEZ at Madhapur Village,

SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for approval for list of Services.



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3 Courier Service

































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APPROVAL COMMITTEE FOR M/s. INFOSYS LIMITED, SPECIAL ECONOMIC ZONE

FOR IT/ITES AT POCHARAM VILLAGE, GHATKESAR MANDAL, RANGA REDDY

DISTRICT, ANDHRA PRADESH

AGENDA Item No. 7 (a) : Proposal of M/s. Infosys BPO Limited, unit in M/s. Infosys Limited,

IT/ITES SEZ at Pocharam Village, GhatkesarMandal, Ranga Reddy District, Andhra Pradesh for

approval for Reconstitution of Board of Directors.

Mr.SridarIyengar retired as Director

Mr.OmkarGoswami was appointed as Director.

The Approval Committee discussed and approved the proposal subject to submission of address

proof of new director.

AGENDA Item No. 7 (b) : Proposal of M/s. Infosys Limited, IT/ITES SEZ at Pocharam Village,

GhatkesarMandal, Ranga Reddy District, Andhra Pradesh for approval for procurement of 300 KL

Litres of Diesel.

The Approval Committee discussed and approved the procurement of 75 KL of Diesel for a

period of 3 months. Further allotment would be subject to proper utilization of the approved quantity.

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AEROSPACE AND PRECISION ENGINEERING INDUSTRIES AT ADIBATLA VILLAGE,

IBRAHIMPATNAM MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH

AGENDA Item No. 8 (a) : Proposal of M/s. Tata Advanced Systems Limited, unit in M/s. APIIC

Limited, SEZ for Aerospace and Precision Engineering Industries at Adibatla Village,

IbrahimpatnamMandal, Ranga Reddy District, Andhra Pradesh for approval for sending loose parts of S-

92 Helicopter Cabins to M/s. Sikorsky Aircraft Corporation, USA for ratification.

The Approval Committee discussed and ratified the proposal.

AGENDA Item No. 8 (b) : Proposal of M/s. Samuha Engineering Industries Limited, Co-Developer for

M/s. APIIC Limited, SEZ for Aerospace and Precision Engineering Industries at Adibatla Village,

IbrahimpatnamMandal, Ranga Reddy District, Andhra Pradesh for approval for list of materials for their

SEZ(Roads, Drains, Water supply, Sewerage, Cable trenches, Sross Drainage, Nala lining, Street

lighting, and Electrification).

The Approval Committee discussed and approved the list of materials (Appendix-B).

APPROVAL COMMITTEE FOR M/s. FAB CITY SPV (INDIA) PVT. LIMITED, SPECIAL

ECONOMIC ZONE FOR SEMICONDUCTORS AT RAVIRYAL/SRINAGAR VILLAGES,

MAHESWARAM MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH

AGENDA Item No. 9 (a) : Proposal of M/s. Solar Semiconductor Pvt. Limited, unit in M/s. FAB City

SPV (India) Pvt. Limited, SEZ for Semiconductors at Raviryala/Srinagar Villages, MaheswaramMandal,

Ranga Reddy District, Andhra Pradesh for approval for Generation of Solar Power.

The Unit was given approval for generation of Solar Power for self-consumption and sale of surplus sale

to SEZ units.

The Unit now represented that they want permission to sell to DTA area and contended that once power

is put on grid it is equivalent to DTA sale and hence such restriction of SEZ sale is unnecessary.

It was informed that they would meet NFE requirements as they also have module business.

They also contended that they have agreement with IREDA and State Government for DTA sale of

Power.

They further informed that they will get the benefit of subsidy to solar power from IREDA only if power

is sold outside and not for self-consumption.

They contended that it is a green power and needs support.

The Approval Committee discussed and contended that as per the guidelines of Power generation

and sale for SEZ Units, it is stipulated that only surplus power needs to be considered for sale in SEZ or

DTA area. Since the Unit will not be generating enough power for self-consumption, their request for

DTA sale of power will not be considered. Further the activity of generation and sale of solar power to

DTA area has no scope of export promotion or earning of foreign exchange and hence will not fit in

SEZ model.

AGENDA Item No. 9 (b) : Proposal of M/s. Empire Photovoltaic Systems Pvt. Limited, unit in M/s.

FAB City SPV (India) Pvt. Limited, SEZ for Semiconductors at Raviryala/Srinagar Villages,

MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for approval for list of Services.


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3 Courier Service








10 Technical Testing and Analysis service






3 Site formation and clearance, excavation

and earthmoving and demolition services





3 Airport Services












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14 Cost Accountant’s Services



17 Design services







24 Market Research agency’s service

25 Port Services




29 Storage and warehousing Service



















APPROVAL COMMITTEE FOR M/s. NSL SEZ (HYDERABAD) PVT. LIMITED, SPECIAL

ECONOMIC ZONE FOR IT/ITES AT IDA UPPAL, RANGA REDDY DISTRICT, ANDHRA

PRADESH

AGENDA Item No. 10 (a) : Proposal of M/s. RamTech Technologies for setting up of a unit for

IT/ITES in M/s. NSL SEZ (Hyderabad) Pvt. Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy

District, Andhra Pradesh.

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AGENDA Item No. 10 (b) : Proposal of M/s. Planet Online P Ltd , unit in M/s. NSL SEZ (Hyderabad)

Pvt. Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Andhra Pradesh for approval for

transfer of unit approval in the name of M/s. Planet Online P Ltd to M/s. Ebix Software India Pvt.

Limited.

The Approval Committee discussed and approved the proposal and advised that the information

may be sent to Range 16 of Income Tax Department and Income Tax office at Noida.

AGENDA Item No. 10 (c) : Proposal of M/s. ERP Analysts (India) Pvt. Ltd , unit in M/s. NSL SEZ

(Hyderabad) Pvt. Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Andhra Pradesh for

approval for list of Services.


Operations.







Service

3 Courier Service


Services


Service


Zone)




service









26






















19 Port Services















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AGENDA Item No. 10 (d) : Proposal of M/s. ManagIT, unit in M/s. NSL SEZ (Hyderabad) Pvt. Ltd,

IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Andhra Pradesh for approval for vacating incubation

space and moving to permanent space at Block-1, 3rd

Floor, NSL SEZ Arena.


AGENDA Item No. 10 (e) : Proposal of M/s. Truven Health Analytics India Pvt. Ltd for setting up of a

unit for IT/ITES in M/s. NSL SEZ (Hyderabad) Pvt. Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy

District, Andhra Pradesh.


APPROVAL COMMITTEE FOR M/s. LANCO HILLS TECHNOLOGY PVT. LIMITED,

SPECIAL ECONOMIC ZONE FOR IT/ITES AT MANIKONDA VILLAGE, RAJENDRA

NAGAR MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH

AGENDA Item No. 11 (a): Notice issued to M/s. Bhrigus Software (I) Pvt. Limited, a unit in M/s.

Lanco Hills Technology Park Pvt. Limited, IT/ITES SEZ at Manikonda Village, Rajendra Nagar

Mandal, Ranga Reddy District, Andhra Pradesh for cancellation of their LOA.

M/s. Bhrigus Software (I) Pvt. Limited, Unit in M/s. Lanco Hills Technology Park Pvt. Limited,

IT/ITES SEZ at Manikonda Village, Rajendra Nagar Mandal, Ranga Reddy, Andhra Pradesh was issued

a Letter of Approval No. SEZ(IT/ITES)/BSI/LHTP(HYD)/0019/2009/17597 dated 21.12.2009 by this

office to set up a SEZ unit at M/s. Lanco Hills Technology Park Pvt. Limited, IT/ITES SEZ at

Manikonda Village, Rajendra Nagar Mandal, Ranga Reddy, Andhra Pradesh for IT/ITES subject to the

conditions imposed therein. The unit has executed Bond cum LUT on 22.02.2010 for Rs. 1,00,00,000/-.

The Authorized Officer/Specified Officer had asked the unit to submit reports vide his letters dated 20-

01-2012, 02-02-2012, 05-03-2012 and 13-04-2012 and they failed to submit the reports.The

performance of the unit was taken up for review by Approval Committee on 12.01.2012.The unit failed

to appear before the Approval Committee and it has been observed that the unit did not submit Annual

Performance Report and did not attend the meeting and consequently the Authorized Officer was asked

to furnish report on the unit.

Meanwhile it was reported by the Developer that the unit did not pay rent and is not working for

the past two months. The same was confirmed by the Authorized Officer that the unit is not functioning

properly and was found locked. The unit declared exports of Rs.302 Crores up to the end of March,

2012. Declaring exports when the unit is closed amounts to mis-declaration

Therefore a show cause notice was issued to the unit on 20-04-2012. The unit has not replied to

the notice and has been found locked. Hence the matter is referred to Approval Committee to cancel the

Letter of Approval.

The Approval Committee discussed and cancelled the Letter of Approval with a direction that

the unit shall refund duty availed on the goods imported or procured domestically. This action is without

prejudice to any other action taken against or contemplated against the unit or its Directors under any

law and regulation for the time being in force in India.

The cancellation may be brought to the notice of all members including STPI Office

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AGENDA Item No. 11 (b): Proposal of M/s. Lanco Hills Technology Park Pvt. Limited, IT/ITES SEZ

at Manikonda Village, Rajendra Nagar Mandal, Ranga Reddy District, Andhra Pradesh for approval for

Additional list of Services.

The Approval Committee noted the Developer’s claim that they have both SEZ and DTA

Operations.




1 General Insurance (based on invoice)



1 Banking and other financial service (based on

invoice)

2 Real Estate Agent Service














APPROVAL COMMITTEE FOR M/s. INDU TECHZONE PVT. LIMITED, SPECIAL

ECONOMIC ZONE FOR IT/ITES AT MAMIDIPALLI VILLAGE, SAROORNAGAR


AGENDA Item No. 12 : Notice issued to M/s. Exponential Technologies (S&H) Pvt. Limited, a unit in

M/s. InduTechzone Pvt. Limited, IT/ITES SEZ at Mamidipalli Village, SaroornagarMandal, Ranga

Reddy District, Andhra Pradesh for cancellation of their LOA.

M/s. Exponential Technologies (S&H) Pvt. Limited, Unit in M/s. InduTechzone Pvt. Limited, IT/ITES

SEZ at Mamidipalli Village, SaroornagarMandal, Ranga Reddy, Andhra Pradesh was issued a Letter of

Approval (LOA) No. 9/131/SEZ/HYD/2012 dated 25.05.2011 by this office to set up a SEZ unit at M/s.

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InduTechzone Pvt. Limited, IT/ITES SEZ at Mamidipalli Village, SaroornagarMandal, Ranga Reddy,

Andhra Pradesh.

The unit has executed the Bond cum Legal Undertaking on 26.05.2011 for Rs. 652.90 Lakhs. As

per the condition of LOA No. 9/131/SEZ/HYD/2012 dated 25.05.2011, the unit was to start production

by 24.05.2012. They have neither started operations nor sought extension of their LOA dated

25.05.2011. The unit has not made any progress till date.

The unit was sent a show cause notice on 10-07-2012 but the letter returned as un-delivered.

The units Letter of Approval may therefore be cancelled.

The Approval Committee discussed and Cancelled the Letter of Approval (i.e no further

extension would be given) with a direction that the unit shall refund duty availed on the goods imported

or procured domestically. This action is without prejudice to any other action taken against or

contemplated against the unit or its Directors under any law and regulation for the time being in force in

India.

The cancellationmay be brought to the notice of all members including STPI Office.


PHARMACEUTICAL FORMULATIONS AT POLEPALLY VILLAGE, JEDCHERLA

MANDAL, MAHABOOB NAGAR DISTRICT, ANDHRA PRADESH

AGENDA Item No. 13 :Proposal of M/s. Glochem Industries Ltd, unit in M/s. APIIC Limited, SEZ for

Pharmaceutical Formulations at Polepally Village, JedcherlaMandal, Mahaboob Nagar District, Andhra

Pradesh for approval for list of Services.


Operations.







Service

3 Courier Service


Services


Service


Zone)




30

service














3 Airport Services















17 Design services






insurance business



31



30 Port Services

























APPROVAL COMMITTEE FOR M/s. SATYAM COMPUTER SERVICES LIMITED,

SPECIAL ECONOMIC ZONE FOR IT/ITES AT MADHAPUR VILLAGE,


AGENDA Item No. 14 : Proposal of M/s. Satyam Computer Systems Limited, Developer, IT/ITES

SEZ at Madhapur Village, SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for approval

for procurement of 96 KL of Diesel for their SEZ.

The Approval Committee discussed and approved the procurement of 48 KL of Diesel for a

period of 3 months. Further approval would be based on consumption of the approved quantity.

APPROVAL COMMITTEE FOR M/s. TATA CONSULTANCY SERVICES LIMITED,

SPECIAL ECONOMIC ZONE FOR IT/ITES AT ADIBATLA VILLAGE, IBRAHIMPATNAM


32

AGENDA Item No. 15 : Proposal of M/s. Tata Consultancy Services Limited, Developer, IT/ITES SEZ

at AdibatlaVillage, IbrahimpatnamMandal, Ranga Reddy District, Andhra Pradesh for approval for

Additional list of materials worth Rs.35.90 Crorefor their SEZ.

The Approval Committee discussed and approved50% of the value of the list of Capital Goods

for their SEZ.

AGENDA: 16 (a)

Review of performance of M/s. IL & FS Environmental Infrastructure & Services Limited, unit

in M/s. FAB City SPV (India) Pvt. Limited, SEZ for Semiconductors at Raviryala/Srinagar Villages,

MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.

The Approval Committee reviewed the performance of M/s. IL & FS Environmental

Infrastructure & Services Limited, unit in M/s. FAB City SPV (India) Pvt. Limited, SEZ for

Semiconductors at Raviryala/Srinagar Villages, MaheswaramMandal, Ranga Reddy District, Andhra

Pradesh for the financial year 2011-12.

The brief particulars of the unit are as below:

Name of the Unit M/s. IL & FS Environmental Infrastructure &

Services Limited

LOA No. & Date F. No. 9/079/SEZ/HYD/2010 dated 20.01.2011

Item of Activity Environmental related Services including

establishment of Common Effluent Treatment Plant

Date of Commencement of Production Yet to start

Exports for the year 2011-12 NA

Imports for the year 2011-12 NA

Cumulative NFE NA

Cumulative Duty foregone 13.46 lakh

DTA Sales NIL

Second hand machinery procurement & % of

machinery

Unit to provide

Investment on Plant & Machinery 157.23 Lakhs

Investment on others 274.63 Lakhs

Employment Male – 120 Nos

Female – NIL

Projected Exports as per Form F 4.55 US $

Investment as per Form F 1342 Lakhs

Employment as per Form F Male – 120 Nos

Female – NIL

Remarks The unit advised to speed up implementation

works.

AGENDA: 16 (b)

Review of performance of M/s. Automotive Design & Engineering Solutions Pvt. Ltd, unit in

M/s. Phoenix Infocity Pvt. Limited, IT/ITES SEZ at Gachibowli Village, SerilingampallyMandal, Ranga

Reddy District, Andhra Pradesh for the financial year 2011-12.

33

The Approval Committee reviewed the performance of M/s. Automotive Design & Engineering

Solutions Pvt. Ltd, unit in M/s. Phoenix Infocity Pvt. Limited, IT/ITES SEZ at Gachibowli Village,

SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.


Name of the Unit M/s. Automotive Design & Engineering Solutions

Pvt. Ltd

LOA No. & Date F. No.

SEZ(IT/ITES)/ADES/L&T/(HYD)/0030/2010-11

dated 13.05.2010

Item of Activity IT/ITES

Date of Commencement of Production 09.11.2010

Exports for the year 2011-12 486.61 Lakhs

Imports for the year 2011-12 NIL

Cumulative NFE 633.01 Lakhs

Cumulative Duty foregone 0.40 lakh rupees

DTA Sales NIL


machinery

4.7%


Investment on others NIL


Female – NIL

Projected Exports as per Form F 1275 Lakhs



Female – 6 Nos

Remarks

AGENDA: 16 (c)

Review of performance of M/s. NTT Data India Enterprise Application Services Pvt. Ltd, unit in

M/s. DLF Commercial Developers Limited, IT/ITES SEZ at Gachibowli Village,

SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.

The Approval Committee reviewed the performance of M/s. NTT Data India Enterprise

Application Services Pvt. Ltd, unit in M/s. DLF Commercial Developers Limited, IT/ITES SEZ at

Gachibowli Village, SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for the financial

year 2011-12.


Name of the Unit M/s. NTT Data India Enterprise Application

Services Pvt. Ltd

LOA No. & Date F. No. SEZ(IT/ITES)/IGA/DLFA/(HYD)/64/2010-

11 dated 06.12.2010




Imports for the year 2011-12 13.03 Lakhs


34

Cumulative Duty foregone Authorized Officer to report

DTA Sales NIL


machinery

NIL




Female – 56 Nos

Projected Exports as per Form F 10074.65 Lakhs

Investment as per Form F 348.88 Lakhs


Female – 90 Nos

Remarks

AGENDA: 16 (d)

Review of performance of M/s. D’damasJewellery (India) Pvt. Ltd, unit in M/s. Hyderabad

Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal, Ranga


The Approval Committee reviewed the performance of M/s. D’damasJewellery (India) Pvt. Ltd,

unit in M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,



Name of the Unit M/s. D’damasJewellery (India) Pvt. Ltd


Item of Activity Plain & studded gold/silver/platinum jewellery with

diamonds, precious &semi precious stones





Cumulative Duty foregone 0.03 crore rupees

DTA Sales NIL


machinery

Unit to provide




Female – 10 Nos



Employment as per Form F Male & Female – 353 Nos (including 5%

physically handicapped)

Remarks 1) Male and Female bifurcation not provided by

unit and employment is below the projections.

AGENDA: 16 (e)

35

Review of performance of M/s. Gitanjali Gems Ltd, Trading unit in M/s. Hyderabad Gems SEZ

Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal, Ranga Reddy District,

Andhra Pradesh for the financial year 2011-12.

The Approval Committee reviewed the performance of M/s. Gitanjali Gems Ltd, Trading unit in

M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,



Name of the Unit M/s. Gitanjali Gems Ltd, Trading unit


Item of Activity Cut & polished diamonds and rough diamonds etc

Date o Commencement of Production 17.03.2009





DTA Sales NIL


machinery

Unit to provide




Female – 5 Nos




Female – 2 Nos

Remarks

AGENDA: 16 (f)

Review of performance of M/s. Gitanjali Gems Ltd, Manufacturing unit in M/s. Hyderabad

Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal, Ranga


The Approval Committee reviewed the performance of M/s. Gitanjali Gems Ltd, Manufacturing

unit in M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,



Name of the Unit M/s. Gitanjali Gems Ltd, Manufacturing unit

LOA No. & Date F. No. 23(4)/VSEZ/2006-07 dated 06.12.2006

Item of Activity Cut & polished diamonds, diamond studded

gold/platinum jewellery, gold/silver/platinum

jewellery manufacturing & combination jewellery,

plain & studded with diamonds, precious/semi

precious stones, CZ & machine made

(bangles/rings/watch components) & chain

36

manufacturing





Cumulative Duty foregone 1.75crore rupees

DTA Sales 2.62 Lakhs


machinery

Unit to provide




Female – 687 Nos




Female – 2 Nos

Remarks

AGENDA: 16 (g)

Review of performance of M/s. Gitanjali Exports Corporation Ltd, Trading unit in M/s.

Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal,

Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.

The Approval Committee reviewed the performance of M/s. Gitanjali Exports Corporation Ltd,

Trading unit in M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,



Name of the Unit M/s. Gitanjali Exports Corporation Ltd, Trading

unit


Item of Activity Cut & polished diamonds and cut & polished

diamonds &semi precious stones






DTA Sales NIL


machinery

Unit to provide




Female – 3 Nos


37


Employment as per Form F Male & Female – 15 Nos

Remarks Male and Female bifurcation not given in Form F

AGENDA: 16 (h)

Review of performance of M/s. AsmiJewellery India Ltd, unit in M/s. Hyderabad Gems SEZ



The Approval Committee reviewed the performance of M/s. AsmiJewellery India Ltd, unit in

M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,



Name of the Unit M/s. AsmiJewellery India Ltd


Item of Activity Plain & studded gold jewellery, silver jewellery

manufacturing studded with diamonds, precious

&semi precious stones gold/steel studded jewellery,

plain jewellery (Gold/silver/tungsten)






DTA Sales NIL


machinery

Unit to provide




Female – 43 Nos





and Employment is below the projections.

AGENDA: 16 (i)

Review of performance of M/s. Gitanjali Exports Corporation Ltd, Manufacturing unit in M/s.



The Approval Committee reviewed the performance of M/s. Gitanjali Exports Corporation Ltd,

Manufacturing unit in M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala

Village, MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.

38


Name of the Unit M/s. Gitanjali Exports Corporation Ltd,

Manufacturing unit


Item of Activity Plain & studded gold jewellery, silver jewellery

manufacturing studded with diamonds, precious

&semi precious stones gold/steel studded jewellery,

plain jewellery (Gold/silver/tungsten)






DTA Sales NIL


machinery

Unit to provide




Female – 316 Nos





and employment is below the projections. Unit to

make efforts to increase employment,

AGENDA: 16 (j)

Review of performance of M/s. Gitanjali Brands Ltd, unit in M/s. Hyderabad Gems SEZ



The Approval Committee reviewed the performance of M/s. Gitanjali Brands Ltd, unit in M/s.




Name of the Unit M/s. Gitanjali Brands Ltd


Item of Activity Gold/silver/platinum jewellery, Plain & studded

with diamonds and precious/semi precious stones





Cumulative Duty foregone nil

DTA Sales NIL

Second hand machinery procurement & % of Unit to provide

39

machinery




Female – 26 Nos





and employment below the projections.

AGENDA: 16 (k)

Review of performance of M/s. Brightest Circle Jewellery Ltd, unit in M/s. Hyderabad Gems

SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal, Ranga Reddy

District, Andhra Pradesh for the financial year 2011-12.

The Approval Committee reviewed the performance of M/s. Brightest Circle Jewellery Ltd, unit

in M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,



Name of the Unit M/s. Brightest Circle Jewellery Ltd


Item of Activity Gold/silver/platinum jewellery, Plain & studded

with diamonds and precious/semi precious stones






DTA Sales NIL


machinery

Unit to provide




Female – 12 Nos





and unit to make efforts to increase employment.

AGENDA: 16 (l)

The Approval Committee reviewed the performance of M/s. Virtusa India Pvt. Ltd, unit in M/s.

APIIC Limited, IT/ITES SEZ at Nanakramguda Village, SerilingampallyMandal, Ranga Reddy District,


40


Name of the Unit M/s. Virtusa India Pvt. Ltd

LOA No. & Date F. No. SEZ(IT/ITES)/VIPL/APIC-

VIPL/(HYD)/0024/2009-10 dated 24.03.2010






Cumulative Duty foregone 188.32 Lakh Rupees as of date

DTA Sales NIL


machinery

58%




Female – 115 Nos




Female – 75 Nos

Remarks Unit to be bound by secondhand machinery norms

w.r.t IT benefits

AGENDA: 16 (m)

Review of performance of M/s. Virtusa Consulting Services Pvt. Ltd, unit in M/s. APIIC

Limited, IT/ITES SEZ at Nanakramguda Village, SerilingampallyMandal, Ranga Reddy District,


The Approval Committee reviewed the performance of M/s. Virtusa Consulting Services Pvt.

Ltd, unit in M/s. APIIC Limited, IT/ITES SEZ at Nanakramguda Village, SerilingampallyMandal,



Name of the Unit M/s. Virtusa Consulting Services Pvt. Ltd

LOA No. & Date F. No. 9019/SEZ/HYD/2008 dated 15.04.2008


Date of Commencement of Production




Cumulative Duty foregone 189.24 lakh Rupees as of date

DTA Sales NILL


machinery

13%



41


Female – 430 Nos




Female – 384 Nos

Remarks

AGENDA: 16 (n)

Review of performance of M/s. Planet Online Pvt. Ltd, unit in M/s. NSL SEZ (Hyderabad) Pvt.

Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-

12.

The Approval Committee reviewed the performance of M/s. Planet Online Pvt. Ltd, unit in M/s.

NSL SEZ (Hyderabad) Pvt. Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Andhra

Pradesh for the financial year 2011-12. Name of the Unit M/s. PlanetOnline Pvt. Ltd



Date of Commencement of Production 3-05-2012





DTA Sales NIL


machinery

2.5%




Female – 15 Nos




Female – 45Nos

Remarks The business and assets of the unit have been taken over

by Ebix Software India Pvt Ltd.

AGENDA: 16 (0)

Review of performance of M/s. Amedha Info Systems Pvt. Ltd, unit in M/s. NavayugaLegala

Estates Pvt. Limited, IT/ITES SEZ at Serilingampally Village &Mandal, Ranga Reddy District, Andhra

Pradesh for the financial year 2011-12.

The Approval Committee reviewed the performance of M/s. Amedha Info Systems Pvt. Ltd, unit

in M/s. NavayugaLegala Estates Pvt. Limited, IT/ITES SEZ at Serilingampally Village &Mandal, Ranga

Reddy District, Andhra Pradesh.

The Unit had represented that their Softex Forms are pending with the Office of the

Development Commissioner and they are urgently required because of pressure from their Banker.

42

The Softex Forms were pending because the unit was under investigation for improper exports. The

matter was also referred to Reserve Bank of India and other agencies.

The following were asked for submission/clarification in addition to the main issue that the unit has

shown high exports which are not corresponding to its employment.

1) In respect of creditors ledger of StratedgeInc, the payment shown in ledger is Rs. 2,73,07,332/-

where as the Bank statement shows a debit of Rs. 13,98,101 dollars.

2) In respect of Amalgam Technologies, ledger shows a payment of Rs. 8,27,63,413. However

there is no debit in the bank statement. Please explain

3) In respect of imports made, please give the details of the LC’s or any other similar instruments

opened with the authorized dealer for the payments.

4) In respects of contract with AD3I, in Section 4 it is specifically mentioned that an irrevocable

international letter of credit should be opened. Please give details of this LOC

5) Copies of email correspondence made by your suppliers with you with reference to supply of

software especially with reference to receipt of the software.

6) In respect of exports, have you taken any policy with ECGC, if so provide details

7) Please provide details of the LCs or irrevocable international letter of credit or similar documents

opened by your buyers

8) Please provide the Federal Identification Number (FEIN) of your buyers if possible.

9) Copies of email correspondence made by your buyers in token of receipt of software by your

buyers along with proof and mode of export of the software invoice wise.

10) Copies of email correspondence made by your suppliers with you.

11) You have stated that you have received money for technical support/maintenance. which is the

unit to which you are providing this support. Please also state when the software was supplied to

them along with documents/payment in support of them. Why was three years advance payment

made against the industry practice? Produce agreement copies with them.

12) What is the status of Amedha’s branch in USA. Are you reflecting the activities in our balance

sheet? Or vice versa

13) In respect of M/s. Amalgam Technologies from whom you have imported software, you have not

made any payments. However, it is seen from records that you have received an amount of

1,01,213 Dollars from them. Please explain.

14) Similarly, you have received 2,14,587 US Dollars from 4 other companies to whom you have not

supplied anything. Please explain.

15) Are you having similar type of exports from your STPI unit to the same buyers. Are you

maintaining separate books of accounts for both the units.

16) Subsequent to submission of the information, have you received any amounts in respect of your

exports and made any payments in respect of your imports

17) Are there any proceedings pending/decided against your unit or Directors in respect of violation

of any rules by any Government agency?

18) Please submit a list of Plant and machinery with value installed in your premises along with

supporting documents.

19) Out of the installed capital goods, what is the value of second hand goods.

20) Have you availed any duty exemptions if yes the details and if not the reasons thereof.

21) Are there any interest/penalty provisions for late payment and whether you invoked the same

against late export payments and whether your suppliers invoked the same against you?

22) In the LOA you have shown projection of exports for 2012 as 8.03 crores. However, within a

few days of starting production(19th

march 2011), you have shown export sales of 7.9 croresi.e in

march 2011 itself. Similarly, for the year 2011-12 upto Jan 2012 you have shown export sales of

81.0 crores with just 20 employees, please explain.

43

23) You have stated that your work hours coincide with with that of US because of which

employees are not available during day time.You also said that you undertake soft ware

development and customization of software.In case of development and customization of

software where is the need to work in US timings Please explain.

24) From the statement of Bank of America, it appears that your USA branch is recovering certain

amount from the customers to whom the software was said to be exported. Please explain.

The Branch Office recovered some amounts from M/s. Adroit Professional Services thru Bank of

America. As per the financial statement of M/s. Amedha Info Systems LLC., USA, the revenues

shown as $ 23,41,822 and the expenses shown are $ 22,84,052. Out of the total expenses shown,

salaries and compensation stood at $19,27,376 (Approx. Rs. 8,86,59,298/- @ Rs.46/- per US$, as

son 31.01.2012). In the Balance Sheet for the period ending 31.01.2012, the expenditure shown

towards employee cost is Rs.1,69,35,314/-. Please explain the discrepancy and why the same

was not brought on record and not informed to AO or SO. Further why was expenditure of US

branch booked to SEZ unit.

25) Are there any onsite works and if yes whether any employees from SEZ were deputed and if yes

please furnish particulars with proofs.

26) Out of 13 customers, 3 customers viz., (i) Webilant Technologies Inc., (ii) DW Labs Inc (iii)

Adaptive Inc have not made any payments. Please explain.

27) Also, explain why the other amounts from your buyers are not received inspite of the condition

in the agreements and invoices that payments have to be made within six months. Even after six

months, you have not received the payments. Please explain.

28) It appears that you have provided applications support and maintenance to M/s. Basewood

Ventures and M/s. Adaptive Inc. However, there is no evidence of any design, development and

supply of software to them. Please explain with documentary evidence.

29) It is observed from the websites of the software product suppliers and software product buyers of

the unit, certain companies of have same addresses located in New Jersey, USA. Some of the

addresses of clients/suppliers mentioned in the agreement copy and the address shown in the

website of the relevant companies are different. Please clarify.

30) In the case of M/s. imatrixcorp, the address shown in the agreement copy is M/s. imatrix Corp,

1520, State Hwy, 130N, Suite#201, North Brunswick, NJ 08902 whereas from the website of

M/s. imatrixcorp, the address is mentioned as 850, Georges Rd, US Highway 1, 3rd

Floor, North

Brunswick, NJ 08902. As per the certificate of foreign inward remittance issued by M/s.

Standard Chartered Bank the address given is 825, Georges Rd, STE 4. The foreign inward

remittance certificate shows the address of M/s. Horizon Computer Services inc& M/s. Promtrix

Corp address also as 825, Georges Rd, STE 4. Even the branch of the unit has the same address.

Please clarify.

31) In the case of M/s. Epeople technologies Inc the address given as per the agreement is 1259,

Router Building #2, Parsippany, NJ-07054. The agreement copy of the Basewood Ventures

and Capital Services LLC is not provided. As per the websites of both the companies the address

is same, i.e., 1259 Router 46, Building #2 Parsippany, NJ-07054. As per the foreign inward

44

remittance certificate the address of Basewood Venture was shown as “0 HEARTER CT

MONMOUTH JCT. NJ.0” The address of the M/s. Broadrange Technologies Inc is also

similar.Please clarify.

32) As per the agreement and invoice the address of M/s. Siri Info Solutions is Inc, 55 Carter Drive,

Suite#215, Edison, NJ-08817. But as per the foreign inward remittance certificate the address is

“55 CARTER DR STE 105”.Please clarify.

33) As per the agreement copy, no address is given for M/s. Ad3i (Seller, from whom the SEZ unit

said to have purchased software product). However, as per the invoice and website of the M/s.

AD3i, the address given as 180 Raritan Centre Parkway Edison NJ 08837. In this case the suite

No. was not mentioned. In the case of M/s. Trisync Technologies Inc., (Buyer – to whom

software said to be exported) as per the copy of the agreement, the address is given as 180,

Raritan Centre Parkway, Suite #04, Edison, NJ 08837 whereas as per the website of said

company the address given as 180 Raritan Center Parkway, Suite #206, Edison, NJ 08837.

(There is difference in address of M/s. Trisync Technologies Inc as per the copy of the

agreement ad as per the website address in particular the Suite Number).Please clarify.

34) The address of the unit in their Bank statement is shown as Plot No. 1182, Ayyappa Society, 4th

Floor, Near Society Office Madhapur, Hyderabad – 81. This is STPI unit’s address wherein you

appear to have similar activities as that of the SEZ unit.Please clarify.

35) The export proceeds credited to your account have been withdrawn by you for your business

needs or still lying with the bank.

36) Please submit a copy of your IT return for 2010-11 and 2011-12 and your annual reports for

those years.

The unit had reasoned that they export software after making modifications to imported software

and since the value of imported software is also included the value seems to be high. They had

not been able to inform about Import of software because of ignorance.

They further submitted that:

“We would like to quickly summarize on main items of notice of findings on our SEZ unit activities and

providing our explanation for each item. Before to that we would like to bring to your kind attention our

unit no intentions to conduct any fraudulent activities. In fact we have been very cooperative during

inquiry on our unit activities. We ourselves disclosed methods of conducting our business activities and

various other facts about our operations; though we have not been asked about them by SEZ authorities.

Our agenda is to conduct detailed examination and identify if there are any irregularities due to lack of

our knowledge about SEZ regulations. If there are any irregularities identified we would like to stop

such activities immediately and request SEZ authorities to give us an opportunity to rectify them. We

also would like to bring it to your kind attention that we cooperated beyond the extent with SEZ

authorities during inquiry.

Report mainly discussed about below items

Some of address of clients / suppliers mentioned in agreements and their websites are different;

few of the entities has same address

3 customers have not made any payments and some of them are not made full payment

45

Unit has branch in USA.

Branch recovered some amounts and paid certain expenses primarily compensation; same was

booked as compensation expenditure in SEZ unit balance sheets ending 31.01.2012 and why

branch expenditure was booked to SEZ unit.

As per initial LOA exports were projected as 8.03 cores; but 7.9 cores were shown as exports in

financial year 2011 itself and 81 Cores in financial year 2012 with just 20 employees, explain

Are there any proceedings pending/decided against your unit / directors in respect of violation of

any rules by any Government agency?

Discrepancy in unaudited ledger of SEZ unit and its bank statements

Unit received USD 214,587 from 4 companies to whom unit have not supplied anything.

Information about STPI unit and how books of accounts is maintained for both unit

Miscellaneous items; how business is conducted such as ECGC policy, LC for Imports and

exports, correspondence with buyers and suppliers regarding efforts made to collect income /

payments, exports/imports advance payment for technical support and maintenance; value of

planet and machinery, capital goods, duty exemptions, penalties etc

Explanation

Some of address of clients / suppliers mentioned in agreements and their websites are different; few of

the entities has same address

We would like to bring to your kind attention banking in USA is mostly online banking. Most of the

banks do not even mail the bank statements via physical mail. Bank statements are available online for

download or delivered via email. Hence companies or individuals do not updated address with banks

promptly when address has been changed. Therefore Foreign Inwards remittance certificates (FIRC)

reflect old address of the entities which bank has in their records.

M/s Siri Info Solutions Inc:Initially they occupied 105 and relocated to Suite 215 for more space;

currently operating from Suite 215. We are assuming they did not change the address with their banker.

Therefore Suite No# in FIRC is different from their web site.

M/s. AD3I: Agreement has no address; but invoice has 180 Raritan center parkway, Edison NJ 08837.

But no suite no# mentioned in invoice

We would like to bring it to your kind attention that agreement format provided by AD3I does not

stipulate to mention their address. Payments and communication to AD3I will be made via electronic

fund transfer/online; Suite no# is not mandatory in Invoice because payment will not be made via

physical mail.

M/s Trisync Technologies Inc: Suite no# if different in agreement and web site.

Based on best of our knowledge property management of building in which Trisync is located

reorganized suite no#; initially they have been give suite no#4; later it was reorganized to Suite# 206.

Property Management Company reorganized based on floor number; Suite no# for all companies in 2nd

floor starts with 200 series.

M/s ePeople Technologies Inc and Basewood Ventures and Capital Services address is same which is

1259 Route 46, Building no# 2, Parsippany NJ 07054. As per FIR Certificate address of basewood is 0

Heater Ct, Monmouth Jct NJ.0 which is the address for M/s Broadrange Technologies

We would like to clarify that 1259 Route 46 is commercial space has 4 (multiple) buildings. Both ePople

Technologies and Basewood are tents in Building no# 2. ePeople is our initial client, one of their

principal helped us in procurement / sales.To facilitate their interest broadrange and basewood has been

incorporated (similar to special purpose Vehicles). Address mentioned in FIR 0 Heater Ct, Monmouth

Jct NJ.0 is their registered agent address.

46

M/s IMATRIX Corp, Horizon Computer Services Inc and Promatrix Corp address as same as per FIR

and Branch has same address. M/s IMATRIX CORP address as per agreement and web site is different:

We would like to bring to your kind attention that we are relying on integrators/PR firms to source

projects and clients for us. For the help extended we offer share in revenues / profits. To protect their

interest above companies has been floated as Special Purpose Vehicles (SPV) and entered into

agreement with clients and further subcontracted to our SEZ unit. Actual work is performed from our

SEZ unit and certain work has been performed from ultimate client office. Therefore these SPV does

not required huge office and high end infrastructure. So they are (imatrix Corp and promatrx Corp)

initially operated from Horizon Computer Services office; later rented their own office. So agreement

reflected their own office address and their banker has initial office address which is 825, Georges Rd,

Suite#4. Primary Share Holder of Horizon Computer Services is share holder in our SEZ Unit. SEZ unit

Branch office is primarily an administrative office operating from Horizon’s office.

Unit address in Bank Statement and STPI unit has same address where we have similar activities

We are not aware that our address with Banker has to be changed after starting SEZ operations. When it

was brought our attention we updated our SEZ unit address with Banker.

Out of 13 customers, 3 customers have not made any payments. Why other amounts has not been

received within six months.

SEZ office put hold on our softex; though we submitted them they were not processed. Our Banker

requested certified copies of Softex; because they have fear that its unauthorized foreign investment;

hence they wanted us to prove it is export revenue by submitting Softex forms.

Because of above mentioned we requested clients to hold the amount with them till Softex forms are

certified. Later we requested them to pay our suppliers directly this has been advised to us by local

financial advisor. We have been told as per RBI regulations Netting out export revenues with payment

for imports is possible as long as export entity and import entity is same and client / supplier is abroad.

As soon as our softex has been certified we will request them to remit the balance amount. We would

like to see your advice on this.

Unit has branch in USA and branch recovered some amounts and paid certain expenses primarily

compensation; same was not booked as compensation expenditure in SEZ unit balance sheets ending

31.01.2012 and why branch expenditure was booked to SEZ unit.

USA Branch is exclusively performing SEZ unit on site activities; because it’s exclusively performing

SEZ unit activities it’s expenses are booked as SEZ unit. If this not correct please let us know we will

remove them as SEZ unit expenses. We submitted separate provisional balance sheet for branch and

SEZ unit as requested by SEZ Authorities.

As per initial LOA exports were projected as 8.03 cores; but 7.9 cores were shown as exports in

financial year 2011 itself and 81 Cores in financial year 2012 with just 20 employees, explain

We hired third party agency to prepare LOI to seek admission into SEZ. Third party agency project 8.03

cores because of lack of knowledge in our business process. After we started SEZ activities we have

asked to attended UAC meeting and explain the same. We attended UAC meeting provided our

explanation; The Then Development Commissioner satisfied with our explanation as asked her us

execute new custom bond with new projects and it’s been approved

We would like to bring to your kind attention we always has approximately 40. Same thing was brought

to UAC attention in UAC meeting. Attendance reports, payroll ledgers and forms 16 were submitted to

SEZ Authorities.

Are there any proceedings pending/decided against your unit / directors in respect of violation of any

rules by any Government agency?

47

We would like to bring it your kind attention that there are no proceedings or cases against unit or

directors. Same thing has been asked in UAC meeting; it’s verified and confirmed that there are no

proceedings or cases against unit or directors. Not in violations of any rules by any Government agency.

Discrepancy in ledger of SEZ unit and its bank statements

Its unfortunate Ledger submitted has clerical mistakes. We to have make payment for an amount of

USD $ 13, 98,101Stratedge; but amount entered in ledger is wrong.It’s corrected now.

Because of softex are not certified, has issues from our banker. So requested our client to make payment

to Amalgam directly. Therefore we made an entry into our ledger that payment is made; obviously there

will not be any debit in Bank statement because payment is made by our buyers.

Unit received USD 214,587 from 4 companies to whom unit have not supplied anything. Information

about STPI unit and how books of accounts are maintained for both units

Above mentioned amount has been received for the work performed by our STPI unit. Our STPI unit

operations are separate did not performed by work to SEZ unit clients. We are maintaining separate

books for SEZ and STPI units. Our STPI unit conducted work for Amalgam for which received payment

of USD 1,01,213.

Miscellaneous items; how business is conducted such as ECGC policy, LC for Imports and exports,

correspondence with buyers and suppliers regarding efforts made to collect income / payments,

exports/imports advance payment for technical support and maintenance; value of planet and machinery,

capital goods, duty exemptions, penalties etc

We would like to bring it to your kind attention that LC is not generally followed in our industry

Copies of email correspondence with buyers / supplier were already provided to SEZ officials

We do not have ECGC policy for exports.

Warranty, maintenance is generally included along with purchase price. For easiness of

operations we created separate billing for technical support and maintenance. Generally in

industry annual billing for technical support is common; but it’s between client / vendor mutual

acceptance. We negotiated for three years and offered great discount this to improve our cash

flows. We would like to bring to you kind attention we already /in the process of cancelling /

transferring our maintenance contracts because of serious cash flow issues created with softex

being on hold. For which we will be submitting request to SEZ authorities to withdraw softex

submitted to cover technical support / maintenance work.

We would like to bring to your kind attention that for technical support and maintenance services

it’s not mandatory that same company has to design and develop software. Company A shall

design, develop software and same shall be technically supported by company B.

In fact as stated above we are negotiating with both companies to transfer technical support work

to another OnSite Company. If they do not agree we will be requesting them for cancellation of

contract.

As per initial plan we are supposed hire more people and rent more space to execute these

contracts for which we require huge amount of cash flows. Because softex were on hold we are

not able to recover our export revenues and facing serious cash flow issues. We are not in

position to execute these contacts any more. Upon approval from clients we will be submitting

request to withdraw our softex

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We usually hire local contractor for onsite works; we never deputed any off shore SEZ

employees to onsite work. If we work in US timing productivity is high. Most of the software

companies will have at least 3-5 hours of overlapping period with on site; we extended for 6-7

hours of overlap period to have more client interaction and to have more productivity.

We would like to bring to your kind attention that we did not avail any customs benefits. Initially

we are not too aware of the process. Later since more than 1 year we have facing issues with

SEZ authorities; hence decided not avail any benefits because amount of benefit is small.”

During the meeting some more issues were raised like non-submission of certain documents like

IT returns and e-mail correspondence. The unit replied that he would submit all documents asked for but

will not be able to submit e-mail correspondence as the server hosting their e-mails has been re-cycled.

The Committee has taken note that the unit has some prestigious clients like Timewarner as end

client. The Committee has therefore requested that the unit may submit contract copies with end clients.

The Committee has decided that Softex Forms will be examined. Softex Forms submitted for

maintenance works will be cleared only after submission of supporting documents. Softex forms of

other works will be cleared to a maximum of Rs15 crore or to the extent of foreign exchange received

by the unit. Remaining Softex Forms will be cleared based on progress of investigation. The Softex

Forms will be cleared without any prejudice to investigation.

This issues with the approval of the Development Commissioner and Chairperson, UAC.

(K. NAVEEN REDDY)

Assistant Development Commissioner

minutes of the joint meeting of the approval …vsez.gov.in/app_doc/uac hyd 21.09.2012.pdf · 2...

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