INFOPARKS KERALA SPECIAL ECONOMIC ZONE ERNAKULAM (Phase II) 41st MEETING (7/2019) OF APPROVAL COMMITTEE Date : 14.08.2019 Time : 11.00 am Venue : Conference Hall, CSEZ Administration Bldg., Kakkanad, Kochi – 682 037. AGENDA Sl. No. Agenda items Pages Confirmation of the Minutes of the 40th Meeting (6/2019 Series) of the Approval A Committee of Infoparks Kerala Special Economic Zone (Phase II), Ernakulam held 5 – 6 on 10.07.2019 B Action taken on decisions of previous meeting 7 C Proposals for consideration : I Proposals of Developer / Co-developer : 1. Report on Utilization of materials for the Half year ending March 31st 2019 submitted by M/s. Media Systems India Soft Solutions Private Limited, a co- 7 developer. II Proposals for setting up of new unit(s) : 1. Application submitted by M/s. Arth Rural Connect Services Pvt. Ltd. for setting 8 up a unit 2. Application submitted by M/s. Braid Technologies Private Limited for setting up 10 a unit 3. Application submitted by M/s. M/s. Haxr Networks LLP for setting up a unit 12 4. Application submitted by M/s. Carnegie Worldwide Services Private Limited for setting up a unit 14 III Miscellaneous proposals : 1 Expansion proposal by M/s. Eyne Tech Services Private Limited 16 D Any other matter with the approval of the Chairperson Page 2 of 19 Page 3 of 19 APPROVAL COMMITTEE MEMBERS – INFOPARKS KERALA SEZ (PHASE II), ERNAKULAM 1. Dy. Secretary (SEZ) Government of India, 2. Jt. Director General of Foreign Trade Department of Commerce( SEZ) A Block, 5th Floor Ministry of Commerce & Industry Kendriya Bhavan, Kakkanad, Udyog Bhavan, New Delhi-110 107 Kochi- 682037 Fax:011-23063419 Email: [email protected] 3. Commissioner of Central Tax & 4. Pr. Commissioner of Income Tax,, Customs, Central Revenue Building, C R Building, I S Press Road, I S Press Road, Cochin - 682 018. Cochin - 682 018. 5. Director (Banking) Ministry of Finance, Govt. of India 6. Secretary to Govt. of Kerala Jeevan Deep Building, Sansad Marg, Department of Industries, Secretariat New Delhi – 110001 Thiruvananthapuram-695001 7. Director of Industries and Commerce 8. The Chief Executive Officer, Government of Kerala, Infoparks Kerala Special Economic Zone, Vikas Bhavan, Kakkanad, Kochi – 42. Thiruvananthapuram -695033 (Special Invitee) Page 4 of 19 A. Confirmation of the Minutes of the 40th Meeting (6/2019) of the approval Committee of Infoparks Kerala SEZ (Phase II), Ernakulam District held on 10.07.2019 Page 5 of 19 Page 6 of 19 B. Action taken on decision(s) of previous meeting The Chairperson informed that the following decisions of the last approval committee meeting had been communicated to the developers/co-developers and units in Infoparks Kerala SEZ . Sl. Items considered Approval Letter No & Date No Application submitted by M/s. Arth Rural Connect Services Pvt. 1 Deferred the matter Ltd. for setting up a unit Application submitted by M/s. DDG BIM Services Pvt. Ltd. for KL:20:11:INFOPARK(II):1:2BS 2 setting up a unit dated 26.07.2019 Application submitted by M/s. IDSi Technologies India Pvt. Ltd. for KL:20:11:INFOPARK(II):1:2BT 3. setting up a unit dated 26.07.2019 KL:20:11:INFOPARK(II):1:2AQ 4. Expansion proposal by M/s.Nuvento Systems Pvt. Ltd. dated 27.07.2019 C. Proposals for consideration: I. Proposals of Developer / Co-Developer : C.I.1 Report on Utilization of materials for the Half year ending March 31st 2019 submitted by M/s. Media Systems India Soft Solutions Private Limited, a co- developer. Media Systems India Soft Solutions Private Limited, a co-developer in Infoparks Kerala Special Economic Zone, Puthencruz, Ernakulam Dist. (Infopark Phase II), has submitted their report on procurement of goods and utilization of the same and stock in hand in Form E. The co- developer was granted permission to procure goods for construction of IT building vide letter dated 03-08-2015 and 23-01-2019 after approving the same in UACs. The present report is for the period October 2018 to March 2019. As per the report, the co-developer had procured materials worth Rs.95.21 lakh as on 31st March 2019 and consumed materials worth Rs.77.22 lakh leaving a balance of materials worth Rs.17.99 lakh. The report (Annexure – A) of the co-developer is placed before the Approval Committee of the Infoparks Kerala SEZ, Puthencruz (Phase II) in terms of Sub Rule (4) of Rule 22 of the SEZs Rules, 2006 for consideration. Page 7 of 19 II. Proposals for setting up of New Unit(s) : C.II.1 Application submitted by M/s. Arth Rural Connect Services Pvt. Ltd., for setting up a new unit. M/s. Arth Rural Connect Services Private Limited, vide their letter dated 18th June 2019 has submitted an application for setting up of a unit in Infoparks Kerala Special Economic Zone, Ernakulam for carrying out the authorized activity viz. Information Technology Software Development - Web design and development. Brief summary: The Company was incorporated on 13.06.2008 in the name of Zoom Connect Services Assam Private Limited and later on changed its name to Arth Rural Connect Services Private Limited on 19.07.2013. The company has also changed its objective to information technology related subjects which was passed at the EGM held on 18.03.2013. The applicant states that they are primarily into service business that is offering Technology services to their clients. The range of services that they stated to provide are – 1) “Design and implement” automation of business; 2) data centre services; 3) Consultancy to transform business operation; 4) resource sourcing to act as a software engineering service provider; 5) e- governance and 6) training and skill development. Other details in the application are as under: I Application Summary Name & Address of Applicant M/s. Arth Rural Connect Services Private Limited 1st Floor, Plot No. 6/1M NR Naval bakery, Chauhan Material, Shiv Vihar, Vikas Nagar, Uttam Nagar, New Delhi- 110059 Date of Application & Application ID 17/06/2019 (Appln.ID No.111900002771) Date of submission 18/06/2019 Name & Address of the Partners : 1. Mr. Vishesh Kasliwal, 112 Kanchan Bagh, South Tukoganj, Indore Madhya Pradesh- 452001. 2. Rimjim Borah, Jnana Nath Bora, Athgaon Chapari Nagaon Assam-782123 3. Santanu Patowary H/No. 65, Sewali Path, Hatigaon Road, Guwahati Kamrup Assam- 781038 4. Bhavya Choudhary, 905/906, Indradharshan, Building 19, Near Millat Nagar, New Link Road, Andheri West, Mumbai, Azad Nagar, Maharashtra-400 053 II Project Summary Item of manufacture/service Information Technology Software Development- Web designing and development. Applicability of environmental and Not applicable. pollution control norms Employment Total 120 Nos. a. Men 90 Nos. b. Women 30 Nos. Page 8 of 19 III Exports for Five years (Value) (Rs. in lakh) 1st Year 425.00 2nd Year 658.00 3rd Year 947.00 4th Year 1387.00 5th Year 1872.00 Total (INR) 5289.00 (in US$ Thousands) 7555.71 IV Investment/Material requirement details (Rs. in lakh) Indigenous capital goods 94.55 Import of capital goods 0.00 Other FE Outflow for five years 0.00 V NFE for 5 years 5289.00 VI Foreign Equity participation NIL VII Infrastructure details Area to be allotted (in sq. mtrs.) a. Built-up area 686.55 b. Land 0.00 A. Requirement of water 6.00 (in KL per month) B. Requirement of power 200.00 (in KVA per month) VIII Check list for enclosures a. Application fees – DD drawn in favour DD No.000988 of “The Pay & Accounts Officer, Cochin dated 23/05/2019 for Rs.10,000/- Special Economic Zone” (for Rs.10,000/-) b. Affidavit of undertaking as prescribed Yes in the Form – F in stamp paper c. Willingness for allotment of space in Yes SEZ d. Project report Yes e. Copy of Certificate of Incorporation Yes along with Articles of Association and Memorandum of Association in case of Companies and attested copy of Partnership Deed in case of partnership firms f. Income tax returns of IT returns of the one of the directors for proprietor/partners for the last three the last three years and IT return of the years. In case of company, audited other director for last year have been balance sheet for the last three years submitted g. PAN of applicant AAACZ3402A h. Photo ID Proof Yes (UIDAI & PANcard) i. Board resolution appointing Yes. authorized signatory Mr. Vishesh Kasliwal Director, has been authorized to sign Page 9 of 19 The Audit report of the company contains a qualified opinion of the auditor in the financial statement for the period 2015-16. According to this, the company is receiving commission for the services rendered as National Banking Correspondent to State Bank of India and the Bank has directly paid the amounts to various Customer service points without deduction of TDS. Service tax to the tune of Rs.4,50,856/- is payable for the FY 2015-16 and Rs.33,59,154/- (including the amount for the previous year) is payable by the company for the FY 2016-17. The company has paid Rs.1,28,604/- in 2017-18 during the FY 2018-19. It is mentioned in the Audit report for the FY 2016-17 that one of the Customer Service Provide sub-contracted by the company for its banking intermediary services under Pradhan Mantri Aawas Yojana (PMAY) was involved in a scam amounting to Rs.1.00 crore and the company has filed FIR. The application has been scrutinized as per Rule 17 & 18 of SEZ Rules, 2006 and found to be in order.