BAGMANE DEVELOPERS PVT. LTD.

SEZ - II

36th (4/2015 series) APPROVAL COMMITTEE

MEETING

DATE : 06-07-2015

--AGENDA—

Venue: SEZ Bhavan, 120-C, EPIP,

Whitefield, Bangalore

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Members of 36th Meeting (4/2015 Series) of Approval Committee in respect of M/s Bagmane Developers Pvt. Ltd. SEZ - II, Bangalore to be held on 06- 07-2015 at 11.30 am

1. Shri Madup Vyas,

Director, Department of Commerce, Udyog Bhavan, New Delhi – 110 107 moc_epz@nic.in madhup.vyas@nic.in

2. Shri S. K. Sharma,

Jt. Director General of Foreign Trade C & E Wing, 6th Floor, Kendriya Sadan, 17th Main, 2nd Block, Koramangala, Bangalore- 560 034. bangalore-dgft@nic.in su.kumar@nic.in Fax: 080-25537214

3. Shri M.V.S. Chowdhary, Commissioner of Central Excise, Bangalore-III, C R Building, Queen’s Road, Bangalore – 560 001. bangaloreiii@gmail.com Telefax: 080 22861366 Ph: 080 22867733

4. Shri Ashutosh Chandra IRS, Principal Commissioner of Income Tax, Bangalore-1 Commissionerate, C R Building, Queen’s Road, Bangalore – 560 001. Ph: 080-22860738 Fax 080-22861933 ashutoshchandra@hotmail.com

5. Shri Sanjeev Kumar Jindal,

Deputy Secretary (IF-I), Ministry of Finance, Govt of India, Jeevan Deep Building, Sansad Marg, New Delhi. Fax No. 011-23742207

6. Shri Srivatsa Krishna,

Secretary to Government of Karnataka, Department of IT, BT & Science & Technology, 6th Floor, 5th Stage, Multi Storeyed Building, Dr. B.R.Ambedkar Veedhi, Bangalore – 560 001. itbtsec@gmail.com, skrishna@outlook.com skrishna@gov.in Ph: 080 22280562/08022032434/08022374314 Fax: 080 22288340

7. Shri Gaurav Gupta ,

Commissioner for Industrial Development & Director of Industries & Commerce, Govt of Karnataka, Khanija Bhavan, (South Wing), No 49, Race Course Road, Bangalore – 560 001. Ph: 080 – 22386796 Fax: 080-22389909 commissioner@karnatakaindustry.gov.in

8. Shri Raja Bagmane,

Chairman and Managing Director Bagmane Developers Pvt. Ltd.SEZ-II, 'Lake View Building', No.66/1-4, A Block, 8th Floor, Bagmane Tech Park, CV Raman Nagar, Bangalore-93. varadarajan@bagmanegroup.com Fax: 080 40329900 Ph: 080 40329999

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Agenda for the 36th (4/2015 series) Meeting of the Approval Committee of Bagmane Developers Pvt. Ltd. SEZ–II to be held on 06-07-2015 at 11.30 am

A. Confirmation of the minutes of the 35th (3/2015 series) of the Approval Committee

meeting held on 09-04-2015: (Pages: 5-10)

B. Action taken on decisions of previous meeting.: (Page: 11)

C. To consider the following approval:-

1. Application for approval of setting up a new unit by M/s Brocade Communications

Systems Pvt. Ltd. Unit-IV, Bangalore. (Annexure:I, I/A ) (Page- 12-13) 2. Ratification of approval letter - adding vendor under Business Auxiliary Services

submitted by Developer, Bagmane Developers Pvt. Ltd. SEZ-II, Bangalore. (Annexure:II, II/A) (Pages: 14-15)

3. Ratification of approval letter - adding vendors under Real Estate Agents Services submitted by Developer, Bagmane Developers Pvt. Ltd. SEZ-II, Bangalore. (Annexure:III, III/A) (Pages: 16-18)

4. Ratfication of approval letter- Permission for lease out space for installation of Telecom equipment related to WI-FI & WI MAX services by M/s Idea Cellular Ltd. in the terrace space of WTC - 6 (Peridot Block) at Bagmane Developers Pvt. Ltd. SEZ - II. (Annexure:IV, IV/A ) (Pages: 19-20)

5. Ratification of approval letter – adding additional vendor under Management or Business Consultants Services and Business Auxiliary Services submitted by M/s Wells Fargo India Solutions Pvt. Ltd., Bangalore(Annexure:V, V/A ) (Pages:21-23).

6. Request for approval to lease space for setting up common facilities in the processing area submitted by Developer, Bagmane Developers Pvt. Ltd. SEZ-II, Bangalore. (Annexure:VI, VI/A ) (Pages:24-26).

7. Application for approval of adding additional space in Bagmane Developers Pvt. Ltd. SEZ – II, submitted by M/s Accenture Services Pvt. Ltd., Bangalore. (Annexure:VII, VII/A ) (Pages:27-29).

8. Application for approval of adding additional vendor under Management or Business Consultants Services and Business Auxiliary Services submitted by M/s Wells Fargo India Solutions Pvt. Ltd., Bangalore. (Annexure:VIII, VIII/A ) (Pages:30-32).

D. Any other matter with the approval of the Chairperson.

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A. Confirmation of the minutes of the 35th (3/2015 series) Approval

Committee meeting held on 09-04-2015.

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B. Action taken on decisions of previous meeting:

Sl. No.

Approvals Date of issue of Approval

1 Ratification of approval letter – adding additional vendor under Business Auxiliary Services submitted by M/s Wells Fargo India Solutions Pvt. Ltd., Bangalore. Letter ratified

2 Application for approval of adding additional space in Bagmane Developers Pvt. Ltd. SEZ – II, submitted by M/s Ericsson India Pvt. Ltd., Bangalore. 16-04-2015

3 Application for approval of adding additional space in Bagmane Developers Pvt. Ltd. SEZ – II, submitted by M/s Accenture Services Pvt. Ltd., Bangalore. 16-04-2015

4 Application for approval of additional item of services submitted by M/s EMC Software and Services India Pvt. Ltd. 17-04-2015

5 Application for approval of lease of space for setting up common facilities in the processing area, submitted by Bagmane Developers Pvt. Ltd. SEZ- II (Developer), Bangalore.

17-04-2015

…..………….

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Annexure I C. 1. Application for approval of setting up a new unit by M/s Brocade Communications

Systems Pvt. Ltd.Unit- IV, Bangalore. M/s Brocade Communications Systems Pvt. Ltd.Unit-IV, Bangalore has submitted

an application dated 02-06-2015 for setting up of a new unit at Bagmane Developers Pvt. Ltd. SEZ - II, Bangalore for carrying out authorized operation of Information Technology Enabled Services (ITES)

M/s Brocade Communications Systems Pvt. Ltd. is a company incorporated on 13th May, 2004 under the Companies Act, 1956 at Registrar of Companies, Bangalore, Karnataka.The Company has three existing SEZ units (Unit I, Unit II & Unit III) at Bagmane Developers Pvt. Ltd. SEZ-II, Bangalore. Out of this three units Unit I & Unit II were transferred form VTV SEZ, Bangalore which are already strated operation from Bagmane SEZ. The unit Unit III has not yet commenced operation.

The present proposal for setting up of a unit in Bagmane Developers Pvt. Ltd. SEZ

- II, Bangalore is to be housed over an area of 57583.68 Sq. Ft. (built up area) has a projected export turnover of Rs.38779.00 lakh and NFE of Rs. 31363.00 lakh for the next five years. The application summary (Annexure I/A) is placed before the Approval Committee for consideration and approval.

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Annuxure I/A Application summary for setting up of a unit in Bagmane Developers Pvt. Ltd. SEZ -II,

Bangalore by M/s Brocade Communications Systems Pvt. Ltd., Bangalore.

Name of Applicant M/s Brocade Communications Systems Pvt. Ltd. Unit - IV

Date of Application 02-06-2015 Date of Submission 15-06-2015

Name & Address of the Directors

Venu Indurthi, G-2, Gavipuram, Choutary, Block road, KG Nagar, Chikkapet, Bangalore – 560 019. John Harry Bock, 19 Nassim Hill, 0943, Singapore – 258 482.

Jean Samuel Furter, 1653, Golden Gate Avenue, California, USA – 999999.

Kevin McKenna, 41, Avenue, Louis – Yung, 1290, Versoix, Geneva, Switzerland – 999999.

Project Summary Item of manufacture/service ITES

Employment Total 280 nos. Men 245 nos. Women 35 nos.

Exports for 5 years (Value) (Rs. in lakh) 1st Year 2720.00 2nd Year 5993.00 3rd Year 7821.00 4th Year 9845.00 5th Year 12400.00

Total (INR) 38779.00

(In US$ thousands) 61553.97 Import of capital goods 7338.80

Outflow for 5 years 7416.00 NFE for 5 years 31363.00

Foreign Equity participation Yes External Commercial borrowing Nil

Area to be allotted in Sq. Mtr. i) Built-up area 5349.70 Sq. Mtr.94 ii) Land Nil.

Requirement of Water 7204.00 Kilo litters

Nature of effluent Not applicable

Requirement of Power 575.84 KVA Check list for Enclosures:

Application fees – DD for Rs.10,000/- drawn in favour of “The Pay & Accounts Officer, Cochin Special Economic Zone

D.D. No. 062527 dated 30/05/15 for Rs.10,000/-

Affidavit of undertaking as prescribed in the Form-F in stamp paper

Yes

Willingness for allotment of space in SEZ

Yes

Project Report Yes Copy of Certificate of Incorporation along with Articles of Association and Memorandum of Association in case of Companies and attested copy of Partnership Deed in case of Partnership Firms

Yes

Income tax returns of proprietor/partners for the last 3 years. In case of company audited balance sheet for the last 3 years.

Audited Annual Report for the last 3 years in respect of existing Unit 2011-12, 2012-

13 & 2013-14.

PAN of Applicants Company PAN card No. AACCB4490N submitted. Individual

PAN of the Directors submitted.

Residence Proof of Promoters /Directors Yes

The application has been scrutinized as per Rule 17 and 18 of SEZ, Rules, 2006 and found to be in order.

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Annexure II

C.2. Ratification of approval letter - adding vendors under Business Auxiliary Services

submitted by Developer, Bangmane Developers Pvt. Ltd. SEZ-II, Bangalore.

M/s Bagmane Developers Pvt. Ltd. SEZ – II (Developer) Bangalore vide their letter dated 08-04-2015 has submitted an application for approval of additional name of vendor with nature of service under the service item viz. Business Auxiliary Services in terms of Service Tax Notification No.12/2013-ST dated 01.7.2013 for carrying out authorised operation.

In view of the urgency expressed by the unit, the Development Commissioner has

accorded the approval vide letter No.KA:22:08: Bagcons:01 dated 29-04-2015 (as annexed), subject to ratification in the next Approval Committee meeting. The Approval Committee may kindly ratify the action taken by the Development Commissioner.

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Annexure II/A

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Annexure:III

C.3. Ratification of approval letter - request for adding addtional name of vendor under Real Estate Agents Services submitted by Developer, Bangmane Developers Pvt. Ltd. SEZ-II, Bangalore.

M/s Bagmane Developers Pvt. Ltd. SEZ-II (Developer) vide their letters dated 07-

05-2015 and 11-05-2015 has requested to include name of vendors with nature of services for the service item viz. Real Estate Agents Services.

In this respect, this office has conveyed approval of service item viz. Real Estate

Agents Service vide letter of even number dated 05-11-2013 for availing service tax benefit based on the approval granted by the UAC meeting held on 24-10-2013. However, while approving the said service item, the developer has not furnished any particular name of vendors or their nature of services. Now, the Developer has intimated that they have started availing the Real Estate Agents Services immediately after issue of this office approval letter 05-11-2013 from the following vendors shown against Sl. No. 1 to 5 with the nature of services as noted against each vendor. The same has not been brought to the UAC for its consideration and approval.

In addition to the name of vendors mentioned in Sl.1 to 5 below, the Developer has

also submitted an additional name of vendor mentioned at Sl. No.6 for approval. As such, as per urgency expressed by Developer the Development Commissioner has issued approval for the vendors and their respective nature of services for Sl. No.1 to 5 effective from the date of issue of approval for Real Estate Agents Services vide letter dated 05-11-2013 and approval for the additional name of vendor with nature of service mentioned at Sl. No.6 under Real Estate Agents Service vide letter No.KA:22:08:Bagcons:01 dated 13-05-2015, subject to ratification in the next Approval Committee meeting.

The Approval Committee may kindly ratify the action taken by the Development

Commissioner …………….

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M/s DTZ International Property Advisers Pvt. Ltd., Bangalore Urban, Karnataka – 560 052.

The service provider proving the service which is related to leasing of space including identification of Unit, Setup. Also the service provider providing the project management services for development of SEZ.

2 M/s Jones Lang Lasalle Property Consultants (India) Pvt. Ltd Bangalore – 560 001.

The service provider proving the service which is related to leasing of space including identification of Unit, Setup.

3 M/s CBRE South Asia Private Limited, New Delhi- 110 001.

The service provider proving the service which is related to leasing of space including identification of Unit, Setup

4 Mr. Subramaniam Krishnan, Bangalore – 560 038.

The service provider proving the service which is related to leasing of space including identification of Unit, Setup

5 M/s Cushman & Wakefield India Pvt. Ltd., New Delhi, Dilhi – 110 029.

The service provider proving the service which is related to leasing of space including identification of Unit, Setup Also the service provider providing the project management services for development of SEZ.

6 M/s API Global India Property Services Private Limited, Bangalore -560 078

The service provider proving the service which is related to leasing of space including identification of Unit, Setup.

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Annexure III/A

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Annexure:IV C.4. Ratfication of approval letter- Permission for lease out space for installation of

Telecom equipment related to WI-FI & WI MAX services by M/s Idea Cellular Ltd. at Bagmane Developers Pvt. Ltd. SEZ - II. M/s Bagmane Developers Pvt. Ltd. SEZ - II vide their dated 16-05-2015 has submitted a request for approval for lease out of space having an area of 50 Sft. at terrace of Bldg. Block – WTC 6 (Peridot Block) for a period of 5 years for installation of Telecom equipment related to WI-FI & WI MAX Services to the Service Provider - M/s Idea Cellular Ltd. The Developer is leasing their terrace premises subject to the following conditions:-

1. They will lease out the above mentioned area to the service provider M/s Idea Cellular

Ltd. 2. The telecom operator will install their equipment in the area specified by the

Developer in the terrace of the building. Further this is an own equipment of M/s Idea Cellular Ltd and returnable after the tenure and no Customs & Excise duty benefit will be availed to procure this equipments.

3. This facility will be used exclusively for the connectivity which is required to maintain the signal in case of any breakdown of the equipment in the Labs.

4. Also the service provider will visit this facility to provide the required services and Bagmane Developers Pvt. Ltd. SEZ-II will ensure the identified person for entry and exit in the SEZ.

In view of the urgency expressed by the Developer, the Development

Commissioner has accorded the approval vide letter No.KA:22:08:Bagcons:01 dated 18-05-2015, subject to ratification in the next Approval Committee meeting. The Approval Committee may kindly ratify the action taken by the Development Commissioner

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Annexure:IV/A

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Annexure:V

C.5. Ratification of approval letter – request for adding additional name of vendor under Management or Business Consultants Services and Business Auxiliary Services submitted by M/s Wells Fargo India Solutions Pvt. Ltd., Bangalore.

M/s Wells Fargo India Solutions Pvt. Ltd., a unit in a Bagmane Developers Pvt.

Ltd. SEZ – II, Bangalore vide their letter dated 29-04-2015 has submitted an application for approval of adding additional name of vendors with nature of services under the service items viz. Management or Business Consultant’s Service and Business Auxiliary Service in terms of Service Tax Notification No.12/2013-ST dated 01.7.2013 for carrying out authorised operation.

In this respect it may be noted that while discussing the agenda item in the 31st (7/2014 series) UAC of Primal Projects Pvt. Ltd. SEZ held on 23-12-2014, it has been decided to grant such approvals immediately on receipt of application at the level of Development Commissioner in advance. Accordingly, the said approval has been granted by this office and the same is placed before the Committee for ratification.

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Annexure:V/A

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Annexure:VI

C. 6. Application for approval of lease space for setting up common facilities in the

processing area submitted by Developer, Bagmane Developers Pvt. Ltd. SEZ- II, Bangalore.

M/s Bagmane Developers Pvt. Ltd. SEZ –II (Developer) Bangalore, has submitted

an application dated 22-06-2015 (as annexed) for approval of lease of built up space for setting up common facilities in the processing area for carrying out authorized operation of IT/ITES.

The Developer has developed a building namely ONYX for the purpose of

common and amenity services in the processing area. They wishes to lease the space within the ONYX building to the following entity/operator under Brand name (the “Lessee”) as per necessary lease deed will be executed for setting up below-mentioned common facilities for exclusive use of the Units inside the SEZ.

The approval for the above mentioned common facilities in the processing area of the SEZ may be considered in terms of Proviso to Rule 11(5) of SEZ Rules, 2006 and as per Sl No. 20 of Instruction No. 50, in the list of authorised activities which can be undertaken by the Developer by default from the date of notification.

The request of the Developer is placed before the Committee for consideration and

approval.

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Sl.No Area to be leased (Sq.ft.)

Tenure Location Purpose of Use

Name of the Entity/Operator under Brand Name

1 5990 5 years

Second floor, Onyx

Building

Day Care Centre

M/s We care learning Pvt. Ltd.,

1568, 3rd Floor, HSR Latout, Outer Ring Road, Bangalore –

560 102.

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Annexure:VIA

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Annexure:VII

C. 7. Application for approval of adding additional space in Bagmane Developers Pvt. Ltd.

SEZ – II, submitted by M/s Accenture Services Pvt. Ltd., Bangalore.

M/s Accenture Services Pvt. Ltd., Bangalore, vide their letter dated 24-06-2015 has submitted a request for approval of revised projections (as annexed) due to adding additional space of 49,313 Sq. ft. (4581.3 Sq. Mtrs.) in 6th floor in Peridot Block of the Bagmane Developers Pvt. Ltd. SEZ- II, Bangalore. Consequent on increase in the original projected space, the other parameters of the approved projections of the unit M/s Accenture Services Pvt. Ltd. shall be revised to the following extent:-

Rs. In lakhs T The unit has submitted the consent letter issued by Developer for allotment of

space admeasuring 49,313 Sq. Ft. (4,581.30 sq.mtr) as part of their expansion proposal. The request of the unit is placed before the Committee for consideration and

approval.

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Sl. No Description

Existing approval (Rs. In lakh)

Additional proposal (Rs. In lakh)

Total

1 FOB value of Exports for 5 years period

119,684 41,899 161,583

2 Foreign Exchange Outgo 10,449 4,817 15,266 NFE (1-2) 109,235 37,082 146,317 3 Imported Capital Goods 1,950.35 627 2577.35 4 Indigenous Capital Goods 1,703.47 535 2238.47

5 Employment (Men & Women) (Nos.) Men Women Men Women Men Women 1085 585 471 254 1556 839

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Space occupied by the Unit (in sq. mtrs.) (Separate Lease Deed to be executed for each allotments)

16,.622.30 4,581.30 21,203.60

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Annexure:VII/A

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*Foreign exchange outgo shall include the CIF value of import of machinery, raw material, components, consumables, spares, packing materials and amount of repatriation of dividends and profits, royalty, lump sum know how fee, design and drawing fee, payment of foreign technicians, payment on training of Indian technicians abroad, commission on export, interest on external commercial borrowings, interest on deferred payment credit and any other payments.

Sl. No.

Description Existing approval

(Rs. In lakh)

Additional Proposal

(Rs. In lakh)

Total

1 FOB value of Exports for 5 years

period (Upto The Validity of LOA)

119,684 41,899 161,583

2 Foreign Exchange Outgo 10,449 4,817 15,266 NFE (1-2) 109,235 37,082 146,317

3 Imported Capital Goods 1950.35 627 2577.35

Indigenous Capital Goods 1703.47 535 2238.47

4 Employment (Men & Women) Men women Men women Men women 1085 585 471 254 1556 839

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Space occupied by the Unit (in sq.mtrs.)

(Separate Lease Deed to be executed for each allotments)

16,622.30 4581.3 21,203.60

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Annexure:VIII

C. 8. Application for approval of adding additional vendors under Management or

Business Consultants Services and Business Auxiliary Services submitted by M/s Wells Fargo India Solutions Pvt. Ltd., Bangalore

M/s Wells Fargo India Solutions Pvt. Ltd., a unit in a Bagmane Developers Pvt.

Ltd. SEZ – II, Bangalore vide their letter dated 23-06-2015 has submitted an application for approval of adding additional name of vendors with nature of services under the service items viz. Management or Business Consultant’s Service and Business Auxiliary Service in terms of Service Tax Notification No.12/2013-ST dated 01.7.2013 for carrying out authorised operation (as annexed).

The request of the unit is placed before the Committee for consideration and

approval. …………….

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Annexure:VIIIA

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