Request for Clarification on Export Order - Customs - Exim - SEZ

Please clarify the following points. 1. The Order placed by Singapore Company to Indian manufacturer to manufacture Pharmaceutical Machinery and payment is made in USD. 2. The machine against the above order will be supplied in India to an Associate unit of Singapore Company to manufacturing pharmaceutical formulation. 3. The Indian associate unit is neither SEZ nor EOU. Query: Can we do such type of transaction? If yes, please let us know procedure to be followed by Singapore Company who is placing order and transferring fund to Indian Manufacturer who is manufacturing machinery and then supplying to Indian Associate Company of Singapore.