Kemper System India Pvt. Ltd.

In the Reserve Bank of India Foreign Exchange Department Mumbai Regional Office Main Building, 3rd floor Shahid Bhagat Singh Marg, Fort Mumbai 400 001 Present Shri Sunil Pethkar Assistant General Manager August 22, 2019 CA No. MUM 873/2019 In the matter of M/s Kemper System (India) Private Limited Indo German Technology Park, Survey No. 297,298-299, Viiage Urawade, Taluka Mulshi, Pune 412115 (Applicant) In exercise of the powers conferred under section 15(1) of the Foreign Exchange Management Act, 1999 and the Regulations/Rules/Notifications/Orders made thereunder, I pass the following Order 1 The applicant has filed the compounding application dated April 09, 2019, received at the Reserve Bank on April 15, 2019, for compounding of contravention/s of the provisions of the Foreign Exchange Management Act, 1999 (the FEMA) and the regulations issued thereunder. The contravention/s sought to be compounded are in respect of the following (Regulations/ paras under Schedule 1 to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations 2000, notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000 and as amended from time to time (hereinafter referred to as FEMA 20): I Regulation 4 of FEMA 20: Taking on record by the applicant, the transfer of shares from a person resident outside India to a person resident in India or the transfer of shares from a person resident in India to a person resident outside India, without obtaining certified copies of form FC-TRS

FED, MRO, CEFA, M/sKemper System (India) Pvt Ltd, CA No: MUM 873/2019

2 Brief details of the applicant company are as follows: Date of Incorporation May 29, 2000 Its main activities are: manufacturing and wholesale trading of waterproofing and coating material

3 Shares of the company were transferred by Non Resident to Resident and/or by Resident to Non Resident on dates indicated in the table below.

Contravention under Regulation 4 (whereas, "Y" represents delay in number of years, "M" represents delay in number of months and "D" represents delay in number of days, LSF stands for : Late Submission Fees Date of Date of transfer Remittance Date on which Date of delay Inward (DD-MM-YY) amount company took filing under Remittan (2) (in INR) on record the Form Regulation ce transfer FCTRS 4 (DD-MM-YY) (DD-MM-YY)

16-03-01 03-06-2000 10,000.00 03-06-00 13-12-17 17Y 6M 10D 16-03-01 03-06-2000 10,000.00 03-06-00 13-12-17 17Y 6M 10D TOTAL 20,000.00 The company took on record the transfer of shares without obtaing certified copies of Form FC-TRS from the AD Bank. Whereas as per Regulation 4 of FEMA 20, an Indian entity shall not record in its books any transfer of security from or to such person without obtaining certified copies of form FCTRS.The contravention relates to amount of Rs. 20,000 (Rupees Twenty Thousand and Zero Paise Only) with a delay of 17Y 6M 10D approximately.

4 The applicant was given an opportunity for personal hearing, for further submission in person and/or for producing documents, if any, in support of the application vide e-mail dated August 14, 2019. The applicant appeared for personal hearing on August 20, 2019, during which Ms Davinder Banga, Consultant represented the applicant in the cabin of Shri Sunil Pethkar, Assistant General Manager, Mumbai Regional Office. The representative of the applicant admitted the contravention for which compounding has been sought. During the hearing it was submitted that delay was inadvertent and unintentional. The representative of the applicant requested that in view of the foregoing a lenient view may be taken in disposal of the application. The application for compounding is, therefore, being considered on the basis of the averments made in the application as well as other documents and submissions made in this context by the applicant during personal hearing and thereafter.

5 I have given my careful consideration to the documents on record and submissions made by the applicant during the personal hearing and thereafter. Accordingly, I hold that the applicant has contravened the following FEMA provisions issued in terms of:

FED, MRO, CEFA, M/sKemper System (India) Pvt Ltd, CA No: MUM 873/2019

I Regulation 4 of FEMA 20, for recording in its books a transfer of security from or to such person without obtaining certified copies of form FCTRS. 6 It has been declared in the compounding application dated April 09, 2019 that the particulars given by the applicant in the application are true and correct to the best of their/his/her knowledge and belief. It has also been declared in a declaration attached to the compounding application that the applicant was not under any enquiry/investigation/adjudication by any agency as on the date of the application and has, in this regard, not informed of initiation of any such enquiry/investigation/ adjudication proceedings against it/him/her thereafter. It has further been declared that the applicant has not filed any appeal under section 17 or section 19 of FEMA, 1999. Accordingly, the above contraventions which are being compounded in this Order are subject to the veracity of the above declarations made by the applicant and this order is without prejudice to any other action which may be taken by any authority under the extant laws if the said declarations are subsequently discovered to be false and/or incorrect.

7 In terms of Section 13 of the FEMA, any person contravening any provision of the Act shall be liable to a penalty up to thrice the sum involved in such contravention upon adjudication. However, taking into account the relevant facts and circumstances of the case as stated in the foregoing paragraphs, I am persuaded to take a lenient view on the amount for which the contraventions are to be compounded and I consider that an amount of Rs.17,583 (Rupees Seventeen Thousand Five Hundred Eighty Three and Zero Paise Only) will meet the ends of justice. 8 Accordingly, I compound the admitted contravention/s namely, the contravention/s of Regulation 4 of FEMA 20, by the applicant, on the facts discussed above in terms of the Foreign Exchange (Compounding Proceedings) Rules, 2000 on payment of an amount of Rs. 17,583 (Rupees Seventeen Thousand Five Hundred Eighty Three and Zero Paise Only) which shall be deposited by the applicant with the Reserve Bank of India, Foreign Exchange Department, Mumbai Regional Office, Main Building, 3rd floor, Shahid Bhagat Singh Marg, Fort, Mumbai-400001 by a demand draft drawn in favour of the "Reserve Bank of India" and payable at Mumbai within a period of 15 days from the date of this order.

In case of failure to deposit the compounded amount within the above-mentioned period, Rule 10 of the Foreign Exchange (Compounding Proceedings) Rules, 2000 dated May 3, 2000 shall apply. 9 The above order is passed only in respect of contraventions of Regulation 4 of FEMA 20 and does not restrict the right of any other authority to proceed against the Company for any other violations/contraventions noticed at any point of time. 10 The application is disposed of accordingly. dated: August 22, 2019 Compounding Authority (Sunil Pethkar) Assistant General Manager