Lincoln and Lyndon Enterprises Pvt. Ltd.

In the RESERVE BANK OF INDIA Foreign Exchange Department Secretariat Road Saifabad, Hyderabad 500 004 Present R Subramanian Regional Director Date: July 19, 2018 C.A. HYD 303 In the matter of M/s. Lincoln & Lyndon Enterprises Private Limited 13-6-434/B/2, Plot No. 2 Om Nagar, Golkonda Langar House Hyderabad – 500 008 (Applicant) In exercise of the powers conferred under Section 15 (1) of Foreign Exchange Management Act, 1999 and the Regulations/ Rules/ Notifications/ Orders made there under, I pass the following Order The applicant has filed the compounding application dated April 18, 2018 received on April 23, 2018 for compounding of contraventions of the provisions of the Foreign Exchange Management Act, 1999 (the FEMA) and the regulations issued thereunder. The contraventions sought to be compounded are (i) delay in reporting receipt of foreign inward remittances and (ii) delay in submission of Form FC-GPR to Reserve Bank of India after issue of shares towards subscription to equity in terms of Paragraph 9(1)(A) and Paragraph 9(1)(B) respectively of 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

Compounding of contraventions under FEMA 1999 M/s Lincoln & Lyndon Enterprises Private Limited CA No. HYD 303 03, 2000 (hereinafter referred to as Notification No. FEMA 20/2000-RB) as then applicable. 2. The relevant facts of the case are as follows: a) The applicant is a resident company incorporated as Private Limited Company under the Companies Act, 2013 on 11.08.2015 (CIN: U74900TG2015PTC100170). The company is engaged in the business of other business support service activities n.e.c. b) The applicant had received foreign inward remittances from the foreign investors towards advance for subscription to equity shares as indicated below.

Sl Name of the Remitter Total Amount Date of Date of No (INR) Receipt Reporting 1 Ms. Rita Campbell, USA 18646838 19-11-2015 18-12-2015 2 Ms. Rita Campbell, USA 654275 19-11-2015 18-12-2015 3 Ms. Rita Campbell, USA 6601000 29-03-2016 18-04-2016 4 Ms. Rita Campbell, USA 4634875 22-09-2016 20-10-2016 The Kingdom Trust 5 7345051 14-10-2016 11-11-2016 Company, USA 6 Ms. Rita Campbell, USA 2558200 18-04-2017 03-06-2017 7 Ms. Rita Campbell, USA 6368500 11-05-2017 06-09-2017 8 Ms. Rita Campbell, USA 1606563 13-10-2017 02-02-2018 Total 4,84,15,302

The applicant received the foreign inward remittances amounting to `4,84,15,302/- as indicated above out of which remittances amounting to `1,05,33,263/- were reported to Reserve Bank of India with delays ranging from Compounding of contraventions under FEMA 1999 M/s Lincoln & Lyndon Enterprises Private Limited CA No. HYD 303 16 days to 2 months 27 days approximately beyond the prescribed period of 30 days. Whereas in terms of Paragraph 9(1)(A) of Schedule 1 to Notification No. FEMA 20/2000-RB, an Indian company issuing shares or convertible debentures in accordance with these Regulations should report to the Reserve Bank of India as per the prescribed procedure not later than 30 days from the date of receipt of the amount of consideration. c) The company allotted shares and filed form FC-GPRs as indicated below: Sl Name of the Date of Number of Amount for Date of No. Investor allotment shares which shares reporting of shares allotted allotted (INR) Ms. Rita 1 Campbell, 23-11-2015 193011 19301100 16-09-2016 USA Ms. Rita 2 Campbell, 10-04-2016 66010 6601000 25-09-2016 USA Ms. Rita 3 Campbell, 17-01-2017 46348 4634800 13-02-2017 USA The Kingdom Trust 4 17-01-2017 73450 7345000 13-02-2017 Company, USA Ms. Rita 5 Campbell, 26-05-2017 85270 2558200 05-04-2018 USA 6 Ms. Rita 09-07-2017 212280 6368500 04-05-2018

Compounding of contraventions under FEMA 1999 M/s Lincoln & Lyndon Enterprises Private Limited CA No. HYD 303 Campbell, USA Ms. Rita 7 Campbell, 11-12-2017 53552 1606563 23-05-2018 USA Total 729921 4,84,15,163

The applicant filed form FCGPRs for issue of shares amounting to `4,84,15,163/- as indicated above out of which shares amounting to `3,64,35,363/- were reported with delays ranging from 4 months 12 days to 9 months 10 days approximately beyond the stipulated period of 30 days. Whereas in terms of Paragraph 9(1)(B) of Schedule 1 to Notification no. FEMA 20/2000-RB, an Indian company issuing shares in accordance with these Regulations has to submit to Reserve Bank of India a report in form FCGPR along with documents prescribed therein within 30 days from the date of issue of shares to person resident outside India. 3. (a) The applicant was given an opportunity for personal hearing vide Reserve Bank’s letter No. HY.FE.FID/2307/14.66.003/2017-18 dated June 29, 2018 for further submission in person and/or producing documents, if any, in support of the application. (b) The applicant appeared for personal hearing on July 03, 2018 during which Shri. Humayun Shaik, Chartered Accountant represented the applicant. The authorized representative of the company admitted the contraventions for which the compounding has been sought.

During the personal hearing it was submitted that the delay was not wilful or with a malafide intention but was on account of administrative reasons. In view of the foregoing, the representative of the applicant requested to take a lenient view in disposal of the application. The application for Compounding of contraventions under FEMA 1999 M/s Lincoln & Lyndon Enterprises Private Limited CA No. HYD 303 compounding is, therefore, being considered on the basis of the averments made in the application as well the submissions made in this context by the applicant during the personal hearing. 4. I have given my careful consideration to the documents on record. Accordingly, I hold that the applicant has contravened the following FEMA provisions issued in terms of:- (a) Paragraph 9(1)(A) of Schedule 1 to Notification No. FEMA 20/2000-RB for delay in reporting the receipt of consideration towards issue of shares amounting to `1,05,33,263/- and the delay ranges from 16 days to 2 months 27 days approximately. (b) Paragraph 9(1)(B) of Schedule 1 to Notification No. 20/2000-RB for delay in submission of Form FC-GPR to Reserve Bank of India after issue of shares to persons resident outside India and the contravention relates to an amount of ` 3,64,35,363/- and the period of contravention ranges from 4 months 12 days to 9 months 10 days approximately.

5. It has been declared in the compounding application dated April 18, 2018 that the particulars given by the applicant in the application are true and correct to the best of their knowledge and belief. It has been declared in the declaration dated May 29, 2018 furnished with 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 thereafter. 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.

Compounding of contraventions under FEMA 1999 M/s Lincoln & Lyndon Enterprises Private Limited CA No. HYD 303 6. 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 contravention is to be compounded and I consider that an amount of ` 71,390/- (Rupees Seventy One Thousand Three Hundred Ninety Only) will meet the ends of justice. 7. Accordingly, I compound the admitted contraventions, namely, the contraventions of Paragraph 9(1)(A) and Paragraph 9(1)(B) of Schedule 1 to Notification No. FEMA- 20/2000-RB by the applicant on the facts discussed above in terms of the Foreign Exchange (Compounding Proceedings) Rules, 2000 on payment of an amount of ` 71,390/- (Rupees Seventy One Thousand Three Hundred Ninety Only) which shall be deposited by the applicant with the Reserve Bank of India, Foreign Exchange Department, 1st Floor, Saifabad, Hyderabad - 500004 by a demand draft drawn in favour of the "Reserve Bank of India" and payable at Hyderabad 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, Rule10 of the Foreign Exchange (Compounding Proceedings) Rules, 2000 dated May 3, 2000 shall apply.

The application is disposed accordingly. Dated this 19th day of July 2018

Sd/- (R Subramanian) Regional Director