M/s Albacore Accounting Services Private Limited

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 J.K. Pandey Chief General Manager April 10, 2019 CA No. MUM 838/2019 In the matter of M/s Albacore Accounting Services Pvt Ltd B 203, GO Square Wakad, Hinjewadi Road, Pune 411 057 (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 February 08, 2019, received at the Reserve Bank on February 14, 2019, for compounding of contravention/s of the provisions of the Foreign Exchange Management Act, 1999 (the FEMA) and the regulations issued thereunder. The contraventions 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):

FED, MRO, CEFA, M/s Albacore Accounting Services Pvt Ltd, CA No: MUM 838/2019 a) Para 9 (1) (A) of FEMA 20: Delay in reporting receipt of foreign inward remittance towards subscription to equity b) Para 8 of FEMA 20: Neither the equity instruments were issued, nor the money refunded to the foreign investor within 180 days from the receipt of the inward remittance 2 Brief facts of the applicant company are as follows: Date of Incorporation July 26, 2012 Its main activities are: Data Processing Services

3 The applicant received foreign inward remittances from non-resident investors towards equity shares / compulsorily convertible preference shares/ compulsorily convertible debentures and it reported the same to the Reserve Bank on dates as indicated below. Delay under 9(1)(A &/or Para 8 (whereas, "Y" represents delay in number of years, "M" represents delay in number of months and "D" represents delay in number of days, and LSF stands for : Late Submission Fees

S No/ Date of amount received Date of Para 9 (1) A date of Para 8 LSF inward (in INR) reporting to RBI delay allotment delay remittance / refund (DD-MM-YY) (DD-MM-YY) 1 21/08/12 199,999.00 4/15/2013 0Y 6M 22D 12/02/13 0 2 21/08/12 3,842.00 4/15/2013 0Y 6M 22D 30/05/14 1Y 3M 10D 3 16/09/12 3,507,500.00 4/15/2013 0Y 5M 27D 15/02/13 0 4 18/10/12 3,417,290.00 4/15/2013 0Y 4M 25D 15/02/13 0 5 18/11/12 4,135,424.00 4/15/2013 0Y 3M 25D 15/02/13 0 6 21/08/12 1,362,694.00 4/15/2013 0Y 6M 22D 15/02/13 0 7 27/09/12 3,381,808.00 4/15/2013 0Y 5M 16D 15/02/13 0 8 19/12/12 2,907,876.00 4/15/2013 0Y 2M 24D 15/02/13 0 9 19/12/12 121,861.00 4/15/2013 0Y 2M 24D 30/05/14 0Y 11M 12D TOTAL 19,038,294.00 The applicant reported receipt of remittances to the Reserve Bank of India on dates indicated above with a delay ranging from 0Y 2M 24D to 0Y 6M 22D. Further, the applicant company delayed in reporting in case of all the remittances beyond the stipulated time of 30 days. Whereas, in terms of Paragraph 9 (1) (A) of Schedule 1 to FEMA 20/2000, 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.

FED, MRO, CEFA, M/s Albacore Accounting Services Pvt Ltd, CA No: MUM 838/2019

4 In respect of remittance/s amounting to Rs.125,703 (Rupees One Lakh Twenty Five Thousand Seven Hundred Three and Zero Paise Only), indicated in the table above the company allotted shares/ refunded the amount after 180 days from the date of receipt of investment, with a delay ranging from 0Y 11M 12D to 1Y 3M 10D. Whereas in terms of paragraph 8 of Schedule 1 to FEMA 20, an Indian company is required to issue shares or refund the amount within 180 days from the date of receipt of inward remittance.

5 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 April 03, 2019. The applicant appeared for personal hearing on April 08, 2019, during which Shri Sujeet Sanjay Kulkarni, Vice President -F&O of the company and Shri Tejas Ravindra Bapat, Consultant represented the applicant in the cabin of Shri J.K. Pandey, Chief General Manager, Mumbai Regional Office. The representatives of the applicant admitted the contraventions for which compounding has been sought. During the hearing it was submitted that delay was inadvertent and unintentional. The representatives 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. 6 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:

a) Para 9 (1) (A) of FEMA 20 ,due to the delay in reporting of receipt of foreign inward remittance towards subscription towards shares as detailed above. The contravention relates to total amount of Rs.19,038,294 (Rupees One Crore Ninety Lakh Thirty Eight Thousand Two Hundred Ninety Four and Zero Paise Only) and with a delay ranging from minimum 0Y 2M 24D to maximum 0Y 6M 22D approximately.

b) Para 8 of FEMA 20, since the shares were neither issued nor the amount was refunded to the person resident outside India within the prescribed time from the date of receipt of the inward remittance. The contravention relates to total amount of Rs.125,703 (Rupees One Lakh Twenty Five Thousand Seven Hundred Three and Zero Paise Only) and with a delay ranging from minimum 0Y 11M 12D to maximum 1Y 3M 10D approximately.

FED, MRO, CEFA, M/s Albacore Accounting Services Pvt Ltd, CA No: MUM 838/2019

7 It has been declared in the compounding application dated February 08, 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. 8 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.50,702 (Rupees Fifty Thousand Seven Hundred Two and Zero Paise Only) will meet the ends of justice. 9 Accordingly, I compound the admitted contravention/s namely, the contravention/s of Para 9 (1) (A) of FEMA 20 and Para 8 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. 50,702 (Rupees Fifty Thousand Seven Hundred Two 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.

10 The above order is passed only in respect of contraventions of Para 9 (1) (A) of FEMA 20 and Para 8 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. 11 The application is disposed of accordingly. dated: April 10, 2019 Compounding Authority (J.K. Pandey) Chief General Manager

FED, MRO, CEFA, M/s Albacore Accounting Services Pvt Ltd, CA No: MUM 838/2019