M/s Allenwest Ampcontrol 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 J.K. Pandey Chief General Manager July 31, 2019 CA No. MUM868/2019 In the matter of M/s Allenwest Ampcontrol India Pvt Ltd A Wing, 5th Floor, Akruti Trade Center 7th Road, MIDC Andheri East, Mumbai - 400093 (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 04, 2019, received at the Reserve Bank on April 04, 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 Para 9 (1) (A) of FEMA 20: Delay in reporting receipt of foreign inward remittance towards subscription to equity

FED, MRO, CEFA, M/s Allenwest Ampcontrol India Pvt Ltd, CA No: MUM 868/2019

II Para 9 (1) (B) of FEMA 20: Delay in filing Form FC GPR to Reserve Bank after issue of shares to person resident outside India III 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 details of the applicant company are as follows: Date of Incorporation February 05, 2016 Its main activities are: Manufacture of electricity distribution and control apparatus (electrical apparatus for switching or protecting electrical circuits

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 in reporting Foreign Direct Investment &/or delay in allotting the shares/ refunding the amount (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 Date of Amount received Date of Para 9 (1) A Date of Para 8 No/ inward (in INR) reporting to delay allotment delay LSF remittanc RBI / refund e (DD-MM-YY) (DD-MM-YY) (DD-MM-YY) 1 05-04-16 1,00,000.00 04-05-16 0 30-09-16 0 2 02-06-16 9,99,600.00 19-03-18 1Y 8M 14D 23-02-18 1Y 2M 25D 3 07-07-16 4,99,600.00 19-03-18 1Y 7M 9D 23-02-18 1Y 1M 20D 4 29-07-16 10,00,000.00 19-03-18 1Y 6M 18D 23-02-18 1Y 0M 29D 5 19-08-16 15,00,000.00 19-03-18 1Y 5M 28D 23-02-18 1Y 0M 8D 6 10,28,375.00 19-03-18 1Y 5M 2D 23-02-18 0Y 11M 13D 14-09-16 7 07-10-16 17,49,155.00 19-03-18 1Y 4M 9D 23-02-18 0Y 10M 20D 8 07-11-16 15,66,559.00 19-03-18 1Y 3M 9D 23-02-18 0Y 9M 20D 9 15-12-16 17,47,002.00 19-03-18 1Y 2M 1D 23-02-18 0Y 8M 12D 10 17-01-17 12,11,542.00 19-03-18 1Y 0M 30D 23-02-18 0Y 7M 10D 11 17-02-17 11,83,053.00 19-03-18 0Y 11M 30D 23-02-18 0Y 6M 10D 12 22-03-17 12,17,500.00 19-03-18 0Y 10M 25D 23-02-18 0Y 5M 5D 13 26-04-17 24,44,048.00 19-03-18 0Y 9M 21D 23-02-18 0Y 4M 1D 14 28-04-17 21,76,658.00 19-03-18 0Y 9M 19D 23-02-18 0Y 3M 30D 15 03-08-17 15,00,000.00 06-09-17 0Y 0M 3D 03-08-17 0 16 03-08-17 15,00,000.00 06-09-17 0Y 0M 3D 03-08-17 0 17 12-09-17 20,00,000.00 19-09-17 0 12-09-17 0 18 12-09-17 20,00,000.00 19-09-17 0 12-09-17 0 19 27-10-17 25,00,000.00 16-11-17 0 27-10-17 0 20 27-10-17 25,00,000.00 16-11-17 0 27-10-17 0

FED, MRO, CEFA, M/s Allenwest Ampcontrol India Pvt Ltd, CA No: MUM 868/2019

21 16-02-18 30,00,000.00 06-03-18 0 20-02-18 0 22 16-02-18 30,00,000.00 05-03-18 0 20-02-18 0 23 06-04-18 25,00,000.00 19-04-18 0 26-04-18 0 24 06-04-18 25,00,000.00 19-04-18 0 26-04-18 0 25 11-10-18 20,00,000.00 NA 0 16-10-18 0 26 11-10-18 20,00,000.00 NA 0 16-10-18 0 27 12-12-18 20,00,000.00 NA 0 27-12-18 0 28 12-12-18 20,00,000.00 NA 0 27-12-18 0 TOTAL 4,94,23,092.00 In terms of Para 9 (1) (A) of FEMA 20, 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. However the applicant company reported receipt of remittances to the Reserve Bank of India on dates indicated above in 15 out of 28 total remittances with a delay ranging from 0Y 0M 3D to 1Y 8M 14D.

4 In respect of remittances amounting to Rs.1,83,23,092 (Rupees One Crore Eighty Three Lakh Twenty Three Thousand Ninety Two 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 3M 30D to 1Y 2M 25D. Whereas in terms of para 8 of 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 company allotted equity shares/compulsorily convertible preference shares/compulsorily convertible debentures and filed FC-GPRs as indicated below:

Delay in filing Form FCGPR (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, IP stands for Issue Price and FV stands for Face Value Sno/ Date of Number of IP (FV+ Amount (IP*no Date of Para 9 (1) LSF allotment shares premium) of shares) reporting (B) delay (DD-MM-YY) (in INR) (in INR) (DD-MM-YY)

1 30-09-16 10000 10.00 1,00,000.00 05-12-16 0Y 1M 5D 2 03-08-17 300000 10.00 30,00,000.00 29-03-18 0Y 6M 23D 3 12-09-17 400000 10.00 40,00,000.00 29-03-18 0Y 5M 14D 4 27-10-17 500000 10.00 50,00,000.00 29-03-18 0Y 3M 30D 5 20-02-18 600000 10.00 60,00,000.00 21-03-18 0 6 23-02-18 1832388 10.00 1,83,23,880.00 23-03-18 0 7 26-04-18 500000 10.00 50,00,000.00 23-05-18 0 LSF 16-10-18 400000 10.00 40,00,000.00 20-03-19 LSF Paid Paid LSF 27-12-18 400000 10.00 40,00,000.00 23-05-19 LSF Paid Paid TOTAL 4,94,23,880.00

FED, MRO, CEFA, M/s Allenwest Ampcontrol India Pvt Ltd, CA No: MUM 868/2019

The applicant filed form FC-GPRs as indicated above with a delay ranging from 0Y 1M 5D to 0Y 6M 23D. Whereas, in terms of Para 9(1) (B) of FEMA 20, an Indian company issuing shares in accordance with these Regulations has to submit to RBI a report in Form FC-GPR along with documents prescribed therein within 30 days from the date of issue of shares to Non Resident. In case of the allotment/s amounting to Rs. 80,00,000 (Rupees Eighty Lakh and Zero Paise Only) indicated in the above table as "LSF Paid", they were also reported with a delay. In terms of Regulation 13.2 of FEMA 20R/2017-RB, the person/ entity responsible for filing the reports stipulated in Regulation 13.1 shall be liable for payment of late submission fee, as may be decided by the Reserve Bank, in consultation with the Central Government, for any delays in reporting. Since the applicant has already deposited the LSF amount, this delay has not been taken into consideration for computing the amount for compounding the contraventions.

6 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 July 22, 2019. The applicant appeared for personal hearing on July 25, 2019, during which Ms Rabiya Roopawala, Consultant represented the applicant in the cabin of Shri J.K. Pandey, Chief General Manager, Mumbai Regional Office. The representative 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 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.

7 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: I 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.2,13,23,092 (Rupees Two Crore Thirteen Lakh Twenty Three Thousand Ninety Two and Zero Paise Only) and with a delay ranging from minimum 0Y 0M 3D to maximum 1Y 8M 14D approximately. II Para 9 (1) (B) of FEMA 20, due to the delay in submission of Form FC-GPR to the Reserve Bank after issue of shares to persons resident outside India and the contravention relates to total amount of Rs.1,21,00,000 (Rupees One Crore Twenty One Lakh and Zero Paise Only) and with a delay ranging from minimum 0Y 1M 5D to maximum 0Y 6M 23D approximately.

FED, MRO, CEFA, M/s Allenwest Ampcontrol India Pvt Ltd, CA No: MUM 868/2019

III 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.1,83,23,092 (Rupees One Crore Eighty Three Lakh Twenty Three Thousand Ninety Two and Zero Paise Only) and with a delay ranging from minimum 0Y 3M 30D to maximum 1Y 2M 25D approximately. 8 It has been declared in the compounding application dated April 04, 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. 9 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.1,49,594 (Rupees One Lakh Forty Nine Thousand Five Hundred Ninety Four and Zero Paise Only) will meet the ends of justice.

10 Accordingly, I compound the admitted contravention/s namely, the contravention/s of Para 9 (1) (A) of FEMA 20, Para 9 (1) (B) 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. 1,49,594 (Rupees One Lakh Forty Nine Thousand Five Hundred Ninety Four 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.

11 The above order is passed only in respect of contraventions of Para 9 (1) (A) of FEMA 20, Para 9 (1) (B) 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.

FED, MRO, CEFA, M/s Allenwest Ampcontrol India Pvt Ltd, CA No: MUM 868/2019

12 The application is disposed of accordingly. dated: July 31, 2019 Compounding Authority (J.K. Pandey) Chief General Manager