Mysmartprice Web Technology Private Limited

In the RESERVE BANK OF INDIA Foreign Exchange Department Secretariat Road Saifabad, Hyderabad 500 004 Present R Subramanian Regional Director Date: June 07, 2018 C.A. HYD 298 In the matter of M/s. Mysmartprice Web Technology Private Limited 4th Floor, GNR's RV Insignia Image Garden Road, Silicon Valley Madhapur, Hyderabad – 500 081 (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 submitted the compounding application dated March 16, 2018 received by us on March 21, 2018 for compounding of contraventions of the provision of the Foreign Exchange Management Act, 1999 (FEMA) and the regulations issued there under. The contraventions sought to be compounded are (i) delay in reporting of receipt of foreign inward remittances towards subscription of equity and (ii) delay in submission of Form FCGPR to the Reserve Bank after issue of shares to a person resident outside India in terms of Paragraph 9(1)(A) and Paragraph 9(1)(B) of Schedule 1 to Foreign Exchange Management (Transfer or Issue of Security by a person resident outside India) Regulations, 2000 notified vide

Compounding of contraventions under FEMA 1999 M/s Mysmartprice Web Technology Private Limited CA No. HYD 298 Notification no. FEMA. 20/2000-RB dated 3rd May 2000 (herein after 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, 1956 on July 14, 2011 (CIN:U72900TG2011PTC075505). The company is engaged in the business of design and development of websites, to sell the advertisement space on website, referrals to the affiliate websites. b) The applicant had received foreign inward remittances from the following foreign investors as indicated below: Sl Name of Remitter Amount (INR) Date of Date of No Receipt Reporting 1 Helion Venture Partners II 9999500 25.10.2011 23.11.2011 LLC 2 Accel India III (Mauritius ) 9999990 14.05.2012 19.06.2012 Ltd 3 Helion Venture Partners II 30000159 06.12.2013 09.01.2014 LLC 4 Accel India III (Mauritius ) 30000159 09.12.2013 09.01.2014 Ltd 5 Helion Venture Partners II 132433869.55 18.06.2015 16.07.2015 LLC 6 Accel India III (Mauritius ) 121556597 19.06.2015 16.07.2015 Ltd 7 Accel Growth III Holdings 380992559 23.06.2015 16.07.2015 (Mauritius) Ltd Total 71,49,82,833.55

The applicant reported receipt of remittances towards share subscription amounting to ₹ 71,49,82,833.55/- to the Regional Office of Reserve Bank of India, out of which remittances amounting to ₹ 7,00,00,308/- were reported with a delay ranging from 1

Compounding of contraventions under FEMA 1999 M/s Mysmartprice Web Technology Private Limited CA No. HYD 298 day to 6 days approximately as indicated above. 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 equity shares and filed form FC-GPRs as indicated below:

Sl Name of investor Date of Number of Amount for Date of No allotment of shares/CCP which shares Reporting shares S allotted allotted (INR) 1 Helion Venture Partners 07.11.2011 28570 9999500 04.04.2012 II LLC (CCPS) 2 Accel India III 21.05.2012 15873 9999990 25.09.2012 (Mauritius ) Ltd (CCPS) 3 Helion Venture Partners 06.01.2014 13227 30000159 18.04.2015 II LLC (CCPS) Accel India III 13227 30000159 (Mauritius ) Ltd (CCPS) 4 Helion Venture Partners 23.06.2015 9655 132433869.55 06.12.2016 II LLC (CCPS) Accel India III 8862 121556597 (Mauritius ) Ltd (CCPS) Accel Growth III 100 380992559 Holdings(Mauritius) Ltd (Equity) Accel Growth III 27676 Holdings(Mauritius) Ltd (CCPS) Total 71,49,82,833.55

The applicant filed form FCGPRs for the allotment of shares amounting to ₹ 71,49,82,833.55/- as indicated above, which were reported with a delay ranging from 3 months 5 days to 1 year 4 months 14 days approximately beyond the Compounding of contraventions under FEMA 1999 M/s Mysmartprice Web Technology Private Limited CA No. HYD 298 prescribed limit. 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 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/2085/14.66.003/2017-18 dated May 28, 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 May 30, 2018 during which Shri. Sulakshan Kumar, Co-founder & CEO and Shri. Shaik Gouse, Company Secretary, represented the applicant. The authorized representatives of the applicant 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 inadvertence / oversight. 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 is, therefore, being considered on the basis of the averments made in the application.

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 ₹ 7,00,00,308/- and the delay ranges from 1 day to 6 days approximately.

Compounding of contraventions under FEMA 1999 M/s Mysmartprice Web Technology Private Limited CA No. HYD 298 (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 ₹ 71,49,82,833.55/- and the delay ranges from 3 months 5 days to 1 year 4 months 14 days approximately.

5. It has been declared in the compounding application dated March 16, 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 April 23, 2018 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.

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 ₹ 2,37,680/- (Rupees Two Lakh Thirty Seven Thousand Six Hundred Eighty 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

Compounding of contraventions under FEMA 1999 M/s Mysmartprice Web Technology Private Limited CA No. HYD 298 Exchange (Compounding Proceedings) Rules, 2000 on payment of an amount ₹ 2,37,680/- (Rupees Two Lakh Thirty Seven Thousand Six Hundred Eighty 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 07th day of June 2018

Sd/- (R Subramanian) Regional Director