Suprasoft Technologies Private Limited

In the RESERVE BANK OF INDIA Foreign Exchange Department Secretariat Road Saifabad, Hyderabad 500 004 Present N Sara Rajendra Kumar General Manager Date: October 04, 2018 C.A. HYD 323 In the matter of M/s. Suprasoft Technologies Private Limited Plot No. 92,93 & 94, Survey No. 40 and 41(part) Guttala Begumpet village Kavuri Hills, Hyderabad Telanagana - 500081 (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 July 19, 2018 received on August 01, 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

Compounding of contraventions under FEMA 1999 M/s Suprasoft Technologies Private Limited CA No. HYD 323 India) Regulations, 2000 notified vide Notification No. FEMA.20/2000-RB dated May 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, 1956 on 14.09.2016 (CIN: U72200TG2016PTC111969). The company is engaged in the business of information technology and computer service activities. b) The applicant had received foreign inward remittances from two foreign investors towards advance for subscription to equity shares as indicated below. Sl Name of the Total Date of Date of No Remitter Amount Receipt Reporting (INR) 1 Suprasoft Inc 990000 02.11.2016 05.04.2017 2 Suprasoft Inc 1018350 24.11.2016 05.04.2017 3 Suprasoft Inc 658100 08.03.2017 11.04.2017 4 Satya Narayana 1356200 09.01.2017 25.01.2017 Reddy Kandimalla 5 Suprasoft Inc 3238000 31.10.2017 01.01.2018 Total 72,60,650

The applicant received the foreign inward remittances amounting to `72,60,650/-as indicated above out of which remittances amounting to `59,04,450/- were reported to Reserve Bank of India with delays ranging from 4 days to 4 months 3 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 Compounding of contraventions under FEMA 1999 M/s Suprasoft Technologies Private Limited CA No. HYD 323 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 reporting of shares CCPS shares allotted allotted (INR) 1 Suprasoft Inc 02.11.2016 99000 990000 05.07.2017 2 Suprasoft Inc 24.11.2016 101835 1018350 05.07.2017 3 Satya Narayana 09.01.2017 135620 1356200 05.07.2017 Reddy Kandimalla 4 Suprasoft Inc 08.03.2017 65810 658100 05.07.2017 5 Suprasoft Inc 02.11.2017 323800 3238000 30.05.2018 Total 726065 72,60,650

The applicant filed form FCGPRs for issue of shares amounting to `72,60,650/- as indicated above and the same were reported with delays ranging from 2 months 28 days to 7 months 3 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.

Compounding of contraventions under FEMA 1999 M/s Suprasoft Technologies Private Limited CA No. HYD 323 3. (a) The applicant was given an opportunity for personal hearing vide Reserve Bank’s letter No. HY.FE.FID/611/14.66.003/2018-19 dated September 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 October 03, 2018 during which Shri. Y Eshwar Sharma, Practicing Company Secretary 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 shortage of staff and lack of proper guidance in compliance matters. 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 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 `59,04,450/- and the delay ranges from 4 days to 4 months 3 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 ` 72,60,650/- and the period of contravention ranges from 2 months 28 days to 7 months 3 days approximately. 5. It has been declared in the compounding application dated July 19, 2018 that the particulars given by the applicant in the application are true and correct to the best of Compounding of contraventions under FEMA 1999 M/s Suprasoft Technologies Private Limited CA No. HYD 323 their knowledge and belief. It has been declared in the declaration dated July 19, 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. 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 ` 26,420/- (Rupees Twenty Six Thousand Four Hundred Twenty 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 ` 26,420/- (Rupees Twenty Six Thousand Four Hundred Twenty 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.

Compounding of contraventions under FEMA 1999 M/s Suprasoft Technologies Private Limited CA No. HYD 323

The application is disposed accordingly. Dated this 04th day of October 2018

Sd/- (N Sara Rajendra Kumar) General Manager