UASC Services (India) Pvt Ltd

CA No. MUM 1003/2019 In the matter of UASC Services (India) Private Limited 403 & 404, Satellite Gazebo A Wing, 4th Floor, Hargovindji Marg, 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 October 22, 2019, received at the Reserve Bank on November 19, 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 as amended from time to time (hereinafter referred to as FEMA 20) and Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations 2017, notified vide Notification No FEMA 20R/2017 RB dated November 07, 2017, as amended from time to time (hereinafter referred to as FEMA 20R):

(i) Para 9 (1) (A) of FEMA 20: Delay in reporting receipt of foreign inward remittance towards subscription to equity

FED, MRO, CEFA, UASC Services (India) Private Limited, CA No: MUM 1003/2019 (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 9 (2) of FEMA 20 / Para 13.1.3 of FEMA 20R: Delay in filing ‘Annual Return on Foreign Liabilities and Assets’ (FLA Returns).

2 Brief details of the applicant company are as follows: Date of Incorporation November 06, 2012 Its main activities are: BPO & KPO 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 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

Sr. Date of Amount Date of Delay in Date of Delay in No/ inward received reporting reporting allotment/ allotment LSF remittance (in INR) to RBI Foreign refund or refund (DD-MM-YY) (DD-MM-YY) Investment (DD-MM-YY)

1 11-03-13 0Y 1M 26D 18-01-13 0Y 0M 0D 13-12-12 10,00,000.00 2 14-08-14 0Y 2M 16D 24-09-14 0Y 0M 0D 28-04-14 1,83,72,787.00 3 31-08-18 3Y 10M 29D 24-09-14 0Y 0M 0D 02-09-14 1,67,78,628.35 4 31-08-18 3Y 10M 12D 24-09-14 0Y 0M 0D 19-09-14 2,67,60,803.23 TOTAL 6,29,12,219.00 In terms of Para 9 (1) (A) of FEMA 20, an Indian company issuing equity shares/ compulsorily convertible debentures/compulsorily convertible preference shares 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 reported receipt of remittances to the Reserve Bank of India on dates indicated above with a delay ranging from 0Y 1M 26D to 3Y 10M 29D, in case of all the remittances.

FED, MRO, CEFA, UASC Services (India) Private Limited, CA No: MUM 1003/2019 4 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

Sr. Date of Number of IP (FV+ Amount (IP*no Date of Delay in no/ allotment shares premium) of shares) reporting filing LSF (DD-MM-YY) (in INR) (in INR) (DD-MM-YY) FCGPR

1 18-01-13 100000 10.00 09-02-13 0 10,00,000.00 2 24-09-14 6191221 10.00 28-10-14 0Y 0M 3D 6,19,12,210.00 3 11-12-15 539478 10.00 15-03-16 0Y 2M 2D 53,94,780.00 TOTAL 6,83,06,990.00 The applicant filed form FC-GPRs as indicated above with a delay ranging from 0Y 0M 3D to 0Y 2M 2D. 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. 5 The company has delayed in filing the Annual Return on Foreign Liabilities and Assets (FLA return) to the Reserve Bank of India for the Financial Years 2012-13, 2013-14, 2014- 15, 2015-16, 2016-17 and 2017-18. Whereas, in terms of Para 9(2) of FEMA 20 / Para 13.1.3 of FEMA 20R, all Indian companies which have received Foreign Direct Investment in the previous years including the current year, shall submit to the Reserve Bank of India, on or before the due date (as applicable) each year, a report titled ‘Annual Return on Foreign Liabilities and Assets’ as specified by the Reserve Bank from time to time.

FED, MRO, CEFA, UASC Services (India) Private Limited, CA No: MUM 1003/2019 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 February 18, 2020. The applicant appeared for personal hearing on February 24, 2020, during which Shri Keval Bhinde, Consultant, Ms Seema Choudhary, Consultant and Shri Jeevan Kelkar, Director of the Company represented the applicant in the office of the Compounding Authority. The representatives of the applicant admitted the contraventions for which compounding has been sought. During the hearing by the Compounding Authority the representative of the applicant submitted that the delay was inadvertant and unintentional. They 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.6,29,12,219/- (Rupees Six Crore Twenty Nine Lakh Twelve Thousand Two Hundred Nineteen and Zero Paise Only) and with a delay ranging from minimum 0Y 1M 26D to maximum 3Y 10M 29D 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.6,73,06,990/- (Rupees Six Crore Seventy Three Lakh Six Thousand Nine Hundred Ninety and Zero Paise Only) and with a delay ranging from minimum 0Y 0M 3D to maximum 0Y 2M 2D approximately.

(iii) Para 9 (2) of FEMA 20 / Para 13.1.3 of FEMA 20R, due to non-filing/delay in filing of Annual Return on Foreign Liabilities and Assets for the Financial Years 2012-13, 2013- 14, 2014-15, 2015-16, 2016-17 and 2017-18.

FED, MRO, CEFA, UASC Services (India) Private Limited, CA No: MUM 1003/2019 8 It has been declared in the compounding application dated October 22, 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.4,90,250/- (Rupees Four Lakh Ninety Thousand Two Hundred Fifty 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 9 (2) of FEMA 20 / Para 13.1.3 of FEMA 20R, 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. 4,90,250/- (Rupees Four Lakh Ninety Thousand Two Hundred Fifty 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 9 (2) of FEMA 20/ Para 13.1.3 of FEMA 20R and does not restrict the rights of any other authority to proceed against the Company for any other violations/contraventions noticed at any point of time. 12 The application is disposed of accordingly. Sd/- (Aviral Jain)

FED, MRO, CEFA, UASC Services (India) Private Limited, CA No: MUM 1003/2019 Chief General Manager and Compounding Authority Dated: February 28, 2020