Waterhealth India Private Limited

In the RESERVE BANK OF INDIA Foreign Exchange Department Secretariat Road Saifabad, Hyderabad 500 004 Present R Subramanian Regional Director Date: May 14, 2018 C.A. HYD 275 In the matter of M/s. Waterhealth India Private Limited Plot No 9-7, Sy No.308/1 Nagaram Village, Keesara Mandal Hyderabad, Telangana – 501 301 (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 January 03, 2018 received on January 04, 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) of Schedule 1 respectively of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 notified vide Notification No.

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 FEMA.20/2000-RB dated 3rd May 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 M/s. Waterhealth India Private Limited under the Companies Act, 1956 on 05.01.2005 (CIN: U41000TG2005PTC072437). The company is engaged in the business of setting up of water health centers and sale of water. The company was originally incorporated in the state of Maharashtra on 05.01.2005 and later shifted its registered office to the State of Andhra Pradesh (Now Telangana) with effect from 04.08.2010. Earlier, the Company was compounded vide compounding order no.393/2009 dated April 22, 2009 for the remittances received during the period from 08.05.2007 to 30.08.2007 under Paragraph 9(1)(A) and Paragraph 8 of Schedule 1 to Notification No. FEMA 20/2000-RB and deposited the compounded amount of ₹ 5,00,000/- at RBI, Central Office, Mumbai. b) The applicant had received foreign inward remittances from single foreign investor towards advance for subscription to equity shares as indicated below: Sl Date of Date of Name of Remitter Amount (INR) No Receipt Reporting 1 Waterhealth International 434700 01-07-2005 21-05-2007 Inc 2 Waterhealth International 134730 04-11-2005 21-05-2007 Inc 3 Waterhealth International 115750 09-12-2005 21-05-2007 Inc 4 Waterhealth International 445900 05-01-2006 21-05-2007 Inc 5 Waterhealth International 666000 27-02-2006 21-05-2007 Inc 6 Waterhealth International 892400 04-04-2006 21-05-2007

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 Inc 7 Waterhealth International 11495000 11-07-2006 21-05-2007 Inc 8 Waterhealth International 6779684 20-10-2006 21-05-2007 Inc 9 Waterhealth International 11165937 22-11-2006 21-05-2007 Inc 10 Waterhealth International 8803692 29-12-2006 21-05-2007 Inc 11 Waterhealth International 8137715 08-05-2007 25-05-2007 Inc 12 Waterhealth International 10179715 18-05-2007 08-06-2007 Inc 13 Waterhealth International 10127216 22-05-2007 08-06-2007 Inc 14 Waterhealth International 10172215 20-06-2007 24-07-2007 Inc 15 Waterhealth International 4021968 03-08-2007 05-09-2007 Inc 16 Waterhealth International 8109716 14-08-2007 05-09-2007 Inc 17 Waterhealth International 5112839 30-08-2007 31-03-2008 Inc 18 Waterhealth International 3536500.72 03-09-2008 14-11-2008 Inc 19 Waterhealth International 11698830 29-09-2008 14-11-2008 Inc 20 Waterhealth International 23398596 29-09-2008 14-11-2008 Inc 21 Waterhealth International 12048795 14-10-2008 14-11-2008 Inc 22 Waterhealth International 7261789.50 16-10-2008 14-11-2008 Inc 23 Waterhealth International 1951268 30-10-2008 14-11-2008 Inc 24 Waterhealth International 2473010.40 17-11-2008 21-11-2008 Inc 25 Waterhealth International 10751111.25 26-11-2008 02-12-2008 Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 26 Waterhealth International 110000000 13-12-2008 19-12-2008 Inc 27 Waterhealth International 12071292.75 29-12-2008 02-01-2009 Inc 28 Waterhealth International 36186052.50 30-12-2008 02-01-2009 Inc 29 Waterhealth International 12086291.25 09-01-2009 04-02-2009 Inc 30 Waterhealth International 12123787.50 23-01-2009 04-02-2009 Inc 31 Waterhealth International 7273787.50 26-01-2009 04-02-2009 Inc 32 Waterhealth International 9878765 17-02-2009 26-02-2009 Inc 33 Waterhealth International 9878765 18-02-2009 21-02-2009 Inc 34 Waterhealth International 2488004.40 19-02-2009 04-03-2009 Inc 35 Waterhealth International 2558976 17-03-2009 23-03-2009 Inc 36 Waterhealth International 1265490.25 30-03-2009 06-04-2009 Inc 37 Waterhealth International 1002498 01-04-2009 06-04-2009 Inc 38 Waterhealth International 2484006 13-04-2009 27-04-2009 Inc 39 Waterhealth International 7455257.25 17-04-2009 24-04-2009 Inc 40 Waterhealth International 12501249.75 21-04-2009 27-04-2009 Inc 41 Waterhealth International 25086548.59 04-05-2009 03-06-2009 Inc 42 Waterhealth International 11821317.75 20-05-2009 01-06-2009 Inc 43 Waterhealth International 11763823.50 21-05-2009 01-06-2009 Inc 44 Waterhealth International 11928807 16-06-2009 24-06-2009 Inc 45 Waterhealth International 2432526.60 14-07-2009 20-07-2009 Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 46 Waterhealth International 12108789 15-07-2009 23-07-2009 Inc 47 Waterhealth International 4815795.75 28-07-2009 04-08-2009 Inc 48 Waterhealth International 12006299.25 30-07-2009 04-08-2009 Inc 49 Waterhealth International 12141285.75 24-08-2009 28-08-2009 Inc 50 Waterhealth International 12043795.50 10-09-2009 18-09-2009 Inc 51 Waterhealth International 8133303.75 25-09-2009 07-10-2009 Inc 52 Waterhealth International 11691330.75 30-10-2009 05-11-2009 Inc 53 Waterhealth International 10837722 19-11-2009 24-11-2009 Inc 54 Waterhealth International 2321071.20 04-12-2009 12-12-2009 Inc 55 Waterhealth International 11601339.75 09-12-2009 28-01-2010 Inc 56 Waterhealth International 10441089.75 11-12-2009 28-01-2010 Inc 57 Waterhealth International 4171472.80 30-12-2009 04-01-2010 Inc 58 Waterhealth International 2269591.80 15-01-2010 22-01-2010 Inc 59 Waterhealth International 10968952.50 27-01-2010 02-02-2010 Inc 60 Waterhealth International 11476352.25 01-02-2010 18-02-2010 Inc 61 Waterhealth International 11503849.50 24-02-2010 13-03-2010 Inc 62 Waterhealth International 11461353.75 25-02-2010 13-03-2010 Inc 63 Waterhealth International 11253874.50 25-03-2010 06-04-2010 Inc 64 Waterhealth International 11026397.25 19-04-2010 08-05-2010 Inc 65 Waterhealth International 5826696.25 27-04-2010 29-05-2010 Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 66 Waterhealth International 8884889.25 04-05-2010 29-05-2010 Inc 67 Waterhealth International 9208848.75 26-05-2010 08-06-2010 Inc 68 Waterhealth International 4603848.75 27-05-2010 08-06-2010 Inc 69 Waterhealth International 10594948.25 28-06-2010 15-07-2010 Inc 70 Waterhealth International 11588841 12-07-2010 20-07-2010 Inc 71 Waterhealth International 11651334.75 26-07-2010 04-08-2010 Inc 72 Waterhealth International 10452338.50 28-07-2010 04-08-2010 Inc 73 Waterhealth International 11633836.50 17-08-2010 27-08-2010 Inc 74 Waterhealth International 9322834.50 31-08-2010 13-09-2010 Inc 75 Waterhealth International 11313868.50 23-09-2010 25-10-2010 Inc 76 Waterhealth International 5530143.75 27-10-2010 19-11-2010 Inc 77 Waterhealth International 113873633.50 23-11-2010 29-12-2010 Inc 78 Waterhealth International 5612627.25 16-12-2010 29-12-2010 Inc 79 Waterhealth International 11136386.25 29-12-2010 07-01-2011 Inc 80 Waterhealth International 10371872.50 13-01-2011 24-01-2011 Inc 81 Waterhealth International 11426357.25 28-01-2011 04-03-2011 Inc 82 Waterhealth International 11338866 09-02-2011 04-03-2011 Inc 83 Waterhealth International 11226377.25 24-02-2011 11-03-2011 Inc 84 Waterhealth International 8982877 10-03-2011 27-04-2011 Inc 85 Waterhealth International 11158884 21-03-2011 27-04-2011 Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 86 Waterhealth International 11051394.75 30-03-2011 02-05-2011 Inc 87 Waterhealth International 10857292 18-04-2011 18-05-2011 Inc 88 Waterhealth International 11053894.50 25-04-2011 03-05-2011 Inc 89 Waterhealth International 29131655.40 05-08-2011 16-08-2011 Inc 90 Waterhealth International 30270581 15-09-2011 22-09-2011 Inc 91 Waterhealth International 10948905 28-07-2011 21-12-2011 Inc 92 Waterhealth International 20002499.70 21-10-2011 04-11-2011 Inc 93 Waterhealth International 9822772 07-11-2011 29-12-2011 Inc 94 Waterhealth International 12853714.50 21-11-2011 27-12-2011 Inc 95 Waterhealth International 6477454.25 28-11-2011 20-12-2011 Inc 96 Waterhealth International 3078600 05-12-2011 20-12-2011 Inc 97 Waterhealth International 5190470 13-12-2011 20-12-2011 Inc 98 Waterhealth International 4783500 28-12-2011 13-01-2012 Inc 99 Waterhealth International 3714900 29-12-2011 13-01-2012 Inc 100 Waterhealth International 9810773.50 27-02-2012 05-03-2012 Inc 101 Waterhealth International 5011500 05-03-2012 13-03-2012 Inc 102 Waterhealth International 4988000 13-03-2012 20-03-2012 Inc 103 Waterhealth International 5021000 19-03-2012 29-03-2012 Inc 104 Waterhealth International 5084000 27-03-2012 05-04-2012 Inc 105 Waterhealth International 164887227.95 29-03-2012 05-04-2012 Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 106 Waterhealth International 5347000 25-09-2012 05-10-2012 Inc 107 Waterhealth International 1871450 26-09-2012 05-11-2012 Inc 108 Waterhealth International 2627500 27-09-2012 05-10-2012 Inc 109 Waterhealth International 3908250 05-10-2012 05-11-2012 Inc 110 Waterhealth International 16141385.70 29-10-2012 06-11-2012 Inc 111 Waterhealth International 4936500 14-11-2012 07-12-2012 Inc 112 Waterhealth International 13781121.75 28-11-2012 07-12-2012 Inc 113 Waterhealth International 20255857.50 17-12-2012 03-01-2013 Inc 114 Waterhealth International 2740000 27-12-2012 03-01-2013 Inc 115 Waterhealth International 5500000 07-01-2013 30-01-2013 Inc 116 Waterhealth International 16294370.40 10-01-2013 30-01-2013 Inc 117 Waterhealth International 12059516.85 28-01-2013 06-02-2013 Inc 118 Waterhealth International 3445650 06-02-2013 20-02-2013 Inc 119 Waterhealth International 5374000 12-02-2013 20-02-2013 Inc 120 Waterhealth International 1086400 20-02-2013 11-03-2013 Inc 121 Waterhealth International 13488381.20 25-02-2013 11-03-2013 Inc 122 Waterhealth International 5456000 06-03-2013 12-03-2013 Inc 123 Waterhealth International 4345600 13-03-2013 19-03-2013 Inc 124 Waterhealth International 5415000 25-03-2013 09-04-2013 Inc 125 Waterhealth International 3795400 26-03-2013 09-04-2013 Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 126 Waterhealth International 3254400 02-04-2013 09-04-2013 Inc 127 Waterhealth International 2722500 03-04-2013 09-04-2013 Inc 128 Waterhealth International 2703000 25-04-2013 06-05-2013 Inc 129 Waterhealth International 3225600 03-05-2013 14-05-2013 Inc 130 Waterhealth International 3832500 10-05-2013 10-06-2013 Inc 131 Waterhealth International 11202319.40 28-05-2013 03-06-2013 Inc 132 Waterhealth International 5095800 05-06-2013 08-07-2013 Inc 133 Waterhealth International 5974000 25-06-2013 05-07-2013 Inc 134 Waterhealth International 5990000 03-07-2013 16-07-2013 Inc 135 Waterhealth International 1488750 16-07-2013 24-07-2013 Inc 136 Waterhealth International 4756000 22-07-2013 31-07-2013 Inc 137 Waterhealth International 4451250 26-07-2013 08-08-2013 Inc 138 Waterhealth International 2967500 29-07-2013 08-08-2013 Inc 139 Waterhealth International 3640200 07-08-2013 21-08-2013 Inc 140 Waterhealth International 1845750 14-08-2013 29-08-2013 Inc 141 Waterhealth International 5224000 26-08-2013 04-09-2013 Inc 142 Waterhealth International 5588390 27-08-2013 07-10-2013 Inc 143 Waterhealth International 5772600 09-09-2013 07-10-2013 Inc 144 Waterhealth International 3156000 16-09-2013 07-10-2013 Inc 145 Waterhealth International 2473600 25-09-2013 07-10-2013 Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 146 Waterhealth International 6182000 25-09-2013 03-10-2013 Inc 147 Waterhealth International 2466000 26-09-2013 03-10-2013 Inc 148 Waterhealth International 5034800 04-10-2013 15-10-2013 Inc 149 Waterhealth International 5224100 08-10-2013 11-11-2013 Inc 150 Waterhealth International 6176000 08-10-2013 18-10-2013 Inc 151 Waterhealth International 27600546.40 25-10-2013 08-11-2013 Inc 152 Waterhealth International 6214500 27-11-2013 03-12-2013 Inc 153 Waterhealth International 5279350 29-11-2013 09-12-2013 Inc 154 Waterhealth International 3978650 03-12-2013 11-12-2013 Inc 155 Waterhealth International 6164000 24-12-2013 03-01-2014 Inc 156 Waterhealth International 6164000 26-12-2013 03-01-2014 Inc 157 Waterhealth International 5855800 06-01-2014 13-01-2014 Inc 158 Waterhealth International 6187000 07-01-2014 27-01-2014 Inc 159 Waterhealth International 6157000 09-01-2014 20-01-2014 Inc 160 Waterhealth International 4314800 08-01-2014 27-01-2014 Inc 161 Waterhealth International 6132000 10-01-2014 27-01-2014 Inc 162 Waterhealth International 6172000 22-01-2014 29-01-2014 Inc 163 Waterhealth International 6244000 23-01-2014 12-04-2014 Inc 164 Waterhealth International 5439875 04-02-2014 10-02-2014 Inc 165 Waterhealth International 5285300 05-02-2014 10-02-2014 Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 166 Waterhealth International 3726000 07-02-2014 19-02-2014 Inc 167 Waterhealth International 6201000 19-02-2014 24-02-2014 Inc 168 Waterhealth International 6171000 20-02-2014 28-02-2014 Inc 169 Waterhealth International 3702600 21-02-2014 28-02-2014 Inc 170 Waterhealth International 6170000 24-02-2014 07-03-2014 Inc 171 Waterhealth International 18000599.60 24-03-2014 07-04-2014 Inc 172 Waterhealth International 11758236 06-06-2014 22-07-2014 Inc 173 Waterhealth International 26853612.80 25-06-2014 04-07-2014 Inc 174 Waterhealth International 3594600 30-07-2014 07-08-2014 Inc 175 Waterhealth International 22002200 28-08-2014 15-09-2014 Inc 176 Waterhealth International 30680000 30-09-2014 13-10-2014 Inc 177 Waterhealth International 184740000 19-11-2014 26-11-2014 Inc 178 Waterhealth International 63560000 31-12-2014 08-01-2015 Inc 179 Waterhealth International 32939012 01-09-2015 09-09-2015 Inc 180 Waterhealth International 22696527 28-10-2015 02-11-2015 Inc 181 Waterhealth International 4987500 04-12-2015 11-12-2015 Inc 182 Waterhealth International 6668000 10-12-2015 11-12-2015 Inc 183 Waterhealth International 21465259.25 30-12-2015 01-01-2016 Inc 184 Waterhealth International 6332700 12-01-2016 16-01-2016 Inc 185 Waterhealth International 25028373.83 13-01-2016 16-01-2016 Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 186 Waterhealth International 15134740.95 03-03-2016 22-03-2016 Inc 187 Waterhealth International 6730000 11-03-2016 11-04-2016 Inc 188 Waterhealth International 4225725 14-03-2016 11-04-2016 Inc 189 Waterhealth International 5030250 15-03-2016 11-04-2016 Inc 190 Waterhealth International 29924002.50 29-03-2016 13-04-2016 Inc 191 Waterhealth International 23309001 26-04-2016 01-05-2016 Inc 192 Waterhealth International 4023000 21-06-2016 30-06-2016 Inc 193 Waterhealth International 5085000 28-06-2016 10-08-2016 Inc 194 Waterhealth International 1068800 15-07-2016 02-08-2016 Inc 195 Waterhealth International 13723745.75 31-08-2016 09-09-2016 Inc 196 Waterhealth International 5142750 30-11-2016 26-12-2016 Inc 197 Waterhealth International 2373350 08-12-2016 26-12-2016 Inc 198 Waterhealth International 1686500 15-12-2016 02-01-2017 Inc 199 Waterhealth International 1186675 22-12-2016 02-01-2017 Inc 200 Waterhealth International 20391480.38 30-12-2016 09-01-2017 Inc 201 Waterhealth International 27190980.30 12-01-2017 20-01-2017 Inc 202 Waterhealth International 3402500 20-01-2017 24-01-2017 Inc 203 Waterhealth International 25221491.10 03-02-2017 14-02-2017 Inc 204 Waterhealth International 20052497.33 15-02-2017 04-03-2017 Inc 205 Waterhealth International 3266000 22-03-2017 05-04-2017 Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 206 Waterhealth International 16133580.12 30-06-2017 05-07-2017 Inc 207 Waterhealth International 28947084.74 13-07-2017 22-07-2017 Inc 208 Waterhealth International 12794592.44 01-08-2017 16-08-2017 Inc 209 Waterhealth International 12776594.42 10-08-2017 07-09-2017 Inc 210 Waterhealth International 19201591.78 05-09-2017 23-09-2017 Inc 211 Waterhealth International 6410589.36 19-09-2017 26-09-2017 Inc 212 Waterhealth International 7536807.90 27-09-2017 18-10-2017 Inc Total 251,90,08,250.31

The applicant received the foreign inward remittances amounting to ₹251,90,08,250.31/- as indicated above and the same were reported to Reserve Bank of India, out of which remittances amounting to ₹37,62,55,772.97/- were reported with delays ranging from 1 day to 1 year 9 months 20 days approximately beyond the prescribed period of 30 days. This amount of contravention excludes the remittances at serial numbers from 11 to 17 in the above table as they were already compounded at FED, CO vide compounding order no.CA393/2009 dated April 22,2009. 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 the following shares in total and filed form FC-GPRs as indicated below:

Sl Name of Date of Number of Amount for Date of No investor allotment of shares/CC which shares reporting to shares PS allotted allotted (INR) AD or RBI

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 1 Waterhealth Equity- International Inc 43470 18-04-2007 40933790 21-05-2007 *RNCPS- 4049909 2 Waterhealth 19-12-2008 18311990 183119900 19-02-2009 International Inc 3 Waterhealth 28-01-2009 6034363 60343630 19-02-2009 International Inc 4 Waterhealth 12-03-2009 5586138 55861380 30-03-2009 International Inc 5 Waterhealth 13-07-2009 12951109 129511090 28-07-2009 International Inc 6 Waterhealth 17-08-2009 1935711 19357110 28-08-2009 International Inc 7 Waterhealth 17-12-2009 6685374 66853740 12-01-2010 International Inc 8 Waterhealth 17-05-2010 8746894 87468940 16-06-2010 International Inc 9 Waterhealth 16-10-2010 11610868 116108680 23-11-2010 International Inc 10 Waterhealth 25-04-2011 22256671 222566710 28-05-2011 International Inc 11 Waterhealth 23-09-2011 7045613 70456130 15-11-2011 International Inc 12 Waterhealth 23-12-2011 1094890 10948900 29-12-2011 International Inc 13 Waterhealth 14-04-2012 9583918 95839180 05-05-2012 International Inc 14 Waterhealth 21-09-2012 16488722 164887220 20-10-2012 International Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 15 Waterhealth 21-03-2013 13431338 134313380 03-04-2013 International Inc 16 Waterhealth 06-09-2013 4049631 40496310 26-09-2013 International Inc 17 Waterhealth 29-11-2013 11110728 111107280 19-12-2013 International Inc 18 Waterhealth 31-03-2014 12355953 123559530 23-09-2014 International Inc 19 Waterhealth 22-07-2014 3861184 38611840 12-11-2014 International Inc 20 Waterhealth 04-09-2014 2559680 25596800 12-11-2014 International Inc 21 Waterhealth 07-11-2014 3067000 30670000 25-11-2014 International Inc 22 Waterhealth 28-11-2014 1000 10000 29-01-2015 International Inc 23 Waterhealth 22-12-2014 18474000 184740000 16-02-2015 International Inc 24 Waterhealth 27-02-2015 6356000 63560000 05-03-2015 International Inc 25 Waterhealth 29-09-2015 3293901 32939010 27-10-2015 International Inc 26 Waterhealth 25-11-2015 2269652 22696520 22-12-2015 International Inc 27 Waterhealth 02-01-2016 3312075 33120750 06-04-2016 International Inc 28 Waterhealth 13-02-2016 3136107 31361070 11-03-2016 International Inc 29 Waterhealth 24-03-2016 3112071 31120710 15-06-2016 International Inc

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 30 Waterhealth 07-05-2016 5323300 53233000 16-06-2016 International Inc 31 Waterhealth 29-06-2016 910800 9108000 31-08-2016 International Inc 32 Waterhealth 12-08-2016 106880 1068800 31-08-2016 International Inc 33 Waterhealth 30-09-2016 1372374 13723740 27-10-2016 International Inc 34 Waterhealth 23-12-2016 1038927 10389270 03-01-2017 International Inc 35 Waterhealth 21-01-2017 5098496 50984960 21-03-2017 International Inc 36 Waterhealth 27-02-2017 4527398 45273980 21-03-2017 International Inc 37 Waterhealth 06-04-2017 326600 3266000 05-05-2017 International Inc 38 Waterhealth 25-07-2017 4508066 45080660 07-09-2017 International Inc 39 Waterhealth 28-08-2017 2557118 25571180 26-09-2017 International Inc 40 Waterhealth 31-10-2017 3314898 33148980 30-11-2017 International Inc Total 251900817 251,90,08,170 *RNCPS-Redeemable Non-Convertible Preference Shares

The applicant filed form FCGPRs for issue of shares amounting to ₹251,90,08,170/- as indicated above out of which shares amounting to ₹122,83,51,460/- were reported with delays ranging from 3 days to 4 months 24 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

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 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.

3. (a) The applicant was given an opportunity for personal hearing vide Reserve Bank’s letter No. HY.FE.FID/1919/14.66.003/2017-18 dated May 03, 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 09, 2018 during which Shri. M. Santosh, Assistant Manager and Shri B. Venkatesh Babu, Company Secretary represented the applicant. The authorized representative 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 lack of proper guidance on compliance requirements. 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 ₹37,62,55,772.97/- and the delay ranges from 1 day to 1 year 9 months 20 days approximately.

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 (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 ₹122,83,51,460/- and the delay ranges from 3 days to 4 months 24 days approximately.

5. It has been declared in the compounding application dated January 03, 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 January 03, 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 ₹3,99,953/- (Rupees Three Lakh Ninety Nine Thousand Nine Hundred Fifty Three 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

Compounding of contraventions under FEMA 1999 M/s Waterhealth India Private Limited CA No. HYD 275 ₹3,99,953/- (Rupees Three Lakh Ninety Nine Thousand Nine Hundred Fifty Three 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 14th day of May 2018

Sd/- (R Subramanian) Regional Director