Board resolution authorising a compounding application

Certified true copy of the resolution passed by the Board of Directors of [Name of the company] at its meeting held on [Date of the Board meeting]

Compounding of contraventions under the Foreign Exchange Management Act, 1999

The Board considered the note dated [Date of the note placed before the Board] prepared by [the CFO / [Name of the firm]] setting out: (a) the contraventions of the Foreign Exchange Management Act, 1999 and the regulations made under it identified in respect of [describe transactions]; (b) the rectification and administrative action completed; (c) the Late Submission Fee paid for the reports within three years of their due dates; and (d) the estimated compounded amount computed under the Master Direction – Compounding of Contraventions. The Board noted that an application for compounding involves an admission of the contraventions, that the compounding order will be published by the Reserve Bank of India, and that a similar contravention within three years of the order will not be compoundable.