Adverse remark in ACR has negative impact and can be reason to affect promotion. In your case, work ability is not questioned, so promotion may not effect.

And law is employee to be heard in case of adverse remarks in ACR

Every adverse remark if made in the APAR is liable  to be communicated to the delinquent employee giving an opportunity to challenge such findings.

So in your case you must have been given such and hence you should apply for review of the same.  

If the same is not allowed you have the option of applying for judicial review under writ jurisdiction of the high court or the Administrative Tribunal, as the case may be. 

The adverse report on your performance in the annual assessment report or the performance appraisal report  may be based on the overall information collected from sources about your behavioral attitude and other performances in the department.

It is not necessary that you should have been issued any memo or any other notification cautioning about your behavior, because such issues do not warrant a major disciplinary action but it may adversely affect your annual assessment which may be instrumental for your promotion

However this will not restrict you from making a representation to the higher authorities for reconsideration in case your promotion has been stopped for this reason..

If you have been served with any show cause notice instructing you to show cause or give explanation on certain allegations made agaisnt you, it would be better that you consult an advocate and give a reply which may be legally valid and which may help you to contest the case in future as per law before court. 

If the controlling authority decides to expunge the same then he may follow the rules to initiate the said action, which subsequently be forwarded to the higher office for approval and then the matter shall be disposed. 

According to the Section 2(f) of The All India Service ( Confidential Rolls ) Rules, 1970 “reviewing authority” means authority or authorities supervising the performance of the reporting authority as may be specifically empowered in this behalf by the government. They have to fill in the details regarding their satisfaction with respect to the report presented by the reporting authority and their surety, that if that process was done with due care and attention and after taking into account all the relevant materials, whether they agree with the assessment of the officer as given by the Reporting Authority, in cases of disagreement they have to provide them with reasons regarding the same and they also have to submit their remarks with specific comments about the general assesment and grading given by the reporting authority.

2) All India Services ( Confidential Rolls ) Rules, 1970 defines “accepting authority” as such authority or authorities supervising the performance of the reviewing authority as may be specifically empowered in this behalf by the government. They have to fill in the details regarding their agreement with repsect to the grading or assessment made by the reviewing authority, if they don’t then the reasons regarding the same, with any observations or directions and whether the concerned officer is fit for promotion to the higher grade.

3) in your case reviewing authority has not perused report prepared by controlling authority . 

4) your promotion would depend upon acceptance of assessment made by reviewing authority of report prepared by controlling authority 

The case of R. Ramesh v. Bharath Sanchar Nigam Limited, highlighted that
“'Annual Confidential Report' is an important document for judging an employee/public servant's ability, initiative, capacity, industry and integrity in discharging duties allotted to him. Further, it will provide a cementing platform to evaluate its potentiality to the higher posts in the cadre or otherwise. Ordinarily, the Annual Confidential Reports are recorded annually based on the subjective assessments in regard to the quality of service turned out by the Reported Officer during the calendar year/financial year April to March. It cannot be gainsaid that the said report is initiated by the Superior Officer of the concerned employee/public servant/ Government servant as the case may be, who is in a position to monitor/observe the day to day activities of the employee for a certain period. Subsequently, the said report is reviewed by a higher authority and then accepted by still higher authority, so as to reach perfection in assessing/grading the concerned individual. In this regard, there are administrative instructions issued from time to time by the Department of Personnel and other officers concerned.
The Annual Confidential Reports/Rolls are to be recorded objectively and administrative instructions are issued from time to time laying emphasis that the Reporting Officers are required to state the justification of their reports, of course in the reports itself. To avoid or minimise the error of subjectivity, the Report is prepared at various levels. No wonder, each higher level has the utmost responsibility of moderating the report of the down below officers, before it reaches the stage of final level of acceptance. The Reporting Authority is the Authority who supervise the performance of employees reported upon. The 'Reviewing Authority' is the authority who supervises the performance of Reporting Authority, the Accepting Authority is one who supervises the performance of Reviewing Authority. After review, it is the

Accepting Authority who is to accept report with such modifications as he deems fit and proper, also, the rules may prescribe a time limit within which, the said officer is to perform
The purpose of recording/writing the Annual Confidential Report is to maintain, if not to improve the present standard of public service. Therefore, it is important to usher in confidence the assistance of public servant to improve upon his performance where any shortfall in the standard of his service is noted in the ACRs. However, if the Report is adverse, communication of the Report becomes all the more important. Indeed, the affected officer ought to be provided with an opportunity to show that the Reporting Officer misjudged him or not assessed him in proper prospective. His representation is to reach the level, which is the highest of the levels of the Officers who has taken part in making the reports. The representation is to be attended to without any undue delay and the result is to be communicated to him. “

The question whether a particular remarks recorded in the Confidential Report on the Officer reported upon is an adverse remarks or a critical remarks or not shall be decided by the Accepting Authority .The Confidential Report recorded by the Recording Authority and the Reviewing Authority are not final unless the report is accepted by the Accepting Authority. Therefore, only such adverse remarks or critical remarks which survive after final acceptance by the Accepting Authority should be communicated to an Officer. This

The question whether a particular remarks recorded in the Confidential Report on the Officer reported upon is an adverse remarks or a critical remarks or not shall be decided by the Accepting Authority .The Confidential Report recorded by the Recording Authority and the Reviewing Authority are not final unless the report is accepted by the Accepting Authority. Therefore, only such adverse remarks or critical remarks which survive after final acceptance by the Accepting Authority should be communicated to an Officer. This

The question whether a particular remarks recorded in the Confidential Report on the Officer reported upon is an adverse remarks or a critical remarks or not shall be decided by the Accepting Authority .The Confidential Report recorded by the Recording Authority and the Reviewing Authority are not final unless the report is accepted by the Accepting Authority. Therefore, only such adverse remarks or critical remarks which survive after final acceptance by the Accepting Authority should be communicated to an Officer. This

The question whether a particular remarks recorded in the Confidential Report on the Officer reported upon is an adverse remarks or a critical remarks or not shall be decided by the Accepting Authority .The Confidential Report recorded by the Recording Authority and the Reviewing Authority are not final unless the report is accepted by the Accepting Authority. Therefore, only such adverse remarks or critical remarks which survive after final acceptance by the Accepting Authority should be communicated to an Officer. This

You need to approach the top management and clarify the same. It will be reviewed

1. It can definitely have adverse effect on your promotions because no employer want an employee on a senior position.

2. You should send a request for representation to controlling authority or HR. 

1. As per the information mentioned in the present query, makes it clear that you have been troubled by the controlling authority without knowing the adverse outcome on your career.
2. There can not be any reason so states in the report though the same can be made available to the employee, if asked for.
3. You should try to get your problem resolved by the appellate authority, and if no result then you may have the option to approach the Hon’ble High Court under Writ Jurisdiction seeking immediate removal of the same from the report and issue a fresh report.

All the APAR should be reviewed by the authorities concerned and then go through the accepting authority. This is a lapse on the part of the department concerned. File an OA in CAT against this illegality.

Yes therw are scores of judgements which underline this fact that APAR should be communicated to the employee as it affects his career.

You can file an OA against this APAR which is adverse.