Page 385 - CA Final PARAM Digital Book.

➢ Mr. Nigal, delivered a speech and while delivering the speech, he told to the audience that he is a
management expert and his firm provides services of taxation and audit at reasonable rates. He also
requested the audience to approach his firm of chartered accountants for these services and at the
request of audience he also distributed his business cards and telephone number of his firm to those
in the audience

Part IV – Conclusion
➢ It is improper to use designation "Management Expert" by Mr. Nigal since neither it is a degree of a
University established by law in India or recognised by the Central Government nor it is a recognised
professional membership by the Central Government or the Council.

Therefore, he is deemed to be guilty of professional misconduct under both Clause (6) and Clause (7)
as he has used the designation “Management Expert” in his speech and also, he has made reference
to the services provided by his firm of Chartered Accountants at reasonable rates. Distribution of cards
to audience is also a misconduct in terms of Clause (6).

First Schedule, Part I,Cl,6 Clarification (Public Interview) [TV Old Course – (N08R, PM17 SM17, SM21)
QNO New Course – (SM23)
674.000 Interview Case]
TITANIUM CNO – PE.1140
A partner of a firm of chartered accountants during a T.V. interview handed over a bio-data of his firm
to the chairperson. Such bio-data detailed the standing of the international firm with which the firm was
associated. It also detailed the achievements of the concerned partner and his recognition as an expert in
the field of taxation in the country. The chairperson read out the said bio-data during the interview.
Discuss whether this action by the Chartered Accountant would amount to misconduct or not.
Answer Part I -- Relevant Laws
▪ Clause (6) of Part I of First Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws
➢ The clause prohibits solicitation of client or professional work either directly or indirectly by circular,
advertisement, personal communication or interview or by any other means since it shall constitute
professional misconduct.

Part III – Case Discussion
➢ The bio-data was handed over to the chairperson during the T.V. interview by the Chartered
Accountant which included details about the firm and the achievements of the partner as an expert
in the field of taxation. The chairperson simply read out the same in detail about association with
the international firm as also the achievements of the partner and his recognition as an expert in
the field of taxation. Such an act would definitely lead to the promotion of the firms’ name and
publicity thereof as well as of the partner and as such the handing over of bio-data cannot be
approved.

Part IV – Conclusion
➢ The partner would be held guilty of professional miscount under Clause (6) of Part I of the First
Schedule to the Chartered Accountants Act, 1949.

Author’s Note
Conclusion
If there is reference to word interview go for clause 6 where firm name is allowed but not highlighting
and publicity.

If there is appearance in programs of television / radio or films then firm name is not allowed.
If question specifies TV interview apply clause 6, as we have specific clarification about “Public Interview”

First Schedule, Part I,Cl,6 Clarification (Representation by Old Course – (M15R, M16M, PM17, M18M,
QNO CA Under Company Act) M19M)
675.000
TITANIUM CNO – PE.1140
A special notice has been issued for a resolution at 3rd annual general meeting of Fiddle Ltd. providing
expressly that CA. Smart shall not be re-appointed as an auditor of the company. Consequently, CA. Smart

submitted a representation in writing to the company as provided under section 140(4)(iii) of the
Companies Act, 2013. In the representation, CA. Smart incorporated his independent working as a

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