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professional throughout the term of office and also indicated his willingness to continue as an
                  auditor if reappointed by the shareholders of the Company
          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
                      ➢  A Chartered Accountant in practice is deemed to be guilty of professional misconduct if he solicits
                          clients  or  professional  work  either  directly  or  indirectly  by  circular,  advertisement,  personal
                          communication or interview or by any other means except applying or requesting for or inviting or
                          securing  professional  work  from  another  chartered  accountant  in  practice  and  responding  to
                          tenders.

                          Further, section 140(4)(iii) of the Companies Act, 2013, provides a right, to the retiring auditor, to
                          make  representation  in  writing  to  the  company.  The  retiring  auditor  has  the  right  for  his
                          representation to be circulated among the members of the company and to be read out at the
                          meeting. However, the content of letter should be set out in a dignified manner how he has been
                          acting  independently  and  conscientiously  through  the  term  of  his  office  and  may,  in  addition,
                          indicate, if he so chooses, his willingness to continue as auditor, if re- appointed by the shareholders.

                  Part III – Case Discussion
                      ➢  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 professional throughout the term of office and also indicated his willingness to continue as an
                          auditor if reappointed by the shareholders of the Company.

                  Part IV – Conclusion
                      ➢  Thus,  the  incorporation  as  an  independent  professional,  made  by  CA.  Smart,  while  submitting
                          representation under section 140(4)(iii) of the Companies Act, 2013 and indication of willingness to
                          continue as an auditor if reappointed by shareholders, does not leads to solicitation.

                          Therefore, CA. Smart will not be held guilty for professional misconduct under Clause (6) of Part I of
                          First Schedule to the Chartered Accountants Act, 1949.
                  Author’s Note
                  If any question is related to clarification of Clause 6, you have to apply Clause 6. Don’t make word by word
                  interpretation like we do in Tax or Companies Act. Professional Ethics cases are solved by pattern and not
                  by interpretation. This pattern is very simple i.e. if it is related to clarification of clause 6 apply clause 6
                  and if it is related to clarification of clause 7 apply clause 7.

                  First Schedule,  Part I, Cl,6 Clarification  (Representation  by CA  Under   Old Course – (N19E)
          QNO
          676.000   Company Act seeking publicity)
                  TITANIUM CNO – PE.1140
                  Comment with reference to the Chartered Accountants Act, 1949 and schedules thereto:
                  A special notice has been issued for a resolution at 3rd annual general meeting of LED Ltd., providing
                  expressly that CA. Anoop shall not be re-appointed as an auditor of the company. Consequently, CA.
                  Anoop submitted a representation in writing to the company with a request to circulate to the members.
                  In the detailed representation, CA. Anoop included the contributions made by him in strengthening
                  the control procedures of the company during his association with the company and also indicated
                  his willingness to continue as an auditor if reappointed by the shareholders of the company.

          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
                      ➢  A Chartered Accountant in practice is deemed to be guilty of professional misconduct if he solicits
                          clients  or  professional  work  either  directly  or  indirectly  by  circular,  advertisement,  personal
                          communication or interview or by any other means except applying or requesting for or inviting or
                          securing  professional  work  from  another  chartered  accountant  in  practice  and  responding  to
                          tenders.

                          Further, section 140(4)(iii) of the Companies Act, 2013, provides a right, to the retiring auditor, to
                          make  representation  in  writing  to  the  company.  The  retiring  auditor  has  the  right  for  his

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