Page 398 - CA Final PARAM Digital Book.

It may be noted that, in Client Companies’ offer documents and advertisements regarding
capital issue, name and address of the Chartered Accountant acting as Advisor or Consultant
to the Issue could be indicated under the caption “Advisor/ Consultant to the Issue”.
Further, such members should not use the designation of either ‘Merchant Banker’ or
‘Advisor/Consultant to Issue’ in their own letterheads, visiting cards, professional
documents, etc.

Part III – Case Discussion
➢ In the given case, Mr. SP, a Chartered Accountant, has obtained registration as category IV Merchant
banker and acted as advisor to a capital issue of MB Co. Ltd. He has designated himself under the
caption “Merchant Banker” in client offer documents and “advisor to issue’ in his own letterheads,
visiting cards and professional documents

Part IV – Conclusion
➢ Therefore, Mr. SP shall be held guilty of professional misconduct as per Clause (7) of Part I of First
Schedule to the Chartered Accountants Act, 1949.

QNO First Schedule, Part I,Cl,7 --Designation Insolvency Professional (IP) Old Course – (N18R, M19E M22M)
692.100 TITANIUM CNO – PE.1180 New Course – (SM23)
Chartered Accountant in practice, empanelled as an Insolvency Professional (IP) has mentioned the
same on his visiting cards, letter heads and other communications also. A person residing in his
neighbourhood, has filed a complaint for professional misconduct against the said member for such
mention of IP. You are required to examine the same with reference to the Chartered Accountants Act,
1949.
Answer Part I -- Relevant Laws
▪ Clause (7) of Part I of First Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws
➢ As per the clause a CA in practice is deemed to be guilty of professional misconduct if he
• advertises his professional attainments or services or
• uses any designation or expressions other than ‘Chartered Accountant” on
o professional documents,
o visiting cards,
o letter heads or
o sign boards
unless it be a degree of a university established by law in India or
recognized by the Central Government or
a title indicating membership of the ICAI or of any other institution that has been recognized by the
Central Government or may be recognized by the council.

Part III – Case Discussion
➢ In this case, A Chartered Accountant in practice, empanelled as an Insolvency Professional (IP) has
mentioned the same on his visiting cards, letter heads and other communications also. A person
residing in his neighbourhood, has filed a complaint for professional misconduct against the said
member for such mention of IP
Part IV – Conclusion
➢ Here, a Chartered Accountant empanelled as IP (Insolvency Professional) can mention “Insolvency
Professional” on his visiting cards, letter heads and other communication, as this is a title recognised
by the Central Government in terms of Clause 7 of Part 1 of First Schedule to the Chartered
Accountants Act, 1949. Thus, complaint of neighbour is not enforceable/ valid.

QNO First Schedule, Part I,Cl,7 --Professional Achievements (Liasoning) Old Course – (M12E, PM17)
693.000 TITANIUM CNO – PE.1180
M, a practicing Chartered Accountant sent a letter to another firm of Chartered Accountants, claiming
himself to be a pioneer in liasoning with Central Government Ministries and its allied Departments

for getting various Government clearances for which he had claimed to have expertise and had given
a list of his existing clients and details of his staff etc.
Answer Part I -- Relevant Laws

www.auditguru.in PARAM 19.40 | P a g e