Clause 7 – Part I – First Schedule

Question 1

A CA in practice, empaneled as an Insolvency Professional (IP) has mentioned the same on his visiting cards, letter heads and other communications also.

Mr. A, who is residing in his neighborhood, has filed a complaint for professional misconduct against the said member for such mention of IP on circulations.

You are required to examine the same with reference to the Chartered Accountants Act, 1949 and Schedules thereto.

Answer 1

Using designation other than Chartered Accountant:
• As per clause 7 of Part I of First Schedule, a CA in practice is deemed to be guilty of professional
misconduct if he
(i) advertises his professional attainments or services or
(ii) uses any designation or expressions other than “Chartered Accountant” on professional documents, visiting cards, letterheads or sign boards unless it be a degree of a university established by law in India or recognized by the CG 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.

• In the present case, a Chartered Accountant in practice, empanelled as IP (Insolvency
Professional) has mentioned the same on his visiting cards, letterheads and other
communications also. Mr. A, who is residing in his neighbourhood has filed a complaint for
professional misconduct against the said member for such mention of insolvency professional on
circulations.

Conclusion: A Chartered Accountant empanelled as IP (Insolvency Professional) can mention
‘Insolvency Professional’ on his visiting cards, Letterheads and other communication, as this is a title
recognised by the Central Government in terms of Clause 7 of Part I of First Schedule to the Chartered
Accountants Act, 1949. Thus, complaint of neighbour is not enforceable/valid.

Question 2

Mr. M, a CA in practice, has printed visiting cards which besides other details also carries a Quick Response (QR) code. The visiting card as well the QR code contains his name, office and residential address, contact details, e-mail id and name of the firm’s website.

Answer 2

Printing of QR Code on Visiting Cards: As per Clause (7) of Part I of First Schedule to
the Chartered Accountants Act, 1949, a Chartered Accountant in practice is deemed to be
guilty of professional misconduct if he advertises his professional attainments or services.

As per guidelines issued under Clause 7, ESB has also clarified that a member in practice is allowed to print
Quick Response Code (QR Code) on the visiting Card, provided that the Code does not
contain information that is not otherwise permissible to be printed on a visiting Card.

In the given case, Mr. M has printed visiting cards which carries Quick Response Code
(QR Code) besides other details. The visiting card as well as the QR Code contains his
name, office and residential address, contact details, e-mail id and name of the firm’s
website which are otherwise allowed to be printed on the visiting cards of a Chartered
Accountant in practice.
Thus, Mr. M is not guilty under Clause (7) of Part I of First Schedule to the Chartered
Accountants Act, 1949.