Shrikrishna (S) – My dear Arjun, how was your Diwali? Enjoyed?
Arjuna (A) – Yeah, it was cool. M-Vat date was extended. So I could relax.
S – But whenever I called, you were always out of your office.
A – Actually, my friend is contesting our Council’s elections. He used to take me along for canvassing.
S – Did you go for voting?
A – No. On the same day, we had a family gettogether. And after all, what is the use of voting!
S – Why? You should be concerned about who sits in your Council.
A – Our Council members do nothing except selfpromotion. They hardly care for the profession.
S – But then, that was all the more reason why all of you should have voted. It means you are yourself not serious about the profession. And then, what is the point in cursing the Council members? And have you enquired as to what they do in the council? I know a few of them who really slog for the members at the cost of their own practice?
A – I know, one should always vote. But the way the candidates were canvassing, it was nauseating. The less said the better!
S – Anyway! A few of my friends have received your Diwali greetings. But they said they don’t know you directly. How did they come on your mailing list?
A – While canvassing for my friend’s election, I thought, why not tap a few strangers for business. I took a few addresses from Satyabhama bhabhi.
S – But it is not permitted to write to such strangers. Don’t you know?
A – Why? What is objectionable about it? Other wise. How can you reach the potential client?
S – It is a misconduct for a professional.
A – This is too much! Whatever we do, you point out some misconduct. I think we should become Sanyasis. See, this is what our Council does. Then why should we vote for them?
S – Arey wah! Brilliant argument! Full of selfcontradictions.
A – Last time you told me, I should not do any business other than my practice. Now in practice, you are saying I should not even send greetings. Then how can I promote my practice?
S – See, your quality of service is your sole advertisement. Nothing else. You should build up reputation by your quality, sincerity and integrity.
A – Too idealistic! Remember, we are presently in Kaliyuga and not in Satyayuga. Who will listen to such orthodox thinking? In foreign countries, all this is permitted.
S – Are you sure about it?
A – I mean I have heard about it.
S – There were pressures on the Council too. But your Council in its wisdom rightly took a decision not to permit any form of advertisement. Unabashed publicity will ultimately work to your own detriment.
A – How?
S – Then resourceful firms will resort to rampant marketing. Can you afford to match that kind of spending?
A – That they are already doing. My friends are working there. They are fed up with the business targets.
S – To have such targets in itself is rather unethical. How can there be monetary targets for a professional firm?
A – Tell me then, what else is prohibited?
S – Just read clause 6 of the First Schedule. You should not solicit clients or professional work by circular, advertisement or even personal communication.
A – What if somebody does it for me?
S – No. The prohibition is for both direct as well as indirect publicity. Also, there is Clause 5 of the First schedule. It says, you cannot secure any work through the services of any person who is not your employee or partner. You cannot use any means which are not open to a CA.
A – Then how will a new entrant get any assignment?
S – You can approach another CA and request him for assignments. That is permitted. So also, you can respond to the tenders or enquiries issued by the users of professional services.
A – But why such restrictions?
S – Only then you can command respect. You can then be independent. Otherwise, you will be viewed by the society as a businessman. Remember, your profession is not a business.
A – It is a very slow process to build up confidence and reputation. Today’s world is so fast.
S – I agree. But your services are of personal and intimate nature. A satisfied client is the best advertisement. Quality alone will attract and retain clients; and not any other gimmick.
A – You mean to say, we should not advertise at all?
S – Not exactly. Certain ads are permitted – like changes in your partnerships; or dissolution; change of address or change in telephone numbers. But these should be in the nature of announcements. A bare statement of facts. Discretion should be used as to in which locality the concerned newspaper or magazine is circulated.
A – What about small classified ads?
S – That is also allowed. But only in the journal or newsletter of the Institute. Through this, you can give information about your services and seek work or even employment. It should contain only basic details like your name, address, phone, fax number and e-mail address.
A – But can we apply for empanelments?
S – Yes. But you cannot enquire whether any organisation is maintaining a panel. So also, having empanelled, you cannot make roving enquiries with such organisations.
A – I had heard that we cannot even quote our fees.
S – No. You can always quote your fees on enquiries being received or respond to tenders.
A – Some guys were after me, to have my name in their yellow-page directory. I refused since I was not very sure. Moreover, it was very expensive.
S – You can have it in the Directories published by Public Bodies or Private Bodies. But there are certain guidelines. Firstly, there should not be any extraordinary payment. It can be in the specified groups also. But it should be in your own town or city. It should be in normal print – but neither in bold font nor in a separate box.
A – Interesting. You mean, it should not be conspicuous.
S – That’s right. It should be in alphabetical or logical order. Not very prominent. No unreasonable payment. And any CA of that locality should be permitted to have his name in it. It cannot be exclusive for a few selected group of CAs. It can also be in electronic media.
A – What if you publish a book or an article?
S – You can mention your name but not the name of your firm. Even in your CVs when you deliver lectures, reference to your firm’s name should be avoided.
A – We started this discussion from my greeting cards. Can I not even mention the designation ‘chartered accountant’?
S – You can. In greeting cards or on invitation cards for marriages, other ceremonies, inauguration of your office, and so on. But remember, it should be sent only to your clients, relatives and friends!
A – I see CAs appearing on TVs, what should they do? Is it not their advertisement?
S – They have to use restraint. The details about themselves or of their firms should not be given in a manner that highlights their professional attainments.
A – And what about websites?
S – Websites are permitted; but I don’t have time to tell you so much in detail. Why don’t you refer to the detailed guidelines of your Council? There are as many as 22 points – about website!
A – In many journals, I see questions being answered by CAs. I feel, that is also a form of advertisement.
S – Yes. It is permitted. It can be in journals or magazines or newspapers or websites or TV channels. But remember, they should not mention anything beyond the fact that the person answering is a chartered accountant. No mention of his contact address; or his professional achievements.
A – My God! So many points involved! But I agree that I would not go to a doctor or a lawyer without any personal reference or recommendation. Certainly not by advertisement. It is futile for a professional.
S – Good. So better concentrate on quality. Growth will follow. More greeting cards will never fetch your clients.
A – I agree; Bhagwan.
Om Shanti.
This is based on Clause nos (5) and (6) of First Schedule
Clause (5) – secure, either through the services of a person who is not an employee of such chartered accountant or who is not his partner or by means which are not open to a chartered accountant, any professional business:
Provided that nothing herein contained shall be construed as prohibiting any arrangement permitted in terms of items (2), (3) and (4) of this Part;
Clause (6) – solicits clients or professional work either directly or indirectly by circular, advertisement, personal communication or interview or by any other means:
Provided that nothing herein contained shall be construed as preventing or prohibiting –
(i) any chartered accountant from applying or requesting for or inviting or securing professional work from another chartered accountant in practice; or
(ii) a member from responding to tenders or enquiries issued by various users of professional services or organisations from time to time and securing professional work as a consequences.
Further, readers may also refer pages 135 to 153 of ICAI’s publication on Code of Ethics, January 2009 edition (reprinted in May 2009).
