Appendix No-4 – The Chartered Accountants Act, 1949

S.O.No. 1577. – In pursuance of clause (iv) of subsection (1) of Section 4 of the Chartered Accountants Act, 1949 (38 of 1949), and in supersession of the Notification of the Government of India in the late Ministry of Commerce, No. 63(15)-Law(B)/50 dated the 24^th October, 1950 as amended from time to time, the Central Government hereby specifies the following conditions which a person referred to in the said clause shall fulfil in order to entitle him to have his name entered in the Register of Members of the Institute of Chartered Accountants of India, namely:-

A. In the case of a person who has passed the examination for the Government Diploma in Accountancy or an examination recognized as equivalent thereto by the rules for the award of the Government Diploma in Accountancy before the commencement of the Chartered Accountants Act, 1949 –

(1) he shall have been in practice as an auditor or Income Tax Consultant on the date of commencement of the Act and shall have at the time of his application for enrolment

(a) a minimum practice of ten years to the satisfaction of the Council of the Institute; and

(b) at least fifteen units under his audit or fifteen assessees in his charge during the period of twelve months immediately preceding the date of his application, or

(2) he shall have been in practice as an auditor on the date of commencement of the Act and shall have at the time of his application for enrolment –

(a) a minimum practice of five years; and

(b) at least two ²[public or private companies] with limited liability under his audit during each of at least four of the said five years.

B. In the case of a person who has not passed one of the examinations mentioned in paragraph A, he shall have been in practice as an auditor or Income Tax Consultant on the date of commencement of the Act and shall have at the time of application for enrolment, either –

(1)

(a) a minimum practice of ten years to the satisfaction of the Council of the Institute, provided that he shall have done at least ten audits of ³[public or private companies] with limited liability, at least one such audit having been done in each one of any six years in the said ten years, and

(b) at least fifteen units under his audit or fifteen assessees in his charge during the period of twelve months immediately preceding the date of his application, provided that the units shall include two companies with limited liability or the income of the assessees shall exceed Rs. 5 lakhs, as the case may be, or

(2)

(a) a minimum practice of five years as an auditor; and

(b) at least two ⁴[public or private companies] with limited liability with a total paid-up capital or at least Rs. 3 lakhs under his audit during each of at least four of the said five years.

Explanation – (1) (i) Any service as chief accountant, accountant or internal auditor or in any other similar post, by whatever name designated, in a commercial firm (including a limited liability company) which has a minimum paid-up capital of Rs. 2 lakhs or working capital of Rs. 6 lakhs, or in any similar post under Government or a local authority, which, in the opinion of the Council of the Institute, would give equivalent experience, shall be set off against minimum number of years of practice required by paragraphs A(1)(a) and B(1)(a) above.

(ii) For the purpose of computing practice referred to in paragraph A(i), every year of service as Articled ⁵[Clerk] either under a Registered Accountant entitled or permitted to train Articled ⁶[Clerks] under the Auditor’s Certificates Rules, 1932, or under a member of the Institute of Chartered Accountants of India entitled to train Articled ⁷[Clerks] under the Chartered Accountants Regulations, 1949⁸, or partly under such Registered Accountant and partly under such member shall be reckoned as two years of practice, and every year of audit service rendered under a Registered Accountant or a practising member of the Institute of Chartered Accountants of India or partly under such Registered Accountant and partly under such practising member of the Institute shall be reckoned as one year of practice, fractions of a year being ignored, and for this purpose, any period of apprenticeship served under the Regulations for the award of the Government Diploma in Accountancy and duly registered with the Accountancy Diploma Board, Bombay, shall be reckoned as service as an Articled ⁹[Clerk] under a Registered Accountant.

Explanation (2) – A “unit ”means a company registered under the Indian Companies Act, 1913, or the Companies Act, 1956, or a Co-operative Society registered under the Co-operative Societies Act, 1912, or a company or Cooperative Society registered under any corresponding State Law, or a firm.

Explanation (3) – For the purpose of computing practice, credit shall be given for any practice by an auditor or Income Tax Consultant irrespective of whether such practice was inside or outside any former Part ’B’ State or any former Acceding State.

B. S. Manchanda

Joint Secretary to the Government of India.

[Published in Part II Section 3 (ii) of the Gazette of India dated 6^th October, 1973]

Government of India

Ministry of Law, Justice and Company Affairs

Department of Company Affairs

Shastri Bhawan, 5^th Floor, “A ”Wing, Dr. Rajendra Prasad Road,

New Delhi – 1, the 25^th September, 1973

(As modified by Notification No. S.O. 2002 dated 5^th June, 1979 of the Department of Company Affairs)

Notification

Chartered Accountants

S.O.2860.– In pursuance of clause (iv) of sub-section (1) of Section 4 of the Chartered Accountants Act, 1949 (38 of 1949) and in partial modification of the notification of the Government of India in the late Ministry of Commerce and Industry (Department of Company Law Administration) No. S.O. 1577 dated the 27^th June, 1961, the Central Government hereby specifies that a person referred to in the said clause shall, in order to entitle him to have his name entered in the Register of Members of the Institute of Chartered Accountants of India have to fulfil only the following conditions, namely, that he was in practice as an auditor in any Part B State on the commencement of the said Act in that State and is in practice as an auditor in any State or Union Territory at the time of his application for enrolment (whether or not he ceased to be in practice as an auditor during any portion of the intervening period).

Explanation – For the removal of doubts, it is hereby declared that a person who fulfils the conditions specified in this notification shall be entitled to have his name entered in the Register of Members of the Institute of Chartered Accountants of India notwithstanding that he does not fulfill all or any of the conditions specified in the notification of the Government of India in the late Ministry of Commerce and Industry (Department of Company Law Administration) No. S.O.1577 dated the 27^th June, 1961.

(F.No. 7/14/69-IGC/2/7/79 CLV)

R.K. Talwar

Under Secretary to the Government of India

Amendment

¹ Substituted for the following Notification: –

[Published in Part I Section 1 of the Gazette of India dated the 28^th October, 1950]

Ministry of Commerce

Notification

Chartered Accountants

New Delhi, the 24^th October, 1950

[As amended by Notifications Nos. 63(15)-ICL(A)/50 dated the 11^th September 1951 and 61(2)-ICA/53 dated the 19^th December, 1954 of the Ministry of Finance, Department of Economic Affairs, Government of India.]

No. 63(15)-Law(B)/50. – In pursuance of clause (iv) of subsection (1) of Section 4 of the Chartered Accountants Act, 1949 (XXXVIII of 1949), the Central Government is pleased to specify the following conditions which a person referred to in the said clause shall fulfil in order to entitle him to have his name entered in the Register of Members of the Institute of Chartered Accountants of India:-

A. In the case of a person who has passed the examination for the Government Diploma in Accountancy or an examination recognized as equivalent thereto by the rules for the award of the Government Diploma in Accountancy before the commencement of the Chartered Accountants Act, 1949 –

(1) he shall have been in practice as an auditor on the date of the commencement of the Act, shall have continued in practice thereafter and shall have at the time of his application for enrolment –

(a) a minimum practice of ten years; and

(b) at least 15 units, including a minimum of five public companies with limited liability under his audit.

Explanation – (i) Any service as a chief accountant, accountant or internal auditor or in any other similar post, by whatever name designated, in a commercial firm (including a limited liability company) which has a minimum paid-up capital of Rs. 2 lakhs or working capital of Rs. 6 lakhs, or in any similar post under Government or a local authority, which, in the opinion of the Council of the Institute, would give equivalent experience, shall be set off against the practice mentioned in this clause.

(ii) For the purpose of computing service or practice, referred to in this clause, every year of service as Articled Clerk either under a Registered Accountant entitled or permitted to train Articled Clerks under the Auditor’s Certificates Rules 1932, or under a member of the Institute of Chartered Accountants of India entitled to train Articled Clerks under the Chartered Accountants Regulations, 1949, or partly under such Registered Accountants and partly under such member shall be reckoned as two years of service or practice, as the case may be, and every year of audit service rendered under a Registered Accountant or a practising member of the Institute of Chartered Accountants of India or partly under such Registered Accountant and partly under such practising member of the Institute shall be reckoned as one year of service or practice, as the case may be, fractions of a year being ignored.

(iii) Any period of apprenticeship served under the Regulations for the award of the Government Diploma in Accountancy and duly registered with the Accountancy Diploma Board, Bombay, shall be reckoned as service as an Articled Clerk under a Registered Accountant; or

(2) he shall have been in practice on the date of the commencement of the Act and shall have at the time of his application for enrolment –

(a) a minimum practice of five years; and

(b) at least five public companies with limited liability with a total paid up capital of Rs. 20 lakhs under his audit during each of the said five years.

B. In the case of a person who has not passed one of the examinations mentioned in paragraph A, he shall have been in practice on the date of commencement of this Act and shall have at the time of his application for enrolment, either –

(a)

(i) a minimum practice of ten years; and

(ii) at least fifteen units, including a minimum of five public companies with limited liability with a total paid-up capital of Rs. 20 lakhs for all the units put together, under his audit; or

(b)

(i) a minimum practice of five years; and

(ii) at least five public companies with limited liability with a total paid-up capital of Rs. 20 lakhs under his audit during each of the said five years.

Explanation – (1) In paras A and B above, a “unit ”means a company registered under the Indian Companies Act, 1913, or a Co-operative Society registered under the Co-operative Societies Act, 1912, or a Company, Co-operative Society registered under any corresponding State Law, or a private firm.

Explanation – (2) For the purpose of computing practice, credit shall be given for any practice by an auditor irrespective of whether such practice was inside or outside Part ’ B’ State or any former Acceding State.

S. Ranganathan

Joint Secretary to the Government of India

^2,3&4 Substituted for the words “public companies ”by Notification No. S.O. dated 26^th February, 1966 of the Government of India, Ministry of Law, Department of Company Affairs.

^5,6,7&9 Now known as “Articled Assistant(s) ”pursuant to Chartered Accountants (Amendment) Act, 2006 and came into force w.e.f. 8^th August, 2006.

⁸ Now, the Chartered Accountants Regulations, 1988.

[The Resolution passed by the Council and given in Appendix No. (5) is no longer in operation in view of resolution subsequently passed by the Council at its 188^th meeting held on 8^th-10^th December, 1997 given thereunder]