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Regulation 192 of CA Act( professional ethics)

Vipul Mandowara (CA in Job) (104 Points)

02 April 2018

Regulation 192 lists certain engagements wherein a CA in practice can accept fees based on %age of profits, contingent findings. It allows CAs to accept fees as %age of fund raised. Kindly explain the nature of engagements allowed in above clause.

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aditi dadhichi (1339 Points)
Replied 02 April 2018

a) in the case of a receiver or a liquidator, the fees may be based on a percentage of the realization or disbursement of the assets;

b) in the case of an auditor or a co-operative society, the fees may be based on a percentage of the paid up capital or the working capital or the gross or net income or profits; and

c) in the case of a valuer for the purposes of direct taxes and duties, the fees may be based on a percentage of the value of the property valued.

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Vipul Mandowara (CA in Job) (104 Points)
Replied 02 April 2018

I want what is allowed under regulation of " Fund raised".
Fees as a percentage of loan sanctioned is categorised as professional misconduct in one of problems of ca final book. What type of fund raising service are allowed/ would not amount to misconduct.

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aditi dadhichi (1339 Points)
Replied 02 April 2018

Fees as a percentage of loan sanctioned is obviously a misconduct. I'm yet to cover the topic, can't it be % of shares subscripttion? I'm sorry I'm not sure it's just a pure guess