The Institute of Cost Accountants of India (ICAI) has urged authorities to act against bogus foreign institutes offering various courses in accounting.

“They are cornering a major chunk of students by floating front organisations without any registration or regulation. Unaccounted foreign exchange running into millions of dollars is being grabbed by them.

“The students, enrolling with the hope of getting a foreign diploma or degree, are being duped as the course syllabus, mostly copy and paste-type material is not benefiting them in getting a job,” ICAI president Rakesh Singh said here on Monday.

He was here to attend a programme at Visakhapatnam Steel Plant.

He said most of the institutes were foreign accounting bodies without any credentials.

“They charge around $100 per student and the certificates issued by them have no value in the job market,” he said.

Singh said the ICAI was opening 1,000 cost management accountancy support centres across the country in semi-urban and rural areas to improve job prospects of youth. “Three hundred centres are already opened and the remaining will be set up in three to four months. The centres will sensitise the aspirants on careers in accounting profession,” he said.

GROWING NUMBERS

He said the number of students completing cost accountancy course was growing at a steady pace.

On an average, 1,500-1,600 students were passing the exam with a growth rate of 25-30 per cent.

Six lakh students were pursuing the course. They were assured of cost-to-company of Rs 7 lakh to Rs 8 lakh with 100 per cent placement.

HEAVY PENALTIES

Referring to the proposed National Finance Regulatory Authority in the Companies Bill, he said hopefully it would serve the purpose.

With heavy penalties proposed up to Rs 25 lakh and jail term for ‘erring’ accountants in the light of Satyam fraud, ICAI wanted the accountants to disclose frauds in their reports.