They are cornering a major chunk of students by floating front organisations: ICAI
Institute of Cost Accountants of India (ICAI) has sought action from the authorities concerned against mushrooming fly-by-night 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 and the students, enrolled 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 told The Hindu on Monday.
Mr. Singh, who was here to attend a programme at Visakhapatnam Steel Plant, 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.
On the other hand, Mr. Singh said, ICAI is proactively opening 1,000 cost management accountancy (CMA) 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.
The number of students completing cost accountancy course is growing at steady pace. On an average 1500 to 1600 are passing out with a growth rate of 25 to 30 per cent. Six lakh students are pursuing the course. They were assured of cost to company (CTC) of Rs.7 lakh to Rs.8 lakh per annum with 100 per cent placement.
On the proposed National Finance Regulatory Authority (NFRA) 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 even they were in the process.
ICAI, Mr. Singh said, was training 10 pass students in Kerala for a year in basic and Tally accounting with three month practical course as part of skill acquisition and employability programme at 181 centres as a pilot project. Similar programme is undertaken in Rajasthan for 12 pass at 40 colleges.