Indore: In a first in India, Indian Institute of Management Indore has come up with a programme that will train participants on detecting corporate scams like the ones committed by fugitive economic offenders Vijay Mallya and Nirav Modi.
“We are starting a programme on ‘Accounting Analytics’, a tool which helps in tracking ‘dirty profits’ shown by companies to lure potential investors and to mislead banks to avail loans,” said VK Gupta programme director at IIM Indore.
He said that IIM Indore is the first institute in the country to start this course, of which forensic and investigative accounting will be the main part. Harvard and Boston Universities offer this course at present.
IIM Indore is going to add components of the course to Fellow Programme in Management (FPM). “The teaching of ‘Accounting Analytics’ at IIM Indore will begin with FPM from October.
Later on, it will be made part of the institute’s flagship Post-Graduate Programme and PGP (Human Resource Management),” Gupta said.
The institute has also planned to impart training of this programme to teachers of B-schools from across the country from next year.
“We will train teachers of other B-schools so that they can also teach Accounting Analytics to their students thus making them capable of scanning annual financial data of companies,” he said.
Many companies forge their annual financial reports to show fake profits, also called dirty profits, to lure potential investors and even avail loans from banks. Later, the companies declare themselves bankrupt leading to heavy losses to the investors and banks that granted them loans.
In recent times it has been seen that some business tycoons defaulted on loans and ran away from the country. Cases of Vijay Mallya, Nirav Modi, Lalit Modi, Mehul Choksi and Jatin Mehta are still fresh in the minds of the countryman.
Gupta stated that Accounting Analytics is a technique which can expose financial manipulations done by such businessmen in companies.
“Accounting Analytics, in a nutshell, is the examination of big data using data science or data analytics tools to detect accounting related information.
Once a participant is mastered in this course, he will be able to detect ‘dirty profits’ of the companies using tools of Accounting Analytics,” said Gupta.
He said that they are also going to run a management development programme titled “Accounting Analytics for Managerial Decisions & Cost Effectiveness” for executives.
The MDP will be a three-day programme which will be offered from December 9 to 11.