Concerned over investors getting defrauded by fraudulent money pooling schemes, the Institute of Cost Accountants has suggested a “simple” financial reporting format that will help the public to have a better understanding about companies.

The Institute’s suggestion comes against the backdrop of government cracking down on dubious investment schemes following the incident of Kolkata-based Saradha Group duping many investors of their money.

“This simple format providing the aggregated revenue, cost and resulting profitability business vertical-wise will be a key input for the public to get an insight into the activities carried out by a company,” the Institute of Cost Accountants of India said in a statement.

Set up by an Act of Parliament, the Institute regulates the cost and management accounting profession and practices in the country.

Further, the Institute has said that it would provide all support, if required, to any government agency in efforts to curb incidence of defrauding investors by promising logically improbable returns on investment.

“The Institute is also deeply concerned about the millions of investors who have been duped by wrong and misleading information provided by the corporate at the same time escaping legal action in the name of complying with the laid down legal procedures,” it said.

Various central government agencies are taking steps against alleged illegal raising of money by entities.

Appreciating the efforts of the government, the Institute said it would “provide all intellectual support, if required by any government agency in this regard”.

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