Educomp to appoint Grant Thornton as auditor

IT education solutions provider Educomp today said it will appoint global consultancy firm Grant Thornton as internal auditor for the company, and will work with the government and regulators to reinstate credibility in the firm.

"We are actively working on a slew of initiatives to further enhance Educomp's corporate governance, transparency and disclosure standards ... We will be announcing the appointment of Grant Thornton as internal auditors shortly," Educomp said in a filing to the Bombay Stock Exchange.

"Educomp will act and work with the government and regulators proactively ... We have proactively offered fullest cooperation and willingness ... To have our books and records inspected if needed so that we can get a clean chit and move on with our business," it added.

Last month, media reports surfaced that Educomp had allegedly fudged turnover figures and promoters of the company had been trading in their own shares and in unquoted subsidiaries.

However, the company rejected reports of promoters diluting their stake where share prices were ruling high and denied that there are fictitious assets on the books of the firm. "The promoters' group has so far sold only about 5.07 per cent. The promoters still hold 55.03 per cent in the company," Educomp had said.

Following the report the shares of the company took a hammering and plunged over 22 per cent in a single day on January 21.

Shares of Educomp today plunged nearly 15 per cent to a low of Rs 1,450 in the morning trade. It was later trading at Rs 1,498.30, down 11.80 per cent in late afternoon trade on the BSE.