The Hindu Business Line : Educomp to work with Govt to prove credibility

“There is a bear cartel working in the market. We are doing a detailed research on our stock prices and it is emerging that there has been high short selling.”

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New Delhi, Feb. 3 Education solutions provider Educomp Solutions Ltd has said it will work with the Government and regulators to prove the company’s credibility. The company also said it will appoint global consultancy firm Grant Thornton as its internal auditor.

The latest initiative by the company comes in the wake of Corporate Affairs Ministry looking to probe irregularities of account books by Educomp.

“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,” Mr Shantanu Prakash, Managing Director, Educomp, said at the sidelines of a meeting to launch its budget schools brand ‘Vidya Parbat’ pan-India.

‘Bear cartel at work’

Speaking on the controversy, he said, “There is a bear cartel working in the market. We are doing a detailed research on our stock prices and it is emerging that there has been high short selling. There is an attempt to manipulate the market. Educomp will act and work with the Government and regulators proactively.”

Low-cost schools

The company hopes to establish five Vidya Parbat Schools by July 2009. It already has presence in the formal schools space under the Millennium School brand name. Currently, there are 24 such schools across the country.

“In the next two-three years, we hope to establish 100 low-cost schools through this model across India,” Mr Prakash said, adding that each school will entail an investment of Rs 70 lakh. The first five low budget schools will come up in North India. The average monthly fee would be in the bracket of Rs 700 a student.

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