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After Satyam, Educomp fudged accounts?

January 20, 2009 17:41 IST

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Amid reports that education-focused IT firm Educomp too fudged accounts just like Satyam [Get Quote] Computer did to inflate stock prices, the government on Tuesday said it would seek information from the company.

"I have read certain reports in the media today and there are allegations about certain irregularities... I will ask for the report and we will find it out," Corporate Affairs Minister Prem Chand Gupta said.

There were reports in certain sections of the media that Educomp manipulated turnover figures to push share prices higher. The reports said that the promoters of the company started trading in their own shares, invested in unquoted subsidiaries and raised funds from financial markets by pledging over priced shares.

The company, when contacted, categorically denied all the allegations and termed the reports as "malicious" and aimed at "misleading the investors."

Shares of Educomp Solutions Ltd [Get Quote] lost more than 7 per cent at mid-session on Tuesday, on the back of reports that Educomp has fudged numbers like Satyam. The stock was trading at Rs 1,954, down Rs 154 or 7.23 per cent on the BSE.

Educomp Solutions, founded in 1994, is a globally diversified education solutions provider and the largest education company in India. Educomp group serves over 19,000 schools and 9.4 million learners and educators across the world.

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