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After Biocon, Espirito Santo now questions Educomp corporate governance
According to a report in the Economic Times Espirito Santo analysts, Soumitra Chatterjee and Nitin Padmanaban have said that documents show that the address for EduSmart's auditor - Sanjay Rastogi & Associates - is the same as that of the firm, potentially jeopardising auditor independence.
"Any sense of excessive closeness between company and auditor will naturally concern investors," they wrote in a client note a fortnight ago.
"Third-party vendors are selected based on their distribution capabilities but EduSmart doesn't have any standalone distribution capability," they said.
A few days ago Espirito Santo had downgraded Bangalore-based Biocon to "sell" from "neutral" and sharply revised its target price to Rs 186 a share from Rs 350, flagging off several issues, which it says raise accounting and corporate governance questions over at the biotech firm.
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