Coinduction functor and simple comodules

Consider a coring with exact rational functor, and a finitely generated and projective right comodule. We construct a functor (coinduction functor) which is right adjoint to the hom-functor represented by this comodule. Using the coinduction functor, we establish a bijective map between the set of representative classes of torsion simple right comodules and the set of representative classes of simple right modules over the endomorphism ring. A detailed application to group-graded modules is also given.