1.

Brief Summary of the Case

Solar Manufacturing Company

 The solar manufacturing industry is a rapidly growing sector of the global economy.
As demand for solar energy continues to increase, so does the need for companies that
can manufacture high-quality solar panels and other components. However, the solar
manufacturing industry is also a complex and challenging one. Companies must
constantly innovate to keep up with the latest technology, and they must also be able
to compete on price and quality.

 The solar manufacturing industry is a rapidly growing sector of the global economy.
 Solar is a Chinese company that has been successful in the solar manufacturing
industry.
 Solar is a pioneer in the development of new solar technologies.
 Solar has a strong focus on innovation, a global presence, and a commitment to
quality.
 Solar faces a number of challenges, including intensifying competition, falling prices,
and uncertainty in government policy.
 Solar is well-positioned for future growth due to its strong track record of innovation,
global presence, and commitment to quality.

The solar manufacturing industry is a complex and challenging one. However,

companies that are able to innovate, compete on price and quality, and meet or exceed
industry standards are well-positioned for success. Solar is one such company. The
company has a strong track record of innovation, a global presence, and a
commitment to quality. These factors will help the company to continue to be a leader
in the solar manufacturing industry.

2. Background of the Company and its operations

 Solar manufacturing company as we know during period of 2006 to 2010 per unit of
rate of solar electricity is 12 18 after 2012 the rate of solar energy 1 rupees per unit
the company set on the basic of projection of 18 rupees per unit the company business
losses after 2012
 The bank has classified fraud reason is they are not able to be required money from
barrowers
 Then the auditor took stand it was genuine business Losse due to changes of
government policies and reduction of solar electricity per unit.
3. Details of the Fraud- Persons involved, Situations and circumstances
which led to the fraud and how it was covered by the persons involved
and how it was found out
  Fraud as per section 447(1) companies act 2013 fraud is the unlawful and
intentional making of a misrepresentation with the intent to deceive and to defraud
by causing actual and potential prejudice
 Wrongful or criminal deception intended to result in financial or personal gain

. Persons Involved in Fraud

Fraud can be committed by a single individual or by a group of people working together. In

some cases, employees of a company may collude with each other to defraud the company. In
other cases, individuals may work with outside accomplices to carry out fraudulent schemes.

Situations and Circumstances That Lead to Fraud

There are a number of factors that can contribute to fraud, including:

 Opportunity: Fraud is more likely to occur when there is an opportunity for someone
to deceive or mislead another person. This could be due to weak internal controls or a
lack of oversight.
 Pressure: People may be more likely to commit fraud if they are under financial
pressure or if they are facing other personal or professional challenges.
 Rationalization: Some people may convince themselves that their fraudulent actions
are justified or that they are not doing anything wrong.

How Fraud Is Covered UP

 Falsifying records: Fraudsters may falsify financial records, create false documents, or
destroy evidence.

 Creating a false paper trail: Fraudsters may create a false paper trail to make it look
like their fraudulent activity was legitimate. This may involve creating fake invoices,
receipts, or other documents.
 Using inside information: Fraudsters with access to inside information may use it to
their advantage by making trades or investments that they know will be profitable.

4 . Audit Procedure carried by o ut the Forensic auditor- Report received

from management, verification procedures, interviews conducted etc
 Management Report:
The process often begins with the receipt of a report from the management or a
whistle blower, highlighting concerns or suspicions related to fraud or financial
irregularities.
  Initial Assessment:
Forensic auditors conduct an initial assessment to determine the scope of the
investigation, potential risks, and the nature of the alleged fraud. This may involve
meetings with key personnel and a review of relevant documentation.
 Interviews and Interrogations:
Conduct interviews with key personnel, including employees, managers, and
executives, to gather information and insights. Interrogation techniques may be
employed when necessary, always within legal and ethical boundaries.

5. Report by the Forensic Auditor- Findings of the auditors, what led to

committing of fraud

This report presents the findings of the forensic audit conducted to investigate
allegations of fraudulent activities within [solar manufacturing company ]. The
investigation focused on [specific departments or areas] and covered the period from
The objective was to identify instances of fraud, assess the impact on financial
statements, and determine the root causes of the fraudulent activities.
 Misappropriation of Funds:
Substantial evidence was found indicating misappropriation of company funds
through [specific method]. This resulted in a financial loss of [amount] over
the investigation period.
 Fictitious Transactions:
A series of fictitious transactions were identified, leading to an overstatement
of [specific financial metric] by [percentage]. The transactions were
deliberately created to inflate financial performance.

6. Recommendations to the management for preventing and detecting the

fraud

Preventing

 Implement Strong Internal Controls:

Establish robust internal control systems, including segregation of duties, to ensure
that no single individual has too much control over a particular process.

 Code of Conduct and Ethics Policies:

o Develop and communicate a clear code of conduct and ethics policies. Ensure
that employees understand the consequences of fraud and unethical behaviour.
 Data Security:
 o Implement strong data security measures to protect sensitive information. This
includes regular updates on cybersecurity practices and the use of encryption
technologies.
 Regular Audits and Reviews:
o Conduct regular internal and external audits to review financial transactions,
processes, and controls. These audits can help identify any irregularities or
weaknesses in the system.

Detection

 Internal Audit Function:

o Maintain an effective internal audit function that is independent and can
provide an objective assessment of the organization's internal controls and risk
management processes.
 Document and Investigate Anomalies:
o Document and investigate any anomalies or discrepancies in financial records
promptly. This proactive approach can prevent fraud from escalating
 Management Reviews:
o Have regular reviews by management to assess financial performance and
scrutinize any unexpected or unexplained variations.