INTRODUCTION OF FORENSIC ACCOUNTING
Forensic accounting , forensic accountancy or financial forensics is the specialty practice area of accountancy that describes engagements that result from actual or anticipated disputes or litigation . ‘’forensic’’ means suitable for use in a court of law , and it is to that standard and potential outcome that forensic accountants generally have to work . forensic accountants , also reffered to as forensic audiors or investigative auditors, oftenhave to have to give expert evidence at the eventual trial .all of the larger accounting firms, as well as mny medium-sized and boutique firms, have specialist forencsic accounting departments. Within these groups, there may be further sub-specialzation; some forecsic accountants may, for example, just specialize in insurance claims , personal injury claims fraud, construction, or royalty audits.
COMPANY PROFILE
Jaiprakash Associates Limited (JAL) is a diversified infrastructural industrial conglomerate in India. JAL’s business includes six sectors: engineering and construction, manufacture and marketing of cement, energy (power, transmission, oil and gas), expressways, real estate and hospitality. JAL has executed hydropower projects spread across 6 states and the neighboring country Bhutan, generating 10,290 megawatts power. It is the hydropower producer with its operational projects of 300 megawatts Baspa-II (Himachal Pradesh), 400 megawatts Vishnuprayag (Uttarakhand) and 1000 megawatts Karcham Wangtoo (Himachal Pradesh). JAL produces Portland pozzolana cement under the brand name Jaypee cement. Its hospitality business owns and operates 6 properties spread across New Delhi, Uttar Pradesh and Uttarakhand. JAL’s Jaypee Greens complex consists of an 18 hole Greg norman golf course. On February 19, 2011, the Company acquired Jaypee Cement Corporation Limited.
DAILY STOCK OUTSTANDING
In the diagram represent that the DSO which means the efficiency of sales of the companies and it would help to know the receivables repayment capacity towards the company.Here clearly mentioned in the diagram that DSO has been increasing every by year (2007-2011).
The company shown here a bad performance (2011) when compare with previous years.
DAILY SALES INVENTORY
Daily sales inventory graph represents that the company efficiency of such an inventory to sale .
It would give a perfect calculation towards the investors to calculate the time involved to become sales.lower period keeping company will be the right choice for investors.
In this diagram the year 2007-08 to 2008-09 was showed there is high efficiency in daily sales inventory and after the year it has showed decreasing the efficiency of daily sales inventory (DSI).
RESERVES,NET SALES,TOTAL EXPENSES & NET PROFIT
In this graph clearly shows that ‘’ reserves’’ are being reduced for the period of time after some time it has been increased but not up to the level of 2007-08 .
Net sales as well as total expenses are diminishing in certain level with proportionate with reserves.
FOUND FROM THE FOOT NOTES OF ANNUAL REPORTS
Annual report of 2006-07 they have mentioned in foot notes that they sold their investments of jaiprakash hydro-power of Rs.361.37 . that may helped to boost their income of the company and they had shown 48.75% of growth.
In the annual report of 2008-09 , there they have shown deprecation for the year includes Rs. 74 lakhs pertaining previous year.
During the same period they hadn’t shown the real investment amount (Market value) instead of showing market value , they have showed as purchase price.
In the year of 2009-10 they have included income from sale of shares which was held by beneficiary trust of Rs. 1316.35 ( Boosted the revenue) and extraordinary items too.
Since the market rate of saket project was not available in any of stock exchanges ,market value has been considered equivalent toface value ( **there is high chance that the investment may have lesser amount of face value**).
In this company has almost all the directors are dependent , so there wider chance to commit a frauds and other regarding matter [ S C Bhargava,B K Taparia , V K Chopra , S Srivastava , R N Bhardwaj , B K Goswami , B Samal , S C Gupta , Homai A Daruwalla (Independent Director)].
