PQR & company are the manufacturers of sophisticated consumer products. They have a system of getting certain work done by Job Workers. The costly raw material will be sent to the Job Worker through the company's tra

PQR & company are the manufacturers of sophisticated consumer products. They have a system of getting certain work done by Job Workers. The costly raw material will be sent to the Job Worker through the company's transport and delivery challan will be prepared by the Stock Manager and acknowledgement obtained from the Job-workers on delivery. Job Worker will process the material as per the company's instruction and specification and the same will be inspected by the Quality Controller of the company at the premises of the Job Worker; entire quantity of material sent earlier now in semi-finished form will be returned to the company for which the company itself provides their own transport. A reasonable percentage for shortage and wastage and rejections of a maximum of 2% was allowed by the company to the Job Worker. This engagement was established for some years and was found to be working well. Processing charges are paid to the Job Workers on receipt of the processed material along with his challan. However, some complaints have come recently from some sources that some processed materials was selling in the market. Management is desirous of conducting a Forensic Audit. In the background of aforesaid facts, you are required to: (b) Do the facts fall to be considered as fraud as per sec. 447 of the Companies Act, 2013? Discuss.