Signature forgery

yes, he committed crime. Take help of Cyber lawyer of your area so he can guide you properly in this issue.

He can certainly ask for compounding or out of court settlement/mediation with other party!!! More details on 09422109619.

This aspect totally depends on the type of forgery committed as well as whether or not the same falls sqaurely within the definition of false document as defined by the IPC

Prince, if the original white paper on which the signature were done by your friend is not with the company which is taking your friend to court, it is highly unlikely that they will be able to prove anything on basis of the the electronic records only.

Any electronic record, which has not been certified, cannot be submitted as evidence in the court of law as secondary evidence, will be treated like hear-say evidence and basis which prosecution will not be able to prove their case beyond resonable doubt. 

Will forgery on white paper pertain to a crime of forgery.

Yes.  He knew that the document is not genuine. He used this document to attempt undue benefit fropm employer.

He did not gain anything by doing this .

Not relevant.  He made an attempt and offence was complete when when he produced this documents with intention to get the incentive not entitled.  Many theives get caught before decamping with booty that does not mean that they are not thieves.

The media through which he committed this crime has been seized. This is happened almost a year back and the case has been filed by the firm concerned and not the firm which he worked for.

It appears from your wording that you mean the company whose signature was forged has filed the case.

Both the companies are victims. Any, each or both can file case against him.

What is the way out of this legally?

Begging for mercy is the only way out as suggested by Mr Limeye.