Satyam forensics

Use the figures in Raju's letter (6.12.2). (a) Assume deposit rates of 8–10% a year (an assumption for this problem). What annual interest should reported cash of ₹5,361 cr have earned, and what would the genuine ₹321 cr have earned? (b) Explain, using Proposition 6.2 and the Beneish TATA index, why converting fake receivables into fake bank balances defeats an accrual screen. Which check still works? (c) Overstated debtors were ₹490 cr against ₹2,651 cr reported. If true sales for a period were also lower than reported, explain the direction of the bias in reported DSRI against a "true" DSRI.