User 335985

Satyam as a Case Study: The Numbers Were Too Consistent

Not familiar with IFRS rules, however, it looks like MBA student, you are combining Investment in bank deposits with Cash. They are separate on the balance sheet. However, on the cash flow statement, for FY07, it looks like they invested in bank deposits 745.6M yet showed zero on the balance sheet at year end. Then, magically, 895M in bank deposits shows up. This doesn't jump out as some elaborate kiting scheme, given the observation above, but just a flat out fraud due to a fictitious accounting entry.