Really I don't know, which is why I think it is a bit of a red flag. The issue isn't so much why the cash is earning so little interest. It is possible to have accounts that earn no interest, regardless of the questionable motivations to use one.
The question that provides the red flag is why was the reported amount of interest received in the 4C 3K, and then 52K in the HY report. They had a month to gather the data from all the bank accounts to prepare the 4C.
It is a red flag because this is unclear. It is not an accrual. It was not commented on. They recorded some interest revenue, why did the other amounts get missed? It is possible that the interest income was recorded as interest expense, netting off the amounts, but this does not restore confidence, that they would make such a large mistake in one particular line. It also then means that a lot of reasoning regarding the interest levels requires rethinking.
Another item that seem off is the dividends, which are noted in the financial report as $182 521 in the cash flows, and 289k in the 4c, as well as in note 12 of the half yearly. The discrepancy between the numbers in a single report are concerning. As i stated before, the cash flows show what has been paid, how can it be out 107k from one cash flow to the next?
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