This letter / 01
Show the obligations behind the available rupee
An accurate cash total can still support an incomplete recommendation. Directors need to see restrictions, operating commitments and collection uncertainty before deciding whether a distribution is affordable.
A distribution discussion often starts with an amount that shareholders would like to receive and a bank balance that appears large enough to provide it. The arithmetic can look straightforward. Yet the bank statement does not explain every claim already attached to the money, and it does not show the payments that fall due before expected receipts arrive. I regard the bridge from the balance to the proposed use as part of the recommendation itself. Directors should not have to discover that bridge in a supporting schedule after the discussion has already settled around a persuasive total.
