the management presents should be divided into two separate reports.
about the latest quarterly accounts compared to budget and with
comments on the main deviations – including % deviation from budget.
and loss statement (maximum one A4 sheet)
Comments should include, as a minimum:
per product group and in total.
-Changes in stock. Without
these, the picture is incomplete.
- Realised contribution and contribution margin in total and, preferably,
by product group
- Fixed overheads, with specification of staff and energy costs
- Depreciation (If there are no significant deviations in investments,
the budget figures can be used).
- Interest charges
- Result before company tax.
- Estimate of the results for the year
- Comments must include, as a minimum, the most important balance
- Debtors, if appropriate specified as outstanding and doubtful.
- Bank debt/overdraft (current interest rate and statement of maximum
and b are summaries of the edp balance sheet, and should take up
no more than one sheet of A4
of liquidity position (maximum one A4 sheet).
- Estimated liquidity requirements within the next 2-4 months including
planned and expected investments and any deviation from plan.
concerning the expectations of the management as to how any shortfall
in liquidity can be met.
written report (1-2 A4 sheets).
dismissals as well as problems with key personnel and any disputes
with unions, accidents at work etc. Absences due to illness in %.
Use of capacity and any considerations about changes, new acquisitions,
extensive repair and maintenance work, etc.
How will we
compare to budget over the next 3–6 months on the basis of the information
currently available? New initiatives for increased sales activity.
Representation at trade fairs. Customers' opinions. Problems with
maintaining profits, if any. NB: Our performance during the last
quarter belongs under the comments on the accounts. Competition,
competitors' main initiatives.
d. Key points
for any items the management wishes to raise
e. Other points:
information of significance to the company or the members of the
board. The chairman of the board should be given a briefing over
the telephone before the documents are finalised and sent out, so
that he is not "caught out" during the meeting.
report in advance creates the following benefits:
is well-prepared for the meeting, including the management itself
has the same starting point
action plan should always be drawn up for the broad themes decided
by the board for the next twelve months .
HMC´s checklist can be copied from this
site and used for work within your own company.