A group can report a healthy combined cash balance while a particular borrower struggles to meet its obligations. Rajeev Khandelwal’s documented cross-border and offshore-fund experience provides context for that apparent contradiction. Cash belongs to specific entities and can be subject to contractual, operational or legal restrictions. The financing assessment therefore needs to identify where money sits and whether it can reach the company responsible for payment.
Map the legal entities
The operating group should be translated into a clear map of ownership, borrowings and cash accounts. Consolidated reporting can hide the fact that one subsidiary generates receipts while another holds the debt. The structure should show the intended route for transfers and the conditions attached to it. This gives capital providers a practical understanding of repayment rather than relying on the group’s aggregate financial strength as a substitute for accessible resources.
Recognise local operating needs
Even unrestricted cash may be needed by the business that generated it. Moving it elsewhere can weaken payroll, inventory or maintenance funding. Management should distinguish genuine surplus from money supporting the next operating cycle. The group’s central treasury plan becomes more reliable when it respects those needs instead of treating every subsidiary balance as immediately available for acquisition payments, shareholder distributions or obligations at a different entity.
Test the transfer timetable
Approvals, banking processes and contractual restrictions can affect the speed of movement. A payment due tomorrow cannot depend on a transfer that requires several unresolved steps. Cash forecasts should therefore include the actual mechanics and timing of intercompany flows. This is especially important in cross-border structures, where differences in currency and local processes can create a gap between having economic value and having spendable funds at the required location.
Liquidity needs an address
Credit Connect’s cross-border financing disciplines connect this issue with Rajeev’s international professional background. A useful capital assessment follows cash to the entity that must pay. That approach improves both financing design and internal treasury decisions. The group gains a clearer view of its resilience when it can explain not only how much cash it has, but where it is, what it supports and how it can move.
