Kalpetta Municipality (FY 2024–2025)
The annual financial statement of Kalpetta Municipality for the fiscal period spanning 01 April 2024 to 31 March 2025 provides a comprehensive evaluation of the municipality's financial structure, operational results, and cash management. This report synthesizes the primary financial schedules—including the Balance Sheet, Income and Expenditure Statement, and Receipt and Payment Statement—into standard executive sections for institutional analysis.
Financial Statistics – At a Glance The table below presents a summary of the municipality's core financial performance, cash flow totals, capital structure, and liquid cash availability for FY 2024–2025:
Category Financial Indicator / Metric Amount (₹) Share / Metric Value Income Own-Source Revenues (Taxes, Fees, Rentals, Interest, etc.) 8,80,08,744.00
25.34% of Total Income
Income Revenue Grants, Funds & Subsidies 25,92,51,973.00
74.66% of Total Income
Income Total Operational Income 34,72,60,717.00
[cite: 2]
100.00% Expenditure Governance & Operational Overhead (Establishment, O&M, Admin, Interest) 7,92,59,962.00
23.20% of Total Expenditure
Expenditure Sectoral & Development Schemes (Service, Infrastructure, State Schemes, etc.) 24,74,00,700.00
72.43% of Total Expenditure
Expenditure Asset Depreciation 1,49,04,626.00
4.36% of Total Expenditure
Expenditure Total Operational Expenditure 34,15,65,388.00
[cite: 2]
100.00% Financial Result Gross Operating Surplus 56,95,329.00
— Financial Result Less: Prior Period Adjustments 2,43,63,021.00
— Financial Result Net Operational Deficit (Post-Prior Period Items) -1,86,67,692.00
[cite: 2, 4]
— Cash Flow Opening Cash & Bank Balance (01-04-2024) 14,67,04,361.00
— Cash Flow Total Annual Receipts 25,69,08,852.00
— Cash Flow Total Annual Disbursements / Payments 22,32,14,150.00
— Cash Flow Net Annual Cash Surplus 33,69,702.00
— Cash Availability Closing Cash & Bank Balance (31-03-2025) 18,03,99,063.00
[cite: 1, 3]
Bank: ₹17.96 Cr / Cash: ₹7.66 L
Balance Sheet Net Fixed Assets & Capital Work in Progress 69,63,76,443.00
Gross: ₹53.75 Cr, CWIP: ₹21.74 Cr
Balance Sheet Investments, Debtors, Prepaids & Stock 17,06,03,426.50
Prepaids: ₹8.41 Cr, Debtors: ₹4.64 Cr
Balance Sheet Total Assets 1,04,83,78,932.50
[cite: 1]
100.00% Balance Sheet Reserves & Municipal Funds 83,94,28,974.21
80.07% of Balance Sheet
Balance Sheet Tied Capital Grants & Specific Funds 3,96,57,727.00
3.78% of Balance Sheet
Balance Sheet Secured Loans (Long-Term Debt) 11,79,67,943.00
11.25% of Balance Sheet
Balance Sheet Current Liabilities & Deposits Received 5,13,24,288.29
4.90% of Balance Sheet
Balance Sheet Total Liabilities 1,04,83,78,932.50
[cite: 1]
100.00% Major Expenditure Operating expenditure incurred by Kalpetta Municipality during FY 2024–2025 totaled ₹34,15,65,388.00. Administrative governance, personnel costs, routine upkeep, financing charges, and non-cash depreciation amounted to ₹9,41,64,588.00 (27.57% of total operational expenditure).
Establishment Expenses (₹4,82,27,292.00): Represents staff salaries, allowances, administrative wages, and employee welfare benefits, constituting 14.12% of overall operational expenditure.
Operations & Maintenance (₹2,35,95,945.00): Covers routine upkeep of public assets, municipal infrastructure maintenance, sanitation, street lighting, and operational repairs, accounting for 6.91% of expenditure.
Depreciation (₹1,49,04,626.00): Reflects non-cash accounting charges for the physical wear and tear of municipal fixed assets over the financial year (4.36% of expenditure).
Interest & Finance Charges (₹40,94,406.00): Costs associated with servicing long-term secured loans and institutional financial liabilities (1.20% of expenditure).
Administrative Expenses (₹33,42,419.00): Outlays for office administration, legal fees, utility expenses, statutory audit costs, and general institutional supplies (0.98% of expenditure).
Major Expenditure on Development & Welfare Sectors Developmental programs, community welfare schemes, and sectoral infrastructure outlays form the core focus of municipal spending, totaling ₹24,74,00,700.00 (72.43% of total operational expenditure).
Sector / Expenditure Head Schedule Reference Amount (₹) Share of Total Outlay (%) Service Sector Projects I-14(b) 11,66,37,937.00
34.15%
State Sponsored Schemes I-14(d) 9,62,74,790.00
28.19%
Revenue Grants, Contributions & Subsidies Paid I-15 1,54,08,900.00
4.51%
Infrastructure Sector Projects I-14(c) 1,14,01,893.00
3.34%
Productive Sector Initiatives I-14(a) 71,43,966.00
2.09%
General Programme Expenses I-14 5,33,214.00
0.16%
TOTAL DEVELOPMENT & WELFARE EXPENDITURE 24,74,00,700.00
[cite: 2]
72.43%
[cite: 2]
Service Sector Projects (₹11.66 Crore): Represents the single largest developmental outlay, covering public health, education, social security, poverty alleviation, and community welfare services.
State Sponsored Schemes (₹9.63 Crore): Execution of targeted state-level welfare programs, housing initiatives, and social development schemes transferred to the local body.
Subsidies & Revenue Grants Paid (₹1.54 Crore): Direct financial assistance, beneficiary subsidies, and support grants distributed to community groups and vulnerable populations.
Infrastructure & Productive Sectors (₹1.85 Crore Combined): Direct revenue outlays for local roads, public works, market development, and agricultural/local economic support programs.
Cash Flow – Key Indicators The Receipt and Payment Statement records gross cash receipts of ₹25,69,08,852.00 against gross cash payments of ₹22,32,14,150.00, generating a net liquid surplus of ₹33,69,702.00 for the fiscal year.
Cash Flow Indicators: Operating Cash Inflows vs. Accrual Income: Direct cash receipts from taxes, user fees, rentals, and interest totaled ₹3.70 crore, compared to ₹8.80 crore of accrued own-source income, reflecting trade credit timing differences. Intergovernmental revenue grants had zero direct cash receipts under Schedule R6, as funding was realized through debtor recovery (₹9.51 crore) and tied specific grants (₹6.48 crore).
Liquidity Accumulation: Net cash accumulation reached ₹33.69 lakh, increasing overall liquid bank and cash holdings from ₹14.67 crore to ₹18.04 crore.
Debt Servicing & Capital Outflows: Cash outflows for capital asset acquisition were ₹25,69,674.00. Loan principal repayments (₹4,92,936.00), debt interest payments (₹40,66,254.00), and redemption payouts (₹76,59,146.00) required a combined cash allocation of ₹1,22,18,336.00.
Balance Sheet – 31-03-2025 The following table presents the verified Balance Sheet of Kalpetta Municipality as of 31 March 2025.
Code Item Description Schedule Liabilities (₹) Assets (₹) 3100000 Panchayat/Municipal Fund B1 47,02,03,306.21
— 3110000 Earmarked Funds B2 12,203.00
— 3120000 Reserves B3 36,92,13,465.00
— 3200000 Grants, Funds & Contributions for Specific Purposes B4 3,96,57,727.00
— 3300000 Secured Loans B5 11,79,67,943.00
— 3400000 Deposits Received B7 1,33,47,125.99
— 3500000 Other Liabilities B8 3,79,77,162.30
— 4100000 Fixed Assets (Gross) B9 — 53,74,84,728.00
4110000 Less: Accumulated Depreciation B10 — -5,85,19,238.00
4120000 Capital Work in Progress (CWIP) B11 — 21,74,10,953.00
4200000 Financial Investments B12 — 10,00,000.00
4300000 Stock-in-hand B13 — 10,45,835.00
4310000 Sundry Debtors (Receivables) B14 — 4,64,45,809.50
4400000 Pre-paid Expenses B16 — 8,41,36,849.00
4500000 Cash and Bank Balances B17 — 18,03,99,063.00
4600000 Loans, Advances and Deposits B18 — 3,89,74,933.00
TOTAL TOTAL BALANCE SHEET 1,04,83,78,932.50
[cite: 1]
1,04,83,78,932.50
[cite: 1]
Key Observations High Reliance on Intergovernmental Fiscal Transfers: Revenue grants and subsidies (₹25.93 crore) constitute 74.66% of operational income. Internal revenue sources—comprising property/professional taxes (₹5.42 crore net), user fees (₹2.15 crore), and property rentals (₹0.78 crore)—account for 25.34% of overall income. Strengthening tax assessment and fee collection procedures will be essential to enhance internal resource mobilization.
Impact of Prior Period Accounting Charges: The operational budget generated a gross surplus of ₹56,95,329.00. However, prior period accounting items totaling ₹2,43,63,021.00 resulted in a net overall deficit of -₹1,86,67,692.00. This underlines the importance of tightening accrual period cut-off controls to prevent historic liability adjustments from distorting annual operational outcomes.
Strong Solvency and Working Capital Ratios: The municipality maintains a healthy working capital position:
Net Working Capital=Current Assets−Current Liabilities Net Working Capital=₹35,10,02,489.50−₹5,13,24,288.29=₹29,96,78,201.21 [cite: 4]
Current Ratio= Current Liabilities Current Assets
5,13,24,288.29 35,10,02,489.50 ≈6.84 [cite: 4]
A current ratio of 6.84 indicates that short-term assets cover current liabilities nearly seven times over.
Cash Coverage and Liquidity Reserves: Cash and bank balances of ₹18,03,99,063.00 cover total short-term liabilities (₹5.13 crore) by 3.51 times. This liquid buffer provides strong short-term debt protection and supports operational cash flow stability.
Capital Work in Progress (CWIP) & Carrying Costs: CWIP stands at ₹21,74,10,953.00, representing 28.8% of total net fixed assets and active capital projects. Concurrently, long-term secured loans of ₹11,80 crore incur annual interest and finance charges of ₹40,94,406.00. Timely completion and formal commissioning of ongoing projects will enable these public investments to deliver community services while optimizing capital efficiency.
