Kodikulam
Grama Panchayat

Kodikulam Grama Panchayat
Annual Financial Analysis Report – 2025–26

Period: From 01-04-2025 to 31-03-2026

1. Brief Overview of the Financial Position

As per the Panchayat's Balance Sheet, General Fund is recorded at ₹14.51 lakh, Income over Expenditure at the end of the year at ₹31.18 lakh, and Capital Contribution at ₹367.81 lakh. Grants/Contributions for specific purposes amount to ₹105.43 lakh.

Major Item    Amount
General Fund    ₹14.51 lakh
Excess of Income over Expenditure    ₹31.18 lakh
Capital Contribution    ₹367.81 lakh
Specific Purpose Grants    ₹105.43 lakh
Secured Loan – KURDFC    ₹87.72 lakh
Deposits Received    ₹2.40 lakh

Key assessment: The Panchayat has ended the financial year in a surplus position. However, since there is a KURDFC loan of ₹87.72 lakh, future loan repayment obligations need to be managed carefully.

2. Revenue Position

Property Tax, Profession Tax, and Fees & User Charges account for the major share of own-source revenue.

Residential Property Tax – ₹20.68 lakh
Non-residential Property Tax – ₹11.97 lakh
Profession Tax – Employees – ₹7.19 lakh
Profession Tax – Traders/Institutions – ₹1.45 lakh
Building Rent – ₹0.60 lakh

In the Fees/User Charges category, Building-related fees, Regularization Fees, Fines/Penal Interest, etc. have also contributed to revenue.

Assessment: Property Tax is the major source of own tax revenue. At the same time, strengthening arrears collection will help increase the Panchayat's own revenue capacity.

3. Receivables – Area Requiring Attention

At the end of the year, approximately ₹3.43 crore has been recorded as various Receivables. The major items include:

Development Fund – General: ₹61.69 lakh
Maintenance – Road: ₹65.85 lakh
Maintenance – Non-Road: ₹71.04 lakh
General Purpose Fund: ₹75.32 lakh
Property Tax – Residential Current: ₹18.01 lakh
Property Tax – Non-residential Current: ₹9.11 lakh

This is one of the most important areas of attention in the Panchayat's financial records. An ageing analysis of receivables should be conducted, old arrears should be monitored separately, and collection measures should be strengthened.

4. Major Areas of Expenditure

The major items in the Panchayat's development/infrastructure expenditure are:

Roads – ₹51.07 lakh
Side Walls – ₹10.32 lakh
Public Buildings – ₹5.19 lakh
Bridges – ₹3.86 lakh
Foot Bridges – ₹0.76 lakh
Street Lights – ₹0.49 lakh

In the Productive Sector:

Paddy Agriculture – ₹6.65 lakh
Plantain – ₹2.00 lakh
Fruits/Fruit Trees – ₹2.79 lakh
Poultry – ₹4.33 lakh
Animal Husbandry Infrastructure – ₹6.00 lakh
Disease Control – ₹2.60 lakh
Dairy Milk Incentives – ₹5.15 lakh

This indicates that the Panchayat has given good importance to roads/infrastructure as well as the agriculture–animal husbandry sectors in its expenditure.

5. Social Welfare Expenditure

The largest expenditure under the Transferred Functions/Schemes category is on social welfare pensions.

Old Age Pension – ₹3.55 crore
Widow Pension – ₹1.01 crore
Pension for Differently Abled – ₹35.68 lakh
Pension for Agricultural Workers/Labour – ₹27.38 lakh
Unmarried Women above 50 – ₹11.55 lakh
Sthree Suraksha Scheme – ₹10.09 lakh

Key observation: Social welfare pension expenditure is the largest component in this category. This clearly indicates that it forms a major part of the Panchayat's social security responsibility.

6. Waste Management

Expenditure has been incurred at various levels for Solid/Liquid Waste Management:

Classification – ₹32,890
Collection & Transportation – ₹58,862
Institutional Processing – ₹71,882
Individual Processing – ₹4.27 lakh
Disposal – ₹18,525
Liquid Waste Treatment – ₹28,917

Assessment: It is positive that expenditure has been recorded across various stages of waste management. However, it would be appropriate to separately assess service outcomes and the utilization of assets in relation to the expenditure incurred.

7. Fixed Assets

At the end of the year, the total recorded value of Fixed Assets is ₹4.60 crore. Major assets include:

Other Buildings – ₹1.12 crore
Black Topped Roads – ₹84.78 lakh
Furniture, Fixtures & Electrical Appliances – ₹52.36 lakh
Other Fixed Assets – ₹38.54 lakh
Metalled Roads – ₹17.57 lakh
Concrete Roads – ₹15.31 lakh

Accumulated Depreciation is ₹1.69 crore.

Therefore, the approximate net fixed asset value is ₹2.90 crore.

8. Cash Flow Position

Cash & Cash Equivalents at the beginning of the year were ₹1.63 crore. At the end of the year, this decreased to ₹1.60 crore. Thus, a decrease of approximately ₹3.16 lakh has been recorded.

In cash flow:

Received from operating activities – ₹1.23 crore
Investing activities – ₹81.22 lakh negative
Financing activities – ₹44.95 lakh negative
Net decrease – ₹3.16 lakh

Assessment: Despite good cash generation from day-to-day operations, the overall cash balance has decreased slightly due to asset creation, deposits/advances refunds, etc.

9. Advances & Prepaid Expenses

At the end of the year:

Loans, Advances & Deposits – ₹25.31 lakh
Prepaid Programme Expenses – ₹79.40 lakh

Advance to Implementing Agencies alone is ₹11.84 lakh, and MGNREGS/AUEGS advance is ₹7.78 lakh.

Recommendation: Old advances should be adjusted in a timely manner, and utilization certificates/settlement records should be verified. It is also appropriate to conduct scheme-wise reconciliation of Prepaid Programme Expenses.

10. Suspense Account

A Suspense balance of ₹35,925 is shown in the Balance Sheet. Large debit-credit movements have also been recorded in the Suspense account in the Trial Balance.

Action: The Suspense balance should be examined item-wise and transferred/reclassified to the relevant head to clean up the accounts.

Key Findings
Strong Areas
A surplus is maintained at the end of the year.
The Panchayat is collecting its own tax revenue.
There is significant investment in infrastructure sectors such as roads, bridges, and public buildings.
Expenditure has been incurred in productive sectors such as agriculture, animal husbandry, and dairy development.
Substantial financial assistance has been provided for social welfare schemes.
A cash & bank balance of ₹1.60 crore is maintained at the end of the year.
Areas Requiring Attention
₹3.43 crore Receivables – collection/settlement should be strengthened.
₹87.72 lakh KURDFC loan – debt management is required.
₹79.40 lakh Prepaid Programme Expenses – scheme-wise reconciliation is required.
₹25.31 lakh Advances – timely adjustment is required.
₹35,925 Suspense – should be examined in detail and cleared.
Maintenance, physical verification, and asset register reconciliation of fixed assets should be carried out continuously.
Conclusion

The financial position of Kodikulam Grama Panchayat during the 2025–26 financial year is generally satisfactory. There has been a surplus in the income-expenditure position, positive cash generation from operations, and significant expenditure has been incurred on infrastructure development and social welfare.