THIRUVANANTHAPURAM: Kerala State Electricity Board Ltd (KSEBL) has once again slipped into the red, reporting a quarterly loss of Rs47.90 crore for the three-month period ended December 31, 2024.
This takes the cumulative loss for the first nine months of FY25 to Rs57.10 crore. The company’s first-quarter profit of Rs184.55 crore had provided some relief, but the trend remains concerning.
What stands out, however, is not just the losses but the company’s persistent disregard for financial accountability. KSEBL’s auditors have once again flagged deviations from Indian Accounting Standards (Ind AS) under Section 133 of the Companies Act, 2013 – a recurring issue in its financial reports.
The auditors noted that these deviations have led to an understatement or overstatement of losses and asset/liability values, the impact of which remains unquantified.
“The company is unable to quantify the financial impact, and accordingly, we are unable to provide an accurate assessment,” the auditors stated in their report.
KSEBL itself acknowledges these lapses in its financial notes, admitting to material weaknesses in internal financial controls on financial reporting. Yet, quarter after quarter, these qualifications have become routine, drawing little response from the company or its sole owner – the Kerala government. Despite repeated red flags, no corrective measures appear to be in sight.
Revenue growth overshadowed by costs
For the third quarter, KSEBL’s revenue from operations rose to Rs5041.74 crore from Rs4701.27 crore in the same period last year. However, this was outweighed by higher expenses, which stood at Rs5207 crore (versus Rs5081 crore in Q3 FY24).
As always, the largest expense was power purchase costs, which remained steep at Rs3094.61 crore, nearly unchanged from Rs3105.11 crore in the previous year.
On the balance sheet, while the negative net worth of the company mounted to Rs33,124 crore as of December end, the total borrowings have marginally dropped from Rs18,293 crore to Rs17,391 crore during the current financial year.
With mounting financial concerns and auditor warnings going unheeded, KSEBL’s approach to financial reporting raises serious questions about transparency and governance. The numbers may fluctuate, but the indifference remains unchanged.
