Logged a loss of Rs250.72 crore for Q3, FY24
CL Jose
THIRUVANANTHAPURAM: Even as the pension distribution to the thousands of retired employees facing several headwinds, KSEB Ltd, the state owned power distributor has lapped up a cumulative loss to the tune of Rs718.92 crore as of December end, 2023.
Though there are tripartite agreements signed among KSEBL, Pension Master Trust and the Government of Kerala in order to streamline the pension distribution to its huge retired workforce, there are dark clouds formed over the prospects of pension distribution in the future.
However, the government has conveyed its assurance to the pensioners that it is working on a foolproof plan to ensure an uninterrupted distribution of pension.
Loss repeating
KSEB that has reported an annual loss of Rs Rs1023.62 crore for the financial year 2022-23, has logged a loss of Rs250.72 crore for the third quarter that ended on December 31, 2023 after reporting a much larger loss of Rs570.48 crore for the second quarter.
However, the company that delivers power to 99 per cent of retail consumers in the state had turned in a net profit of Rs102.28 crore for the first quarter of the current financial year.
Auditors take tough stand
The auditors of KSEB has flagged that the company has presented the financial information for the third quarter in deviation from Indian Accounting Standards specified under Section 133 of the Companies Act 2013.
This has been viewed seriously by financial experts, more so because this is not the first time the auditors have made such harsh remarks about the company’s finances.
Huge challenges
The financial challenges faced by the state owned power major is huge when it comes to the large borrowing, negative net worth and accumulated losses piled up over the years are taken into account.
While the accumulated losses of the company stood at Rs12,112 crore as of December 30, 2023, the total borrowings were to the tune of Rs15,403.37 crore.
More seriously, the company’s net worth has plunged to a whopping negative Rs33,210 crore during this period.
The largest expenses of the company are recorded on two heads. The purchase of power took away Rs3105.11 crore from its kitty during the quarter against Rs4701.27 crore the company earned as revenue from its operations.
On the other hand, the company spent Rs855.95 crore on the benefits to its huge workforce. Due to the substantial borrowings of the company, KSEB expended Rs379.56 crore on finance charges or interest during the quarter under review.
