KOCHI: Kerala’s state-owned electricity company, KSEB, does not have proper records of the land, buildings, and other properties it claims to own. No registry, no list of title deeds, not even basic ownership details. Yet it has booked over Rs25,000 crore worth of physical assets as it owns in its accounts.
This shocking detail isn’t new – auditors have flagged it quarter after quarter, but the warnings seem to fall on deaf ears. There is no sign that the company has acted to fix the issue.
The latest audit of KSEB’s unaudited financial results for the April–June 2025 quarter once again pulls up the company for failing to maintain basic records of its fixed assets and investment properties.
It also warns that the financial statements don’t follow several mandatory accounting standards, and as a result, the company itself is unable to estimate how wrong its own numbers might be.
“Determining whether any adjustments might have been necessary… is not practical,” the auditors wrote, referring to the company’s asset claims.
Rs35,915cr in total assets?
KSEB’s own statement says it holds assets worth Rs35,915.16 crore – including Rs25,576.28 crore under Property, Plant & Equipment, and Rs18.18 crore as investment property. But with no proper documentation, even auditors cannot verify whether those figures are real or reliable.
On the liability side, the company’s net worth is negative Rs34,053.36 crore, meaning KSEB owes far more than it owns.
Deposits, dues, and more red flags
The audit also highlights other serious problems:
An amount of Rs683.78 crore has been collected as consumer deposits for electrification works, but it remains unmatched to actual project completion.
Over Rs71 crore remains in unsettled balances between internal units, they are simply lumped together as “Other Current Assets.”
KSEB has not done any proper reconciliation of GST accounts, nor followed the required rules on leases, depreciation, or credit loss estimates.
The company still does not maintain records of its investment properties, and its fixed asset register – a basic document in any organisation – simply does not exist.
Poor internal controls
Even more troubling, the auditors note that there are material weaknesses in KSEB’s internal financial controls. Yet quarter after quarter, the same issues appear in reports, with no visible action taken.
As one veteran chartered accountant said, “It’s not that the problems aren’t known – it’s just that no one at the top management seems to be bothered.”
KSEB is a government-owned entity, funded by public money. Poor recordkeeping and inaccurate accounts not only erode trust – they also increase the risk of waste, mismanagement, or worse.
At a time when electricity tariffs and subsidies are hot issues, KSEB’s own financial house appears far from being in order. Without urgent reforms and transparency, consumers may end up paying for a system that doesn’t even know what it owns.
