Annual Financial Report 2024–25

Naranammoozhy Grama Panchayat

🔹 1. Introduction

This document explains the financial position of the Grama Panchayat for the period from 01 April 2024 to 31 March 2025. It includes the Balance Sheet, Income & Expenditure Statement, and Cash Flow Statement.

🔹 2. Balance Sheet Analysis

📌 Total Liabilities and Assets

• Total Liabilities: ₹20.79 crore
• Total Assets: ₹20.79 crore

➡️ The balance sheet is properly balanced.

📌 Key Components

• Reserve & Surplus: ₹8.59 crore
• Grants: ₹5.48 crore
• Loan Liability: ₹6.32 crore
• Current Liabilities: ₹39.55 lakh

➡️ The Panchayat has a significant loan liability.

📌 Assets

• Fixed Assets: ₹10.33 crore
• Current Assets: ₹10.46 crore
  • Bank Balance: ₹2.67 crore
  • Debtors (Receivables): ₹88.75 lakh

➡️ A high amount of receivables is observed.

🔹 3. Income & Expenditure Analysis

📈 Total Income

• ₹27.29 crore

Major Sources of Income

• Grants: ₹12.93 crore
• Tax Revenue: ₹42.61 lakh
• Fees & User Charges: ₹17.81 lakh

➡️ There is heavy dependence on grants.

📉 Total Expenditure

• ₹25.12 crore

Major Expenditures

• Service Sector: ₹2.65 crore
• Infrastructure Sector: ₹97 lakh
• State Schemes: ₹3.93 crore
• Staff Expenses: ₹1.05 crore

📊 Result

• Total Surplus: ₹2.16 crore
• Remaining Investment Balance: ₹4.95 lakh

➡️ The Panchayat is in a financially surplus position.

🔹 4. Cash Flow Analysis

💰 Operating Activities

• Net Cash Loss: ₹1.73 crore

💰 Investing Activities

• Gain: ₹5.26 crore

💰 Financing Activities

• Loss: ₹36.95 lakh

➡️

• Total Increase in Cash: ₹68.21 lakh
• Closing Bank Balance: ₹2.67 crore

🔹 5. Key Observations

✅ Strengths

✔ The Panchayat is in surplus
✔ High level of fixed assets
✔ Good cash balance
✔ Significant spending on social welfare schemes

⚠️ Challenges

⚠️ Heavy dependence on grants
⚠️ High loan liability
⚠️ High receivables
⚠️ Negative operating cash flow

🔹 6. Suggestions

✔ Strengthen tax collection
✔ Increase own-source revenue
✔ Control loan liabilities
✔ Improve expenditure efficiency
✔ Develop digital revenue systems

🔹 7. Conclusion

According to the financial report for 2024–25, Naranammoozhy Grama Panchayat is financially stable and in a surplus position. However, for long-term sustainability, it is essential to increase own-source revenue and manage loan liabilities effectively.