Tamil Nadu Urban Infrastructure Financial Services ... - Municipal

6. Analysis of financials
This section provides a summary analysis of the financial performance of Krishnagiri Municipality.
6.1 Income and Expenditure summary of Krishnagiri Municipality
Exhibit 6.1 provides a summary of the income and expenditure of Krishnagiri Municipality. This
summary has been prepared based on information provided by Krishnagiri Municipality covering
audited accounts for FY 2003 to 2005 and unaudited accounts for 2006.
Exhibit 6.1 Consolidated Income and Expenditure trend (Rs. in Lakhs)
INCOME 2002-03 2003-04 2004-05 2005-06 CAGR %
OWN INCOME 228 222 267 267 5%
Property tax 134 130 140 131 -1%
Profession tax 11 12 11 15 11%
Water & Sewerage Charges 29 25 53 48 18%
Other Service Charges & Fees 6 9 7 22 57%
Other Income 48 46 56 52 3%
ASSIGNED REVENUE 55 96 35 66 7%
DEVOLUTION FUND 154 127 160 56 -29%
GRANTS & CONTRIBUTIONS 0 0 0 5 #DIV/0!
PRIOR PERIOD INCOME 20 6 77 4 -44%
TOTAL 458 452 539 398 -5%
EXPENDITURE 2002-03 2003-04 2004-05 2005-06 CAGR %
Salaries 159 168 143 179 4%
Operating Expenses 82 127 92 86 1%
Programme Expenses 1 1 1 1 -20%
Administrative Expenses 19 10 11 86 65%
Finance Expenses 34 36 0 20 -16%
Depreciation 78 82 102 16 -41%
Prior Period Expenses 2 2 0 6 49%
TOTAL 298 345 247 378 8%
SURPLUS - (Excl.Depr) 160 107 291 20 -50%
Operational Ratio (Total Exp/Total Income) ( All figures in Percentage) Avg
Incl Depreciation 85% 95% 76% 98% 89%
Excl. Depreciation 68% 77% 53% 94% 73%
Debt servicing (Rs in lakhs)
Loan repayments - Interest 37.01 25.64 38 19.56 120.21
Loan repayments - Principal 12.28 8.27 7.28 7.59 35.43
Debt servicing Vs Income 11% 8% 8% 7% 8.40%
Source: Krish-M, IMaCS analysis
As seen from the table Income has grown at CAGR of 8.5% up from FY 03 to FY05, but has dipped
in FY06. The ULB has therefore slipped from a positive cash surplus scenario to a deficit in FY 06.
However, it should be noted that the financials for 2005-06 are un-audited figures and are subject to
change. Some of the discrepancies observed are listed below:
There seems to be some discrepancy in devolution income, which has fallen steeply from Rs.
160 lakh in FY 05 to Rs. 55 lakh in FY 06.
CCP cum BP - Krishnagiri Municipality 35