RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Board Report 1. Introduction

The Board of Rand Water presents its audited consolidated annual financial statements for the financial year ended 30 June 2023. In the opinion of the Board, the statements fairly represent the financial position, financial performance, and cash flows for the financial year ended 30 June 2023 of Rand Water and its subsidiaries, in accordance with the International Financial Reporting Standards (IFRS) as adopted by the entity. 2. Nature of the business Rand Water is a Water Board established in terms of the Water Services Act, No. 108 of 1997 (WSA) with a mandate of providing water services to other water service institutions within its service area. Rand Water is a schedule 3B public entity in terms of the Public Finance Management Act, No. 01 of 1999 (PFMA). Rand Water Rand Water is a bulk water supplier that abstracts and treats raw water mainly from the Vaal River, transmits and distributes stored water upon demand to municipalities, mines, industries and small consumers as end‑users in the Gauteng Province and parts of Free State, Mpumalanga and North‑West Provinces. In some instances, raw water is distributed to certain industries by agreement only. In support of the primary activities undertaken by the entity, secondary activities are embarked upon to augment the revenue streams. Rand Water Services (Pty) Ltd The Rand Water Services (Pty) Ltd was established in 2000 in accordance with the Companies Act of 1973. RWS is a wholly owned subsidiary of Rand Water and was dormant for the period under review. RWS ceased trading following a decision at a meeting held by the Board on 06 November 2010, wherein the activities of the company were divisionalised into Rand Water. At the date of the issuance of these consolidated annual financial statements, the activities relating to WSA s30 activities were still at an infancy and preparatory work commenced, and specific staff members are being seconded from Rand Water to support the resumptions of trade process. The Organisation remains committed to the successful rescussitation of the Rand Water Services and the fulfilment of our responsibilities to our shareholders and other stakeholders. Rand Water Foundation NPC Rand Water Foundation is a non‑profit company (NPC) incorporated to carry out services for the public benefit as required by item 1(1) of Schedule 1 of the Companies Act 71 of 2008 and is a wholly‑owned subsidiary of Rand Water. RWF was specifically established to execute the corporate social investment strategy of Rand Water and has been operational since 2003. To this end, RWF is registered as a public benefit organisation for purposes of tax exemption in terms of the Income Tax Act 58 of 1962. Rand Water and its subsidiaries; comprising of Rand Water Services (RWS) and Rand Water Foundation (RWF) are together referred to as “the Group”. The Board of Rand Water took a decision to resuscitate the entity and commence operations in the new financial year, 2024. The approval to commence trading is to ensure continued compliance with the provisions of section 30 of the Water Services Act.

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