RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements

Figures in Rand thousand

Group

Rand Water

2023

2022 Restated *

2021 Restated *

2023

2022 Restated *

2021 Restated *

6. Investments in subsidiaries

Equity investment

-

-

-

12 500

12 500

12 500

Balance 1 July

-

-

-

(4 444)

(4 573)

(4 612)

Reversal of impairment

-

-

-

524

129

39

-

-

-

8 580

8 056

7 927

The equity investment in subsidiary represents the 100% shareholding in Rand Water Services (Pty) Ltd.

During the current financial year, the value of the investment was reviewed using the net asset value method. As a result, an amount of R524 thousand (2022: R129 thousand; 2021: R39 thousand) was reversed against the impairment on the investment in Rand Water Services. In 2009 Rand Water fully impairment its investment in Rand Water Services calculated utilising net asset and liabilities figures derived from the annual financial statements of the subsidiary, this was driven mainly by losses that were incurred by the subsidiary through its pan‑African focus business in Ghana. Rand Water Services (Pty) Ltd was established in the year 2000 in order to tap into the potential of the water industry by allowing business partnerships and joint ventures with private and public companies in developing water infrastructure with a national and pan‑African focus. Following the Boards decision in 2010, the subsidiaries national operations were divisionalised into Rand Water, with the pan‑African operations, represented by Rand Water Services 49% shareholding in Vitens Rand Water Services sold to Vitens Evides International B.V for 1 Euro. Excluding the decision by the Rand Water Board to rescusitate operations, up to 30 June 2023, Rand Water Services remained dormant and the only activities in the Entity has been its bank account held with First National Bank. 7. Loans receivable

Loans receivable are presented at amortised cost, which is net of loss allowance, as follows:

Loans receivable

8 222

1 460

1 800

8 222

1 460

1 800

Split between non‑current and current portions Non‑current assets 3 866

397

463

3 866 4 356 8 222

397

463

Current assets

4 356 8 222

1 063 1 460

1 337 1 800

1 063 1 460

1 337 1 800

Gross loans receivable at 1 July

1 538 9 967

1 880

2 844 1 526

1 538 9 967

1 880

2 844 1 526

Loans issued

902

902

Loans paid

(3 194)

(1 244)

(2 490)

(3 194)

(1 244)

(2 490)

Expected credit losses

(89)

(78)

(80)

(89)

(78)

(80)

Gross loans receivable at 30 June 1 800 Rand Water is registered with the National Credit Regulator (NCR) as credit provider in terms of Section 40 of the National Credit Act 34 of 2005. 8 222 1 460 1 800 8 222 1 460

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