RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements 7. Loans receivable (Continued)

Figures in Rand thousand

Group

Rand Water

2023

2022 Restated *

2021 Restated *

2023

2022 Restated *

2021 Restated *

Loans receivable consist of micro loans granted to qualifying employees. These loans are unsecured however the credit quality of the loan book has been assessed as a low risk by reference to historical default rates, as loan repayments are deducted directly from the employees’ salaries and employees are required to take an insurance policy on the outstanding balance.

During the 2022 financial year, the entity reviewed the business model adopted for micro loans. The approved business model on micro loan resulted in increases during the year under review of micro loans issued to employees compared to prior years.

The loans have repayment periods varying from 1 to 3 years at a closing interest rate of 11.75% (2022: 8.25% and 2021: 9.00%).

Loans receivable is shown net of expected credit losses of R89 thousand (2022: R78 thousand and 2021: R80 thousand).

8. Trade and other receivables

Totals shown below are net of expected credit losses

Amortised Cost Non‑current assets

102 948

84 431 149 071 102 948

84 431 149 071

Current assets

4 226 093 2 960 502 2 395 303 4 229 053 2 964 892 2 395 057

Total trade and other receivables

4 329 041 3 044 933 2 544 374 4 332 001 3 049 323 2 544 128

Non‑current portion of water and trade receivables comprise of some municipalities that have a special arrangement to liquidate their obligation over an extended period of time as approved by the Board as part of the Covid‑19 relief options.

The table below indicates the Group and the entity current receivables class, split between water and trade receivables by customer type, and the different types of other receivables:

Current asset ‑ trade and other receivables

Water and trade receivables National Government Department

14 260

36 128

43 793

14 260

36 128

43 793

Local Government /Municipalities

3 748 790 2 630 403 2 051 172 3 748 790 2 630 403 2 051 172

Mines

42 814

31 886

26 469

42 814

31 886

26 469

Retail

48 256

53 399

68 313

51 806

58 656

68 313

Industries

13 173

6 381

4 602

13 173

6 381

4 602

Sub‑total

3 867 293 2 758 197 2 194 349 3 870 843 2 763 454 2 194 349

Other receivables

162 124 112 226

51 451 161 534 111 655

51 205

Other VAT receivable

115 500

296

67 174 115 500

-

67 174

Prepayments

81 176

89 783

82 329

81 176

89 783

82 329

Total current trade and other receivables

4 226 093 2 960 502 2 395 303 4 229 053 2 964 892 2 395 057

239