RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements

9. Investment in bonds Fair value through other comprehensive income

2 116 290 1 475 403 592 800 2 116 290 1 475 403 592 800

Investment in bonds Sovereign bonds

1 704 763 1 398 653 574 406 1 704 763 1 398 653 574 406

State‑owned entity bonds

411 527 18 394 2 116 290 1 475 403 592 800 2 116 290 1 475 403 592 800 76 750 18 394 411 527 76 750

Reconciliation to the Statement of Cash Flow

Reconciliation of investment in bonds Opening balance

1 475 403 592 800 465 925 1 475 403 592 800 465 925

Expected credit losses

(6 410) (45 476)

(21 849) (58 428) (1 253)

(132)

(6 410)

(21 849) (58 428) (1 253)

(132)

Fair value

15 096 (45 476)

15 096 (4 170)

Amortisation of (discount) or premium

573

(4 170)

573

Increase in investments

692 200 964 133 116 081 692 200 964 133 116 081 2 116 290 1 475 403 592 800 2 116 290 1 475 403 592 800

Closing balance

As at 30 June 2023, the Group holds sovereign and state‑owned entity bonds with a total nominal value of R2 400 million. Fair values were estimated using the Johannesburg Stock Exchange market rates. Coupons are payable quarterly and bi‑annually to the Group.

During the 2023 financial year, the Group invested in additional sovereign and state‑owned entity bonds with a total nominal value of R400 million and R350 million at a discount, respectively.

The Group has recognised a net fair value loss of R45.5 million (2022: R58.4 million fair value loss and 2021: R15.1 million fair value gain) in other comprehensive income with an expected credit loss of R6.4 million (2022: R21.8 million and 2021: R0.1 million). As at 30 June 2023, the Group has amortised to the statement of financial performance R573 thousand (2022: R1.3 million and 2021: R4.2 million) which relates to net discounts that were recognised at the initial purchase of the bonds. 10. Inventories Raw materials, chemicals and water inventory 108 646 120 689 121 128 108 646 120 689 121 128 Maintenance and consumable stores 65 697 49 171 46 213 65 697 49 171 46 213 174 343 169 860 167 341 174 343 169 860 167 341

Included in inventory : Raw materials ‑ Steel coil

-

-

21 466

-

-

21 466

Chemicals

50 476

47 436

45 170

50 476

47 436

45 170

Water inventory

58 170

73 252

54 492

58 170

73 252

54 492

Maintenance spares and consumables stores

65 697 46 213 174 343 169 860 167 341 174 343 169 860 167 341 49 172 46 213 65 697 49 172

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