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 *

12. Term deposit investments

Amortised cost Term deposit investments

2 815 208 2 289 394 1 394 102 2 815 208 2 289 394 1 394 102

Gross investment

2 816 000 2 290 000 1 394 989 2 816 000 2 290 000 1 394 989

Expected credit losses

(792)

(606)

(887)

(792)

(606)

(887)

Term deposit investments

2 815 208 2 289 394 1 394 102 2 815 208 2 289 394 1 394 102

Reconciliation to the Statement of Cash Flow Balance at 1 July

2 289 394 1 394 102 2 934 830 2 289 394 1 394 102 2 934 830 5 008 000 5 185 000 1 932 060 5 008 000 5 185 000 1 932 060 (4 482 000) (4 289 989) (3 481 081) (4 482 000) (4 289 989) (3 481 081)

Increases in investments

Maturities

Expected credit losses Balance at 30 June

(186)

281

8 293

(186)

281

8 293

2 815 208 2 289 394 1 394 102 2 815 208 2 289 394 1 394 102

Term deposit investments consist of financial instruments with an original maturity of greater than 3 months at acquisitions of investments such as fixed deposits, Promissory Notes (PN), Assets‑Banked Commercial Paper (ABCP) and Negotiable Certificate of Deposit (NCD). Term deposit investments increased to R2 815 million as at 30 June 2023 (2022: R2 289 million and 2021: R1 394 million). The expected credit losses increased to R0.8 million (2022: R0.6 million and 2021: R0.9 million) as a result of an increased amount of term deposit investments and offset by improved probability of default for respective counterparties. 13. Cash and cash equivalents

Cash and cash equivalents consist of:

Call and short term deposit

4 834 882 4 893 785 5 567 437 4 827 351 4 886 722 5 567 437

Bank and cash balances

61 748 40 372 4 896 630 4 912 560 5 618 994 4 884 128 4 902 359 5 607 809 18 775 51 557 56 777 15 637

Reconciliation of cash and cash equivalents Gross cash and cash equivalents

4 898 279 4 915 021 5 622 557 4 885 777 4 904 820 5 611 372

Expected credit losses

(1 649) (3 563) 4 896 630 4 912 560 5 618 994 4 884 128 4 902 359 5 607 809 (2 461) (3 563) (1 649) (2 461)

Cash and cash equivalent comprise funds that are available on demand or have an original maturity of less than 3 months from settlement date. This includes positive bank balances, cash on hand, call deposits, fixed deposits, notice deposits, Promissory Notes (PN), and investments in money market instruments with financial institutions that have an investment‑grade credit rating.

The Group ECL relating to cash and cash equivalent at 30 June 2023 decreased to R1.6 million (2022: R2.5 million and 2021: R3.6 million) as a result of improved probability of default for respective counterparties.

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