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 *

14. Non‑current assets held‑for‑sale Rand Water effectively discontinued providing bulk water services to the Bushbuckridge Local Municipality (BLM) and accordingly handed‑over the operation of the bulk infrastructure to its rightful owner, the Department of Water and Sanitation on 1 July 2019. In 2021, the entity concluded the water purchases relating to the BLM area of operations that has been discontinued with the Shareholder (the DWS). Based on the finalised actual costs incurred within that discontinued segment an adjustment to water purchases was recorded at R14 million resulting in income from discontinued operations being recognised. The impact of the adjustment in cost of sales is reflected below, resulting in an adjusted cumulative net loss on discontinued operation of R62.9 million. Rand Water conducts periodic asset verification and condition assessments on its property, plant, and equipment. During the year certain assets amounting to R82 thousand (2022: R156 thousand and 2021: R12 million) had been identified as redundant, no longer in use or reaching the end of their expected useful lives and subsequently transferred to held for sale. These assets still have a secondary market value and are waiting for disposal via the Rand Water annual auction process that will be held within the next 12 months. During the year, redundant pipes were disposed of via the open auction process that took place in October 2022 as well as the decommissioned Emhlangeni pipe plant’s assets.

Statement of financial performance

Expenses

-

-

14 360

-

-

14 360

Assets and liabilities Non‑current assets held for sale Other assets Total Non‑current assets held for sale

82 82

156 156

12 160 12 160

82 82

156 156

12 160 12 160

Management’s intention to dispose of the assets remains unchanged.

15. Interest bearing borrowings

Non‑current liabilities

3 154 819 4 384 355 4 383 710 3 154 819 4 384 355 4 383 710 - 4 384 986 4 384 355 4 383 710 4 384 986 4 384 355 4 383 710 1 230 167 - - 1 230 167 -

Current liabilities

Interest bearing borrowings maturity profile Six months to one year

1 230 167

-

-

1 230 167

-

-

One year to three years

585 846 1 228 290 1 226 413 585 846 1 228 290 1 226 413

Three years to five years

578 810 585 795 585 731 578 810 585 795 585 731

More than five years

1 990 163 2 570 270 2 571 566 1 990 163 2 570 270 2 571 566 4 384 986 4 384 355 4 383 710 4 384 986 4 384 355 4 383 710

As of 30 June 2023, the Group has fully set aside funds for the ultimate redemption of the RW23.

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