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 *

2023

2022 Restated *

30. Finance income

Interest income Interest earned from current bank accounts

3 045

561

2 390

421

Interest on investments Trade and other receivables

780 512 432 933 780 598 432 933 146 243 153 692 146 243 153 692

Other interest received

783

401

783

401

Interest on post retirement plan asset

42 915

38 237

42 915

38 237

Total interest income

973 498 625 824 972 929 625 684

Adjusted for: Amortised and not received interest

(106 797)

(101 039)

(106 883)

(101 038)

Finance income received

866 701 524 785 866 046 524 646

Interest on investments is largely attributable to higher returns from the increased investment in term deposit investment and bond investments, refer to Note 12 and Note 9 respectively. The Group recognises interest income on the carrying amount of the non‑performing customer class. In the current financial year, significant consideration towards old debt from non‑performing customers was received which warrants recognition of interest on cash basis for those customer class. 31. Finance cost

Interest on interest bearing borrowings Interest on post retirement obligation

431 206 415 533 431 206 415 533

44 455

39 106 17 773

44 455

39 106 17 953

Other interest paid Total Finance cost

9 461

9 546

485 122 472 412 485 207 472 592

Less: Capitalised to qualifying assets

(403 921)

(415 533)

(403 921)

(415 533)

Total finance costs expensed

81 201

56 879

81 286

57 059

Reconciliation to the Cash Flow Statement Adjusted for: Capitalised interest on qualifying assets

403 921 415 533 403 921 415 533

Amortised interest Finance costs paid

(46 361)

(26 807)

(46 361)

(26 807)

438 846 429 212 438 846 429 212

Other interest paid includes R4.1 million relating to a debt written off by the Department of Water and Sanitation (the shareholder) (refer to note 25 and note 34) for the Bushbuckridge service area.

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