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 *

32. Taxation In terms of Section 10(1) (cA) read with Section 1(b) of the Income Tax Act 58 of 1962, Rand Water is exempt from income tax. Rand Water Services (Pty) Ltd applied and received tax exemption under the same provisions of the Income Tax Act. Rand Water Foundation was also approved as a non‑profit organisation, and is exempt from normal income tax. 33. Cash generated from operations

Net income for the year

3 535 750 3 462 226 3 535 176 3 461 650

Adjustments for non‑cash items: Depreciation

600 639 474 994 601 193 475 549

Amortisation

16 048 11 076

14 556 (3 614)

16 048 11 076

14 556 (3 614)

(Profit)/loss on disposal of assets Reversal of impairment in subsidiary

-

-

(524) 6 018

(129)

Loss on assets scrapped

6 018

598

598

Finance income

(973 499)

(626 186)

(972 930)

(625 684)

Movements in retirement benefit obligation

7 347

(8 964) 56 059 (4 066)

7 347

(8 964) 57 059 (4 066)

Finance costs

81 200 (5 331) 44 276

81 285 (5 331) 44 276

Movements in rehabilitation provision

Impairment of assets

7 867

7 867

Movement in retirement benefit plan assets

456

478

456

478

Debt written off by shareholder

(75 751) (702 649)

- -

(75 751) (702 657)

- -

Other non‑cash items Expected credit loss Inventory write down

566 844 (137 398)

566 844 (137 398)

535

392

535

392

Changes in working capital: Increase in inventories

(4 483)

(2 518)

(4 483)

(2 518)

Increase in trade and other receivables (Increase)/ decrease in contract assets Increase in trade and other payables Increase/ (decrease) in deferred income

(1 284 111)

(499 011) (1 282 680)

(504 660)

(12 150)

5 937 (12 150)

5 937

254 144 209 540 254 024 213 810

3 605

(1 149)

4 556

-

Decrease in contract liabilities

(56 587) (309 802) 2 013 377 2 639 938 2 015 741 2 641 061 (309 803) (56 587)

Reconciliation to the Cash Flow Statement

Cash charged on the sale

7 667

7 667

12 018 (4 946)

12 018 (4 784)

Unpaid at 30 June

-

-

Cash received after 30 June 2022

4 784

4 784

-

-

Proceeds on sale of property, Plant and equipment

12 451

12 451

7 396

7 396

287