RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements

36. Secondary activities

Figures in Rand thousand 2023

Provision of management consulting,

Non potable water supply services

Potable water supply services

Total

training and other support services

Revenue

(46 503)

(183 640) 183 640

(969 972) 464 403 (1 276) 125 946

(1 200 115) 678 257 (1 410) 152 096 (143 683) (30 923) (545 778)

Cost of sales Other income Other expenses

30 214

(134)

-

27 799

(1 649)

Expected credit loss

(143 683)

- -

-

Net interest

-

(30 923)

Net (income)/loss

(132 307)

(1 649)

(411 822)

Figures in Rand thousand 2022

Provision of management consulting,

Non potable water supply services

Potable water supply services

Total

training and other support services

Revenue

(39 879)

(178 193) 178 193

(844 482) 420 340

(1 062 554)

Cost of sales Other income Other expenses

31 294

629 827 (1 370) 107 111 (32 137) (19 808)

(110)

-

(1 260) 84 037

24 654

(1 580)

Expected credit loss

(32 137)

- -

-

Net interest

-

(19 808)

Net income/(loss)

(16 178)

(1 580)

(361 173)

(378 931)

Included in net income for the year are the following net income/(losses) derived from secondary activities, as defined by Section 30 of the Water Services Act, Act 108 of 1997. These activities have been ring fenced in terms of the requirements of Section 42 of the Water Services Act. The disclosure note on secondary activities complies with Section 30 of the Water Services Act and that secondary activities, as defined, have been ring fenced for all periods being reported.

The categories are derived based on the categories within the Water Services Act as follows:

Management consulting, training and other support services – Qualifies under S30(2)(a) Providing management and other support services in order to promote co‑operation in the provision of water services.

Non‑potable water supply services – Qualifies under S30(2)(b) & (d) The supply of untreated or non‑potable water to end users who do not use the water for household purposes but for industrial use.

Potable water supply services – Qualifies under S30(2)(d))(i) Supply of potable water with permission from the water services authority to a customer for industrial use and qualifies under S30(2)(d)(iii) with permission from the water services authority to act as a water services provider to customers.

291