RAND WATER ANNUAL REPORT 2023

HOW WE CREATE VALUE

Expected Credit Losses Debtors (Rm)

Expected Credit Loss

35%

FY 2023

2.148

1.590

-9%

FY 2022

FY 2021

1.746

41%

Debtors Days

Debtors Day - Yearly Trend

109

77

75

FY 2022

FY 2021

FY 2023

The Expected Credit Loss has increased by 35% to R2.149 million (FY2022: R1.590 million) as a result of the deteriorating recovery rate of the trade receivable balance. The relief packages offered to our customers, played a crucial role in curbing the deterioration in the liquidity of the organisation. These have assisted to stimulate the appetite for customers to pay both their current account and old debt. It allows customers to ‘ring fence’ a portion of the debt and commit their equitable share. The Group also waived interest on overdue accounts for that portion of the debt. The organisation closely monitors the outstanding debt from municipal customers and takes legal action to prevent the debts from increasing and to ensure that the full amount billed is recovered. This demonstrates the organisation’s commitment to complying with relevant legislation and regulations. The group is also actively engaging with the municipalities to establish favourable repayment arrangements that can be legally enforced.

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