Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

4. Property, plant and equipment (continued)

As at 30 June 2025, assets with a carrying value of R167.2 thousand (2024: R23.3 million) were deemed obsolete and impaired. A full assessment was conducted at year end. The assumptions and estimates were informed by consultation with subject matter experts.

Transfers

Transfers include the movement of assets between property, plant and equipment, non-current assets held for sale and/or intangible assets. Included in other adjustments is an amount of R55.7 million, which relates to a reallocation between assets under construction (AUC) within property, plant and equipment and intangible assets. In addition, transfers include movements between assets under construction of completed assets into the different classes of property, plant and equipment and intangible assets. The entity continues to invest in strategic assets to prevent capacity constraints, ensure the fulfilment of its service delivery mandate, and maintain operational integrity to support the uninterrupted supply of potable water. As at 30 June 2025, R938 million of these assets have achieved beneficial use and were subject to depreciation.

Assets awaiting approval for disposal

During the annual asset verification, the Group identified property, plant and equipment assets, which are redundant and have reached the end of their useful life, amounting to R12.7 million (2024: R37.4 million). The approval for the removal or disposal of these assets from the asset register will be tabled in the next financial period. Certain assets in this category are still under verification.

The redundant assets per asset status are disclosed as follows.

Number of assets

Accumulated depreciation Carrying value

Asset Status

Cost

Pending verification

380 201 581

29 559 12 731 42 290

(29 559) (12 731) (42 290)

- -

Pending management approval

-

A further breakdown of the redundant assets per asset class and category is listed below.

Number of assets

Accumulated depreciation Carrying value

Asset Class

Cost

Building Furniture

1

21

(21)

- - - - - -

23

776

(776)

IT equipment

138 123 288

11 111

(11 111) (6 712) (20 772) (2 898) (42 290)

Office equipment

6 712

Portable plant and equipment Pumping and purification

20 772

8

2 898

581

42 290

-

247

Rand Water | Integrated Annual Report 2025