Rand Water | Integrated Annual Report 2025

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

5. Intangible assets (continued) A previously recognised impairment is reversed insofar as estimates change as a result of an event occurring after the impairment was recognised. An impairment is reversed only to the extent that the asset or cash generating unit carrying amount does not exceed the carrying amount that would have been determined had no impairment been recognised. A reversal of an impairment is recognised in the Statement of Financial Performance. For the current reporting period, there were no impairments or reversals of impairments recognised. Indefinite useful lives Servitudes are rights granted to the Group for an indefinite period of time. The servitudes consist of land expropriated by Rand Water containing infrastructure owned by the Group and used in the production of revenue. Servitudes are not amortised but are assessed by means of an annual impairment test. The recoverable amount is determined through the results of the value in use and fair value less costs to sell impairment tests. The results of which have indicated that no impairment is required. Servitudes amounting to R8.6 million have been transferred from AUC during the current reporting period. Computer software Rand Water assessed all its software and none were identified and classified as internally generated assets in terms of IAS 38. As at 30 June 2025, software assets with a carrying value of R27.8 million achieved beneficial use and amortisation had commenced. Assets pledged as security

As at 30 June 2025 the Group had no intangible assets that were pledged as security. Assets awaiting approval for disposal

During the current financial year the following assets has been identified as redundant assets and disclosed as follows:

Asset Status

Number of assets Cost

Accumulated amortisation Carrying value

Pending management approval

15

4 502

(4 502)

-

Asset Class

Number of assets Cost

Accumulated amortisation Carrying value

Computer software

15

4 502

(4 502)

-

6. Investments in subsidiaries

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Equity investment Impairment balance

- -

- -

12 500 (9 495)

12 500 (5 067)

-

-

3 005

7 433

The equity investment in subsidiary represents the 100% shareholding in Rand Water Services (Pty) Ltd.

During the current financial year, the value of the investment was reviewed using the net asset value method. As a result, an additional net impairment loss of R4.4 million was recognized (2024: R1.2 million) against the investment in Rand Water Services.

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Rand Water | Integrated Annual Report 2025