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

7. Loans receivable

Loans receivable are presented at amortised cost, which is net of loss allowance, as follows:

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Loans receivable

18 293

9 092

18 293

9 092

Split between non-current and current portions Non-current assets

10 731

6 512 2 580 9 092 8 311 3 528

10 731

6 512 2 580 9 092 8 311 3 528

Current assets

7 562

7 562

18 293

18 293

Gross loans receivable at 1 July

9 166

9 166

Loans issued Loans repaid

21 446

21 446

(12 209)

(2 673)

(12 209)

(2 673)

Expected credit losses

(110)

(74)

(110)

(74)

18 293

9 092

18 293

9 092

Rand Water is registered with the National Credit Regulator (NCR) as a credit provider in terms of Section 40 of the National Credit Act 34 of 2005. Loans receivable consist of micro loans granted to qualifying employees. These loans are unsecured however the credit quality of the loan book has been assessed as a low risk by reference to historical default rates, as loan repayments are deducted directly from the employees’ salaries and employees are required to take an insurance policy on the outstanding balance. During the current reporting period, the micro loan book value increased primarily due to an increase in the maximum threshold from R20 thousand to R150 thousand. The loans have repayment periods varying from 1 to 3 years at a closing interest rate of 10.75% (2024: 11.75%). The loans receivable is shown net of expected credit losses of R110.2 thousand (2024: R74.4 thousand)

8. Trade and other receivables

Totals shown below are net of expected credit losses

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Amortised Cost Non-current assets

421 088

280 417

421 088

280 417

Current assets

4 742 860 5 163 948

4 494 613 4 775 030

4 753 897 5 174 985

4 500 170

Total trade and other receivables 4 780 587 Non-current portion of trade and other receivables comprise of some municipalities that have a special arrangement to liquidate their obligation over an extended period of time as part of the debt relief programme.

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Rand Water | Integrated Annual Report 2025