Rand Water | Integrated Annual Report 2025

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

17.Deferred income

Group

Rand Water

Figures in Rand thousands Analysis of deferred income Current portion

2025

2024

2025

2024

3 012

3 079

2 877

2 709

Non-current portion

166 336 169 348

161 234 164 313

166 336 169 213

161 234 163 943

The deferred income relates to the capital contributions received from customers which are initially recorded as income received in advance for projects initiated for the construction of the customers’ assets. It also includes grants received from funders towards projects to be undertaken in future financial periods. Deferred income is recognised in profit or loss as income on a straight-line basis over the expected useful lives of the related assets. A capital contribution of R6.2 million relating to the construction of various water meter projects that are to be undertaken was received and the revenue will be recognised when the assets become available for use. In addition, a further capital contribution of R1.8 million was received from City Power for the relocation of the G20 pipeline which was completed during the current year and amortisation has commenced. Amortisation of the deferred income to the value of R2.8 million (2024: R2.7 million) was recognised in other income when the asset is in use which is the amount recognised in revenue reflecting the economic benefits of these projects.

Reconciliation of deferred income - Group - 2025

Recognised during the year

Opening balance

Amortisation for the year

Closing balance

Additions

Capital contribution from customers

164 313

8 105

(2 835)

(235)

169 348

Reconciliation of deferred income - Group - 2024

Recognised during the year

Opening balance

Amortisation for the year

Closing balance

Additions

Capital contribution from customers

132 098

34 931

(2 711)

(5)

164 313

270

Rand Water | Integrated Annual Report 2025