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

31.Finance costs

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Interest on interest bearing borrowings Interest on post retirement obligation

320 150 39 578

376 107 41 953

320 150 39 578

376 107 41 953

Other interest paid Total finance cost

8 400

9 450

8 400

9 450

368 128 (320 150)

427 510 (376 107)

368 128 (320 150)

427 510 (376 107)

Less: Interest capitalised on qualifying assets

47 978

51 403

47 978

51 403

Reconciliation to the Statement of Cash Flows Interest capitalised on qualifying assets

320 150

376 107

320 150

376 107

Amortised interest

4 651

9 592

4 651

9 592

324 801

385 699

324 801

385 699

As at 30 June 2025, finance costs decreased primarily due to the redemption of the RW23 bond in December 2023 and a reduction in the floating rate on the RWL26 bond, following repo rate cuts by the South African Reserve Bank during the current financial year.

32. Taxation

In terms of Section 10(1)(cA) of the Income Tax Act 58 of 1962, Rand Water is exempt from income tax. Rand Water Services (Pty) Ltd applied and received tax exemption under the same provisions of the Income Tax Act. Rand Water Foundation was also approved as a non-profit organisation, and is exempt from normal income tax.

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Rand Water | Integrated Annual Report 2025