uMNGENI-uTHUKELA WATER - Umgeni-Availability of Annual Financial Statements

Umgeni-Availability of Annual Financial Statements

uMngeni-uThukela Water
Registration number: 1997/007707/07
JSE Alpha code: BIUMWA
("uMngeni Water" or "the group")

NOTICE OF AVAILABILITY OF ANNUAL REPORT

uMngeni Water hereby notifies its debt investors that it has publicly released its Annual Report for the
year ended 30 June 2024 ("Annual Report"), incorporating the annual financial statements for the year
ended 30 June 2024 ("AFS") and the auditor's report prepared by the Auditor-General of South Africa
("AGSA") ("Auditor's Report") which is unqualified.

The Annual Report, incorporating the AFS and the Auditor's Report, are available on the uMngeni Water
website at https://www.umngeni-uthukela.co.za/ and for inspection at uMngeni Water's registered office
at 310 Burger Street, Pietermaritzburg, 3201, South Africa.

Restatements

The AFS contain restatements for the prior year ended 30 June 2023 ("prior period") due to prior period
errors relating to:

    •   irregular expenditure which was understated by R89.7 million;
    •   costs recognised in property, plant and equipment did not meet asset recognition criteria and
        should have been expensed to the Statement of Profit and Loss; and
    •   a reclassification of investment in redemption assets as "Cash used in investing activities".

Full details of the restatements are set out in note 31 to the AFS.

Emphasis of matter and previously reported material irregularities

The Auditor's Report contains an emphasis of matter relating to material impairments of R534.93 million
raised by uMngeni Water on trade and other receivables due to debtors not being able to settle
outstanding amounts. The AGSA's opinion has not been modified in respect of this matter.

In addition, the AGSA reported on the following previously identified material irregularities which are
still in progress of being resolved:

    •   payments for consultancy services not received;
    •   invalid payments for security services; and
    •   standing time costs incurred due to ineffective controls over payments to suppliers.

A further material irregularity in respect of a variation order approved has been resolved.

Full details of the aforementioned have been included in the Auditor's Report.

30 January 2025

Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 30-01-2025 11:56:00
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