WUC Signed Financial Statements 2019

WATER UTILITIES CORPORATION FINANCIAL STATEMENTS. 31 MARCH 2019WATER UTILITIES conPoRATION (Incorporated In Botswana in tarms of the Water Ulities Corporation Act of 1970" Lave of Botswana Chapter 74:02) BUSINESS ‘The mandate of the Corpoatca ito provide potable water supply and wastewater service nthe hole county atom. Malema Resigned 31 April 2018, bool T. Obakeng John PD. Phatshwe Galeitswe Ramokopane ulna White ‘ute ekoko Smet Masire Cet Executive ofncer ‘Taboka Moke (Chet Financial omeee ‘Thepeto Kaloke ‘Shared Services rector Macieng Mackeng Human Recourees Director Tsholotele Boges! Head of intemal Auat Resigned 15 May 2038 Gaselemogwe Sensi Sustanabilty and Water Resources Director Thapeto vanaeng ‘eetnieat Services Dretor Folly Zoe Corporation Secretary REGISTERED OFFICE iter Usties Corporation Head ofce Sedlbeng House Prot 17530, Lthul Road Indostral Site aborone INDEPENDENT AUDITORS PricewaterhouseCoopers(WATER UTILITIES CORPORATION. INDEX TO THE FINANCIAL STATEMENTS For the year ended 31 Maren 2019. ‘The flowing statements are fresented in compliance with the requirements ofthe Water tities Corporation Act (Chapter 74.02), ‘conTENTS pace. ‘Statement of Responsbty bythe Members ofthe Board 12 Independent Auto's Report ser Statement of Comprehensive Income 8 ‘Statement of Changes in Equity 10 Statement of Cash Flows a Notes tothe nancial Statements ResaFINANCIAL STATEHENTS For the year ended 31 Mares 2019, ‘Statement of Responsibility by the Members of the Board ‘The Members ofthe Boas are responsible forthe preparation and fair preventation ofthe anal redes peulsisy " sseseiur. queumusenod stqeulsepent SSI0N, tor wpe te popus 420k 219 105 ‘AumnOg NE S2DNVHO 40 LNAWSLVAS or abe NOTLVSOaa03 S2LLTIEAN HaLVMWATER UTILITIES CORPORATION Page 11 STATEMENT OF CASH FLOWS. for the year ended 31 March 2019 Notes 2019 2018 000000 ‘cash flows from (to) operating activities 22 500,608 773,080 ‘cash flows used in investing activities Development expenditure incre 6 (57508) (354534) Proceeds on sale of property, plant and equipment 1156 13,695 Purchase of property lant a equipment 6 (24/458) (72,595) Interest received 3 52,432 as Not cash used in investing ativities (5ai,574) (393,405) ‘cash flows from financing activites Interest pais a (2066) (44,608) Repayment of long-term berewings 18 (209,730) (3.938), (Cook rants recewed rom Government - Capital grant —«17—=« 987,228 348,906 Defered cash revenue grants received 16 __202,710 : Net ah from financing activities 349,567 300,388 Net increase/(decronse) incash and cash equivalents 11 -916,796 67,950 ‘cash an cash equivalents a aglaning of the year yo,0s1___208,101 (Cash and cash equivalents at end of the year 19 gez,ea7 —sse,051 Reconciled to: ‘Cash and cash equislents recognised as current seats _ 1,802,847 986,051NOTES TO THE FINANCIAL STATEMENTS forthe year ended 91 Merch 2019 PRESENTATION OF FINANCIAL STATEMENTS “te Corporation hasbeen stablshed under the Water Uulles Crpaation Act (CAP 7402). The Corporation provide otble mater suppl and wasnt serves roughoue "he nani sttements have been prepared on the historical cost bas exept where BASIS OF PREPARATIOM ‘he inal statements fhe Corporation have oan prepared in accordance wth the [Mtenatioal Franca Rapeing Sencar IFRS) ond th equerents of te Water ies Corporation Ae (CAP 24:03), Te Anon statment hove bos propa under ‘he historcl cor anventon and represented Pula () ist cos I general ‘ee on the for value fe consierton recover a forthe asses snd tas ‘te nancial statements ave bean ptepaed in complance wth Intraoral Financ apurting Sandarde (F459 ated by te Intemational Aezounting Standards Gaard (CASE, interpretations tsved bythe iterator Finan Reprtng Standard {ntepretatone comme and nthe manner equa by the Comms A of Bawa (carsz-o) changes in accountng polices (G) New and smended tandards adopted by the Corporation TERS 9 Fnanclal Instrumente ‘Adoption of IFRS 9: Financial instruments “Tn Corporation hae adopted IFS 9a sue bythe IASB nly 2014 wth 2 wanstion ate ott Aoi 201, whieh read n changes m ecaunng polices nd stants to the amounts previo ecg he ona statment. The Carpratan a nt early ‘dope any of FHS 9 in presous peas, ‘parted bythe ransonal provisos ofthe standard, te Cxparaton sect nt to ‘esate comparative tures The compare prod rats dcosures repeat bose oF “Gzlsures nae In the por pod. ay sjueents tothe crying amounts offal ‘Seat tthe dt of andlon were recogce nthe opening Reta earings court. She Corporation does nohedge ts foncal ske and therefore hedye sau shot Ilo Te sepdon of FS a s suedn hangin or suia pls ‘Sect so ut below we Sacosures lata tthe mpact 9fapton oF TFS 9 en the Corporation.NOTES TO THE FINANCIAL STATEMENTS For the yor ended 31 Warch 2019 1) tintan a marron fan ae ‘ncnsurent etary onthe carrying amen of fanaa sets Secardnce with AS 39 and JFRS9 at | Ap 2018 ara carpared a follows Tea TASS Financ Homaurament | Carrying amauni| Measurement category] iasacts feategory (Po00}) fecnvabies 1,344,080 1315,118 (8) Raconctaton of impairment slowsncs balance from IAS 39 to IFRS 9 The allowing table ecncls the prior period's oang Imps allowance measured in {ordance mh the I 99 ncured lst mol othe new pam slawence Measured a {cordance wth the IF 9 expected less model a1 Ard 2018 [impairment oss [amount 000) [opening balance in ncardance with IAS 39 353,375| Frou tated rough opening retained earings ~Tanatonal RSS| | aster (ae 9) lopening los allowance as at 1 Api 2018 ~ calculated under IFRS 9 304,337 (©) Reconclation af ettement of financial postion balances fom IAS 39 to TFRS 9 “Ine Corporation perfrmal an analyte of ts business modal fr managing nan asots an {nay of ter ene ow characteris. The alo tale econcls the crying amounts anal ass fom ths previous measurement catapery tn accordance WN TAS 39 fa thar new Imansurment categories pon Warton to IFRS 9 on 1 Al! 2018 TERS S Amount Ot | [osc arnt] 10833 9 Tnacstcaondfemessuranen| Nour s0v8 ave) aes 7000) "us (roo0) roo lara fccvacns Peeing ance 6,051 ; sassy naan itnce der Ices 58009 5 aoa rae? Fett 339080 : moaee aia.waren urtrries convonarron aoe 14 Mores T0 THE FINANCIAL STATEMENTS. Forte year sndod 31 Horch 2019 Changes n accountng paicies(Continued) (2) Now and amended standards adopted by the Corporation (Continued) YRS 45 - Revenue fom contract with customers IFRS 15, ‘Transition approach Interpretations, The conpcation hes adopted TFS 15 es at Ap 2018 ond applied the new rules ‘nth no retvopectve adstmonts decd nesasoy, ven te assessnet dead below ‘Revenue fs recgnised as each performance cbigation lesan ether ats pant ime o ver tine Revenue recognition “The ore prince of 1FRE 15 “Revanun rm Canracts with Customers” egies an ey 0 ‘Ronis vente to dpe the tantra goods orsares to cmtamer non ame tht ‘ehezs the concretion tat ssp to been ton achonge or entering hase goods ‘etd within contract alist nam). Whe serves re prod i sone ‘Semeur, es not paso a ve cnseraton that the crperaton fetid to wil be ‘sled: Tis based et assent the county's by and teaton to ay. For thse ranean, concretion indded In revenue ony onc rected ‘he fllming services ar recorded win Revenue” in the Iacame Statamant sips they rela to {he comport’ ebipaton a naar and wastewater series provider provide es serees Potable water and wastwatar services ‘As potable water ang wastnater sevens pode, the Corpration hasan ongoing eiigaton to ‘rove otale water a vaste series to stoners hich aa anaysed te ames ‘Smeal and Gave an oul categories. Te Corporation is obigated opr ‘irtnous supply of ani sre the ene peor, apo customs sultans rece ‘i onaune the beet ine withthe Corperaton performing fs sbgoton “The Compration recogni revenue for potable wate and wastewater serves at an amount ‘hich ehas ait reve, sine amaunts consol by management to eorrspand ‘Grey wi valve tote curomer ofthe corperonpartormanee to date: “The amount of consideration which th crpretin has the rah to recive is determina by acta {Sige derived Yo mater fending. There are nsonces when the Corporatio doe ot gah Sas to cuter premsos tale for meter reacings, manggamant then exiats the potable eer od ase nary ele recat cnmron ethan etna et ‘ray vary fom estatewaver urirries conronarion Page 15 Mores TO THe FINANCIAL STATEMENTS. Forte year sndod 31 March 2019 ‘Changes in accounting polices(Continved) {ERS 45 - Revenue from contracts with cistomers TFRS 15. (Continued) {PRS 15 requires the revue ameun tell the amount thats es Hal tobe reersd in theatre nd fr repo he ora ta ne cypoation ete. ‘station vorladans for cll mete readings and other factors Including spilage that ‘ade te respansbleyf customers ‘Te Corton ato he past aed by IS 18 tnd ih arent fia ered fem partemancesigatins wich ae unsatsted sr the eng of he repong| Den: This ater Tar ietanc, to pss no wate Supy to casts dung the Financ reporting petad Management considers ha ut tn arauntcnnot be realy ‘Sinatra because the Corporations baton oro custmers wth potable Stoterand'woateneerendces Wl connve it perpty. The cporson has apple he asi wpa ser noah 21 TP 5, at ese i un n tho adptn of IS 15. [Rcannection fe includes the provision of @ connection serie to an existing water main or ‘Seer faving» pipet the brary af customer's propery and connects to thar pay ‘Sie, argenant cna that be combination of ere seus compete dsc Fertrmanc aston the cistomer, Seca connectn eames recognised nfevenue t {erplntn ime hat the conrecon camped. “Tare snot onthe recegnton of name rom connection series 36.2 esut ofthe ‘Heston ries, ‘Standards ined but vat affective ‘The eandards and ntarpetatons that ar sued, but nat yet oes, up tothe date at itsvanen of the Corporations nnd stems are dasa belo The Crpaaton intends {o'sdopt tose standards # appcbi, when they Become ete, Titective date: Years Expected ‘Standord/ Interpretation beginning on or ater Impact Gratues between vest ane nectar or vente Shien amendmen, Curtaiment or Setement- Amendments 1 3an 2018, tow > Prepayment estes wih Negeve Compensation - 1. 38n 2019, ae ronda FASS Sfimencmens to 14S 12 income Toes: Annual 13am 2019, wow 3hnennens to I 23 Rorrowing ost: Anna Ban 2019 tow SUncertamty overcome Tae Teatnents 3302019, towNOTES TO THE FINANCIAL STATEMENTS For the year ended 31 Horch 2018, ‘changes in accounting polces(Continued) ens. 16 “Leases” TR 16 Laces was issued in aruary 2016 replace IAS 17 Lagss and its scamoanying ‘Sandan Se 13 Opuany Canes “ncandes, IC 27 Evolunong sso of Wanaacons Iona orn ofa nes an Ie Deering whether an rangemant Conta 9 ace leased item and leas cblgnton for ure lease payables. Lease casts In the statement of Interest on he lans bay Lessee accounting under iS 16 wil be nar a many respects exting IAS 17 aceourtng or Finance eases vernd wth fale na Ic 27 but willbe ubanvey dierent co exstha ‘cing fe epring cse ieee er rece espn on 9 ane Practical expedient are splabe to leases or arangements a aw value and 2 tr equ oor “he Company has seve contractialsrangements and immovable progeny leases with ase porad bey? mente and oxi opens, which, nthe past fave bean exceze. The frrstre eases ar ess hel tobe deed to be rangement of ow value ‘here srangements ae ey to be imp by TFS 16 and mata jdgments are requred in dang and erouting o es. “he roe sana jodmens forthe Corporation i expected to be determination of the folowgs = te lane nm inder RS 16 the ance term includes extension periods whee three ‘eatonaiyexpuaton tet ase tension option wil be exercised ara ase termination ‘pton wil nat be exer. fhe contrat for decraination athe present value ofthe contractual payments “he Crparstio i continuing to assess the Inpact ofthe accaung changes ha wae under {is and anne yet enonaiy nny the pact on fhe tac averermes ar the {Eepetaors sept op 1 Rr 01. The crportn wl mane te eratNOTES To THe FINANCIAL STATEMENTS For the year ended 31 Horch 2019, ‘SIGNIFICANT ACCOUNTING POLICIES (Continued) Property, plant and equipment ‘lon gan and metho vile sad sulpnet: These are ams Gat are ange hd el for une spp of ouods an teres and expected to be used fr mare Natal datas ly susaqsat accu deprecation and secant Semi open at laa nae eae at ey Property plant and equpeent ae tate at cst at of secumuatad depreciation sor Scebmulted parent oon, fan. Such coi nudes the esto elon prs of oss he coon citer are met and ary Sits drecy stoiabe to ining [rtase othe octon and conten necessary fort be capable of peatng ithe ‘manner intended by mencgeent {there mater songoners of an am of property, sant or equipman have erent {hoh es thay re smut fr as spare ame Bf property, lant or eum el deprecotn spray ver tr renpectve Vl Brno en 3 fcupment 3 react the ecogion cite rests. ‘Spare parts standby and servicing equpmant held by the Corporation that macs the ‘sino’ property, po and equipment ere clsfed a0 such. Spare pars and ‘tawby equa cnecred to ba eal spares ean ety be ved in connection ‘nth specte em of papery, plant ond equipment ae sto accounte forbs progety, Planar equrent har pare prs ar sroued fr as EIST Subsequent expenditure o property, slant and equipment is cpt aly when the cages eae th we of 0 of re stan beyond al eae Sa Tecegnieed’ nthe statement of finandal peormance i the period whch they are Depreciation ie reagnise £9 as to write ff the cost of ass to thar resi vales ver rr aa ering the soaigheine meso, Dereon cenees when the tessispr fy wen uh clo ner dae wn rsa, (Scully put te ecancmc usa by management. the estimated uss ex, reid ‘alee anJprecaton methess ar ravewed athe ed of tac repotng perio with ‘hele of any changesin estat scouted fron 3 prospective bas tquipmant re degrecinted on straight ine besa over thar estmoted vsefl Wves to sha ead rel ale, rep ae erected ove he esi sl We of he relsted tse of ota ete of tenet major repay, whichever share: The (Stinatad use ves flowwaren UrILrrTes CORPORATION Poon Forth year ended 31 March 2019 Property, plant and equipment (Continued) Leasehold dams ae bliin 2.09 Dsribaon systems, lt bad macinary S40 fare economie bones are expected fom fs Use or desl. When alo seins Iie" done, any seraiing cag. anant rlting to the pew Inspect er ‘Soa yan bern orc ented oe Include inthe statment af comprehensive income wher tie ase is derecognse Development expenditure (ce capa work a grogres) le daprecoted Yom he date he out ready for inkanad use Development Bxpenditre Developmert expenditure rats capa wrk-nsrogres (lant and equipmentin the ‘ouse of ostueton) comprises cot Incurred enscng property, lar ane ‘Shipment tat re det trbable athe craton of the art. sats fran ‘Spal work progress they have been paints use ose carmnissloned, whichever ‘herr tate" Atal tine they are tanafared tthe sppoprite dat of propery nt Computer software conte Cont that ce rectly wsocted with the purchase of Wena softmare products onto by the Carpratn, tht wil probably geerat ecnare beefs beyond ne {ear that con be mens realy, are eagised oman asus, Coss ented ‘ith naiaringconpiersotwareprograrames ae ecoghisd as an expec aincurod. Computer softnare is ciple at cost hen ts probable that the expcted fire ‘Sconce bane aabdate nl fot te Cororason and the cost cn be FeoBY ‘measured Thete ost be amartsed over thelr estimated set es (ve ests), ‘away, the computer sotwore cass afe measured” cost fess sound Sortaton and penenechrges An tem f angle asses derecogased pont “Ippo or when fo tase scone berets ae expected fom fe se. Grn or les ‘ding tor derecagnten of an meng estore measured ns te itrence bees iho ne epee procaes and the carving amount othe angie are ond are Feeagnised in proto ler when the asset dercopisd Amectzntan and impainent charges are recognised In statamant of comprehensiveNOTES TO THE FINANCIAL STATEMENTS For the yeer ended 31 Horch 2019 SIGNIFICANT ACCOUNTING POLICIES (Continued) ‘rans ar recogni hen Une ceasunate expectation thatthe grat wl be receved Snail aad cnator wl camped wth The Corporation ray reve grants ‘ling octet projects infor of ea phytea aezts and tds income “Sipe, Grant intome reat to capil rofets orn physical ase nally ‘cred as deterred nce the statement rane poston we 9 carespending IE relvoneSubroqvrty he deere ince is moreead tothe sate of ‘Ses aoe penne aay snd atria nh ‘ihe the mended exper snared by Ue Corporation, rvedocmable capital Iiroseomati apt comze contribution recived from the Goverment in respect fs ‘htaetne as fe wna the Corporatn nts othe Water Utes Carperaton set any Inventories comprise mahtenance spores and steres, water tresonent cama and et nate ate, a rola te as etd oe alntenance spares ad consumable stores ar expense ta the statment of mpransive income a thy are ee uss they say the recognition cera as {rl epre, whieh re apace os popes plant and euler Netreatsable vale the estimated slog price nthe ear curse of busines, les the ‘Sota earletan and stabs seling expenses Wite-dowra ve ne realsbla vl sd (ihe the rte donne rss ec. Invent comprise ished produts, workin gragress, mantnance spares and sores, ‘aw ater and merchand, andar measured a Ue lowe Cost, Getmined on 8 (weatedaverge bse, and rt reall valewaren uritrrtes convonavion Page 20 Notes 10 THE FINANCIAL STATEMENTS Forte year sndod 31 Merch 2019 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Segment reporting The Corson Chie Exctive Ofer hasbeen Meni asthe ee peraing doeson Thaker (CODM), wh separa for sensing the prfarmance ar alco of ‘esmares a the Corpraton, The Corporation report singe segment Wate lies ‘rps prtormancewthin te Botswana ecanaric eneronment Te busines ‘ey distted wth no rehanee onary mejor ellen: aon, no cht aeeunt or ‘nore than 103 af revene. The COON regu eve the operating ress ofthe {Compra for ich dace ancl iarmation made avaible on 8 quel (or Se appropriate) bass end agaist wih performance messed and resources are ‘Cperationdrves Re reranoa fram. These nude {2018:1,822,000,000) fee mcame ts dsdosed on the face ofthe Incame statement Finance income and expanses Interest ince or terest expense fe recagnse foal tret-beering ancl Instuments onan acral basting hele terest ate eo Ines income er intrest expense frecgned i pro or ss extent for nerost expense capa a Dt of trenton oa quinn ase. The etetv earest method 8 mato of ‘Bhasin the arora cst of» fanclasnt oa fianehaby and falling the thevate that exact cant estimated tre cash poynnts or reeas vough the ‘Sond he anc rant hen pine, abo peed he ‘airing smount ofthe fala stor hana ay. Consumer deposit ‘Consumer depts eerily recognised at the ar value of the consideration recsived ‘fom conser. Tey ar refnle to consomars when secaunts are dosed and ‘hore are no oles own to he Carportores To Te FINANCIAL STATEMENTS: For the year ended 31 harch 2019 ‘SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Amprirment of non finale assets Ashok oe sib anton dat, ee pat {be recoverable. An impament lors ls recognized in pre or loss for the amount by weich [She gh af an setts fa value ects to sal and wou In ure. For purposes Sssttngangaimen setts oe ropa atthe lowest lvls for which there are ‘Spray idetnate cash ows (ash generating ina) Non franc ase her thon ‘Sout thot steed etna lees tor eros are asses at the end of the potna ped fr any fest ttt foes nge exits or may ve Screed \inre an impairments subenqenty averses, the caving amount of the ast (Grave generating ind sensed to the revise exits of ts recover amount, Insp Ua the eased carving runt dws nt exced the caring amount that ould have bean deterinedhadno impart los been Tecgnse for he ashe (or herring it eae, cores vel ofan patent os Leases of propety, pln and equipment where the Corporation hs substan al sks Be mini lease payrers, Each lease yin acta ‘between the Uabity and vrspamang rental abgatons, nat of nance charges, be icaded i ee fang tm “he Ines leant of tenance costs charges to Income sateen over the ease Dio sont pode» constant pares fts of tart onthe reeling balance oF {tasty for Goch pend The propery part and equipment scqured wader Anance ese are dejected over te shart the wef Mf te sto he leas Leases n which a sigalant parton af the risks ad rewards of ownership ae tained by the eso are assed operating as. orperation as lessor fra der cose cured in negotiting an operating leks are added to the ening [Srourt ot the lnocd etn recognises over the mace term onthe Sara boy at feral income. tesse ina ecagntad a Income in poftorloss on straight ine ans over te loose trm: Canine rentals are recognised seven he pao which they are eames Corporation asa ese Snati Teaee ono wanefe tothe company substanaly all the sks and bones Incrtt tenner» the lease fem Operating eae poyments are recognised 2 Shespanse np ks on swale fine bess oer te lau tern Dividends Dhdend dtrbution to the Corporations sharholers is recgnse as a aby Inthe orperatons inencal satements ne peroe lr wnich Sind oe apraved y the Corporates snehawaren uriurrtes conronaTzon aoe 22 NOTES TO THE FINANCIAL STATEMENTS or the year ended 31 March 2019 ‘SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) “rae recevables Fade ad'ther ecelvabes (ote 9) are casi as Randal assets cubsequerty measured ‘sors ts They ave btn sted nena che cn ee of Pingpl otstendon, ae the company busiest rosel ty cll the carta ash {Impairment policy appiable in prior year under IAS 38 [Norovcton for mpament of tae recevble i estas whon dee i objecieeadence {hatte Corporation wa a bala alec al sour de accor te the oil ts tl recoveble.sniieit franca cues ofthe dobar, probe thatthe debtor wil Snitchin eran ro eet Pons oe Impairment policy adopted by the Corporation in current year under IFRS 9 {Ine Copuration acted RS 3 Fast Tnsmumenes CUPS 3) te measure the Expected {i ecrthatrte 040wprig pr Ye Cprton mea Ieses (et) ith creat ao that nancial iment has incensed nian since onary sitesi razon (oxcot fr 8 purchased o gate cred-impsired Fiance! eft) the Copan mesaurer the los alowence fr tat tear iaument at Shamgunteqeal te Scents EC. IFS 9 ao recessed epprosch fr measuring Shits wane an roti ofc EL for ade recov omen ose Waite off poly ade recevabls are writen off when there iS no reasonable expectation of recovery. Thaler thatthe ls No resunale expesaton of recovery Inde, amongst eer, the fare of 2 debtor ta engage i 9 repayment pl wth he pfu, and flue To Trake eral payment ors priou of eater han 120 ays pat due Foreign currency translation ‘Runetional and presentation currency, Tans ince inte francs teers are measured using the caren of the primary ‘Sonamte euronment it heh the ebty aperates (the fetal ciency), The tant Stotents ne resented Botevans Pula, which ws "he Cargrauans futons ane presentation creer. Transactions and Balances Fontan taney Cancion are tasted into the fnetonal currency asing tha exchange fates proving ot the tex ofthe tananctons Fare exchange glne and fst resitna From te stant ot sn wancactions ad ro te Wansaton at year end exchange ites Uh monetary sacs and ibis denominsed Tn faregr cures are reogrsed In he slamant of comprenonsiv meme: Non monetary tans. In forogn currency messed Fistor cot woe tranate tang he exchange reat te date of the wansaton. Whe Toner as Hla vale nse ung the xchange rate othe te rae armensured,Waren uriurrtes conPoRATION Page 23 SSLENIFIeANT ACCOUNTING POLICIES (COWTINUED) employee benefits Payments to the deed contribution retreen: benefit plan are reigned as an expense (Sh employees have erred src eng them ote conto. Far dette bereft rstrenant benefit plans he cst of providing bens is determined sing the projected unt cree nathad, wth acral vendor beng cae ok at he er ofeach ‘nna epetngpetid. temeasuremen., comping scr pane an ls, the fet the changer ta the aa cling apoeala) andthe ret on pan asst (oeing nav eet indy the stereo franca on th a huge ct ‘nil not be reclassified to praft or loss. Past service costs vecagnsed in pronto lost inthe Delo o's plan mendnent. Net ItretIcaluata by oping te deount rue atthe gong ef the pad tha net dofnad bonettIablky er seat Ouined bent ots are Segond os ows + Service ast (nding aon Srvc cast ast sve cot 35 wal gan and loses on Siraiments and stdenans). “Te ratiemant benef ollgatonrecoonksd inthe statement of franc poston represents {he actus deat ar sus nthe Caporstn's dened bent plans. Aa spas fesling trom ths clen Is ina to be present vate of =n econome befits aval the {Gim ot refnds fem pans or redone in ature conetutin othe ln A aM Yo SMteninatin ben feces erro inthe Caras an ogee Barowings ate Intialy neacured at fle value, et af twansactin costs. sorawings are ‘Sttsequenty mensred st avresed cost using he efectve interest method, wh marst ‘ipenderecghsed on a flocive teres as Boroins eine tm the Oe Fatt, Captl indng, Unted (ORCR) and ‘ale, dotrmined based the efecve yd mated. Unda this method, the fa vale of {he borowing ls measirs os the preset va af emcipted ure cash Nowe dacouted st replat nears ae ‘bigations are discharged, eanalieg or they expres” ns TY “=e We Gerrans Inte cons on Yroring oie t ance he cost of propery et and ‘quipmest ae cptalsee during tho per re thot ered to comple nd pesare ‘elope oR intanced use: Other boron costs ae expend.Warer UTILITIES conroRATION age 24 NOves'To THE FINANCIAL STATEMENTS Forthe year ended 31 March 2019 ‘SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Provisions Poon we cmt en Cnn nr tnt atl {eta the alpton bd aralole estimate canbe made the ama fhe citation. ‘let pest eign the eprting et, ating ite scout the ks an crawl suum the obtgaten, Where pros smesured ing te ea covered fama tir pot the reese recognised as en set ti vitualy can {hat rmbursent wl ts rcaved andthe emountb the reclable an be eastred relay ‘Financial Instruments: IAS 39 tat recognition {he Coporton dase: nan instruments, oF thelr eempanent pets, on Int Tecan a2 nancial crot9 finan habit or an equity Wetrunent In accrcance (2) Financial ast Loans and receivables {foe roca, fons and thr recive Sat hav, edo tern payments Feasbies are mensrel ot martes cos sing the efecve Iter metho, Toss any Feat. earest nse ercogrised by apiving te efleiv restate, excep Fr ‘hla retevablen ton Se vesgnon of mares would be mar Lmpairment of finance assots nuns and races ae aorezed for Instr of imps at ach statement of ‘inancal dete Financ sis are impaired where there objecive evidence ta 2.8 {atom ores etal Se arte il ean em ancl For'Leans and receivables’ objective evdnce of mpsrment could nce: Signifeane nancy a he yer counterparty oF Sear anny mre sc ar aaaores ro Tie FINANCIAL STATEMENTS Forthe year ended 31 rch 2019 ‘SYGNIFICAWT ACCOUNTING POLICIES (CONTINUED) Financial Instruments (Continued) (8) Financia nbtties and equity Instruments Sir as re aiid a theron abies a sey nde Financial Uiabities ‘other financial abitee ‘Ser Fransal leit, Inuing borowings, are Itsy measured ak far vale, net of ‘Sansecon eats. nan abies are subsoquety ensured sated cost ing the ‘Hest trex mated th ntrestsepese recognised ov an ftv ll base Te eftective terest mato is 2 method of calelsing the amore cast of 2 nancial 1bity that exactly dcounts ested ture capes tvough he expected Ie Of he Riana abit, here apropos, Starter pared Devreco nano Nabittes ‘ho Corporation, derecaynes nana Uabites when, and only when, ehe Corporations tigations ae charge, eneall,orey sxe Financ struments hell by the Corpor Finan nsrument lon are desi acordance with provisions of FS 9 Financial sets {Tne date ona eppcation (ete date on which the Corporation has assessed its stg ‘inancl aust an Andalite tere he requrersent of IFRS 9 6 1 Al 2078. ‘csordingy he Corpersion har ape the reqemarts ef IFRS 9a nsvumants a ceniueto berectgnted ar 7 Apt 2016 ana has na pall he requments to nstuments tat have ‘sendy Doon derecognizd ae at Ap 2018, Al rcogrised nant sats tha re within the ‘cope af FRS9 are equred to be maesuredsuosoqenty a arorsed cost or fa vale on the ists ofthe Corpoatons busass model for managing te inoncalsste abd Ue cara sh Final assets tat are hel thin s business medal whose bjactive Ito colette contrac ‘a ows and that have contractual cash stat ae soy yer ef ela anid rest. ‘inthe piipl smeun standing, are measured subsequently at amore contForte year ended 31 March 2039 [SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Financial asets (Continued) Fanci assets hat ar hl wth a business mad whose objective bah calle the Siteequony aa value rough lhe comprehensive care (FVTOCD ‘Aothernncal asst ave measured subsequent ata ale vough rotor os (FTP) finan sents nf vn ough proto fs’ (VT), hel tomar” vestments ato (A) arr aa nd ect The sa eno The effective interest method is 2 method of austin the amt cast of #rancialasst nd of sleating interest income aver the relevant paid. The efecove intrest ate the Fle that exact lscountsextmated future cash reelpte (ud al feas cht points paid ‘eceived that frm an lagral ar ofthe effective terest ate, ransacton cass and other Dremuums or dsounts)sroughthe expected ie of the finoncil sae, o, where appropiate, 1 Shorter pure. Income i tecagnsed en an effective interest beds fof debt instruments ther than those nancial assets designated a a FVTPL ‘A far value through prof or toss (EPL) Finan asec dass in this clegary # acauredpinaaly fo the purpose of sling a ‘Shortt. Darvatives ae also categosod as hel for oding unless they sre dasignatd as heen Ants in tha cant ap ean a cra i exacted 0 be ae win 12 ‘months, oervae they oe aslied as nan-curret, Fnanclasels cried at for valle hough pot or os arena recogrised a far value, ana Wansactons costs ae expensed Inthe neoma statement Fnanclal sects are deracognised when the ht to recive cath ows fom the investme'es have expired or have beon rater andthe Corporation has (arated aubstandaly al aks snd reward cf onnerahi. ‘Gans snd soe arsig from the {anges nthe fr vale of te FVTPL ae presantd nth came statement Inthe per ‘which they are {cash and cash quivalents ‘ha Carpration conse all ohWyliquld investments with an orignal maturity of tree ‘month or ess when purchased tobe cash equivalent. These largely Incas aed posts (ith ed or determinate paynts and ed maturity date thi the Corporation ha he oseve nant and abit to had to maturity ae dassfed as investment at amortsed ost Those nvetmants are corded at amortsed cost using the efecve intrest method fess Sry Imparment mt venue recognised onan effective yl Bol Financlal assets at amortsed coat ‘They are measured at amorticed cost wsing the effective interest method, less ay impairment, Interest income recognised by apeving the effective intrest rote, except fr shor term receivables when the recagaten of terest wauld be Inmate.Noves 10 THE FINANCIAL STATEMENTS "or the your endod 31 March 2018, ‘SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Financial Instrument (Continued) Provision for expected credit losses of trade recavables ‘hcororaon tears pion mart caste Ec for tage recavables and corract ass ‘The proton rates re bcd on dys pos fr groupings of vavaus cuore segments hat Faves as pattsns ie, by Ive ae cater) ‘The proson mares nil based ont corporation's stl observed fa rates. The poraon wi arate the mati to ads te storia edt lass exprance wi fra \Geling information. Fer tance, forecast economic conten (ey os ses roduc) are ‘Sorted fe dteerat ver the hes pear nch can land to am neraedrumber of eau the Sots . ° “Tn assessment of te corelaton betwoon hstaral served default ees, feast sonar ‘Sede tds sete, the rau afecs nacoe canes ‘tperence and oreo eee contre ay so nat be eperetative of astra actual chun the tr. Ths oformatn tout the Ets on the corporations tage recsivbies in Hoe tin 9 subsequent prod, the aunt af the patent lee decrezes andthe decrease can te ‘ele objectively tos aunt securing ser the patna wa ecognsed We prevly ‘acagnsed impairment ss reversed though pat ar os Lo he extant at he cr Saunt ‘old nave been hod Uelmpament not bean recogni Derecogntin of nancial assats ‘he carpustiondrecgrzes a Mana gst aly when the contracts ahs tthe cash ows Tom te set capes ort taafars the franc tsnt an subarea ea aa ewes ‘sr onmerp ohne anther erty. be Corporavon eter tasters nor Feta uteontaly a tere an oar of ounerzip and cannes econo he onstred asset Serer cognate et pea an nena os [Rinoy have poy te Corporation retin sunstaniy al te aan reward f ones Of 1 tanstared franca ss, te Coperation cartinus to focognise the franc ast and so ‘edagnses clateralaes Horng forthe proceeds feeeed ‘Financa Habiltes and equity inatraments ised by the Corporation Clasiication aa debtor equity ‘Stand equ Istnertsse Hesse as ether nancial halter as equ in accordonce ‘th the tlstance of the eonrecual arangeren ‘Equity natrumente ‘egy insurers ny contrac hat evidences 9 esidual tara nth aes of an nity ‘har eductng ao ks notes egy instrument sued by the Corporation re rcarded the far vsuetceved, rt of ret nue cota In the Cororason's are, teres no aay {shies however the Covrmort af atsmana, whichis the ner trough the eter Utes CSpot Keto 1970. (Lam of Stewana Chapter 7402) hos a resid! tars nthe ssa tthe ony ter deaucing i of Rs liesWATER UTILITIES conroRATrON one 28 NOTES To THE FINANCIAL STATEMENTS For the yeer ended 31 March 2019, ‘SIONIFIEAWT ACCOUNTING POLICIES (CONTINUED) Finandal Instrumente Continue UGpdorim 3 the estment of ancl ables has not changed andthe same as 1AS 38 oie aleve rer math is aati of ccs the aera cs of naa ‘The Corporation derecogrses nana bites when, and only when, the Corporation’ obligations {sre itharged, cacao tey expe Income tx expanse repens th sum ofthe tent payable an the movement nerd itsnte and non dene The Cperators silty fer ue ta sss ing a rates thathove been enacted substantively enctd by epering prod end Deferred to Deferred to ecgnsed o ferences between the caring amounts of assets ad bites in {hetanca statement rd the cresponding as bases ued i he eompatatin ef axole prof and'actunted rang the statement faneal poston labiny mathod, Deferred tx Fries are geneayregnse fra anata trpaaty ferences and dof tax sels fre recognised to te exe thot Ws proba tht vee profs wil be avale agin WEN the dedubletenporeryafrences canbe usa, “The canyng amount af dered tmx assets reviewed a each rapating date and reduc athe ‘itt here ena longer provble that sffcen obi rats wi be avalblet allow aor pao the asset be erred Defer teases an Ibe are measure 2 te a ates that are expecta to api the per in whch the iby sued thease reac, based on tx rates (and es) ot Reve bean neces or autstonvy enacted ty te reporting dats The measiarent of ered Caviar ed sac cs he x consent hat wl la rome ane whch Deferred tne asa an Ibis ar fet where there is gal enercoabe ight to st of, lar tase aus ct oc natin nd er yr nan tas eed ye Same tnationathoty snd the Corporation intends setts eran ares ond current ‘sbicer on nat bas.Water uritzris comoRATION For the year ended 31 March 2019 age 28 SIGNIFICANT ACCOUNTING POLICTES (CONTINUED) TAXATION (CONTINUED) Coren tax and deter tax othe pred ae recognise as an expense o Income in pot or fom except en thy ate to fan dee reed recy ta ean whlch ssa the tx (al recnonsed recy naga. “rae payables ar ecoeed ntiny a ae value and subsaquantymeasired a amet cost Related party transactions elated partes ee deine as hase pats (0) recy onde troegh anor more intermediates, the pat onto conta by or under conenon control wt, teeny ean nares inthe eny that ves sgn vance ver een; oF (0) tat ace mendes Government grants are nat recagnged ant tere reasonable asurance that the Carporaon ‘icmp i nator tacong te them ana tat the gros al be eae Sova gs rd pelt ito rst he rid tn Spescay,gevenent grits whose primary condlon i thet the Carprasen shuld purchase, Emnstuct sr therse neque Rotten assets are ecogised as deere revenue nthe ‘Sterne ofan postn a tranaerved ts pai lbs on»sytamatc snd ational bass ‘ve the utes of rented are Soyrrment grants that ar receivable as compensation fr expences ar loses ready need rior the purpose of sing inmedies fancol supra the Carporeton wh fo ure rated ‘ht are cegisd n pot or losin the prod in hich they Secae receWATER UTILITIES CORPORATION age 30 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The coportionoaopid is 9 = Fan insruments IRS 9°) to masa he allowance for ipsa ade receabes for the fst te nthe 2019 repartng paid The radon of theimpotmentrequremntsof IRS ® require iparentslowances be considered onan Corporation This angen aeauntng ply required the Corporation to evap an parent ‘ret xcs Expertad Credit Losses ECs" and changes thse CLs each repaing ‘rds to lngetnecasat fr ced even fo have ccued before cet lasses are ‘ecu. Speccaly, TRS, the Carpartion recognises os lomancs ft sxpected cede Crtca acounting estinates and assumptions “he preparation of finns stateent n conformity with IFAS request use of cain {rte scanty estints. Te as feces managerent to earls Jusgerment inthe process of applying the Corporation scouting poles, These areas ivalng & hghes Sore of amen play a rem are surgi and mates are sean factors, inducing expectations of events that are beleved to be reasonatle under the ‘Srumzances, "he Tolonng are what manogement conse to be ileal sccouning 5) Determination of useful fives and residual values of property, plant and equipment ‘Th Carton tut anal, wath the ul Her ed re value ett ae 1) Ampatement toss on rade receivables recevate Epecae Cred Los ('1) hasbeen assessed by grauping castes wh shared ret risk ‘racers and doy ast due, The matics based on started lst experience, ‘Stjntedforfacors tot oe specif to the dats, general econome contents and 3h ‘Setesrmontofbotn curren an foecotdesson of anaurs athe epotng dats Exped ioe ates oe ecermuned based on sofa sss aghsted fo referents foward Tebking macrosesnos aos, where lara feng the customs ay sae te ‘insancng unt Refer ne 9 er dal 6) Retirement benefit asset “he amount econ the statement of nancial postion based an a valuation gertormed 131 Merch 2019 by iaaeendent actuals using the prfeted ut ret method. The ‘Sctrmpons and muthdog dae are consitort wih 19- Employee Senet. the Denson cote and tater franca pion Rams ae dependent on te assumptions ‘ad fr utre experienc Ins 19 sts thom there surg shold bese These| ‘Seumptons re stown nite 25 to te han sateents,waver Uriurrtes conrorattoH eo031 NOTES To THE FINANCIAL STATEMENTS For theyear ended 31 arch 2018 SSLENIFICANT ACCOUNTING POLICTES (CONTINUED) 4) Impairment los for Property plant and equipment ‘tench epertiog dts, the Corporation reviews the aryng amounts of Rs sts to esr wei te nde tt thse sas have sed 2 pnt es ‘eturine the exert othe imparment ios, any. Whar ts net paseo estmats the ‘ecoveabie rot of on nda! ast, the Camoraton estimates te recoverable amount tho cach generating ante whch bons, A sae recoverable roan rhe Nghe Snaseeesorcash gonoratng uns ir vue ln oats of posal and value te a = ‘ccd or ani ny cs he dee at pratense‘Waren UTILITIES coRroRATION NOTES TO THE FINANCIAL STATEMENTS For the year endod 31 March 2039 1. Operating profit loss) before tari sully at the aperting ss be tn subs Beprecaon f prope, lat and xaprent (ate 6) Arorsaton of apt ya (oat 7) Amortsaton of ntangite net (not 10) Incrmaefdecrease) i ccauntsFeclvabeinparment proviso (note 9) sar am fn te 2) ne 26) 2 Expenses by nature secunty Treva Pyotessonl, Consancy 8 Legal fos “ephane, postage, pting & Stalonery fapars and mantenares Panik Charges ffs Rena, laren & water Other expenses ‘eportianed: Spare a’ consumables Water trestmant ane distribution expenses Bung mantennce Forming power, eps & chemicals ‘poraned Diet sakes ond wnges pparsoned: Spore ana consumables ‘Teel Water tment and datibutlon expanses rage 32 Gram Grom 33339 037759) 139,952 121,961 7596 94819 ws 33372 haar a8 nim7 32503, wos 3018 80736546 70966564 19839 43759) 410 6008 730,505 253,439 sisi 27390_ 24382, 196 ate aotaed 247ase Seowaa Sere siege “oy's60WareR UTILITIES conroRATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 Horch 2039 age 33 Aransoation and ether expanses espace. Agportnment based on alocatan of eSources 23 Finance income/casts Interest on deposits an shor tom investments ‘Salas nd wopes, Fenton ests dena benefit schema (ate 25) env py a ay ise ea 22 5 (208: 22%) Detered name tx opens (nts 19) Income tn enpenae ‘he tx he Caroraon’ rot eters tax ars {fom twats amour tht would arse ung the Prot before income tx “oe cleats at apleable tax rates of 22% (2018: 22%) Toutes "ezpenses ot deduate for tax purposes “none tere —#2432_10908, jase i702 514.066 7630 eas? ane0 211s Satine e977 30,763 132,687 76192200 cists) 5) 5970) _ (26,766) yoaz6 e937Waren UTILITIES CORPORATION Poge 35 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ndod 31 arch 2019 2o19 aoe ooe P08 17 Revenue fom contracts with customers Dlesggregation of revenue “saggregated by mae: products / service lines and ting of revenue recognition. The pir ‘ear crparalves have on resented conser with he presentation i st year's ane! Report under 18 2019, pranaterret a lnevenve Servin transferred overtime | paint in tie [rata porate wat 1636524 5 Ta nec SE - 7 EO, "3,560 lnevenve Service transferred overtime | transfered et{rotal ble wa Tee z TSE] ise wal ‘na el ist nacre 2 “550 | ——"38 750] 8 other Income Foreign exchange gait 22954 a7 (iat bvsing ene Stis 4600 ‘Sewoge Sean ncane 8707 ry ‘acim taker sole 5330 Soer Dipacl of Property, pant and equipment aor aa Stndrincome 236s 245WATER UTILITIES CORPORATION Page 36 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2019 9 Trade and other receivables P00 000 “Trade ecelvables wor 546 [ai aom ess provision for inpaement woo2s0] (353,375) ‘01,292 — 458,029, Prepayments 926 “22,601, 9218 480,720 000 P00 Trade recehvables compre of Government department and Counc 202215 336,387 Domestic debtors 466,645 402,439, 301,546 645,745 201s 2018, poo p'000 Opening balances 353,575 367,134 IRS 9 provisional adjustment 30,962 Waiten-ff 2s uncolcatle (4.022) Increase (Serease) In debtors provision 391939 _(19,789) ‘otal (Note 31) 400,254 — 333,375,[WATER UTILITIES CORPORATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) ‘he year ended 31 March 2019) ‘Trade and other receivables (Continued) Loss allowance reconctiation for financial assets under TERS 9 Poge 37 "Trade reesivabies covernment fe || rose S2vernment} pusiness | Dom: losing oss allowance ns at S67 56,542 281,216 383,375 34/03/2038 (Calculated under 18S 3), ‘mount cette though retained ing and deferred ta pee eerste Opening loss allowance as at (01/04/2018(Under IFRS 9) 62,651 306,069 384,337 \Weten off as uncllectate (a3) (3339) (4,022) (Decrease/Increase in alowance 5,16) 67 25,035 19,938 ‘rorAL (“0.4531 —ea035] 327,768] 200,254] ‘Amount taken to statement of changes 24,150 inequity “ake to deferred tax (ete 19) ea12 ‘TotalWareR UTILITIES CORPORATION Page 38 NOTES To THE FINANCIAL STATEMENTS (CONTINUED) For the year endoa'31 arch 2019 emptor sotare ete Amonrisarzon Ualance at ond ofthe year Carrying amount ‘ere no individual asa thats meteral tothe annual financial statement of the Authorky a8 Vile” Amorsata i caleste using the svoighsine maths ta alot ta cast et other ‘ev vue, ovr te timated weft Ives A year end the rearing omortzton paid Computer sofware years ash an cach cauients Taoaen 6051 Saronng “repayable oe year (sea tz s85) Sorrawinge repayable ar one ear 2a0isoe) (230,885 ot debt 568,707 402,101 ‘cash and cash equivalents 1,802,047 626,051 ‘Grane debt = fed irterest rates (23,566) (02,363) Grose dab - variable interest rates gu0.a7e) (411507) Net best 560,707 442,163 Jase writin fatter 1 yearNOTES To THE FINANCIAL STATEMENTS (CONTINUED) For the year endl 31 March 2019 13 Cash and each autvaents ‘ooh and cach equaens camprise 2018 000 di — hat 1215 (2ate) ay ag Stor term ovens cnt teflon depots ht ST wg EON ‘tan Aan Batswana Bulg Sey 125677 91,508 1seo 77 ‘The Coperation hls hgh laud investments wth an orignal matunty prio of he ‘ant res when purchase to bo cash equate that are rely convertible bonds ane abject insteo change in val.NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For tho year ended 31 Mareh 2019 14 redeemable captal Balance a beginning and end of the year say 7323738 Palme at en of yor aiken srr ativan seing in aps a shores 6 Revenve Grant Recognised ninco statement 7 60 80 Defer alee a dof the year mare even rant relates to funds eclvad fromthe Government of Btswana owas ‘ipplamenting expertur by ts Corporate non apa pojects or no fr argue of ‘The funding recaved uring the current parting pera i deat towards setement of restucring costs form of trial bene ta recaton and ater acl erable {he effective execaan of res ucurng plan, Aso he repang date, none ofthe “ependtre hasbeen nce s sich te evens grants deferred = cure ai {owarcrexpenrets be naire inthe subsequent reporting poo 17 Capital grants flance at th begining ofthe year 1,626,659 1,300,836 Roceved ding th 3 “We'306 ‘Veni recivd rom Goverment 13,8508 ‘moresation of ra 73g) _O7 ae Balance atthe endo year 3367,523 1,626,059, Copal grant Emerpency/dought projects s made up of und ected fom the [Goverment ofthe Republi of Btowane to nd emergency oF ereught related preects ‘Simea'amproving ater upoy i tne county Te gars are amortsea ove he usu Ives ofthe respective asa aque to match wh Ge depreciate cst forte ‘inert sna(WATER UTILITIES CORPORATION [NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2019, 18 Borrowings current borrowings Freon borrowings Foreign borrowings ‘The Domestic Medium Term Nate (DMN) Bond i unsecured 7968 6478 5.474 206,507 2 ss 15,698 25,885 205,000 _ 205,000 720,688 230,585 334,10 43,870 The feign borrowings of?23,666, 000 which are unsecured and obtained rom the uropean Investment Bark (EB), Maturity of borrowings Between 1 and 2 years Between 2 and 5 years (ver years Below is the EB oan denominated in ZA Foreign borrowings Leon 45 18 AR 1342 212,585 42m 849 tina 37.136 205,000 __ 205,000 234,540 443,870 24974 39,042,suvorwioL sor mn sor m puce Nima we Tee corer assy uojesodien exp 61 s20up sv207 uBIa10g wewheds: “ed aeouonuy sequen ep pousa jessica eet tose‘warer uriLrries comPoRATtON NOTES vO THE FINANCIAL STATEMENTS (CONTINUED) ose «8 Defra nt axes clea i fl onal tamper ferences undo he Haley ‘ahd sna arial fx rte 22% (2008: 22), IFRS defer tax austen Income sateen expen (ote 5) 20 Trade and other payables ‘oe odaes tx Sonat aby ‘ther seer (12) 7a He gep 4340671832 ‘ectgnsa, Th conti abity above rites to castrers no prepa tol water ils of ‘ich he Comoran ul fet agaist ture water is, 21 Dividend payable ne 22 cash ows from operating activites “Total emprehensiv comes) fr the ya Adjustment for {Wi mpnemert june rte 6) Ire ingame ashe (at 8) Fineneeneae (to 3), Fiance costs (vote 3) Foragn sxctangesaoss {oe oat) on slo sets Ineametax pd Adjred or orto capital novenarts Hoverent in consumer depsts averent nae ans ter ayaes cash to operating acvitos 1es.s00 513,466 (57343) (27/041) (a3) 9.935) esi) “as 3s) a0) 0730s 68887, (aor) 260s fosen (beta) rao) “io38 163108) _ (62338WATER UTILITIES CORPORATION Page a4 [NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2019 20192018 p00 F000 23 Commitments operating lease commitments ‘The future minimum ese payments under non-cancalable perating leas areas follows: Due ater one year 2a __ 155580 331333811 ‘Operating leases relate eases of properties wth lease terms between 2 and years with lverage yearly eral exclaion of 10%, The Corportin does not have an option to purchase ‘the properties atthe expiry ofthe lease periods capital commitments Coptal expenditure approved atthe statement of nancial poston date but not recognised in ‘nore and contract for 539,405 1,266,810 ‘Rnbrved but nt yet eentrocted for 1,505,880 1,149,250 ‘The commitmants are expected to be nance frm ntemally generated funds, external Borrowings and funding rom the Government ofthe Repub of Botswana under the Emergeney/ Drought prjets. 24 Contingent tiabittles {the Corporation has guaranteed the obligations oft employes under the residential property and personal lions scheme up to total of P10 milion (2018: P30 mlion. The [hemes are operated tro Sardays Bank of Botewane Limited. The amount dscosed ‘epresents the Corporaor'sexposureon the loan scheme. The extent fo which an outflow of funds wl be required is dependent on fate rate of default by the employees. Therefore this s hota financial guarantee under IRS 9 because the outow of funds not speci and is Unleoum as els dependent on futce rate of deta by the employees. bythe Corporation has wo ratelal obligations (2018: Pl In raspctof tigation mates, ‘nich existe tthe financial year end.NOTES-TOcTHE FINANCIAL STATEMENTS (CONTINUED) Forte year ended 31 Horch 2019 aoe 45 2 here by Te gen eer pr etn hhh to tet Macrae rt lh see Sees ain er retin ened rc ee Soorgihere tem menue eects ta are ise cae eens teas ies operas conse fea’ fas P4463 cabo (301 ay 93000) represents conebetons made these aN Fn caporation at ates spots in theresa he lan [ractaranee lth tury equrements, Inpendere acres valu te Fd a heen of has tear yer such vautane ae base’ onthe projected un ret funng ethos hi pag the esr ve net, i he cad rent of avn Pt ‘aluston af the serving henetor estimates f fare sary nreases, wars and eats The deine benef plan exposes the Crparation to ache rks, such 35 longewty ‘acest ek ana marten Pk ‘ne oat recent actuarial vlan of the define eat pon was performed at 34 March 2019, (AON hewitt of wanton sre ofan Amounts ecoanse inthe Statemat af Financ Poston are determined 35 allows 2019,” 2018 Poo 000 resent aie of fie bent aboaton 24318) (35,983) Fair sale of pln assets ‘se. 4,009 raragh 64 int 212) (5,026 Net ability arising from defined benefit oiigation 5 = mounts recogni a prof olor rape he dtnes ‘ene ln are fons current serie east ms Cain an stern 555) Interest on ebbyaton ‘i705 2,05 Interest cme on plan att 955) @.248) -eounts recognised nae ompreensve incre espe f the ‘hing bene pan ar flows: a 7‘WATER UTILITIES CORPORATION Page a6 NOTES To THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2019 25 Retirement benefit assets (continued) 2019 2018 Movements in the presert vale ofthe defined benef abilgations in the current period were follows ‘Opening defined benefit sllgation ssge 35,903 Interest cost 1709 2,005 benefits pald gy is56) Petar esses 9356) ‘an Dettori losses due to experiance 60) 06) sing defined bone oigation Zia F5902 overt nthe present valve of the plan asses in Ue cute period wae a8 flows: Fale value of plan assets ‘Spening fairvsive of plan assets 41009 40,816 ‘epee ret on asset 3/953 2.248 CContbation= 309 “59 Bonet pale (73) 556) ‘tual gans 3.087) (2,050) hosing fava of plan assets 32.561 41,009, ‘set not recognised 3.312) 5026 Net Asset/ obligation inthe statement of nancial position = 5 “The principal actual assumptions used area flows Disco rate 5% 52% Expected return on plan assets 5% Sam Fore salary Increases 4 52% Future penlon increases : 338 ‘Significant actuarial assmplions for he determination of the defined benefit obligation are Glsonunt rote and pensia crease rate However nthe curtent year future salar and future pension neease has not been taken ito cansideralon by te actuary given ten ll pension Fovments have ben ousoureed and the & defined benaft active members. il eventually Jon the defined contribution scheme with the conversion vale already earmarked. The sensivty Snalyse below have been determined based on reasonably possible changes of respective ‘sumptions occurring a end of pari, whl Holling other assumptions constant Ifthe pensian increase mts ls 0.5% higher (lower), the defined bonefeobigation would fecreaa by 1.201 O00{increse by P1337 000), 2018 decrease by PL 850 O00 (Increase by Pr 337 bod} “The pln ensures that iwestment potions are mansged witha an assot-abilty matching Fromowark tht has bees developed to achieve lng term investments that are inne with sfigtins under the persion plans.waren urirries conronarion age 7 NOTES'TO THE FINANCIAL STATEMENTS (CONTINUED) Forth year ended 31 March 2019 26 Related party transactions “The Corpraton is 100% owned by the Government of Botswana. Related parties comprise the Government ofthe Republic of Botswana, Key Fanagement and Beard members, ‘Transictions and account balances with the Government of Botwana and government related entitles ave discosed in Note 1 Note 9, Note 14, Note 15, Note 16 and Note 17. Refer to nate 21 for dividend matters. [list of members ofthe Boards closed onthe front page ofthe report. Key ‘nity personnel compries execve management dsclesed on the frontpage ‘oti report. ‘Te tla remuneration of Directors and other: members of key mangement 000 000 Remuneration of key entity personnel: Sales an ther ha tem employe bene 93735976 ‘erm tenets on 350 Board eee 5508 Key entity personnel comprises of executive management 2s dscosed on ‘General information ofthe ancl statements Batnce a the 1 Aor 2017 1620153606 Interest sub nome anser nr falance at the 34 March 2018, 36 20 ‘he terest ssi reserve relates ta subsidy on the EIB oan 45 (Met 1) 19 ‘teordance wth the sgeemant wth he EB, the Corporate shal pay nt narest on the daly balance of lan tance a he nares ate appeal eden by an Interest ate sbsayo 182%, provided atte aes poyate shall a te a tel fhe Carson ches make witha! fom ts scnune has to a {etl of schemes tbe france and tar projected fang plans. Only fer Sporoval orn EIB wl fun be wera ram his sexount, Residual blocs nhs [Riot ot te endothe ial epaymen a re loan shal be used by the Corporation forubeequentfnanang of Water Secor BotanWareR UTILrTtEs conporatioN FINANCIAL RISK WARAGEMENT (CONTINUED) The Corporation was prevouy "Species Carpraen® wich was exept fom Income tax ‘cau twas my owned bythe Govemment the Rep of tatswena In trms of he Income Tax Amendment Act. 2015 (Act. 14 of 2018) and Statstory Insrument Mrs af 206 ce oes Carport Erg ay, at) Rego 76 That {he tan Ud Reenter CUS) a ted ay gues ay Ueto, the Cogan hae calelted inom te and dered tx. Tore cre Yea {sedan tanogerertsnerprtton ofthe etme Tax Al 9 tay appt the Carporaon, ‘ese erpettons may fer to thse of BURS” Any change 26/2 result of dire Inpatos mae 9 BRS alte conte fr ae ob the Capron ne 29 Compliance with the Water Utities Corporation Aet (Chapter ~ 74:02) ‘The Cagoraon has cme with the requirement f Seton 39 of he Water Us Corporation As (Chatr 74:02) hich reqs he Caroraion to conduct fas on sound “merc es anda prduce a et aperatig hear by Which a Yeasanable retry con be sre: hn spe pat 20899 0020028777 OO) renga, wu coos p30 0000 ‘There have Bacn ne atrial events eben the raping date and the date of approval of {howe Anan seaurens tat may require adjustment” eecesre nthe Manel acemets. [31 nancial isk management ‘Te Caroraon's aces expose Wt a valet af Onan eka: market, eed Hk and Mss wate" ‘corpeaton’‘overask! management programme faises_on te Upredkaabity of frend! merke= and seks t mime Pts adverse fc on the {rparatn’s nana perforce. Risk managemettscvia et under pols approved by {helbead ihe board provides writen princes fr veal sx moragemt, a wal as Wr=an Plies coving speck ses, such fog exchange Mb nares ats fik and er ke SOIREE rent the ar value or cash tows of fan trent wi futuate due Xe changes n ae pies, Moret Tees nent fate ake corrency WS eer pcewaren ursurries conronavi0n vege 48 FINANCIAL RISK WARAGEMENT (CONTINUED) onthe your ended 33 March 2019, 131 Financial sk management (continued) {) Market risk (continued) () Foreign exchange rick ‘he Corporation expred to frig exchange sk aking fom varias cumency exposes, trincty wth respedt the Sau nian Rand (ZAR). Foragn seehenge Pk aise fom ooning and oder conmercal transactions: Manogerent hess up ply to requ th frp onage raging ans naa croy. moe tranainssdeste funds In fcegn catrency in Re bark secouns oe! negobaes terms and ‘utons in the lonn-sgreements wy the fenders Foreign exthange rk arses when Rx 874°000. (2018: #99 642 000) I the Botswana Pule (BWP) had ‘sree by 18 Sint forepy cencin, the eect wou have rested ian impact of 320,425 (2018 Fei) on ne mrs sd cy kt natn of 268 ol hve (i) Caah low and fievale intrest rate rok Sia Cororte's tara rate nse rom ona em borrowings and sham depot ivesimens. Boromingr and shoretarm Gap vestmonts st vevoble rates expose the {Cooration to coat fow ites at tile Sarowine and sor erm dapese vests ‘la tac aes xn te Compton ae ss ae ve Cpr ‘re mantained a ed teers ats a ogreed wth he counsrparte. Daring the 2018/2019, fiandl yer, the Crpenson'sborromings a varable tes Were denominated In Rand (ZAK) ts teres and sortern depo ivertmart fuerte wera deneminatd in Pul ‘Gue)"The nae motoged by the Corporation by sreadng the shart tr Invesent Dotto aerors varios ancl stations a axanse ret: '.1% erase in intr rate oBrowings would éacease he Carporai's profi and eaity {Pa 0 ono (as: Pa323, 00) whe short depost nvesements weld neeasa the opera poe and eq y Py 454,000 (2018 97 494 OOO). A daceace Ices by aor marge woud rea neq bad opposite ello th pai forthe Yea. My price rk “he Corpration dos nx ean commis and thetefore thar sno exposre to pric isk (uit ke (rat rl Ytrs tothe ek hat the Corporation wi at be able to ganerate silent cash ows {matte Aandal ablations se they fol due. Pade uy risk managarent Ios raining ‘sulet cath and the avaeity offing trough an sects ‘Sunt of commited erst oles(WATER UTILITIES CORPORATION. ege 50 FINANCIAL RISK MANAGEMENT (CONTINUED) For the year ended 31 Mareh 2019 234 Financial rick managemsnt (continued) (b)Liqutaty sk (continued) Management ments rong forecasts ofthe Corporation’ quit reserves (comprises cash Sand cash equivalents nat 13) on te baat of expected cach aw. This yeneraly cared ut By management in accordance with practice ents st by te Board The table below analyses the Corporation’ hand bites In relevant maturty aroupnas selon the remaming ered at the reparting date tothe contractual matury date. The mount dicosed in the table ae the contractal undlscaunted aah Rows Ayear Land? years and'§ years Over years ooo 000 000) 090 [At a1 March 2019 Berrowings 14.255 402 12,546 325,800 Consumer deposits E - - 43570 ‘ecounts payable 264,302 : ‘Consumer deposits - : 41150 ecounts payable 169.961 - 5 - (Ce) Copia rat ‘The Corporations parstatal established by an Act of Parlament. The Corporation is Zipported by i sharholaer, Government of the Republic of Botswana. The Cerporaten's objectives wien managing captal ar to safequard the abit to conte S28 going concer in orer to prove returns and benefits for stakeholders and to ‘mamtain an optimal capil srdtire to reduce the case of copia. Consistent with thers In the Industry, tse Corporation manitor capital on the basis af the debt to faulty rab, This rat scutes tong te debt dvd by total qty. 2019 209 F000 P'000 “ota fog - term dabt (note 18) 234,140 «43,870 “ota cptal and reserves +5/605,780, 5445430, Debt out rato 0.04 3.08 ‘The Corporation considers a debt equty rato of less than 1 to be acceptable, Ths Is reviewed anrualy ster easiering| market condions and the growth goals of the (Corporation. ‘The rato of interest bearing debt tothe netbook value of propery, plant and ulpment is raletated as: “ota terest bearing borrowings (note 18) 234,140 443,870 Property, plat and equiprent (note 6) 6856/62 6,605,480 Rat of nterest bearing det to propery, plant & equ. ‘003 ‘30780] poss posed /aouemoye $507 0 wars Soe a ‘Saaear ouenone | stoe/e0/te su wpen (2 wenunuce) qwoweseuew ysu Yeueus TE reese t0z wou re Fopue seak avn 203 (oanwrinoa) sinawalvis WiONVRIS aH 01 S310N Notivuoswos san 71140 Wav,souujeduysojuesna 6804 sco'ee Sseoe 008 00.8 00.8 00.8 ye, onrowoa sesuieng syuounieded wuousenoy oles PaBheue 5 seIFNIDR! SpeA o VOReR! UI INS IPE 2 pueuoqutorey eum Rove GE SYL aM souePI=E UI Pap! wane) i saygeisas ns Do" apn sa) uoseaof seeuts apna! sano Samah) SL (50 SVE spun sonneseduis 4} saunsopmp Ye ype steve tavor seer syunog pue ao0aT exor/earre |(o0a)eauemone} (stor wut Te popue 180k oy Joa (oannzinoa) sinanaivis WiONVIL 3H 04 S310N zs ose ‘Notivuodu> SSLLITLAN Walvin5102 ue r= popus sesh sun 20a ‘aanniwos) sunsnaivis TWIONViTta 344 04 $3108 Notivuoauos sauAF1i1n WaLVm

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