| Fri 30 Oct 2026, 11:15 | | KOBWA - Availability of Annual Financial Statements for the year ended 31 March 2026 |
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KOBWA - Availability of Annual Financial Statements for the year ended 31 March 2026
Komati Basin Water Authority
Established in terms of the Treaty on the Development and Utilisation of Water Resources of the
Komati River Basin
Stock Code: KW01
ISIN Code: ZAG000016296
(“KOBWA” or “the Issuer”)
AVAILABILITY OF ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
Noteholders are hereby advised that the audited annual financial statements for KOBWA for the year ended
31 March 2026, including the unqualified audit report of Nexia SAB&T, the Issuer’s registered auditors, are
available for inspection at the registered office of the Issuer and on the Issuer’s website,
http://www.kobwa.co.za/index.php/about-us/key-document/financial-reports.
In accordance with paragraph 6.7(c) of the JSE Debt and Specialist Securities Listings Requirements,
Noteholders are advised that, as set out in Note 34 of the 2026 annual financial statements, KOBWA has
restated its previously published annual financial statements for the following reasons:
Nature and Circumstances of the Restatements
Fincorp Revolving Fund
During the current year it was determined that the Fincorp Investment of R1 000 000 was incorrectly
classified as Receivables from exchange transactions in the statement of financial position as at 31 March
2025. The misclassification was corrected by reclassifying the amount to Investments in the comparative
statement of financial position.
Guaranteed grant income receivable
During the current financial year, KOBWA identified an error in the unwinding of interest (effective interest
method) applied to the Guaranteed Grant Income Receivable. The error originated in a prior financial year
and resulted in the interest portion of the receivable being overstated by R5 095 155 at 31 March 2024,
which consequently overstated the comparative balance at 31 March 2025 as previously reported. As the
error was identified after the annual financial statements for the year ended 31 March 2025 had been
approved and issued, it has been corrected retrospectively in accordance with GRAP 3: Accounting
Policies, Changes in Accounting Estimates and Errors, by restating the opening balance of accumulated
surplus at 1 April 2024 and the comparative amounts for 31 March 2025.
As the error arose in reporting periods before 1 April 2024, being the beginning of the earliest period
presented, the correction has been made against the opening balance of accumulated surplus at that date.
The unwinding of interest recognised for the year ended 31 March 2025 was not affected by the error and
has accordingly not been restated.
Employee Long Service Awards
During the current financial year, KOBWA identified an error, the provision for long service awards needed
to be recognised. The omission has been corrected by recognising the provision and properly disclosing
the current and non-current portions of the provision.
Effect on the Statement of Financial Position (year ended 31 March 2025)
As previously Restated
disclosed Adjustment amount
Payables from exchange transaction 9 810 467 276 689 10 087 156
Employee long service award - Current - (45 000) (45 000)
Employee long service award - Non-current - (485 000) (485 000)
Receivables from exchange transactions 1 388 588 (1 000 000) 388 588
Investment - 1 000 000 1 000 000
Guaranteed grant income receivable - Interest portion 76 673 296 (5 095 155) 71 578 141
Designated project funds - current 30 654 084 3 993 30 658 077
Accumulated surplus at 1 April 2024 175 554 766 (5 690 154) 169 864 612
Effect on the statement of financial performance (year
ended 31 March 2025):
Employee related cost (26 277 313) (65 000) (26 342 313)
General expenses (32 917 055) (280 681) (33 197 736)
(59 194 368) (345 681) (59 540 049)
Payables from exchange transactions
During the 2024/2025 financial year, purchase orders raised prior to 31 March 2025 in respect of goods
and services not yet delivered / invoiced were accrued for as part of the 2024/2025 year-end accrual
process (Sundry Accruals). Upon settlement of the related invoices during 2025/2026, it was identified that
the amounts accrued did not, in all cases, agree to the actual amounts invoiced by suppliers, resulting in
variances (under- and over-statements of the 2024/2025 accrual). The variances arose because the accrual
was measured by reference to the outstanding purchase order listing, which included purchase orders
dated after 31 March 2025, purchase orders that had subsequently been cancelled, and purchase orders
that had been captured more than once. The order dates, cancellations and duplications were evident from
the purchase order records available when the annual financial statements for the year ended 31 March
2025 were authorised for issue, and accordingly the variances do not arise from a change in accounting
estimate.
In terms of GRAP 3: Accounting Policies, Changes in Accounting Estimates and Errors, these variances
arose from the incorrect measurement of a liability that existed at the prior reporting date (31 March 2025)
and therefore do not meet the definition of a change in accounting estimate. They are accordingly
accounted for as the correction of a prior period error, applied retrospectively by restating the opening
accumulated surplus/(deficit) and the affected expenditure classifications, as if the error had never
occurred.
Piggs’ Peak, Eswatini
30 October 2026
Debt Sponsor
Merchantec Capital
Date: 30/10/2026 11:15:00
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