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Lesotho Hydration (Pty) Ltd (Lesotho Hydration) commenced its business operations on 1 September 2020. Lesotho Hydration's primary business is to manufacture water purification systems for
Lesotho Hydration (Pty) Ltd (Lesotho Hydration) commenced its business operations on 1 September 2020. Lesotho Hydration's primary business is to manufacture water purification systems for industrial application. The entity has a reporting date of 31 August. Since its incorporation, Lesotho Hydration has entered into a number of contracts to acquire the relevant assets needed to conduct business. The details of two such contracts are listed below: Contract 1 On 1 August 2022, Lesotho Hydration entered into an agreement with Flexi-Cell (Pty) Ltd (Flexi-Cell) for the use of a mobile Scanner for sales staff. The agreement is for a period of 4 years. Flexi-Cell delivered and set up the dongle on 1 September 2022. In terms of the agreement, Lesotho Hydration has the right to use the device exclusively in exchange for a monthly payment of R 1 500 (incl VAT at 15%) for a period of 2 years and then R 2 000 (incl VAT at 15%) for another 2 years. Lesotho Hydration's accounting policy states that computer assets should be depreciated on a straight-line basis over 5 years in terms of IAS 16 Property, Plant and Equipment. SARS allows a wear and tear allowance of 33.33% per annum on
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