Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 159

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 10
Chunk 159
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Credit Risk

Credit risk primarily results
from when a customer fails to meet its contractual obligations, and arises principally from our receivables from customer, cash deposits
and cash equivalents. Credit risk is managed by each subsidiary subject to our policies and procedures. A significant percentage of our
individual customers pay via direct debit in order to minimize our credit risk.

We evaluate credit risk relating
to customers on an ongoing basis using independent ratings, or if independent ratings are not available, we assess the credit quality
of our customers by taking into account their financial position, past experience and other factors, including the default risk associated
with the country in which the customer operates. Individual risk limits are set based on internal or external ratings in accordance with
limits set by our board of directors. The utilization of credit limits is regularly monitored.

We do not have any significant credit risk exposure to any
single customer or any group of customers having similar characteristics.

Item 12. DESCRIPTION OF SECURITIES
OTHER THAN EQUITY SECURITIES

  DEBT SECURITIES  

Not applicable.

  WARRANTS AND RIGHTS  

Not applicable.

  OTHER SECURITIES  

Not applicable.

  AMERICAN DEPOSITORY SHARES  

Not applicable.

PART II