Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 211

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 211
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 relating to the Mozambique CGU amount of ZAR43.6million in the financial year ended February
28, 2025. The recoverable amount of the Mozambique CGU was determined to be ZAR47.3million based on value in use.

For the year ended 2024, for Mozambique,
the Group has engaged an external valuer to determine the fair value less cost of disposal of the CGU using market approach, by applying
price-to-value metrics observed in comparable companies to the CGU. The key estimates used for the fair value less costs of disposal calculations
are earnings multiples. The market approach is based on the premise that the companies with similar business models and economic fundamentals
would likely sell for similar prices. Comparable companies, which are typically listed companies trading in the same sector as the entity,
would be identified and price-to-value metrics for these companies would be calculated. The Group has considered EV/EBITDA multiple as
the most appropriate metric to determine the fair value less cost of disposal of this CGU. The EV/EBITDA multiples for the financial year
2024 were 6.8x.

The Other CGUs are valued on an earnings
multiple basis. The key estimates used for the fair value less costs of disposal calculations are earnings multiples. The market approach
is based on the premise that the companies with similar business models and economic fundamentals would likely sell for similar prices.
Comparable companies, which are typically listed companies trading in the same sector as the entity, was identified and price-to-value
metrics for these companies were calculated. The Group has considered EV/EBITDA multiple as the most appropriate metric to determine the
fair value less cost of disposal of these CGUs.

F-30

9.
DEFERRED TAX

                                                                                                                     As of February 28/29                 
  Figures in Rand thousands                                                                                                          2025                 
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Deferred tax liabilities                                                                                                       ( 95,892       ( 69,840  
  Deferred revenue                                                                                                                 71,397         63,934  
  Property, plant and equipment and capitalized commission assets                                                               ( 207,029      ( 158,592  
  Lease obligations                                                                                                               ( 3,385        ( 2,411  
  ECL provision on trade receivables                                                                                               22,209         18,716  
  Other                                                                                                                            20,916          8,