Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 213

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 213
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, amounting to ZAR485.7million are placed with a licensed bank
for a term of 5 to 9 months and earns interests at the bank’s prevailing deposit rate. There were no bank fixed deposits with maturity
dates longer than 3 months as at February 28, 2025.

During the year ended February 28,
2023, the Group entered into a finance leasing arrangement as a lessor for a machinery to a third party. The average term of finance leases
entered into isfive years. The following table shows the maturity analysis of the undiscounted lease payments to be received:

                                       As of February 28/29                          
  Figures in Rand thousands                            2025                          
 ─────────────────────────────────────────────────────────────────────────────────────
  Maturities analysis                                                                
  – within one year                                               4,830       4,438  
  – within two to four years                                      8,058      12,888  
  Present value of lease payments                                12,888      17,326  
  Non-current asset                                               8,058      12,888  
  Current asset                                                   4,830       4,438  
                                                                 12,888      17,326  

The Group recognizes a loss allowance
for expected credit losses on financial assets that are measured at amortized cost. The determination of the expected credit loss provision
is calculated on a basis specific to each customer grouping and jurisdiction in which the Group operates and requires the use of estimates.
Additional information regarding credit risk applicable to trade receivables is disclosed in Note 29.2 (a).

F-32

The Group has recognized a loss allowance
of100% (2024: 100%) against aged receivables, and debts are considered aged and not recoverable when they typically reach 360 or 450
days, depending on respective entities’ historical experiences. The method in providing for expected credit losses is consistent
with prior years.

The average credit period extended to customers is30days
(2024: 30days). No interest is charged on outstanding trade receivables.

Credit quality of trade and other receivables

Information on credit quality of trade and other receivables
is on Note 29.2 (a).

Reconciliation of the expected credit loss provision
recognized with regard to trade and other receivables

                                                 As of February 28/29                                
  Figures in Rand thousands                                      2025                                
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