Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 203

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 203
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 the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of time is recognized as a finance cost.

q)
Revenue

Revenue is recognized upon transfer
of control of promised goods or services to customers in an amount that reflects the consideration to which the Group expects to be entitled
to for those goods or services. Revenue is measured based on the amount of consideration that the Group expects to receive reduced by
discounts, incentives and rebates. Revenue also excludes any amounts collected on behalf of third parties, including sales taxes and indirect
taxes. The Group principally generates revenue from providing a full-stack smart mobility software-as-a-service (“ SaaS”) platform
for connected vehicles and other assets. The Group recognizes revenue as or when it satisfies its performance obligations.

Subscription revenue

Revenues arising from the SaaS service
is recognized as the service is provided over the contractual term. Customers are invoiced monthly in advance and invoices are payable
on presentation.

The Group has assessed whether its
subscription contract arrangements contain a significant financing component and it was determined that the contracts do not have a significant
financing component because the difference between the timing of when the cash is received and the services are transferred to the customer
is not to provide the customer with a benefit of financing.

Hardware revenue

Hardware revenue is recognized when
control of the telematics device was transferred to the customer which occurred upon installation on the customer’s vehicle. The
payment terms are generally 30 days.

Installation revenue

Installation revenue is recognized
when the device is successfully installed, which occurs at the same time that control of the hardware is transferred to the customer,
which occurs upon installation on the customer’s vehicle. Customers are invoiced when the devices are installed and payment terms
are generally 30 days.

Miscellaneous contract fees

The Group sometimes makes miscellaneous
SaaS charges to customers to maintain the telematic devices, process administrative changes to contractual terms, or for contract cancellation.
Such charges are recognized and invoiced when they arise and payment terms are generally 30 days.

F-22

Vehicle sales

Vehicle sales are recognized when ownership of the vehicle
is transferred to the customer.

Delivery service fees

Delivery service fee is recognized as the service is rendered.

r)
Interest income

Interest income is recognized using the effective interest
method.

s)
Government grants

Government grant relates to Research and