Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 216

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 216
---
 of the installment sale agreements is betweenthreetofour
yearsand interest is charged at prime linked interest rates.
The Group’s obligations under instalment sale agreements are secured by the leased assets.

Property leases capitalized have an
average lease term of four years and interest incurred is at an incremental borrowing rate of a similar asset. External sources of information
were used to determine incremental borrowing rate of a similar asset. Total cash outflows for leases recognized in statement of cash flows
ZAR94.0million (2024: ZAR69.3million, 2023: ZAR64.8million).

The Group leases office building, motor
vehicles and IT equipment with contract terms less than twelve months. These leases are short-term. For the financial year ended February
28, 2025, the Group recognized lease payments of ZAR5.0million (2024: ZAR7.3million, 2023: ZAR6.2million) associated with these
short-term leases as an expense on a straight-line basis over the lease term.

17.
DEFERRED REVENUE

                                                                 As of February 28/29                                
  Figures in Rand thousands                                                      2025                                
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Beginning balance                                                                          447,150        395,867  
  Amounts deferred in current financial year                                                 489,444        474,706  
  Amounts released to revenue in the current financial year                                ( 444,690      ( 382,081  
  Translation adjustments                                                                    ( 7,165       ( 41,342  
  Ending balance                                                                             484,739        447,150  
  Non-current liabilities                                                                    126,959        121,302  
  Current liabilities                                                                        357,780        325,848  
                                                                                             484,739        447,150  

Majority of subscription revenues are
billed monthly in advance and then recognized in revenue as the service is provided. In most situations, ownership of all telematics devices
remain with the Group. For customers who have paid for the hardware fees and service upfront, revenue for the hardware fees is deferred
and recognized over 60 months and the service revenue is recognized over time as the services are performed.

The following table includes estimated
revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially satisfied at the
end of the reporting period.

                                                    As of February