Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 222

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 222
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 or external ratings
in accordance with limits set by the Directors. The utilization of credit limits is regularly monitored. The Group does not have any significant
credit risk exposure to any single customer or any Group of customers having similar characteristics.

There has been no change in credit risk estimation techniques
since the last financial year. The carrying amounts of financial assets represent the maximum credit exposure. Expected credit losses
on financial assets recognized in profit or loss were as follows:

                                                                                                 Year ended February 28/29                                                            
  Figures in Rand thousands                                                                                           2025                   2024                   2023              
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Expected credit loss provision on trade receivables arising from contracts with customers                                     114,555                109,422                87,541  

Trade receivables

The Group’s exposure to credit
risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may
influence the credit risk of its customer base, including the default risk associated with the country in which the customer operates.
Details of concentration of revenue are included in Note 19.

Expected credit loss assessment process followed in the
current financial year

An impairment analysis is performed at each reporting date
using a provision matrix to measure expected credit losses.

The provision rates are based on days
since invoicing date for various groupings of various customer segments with similar loss patterns.

The calculation reflects the probability-weighted
outcome and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts
of future conditions.

The following table provides
information about the expected credit loss rate for trade receivables by ageing category:

  Figures in Rand thousands                                        
  At February 28, 2025                                             
 ───────────────────────────────────────────────────────────────────
  Since invoicing                     6      229,073       13,546  
  1 month since invoicing date       12       82,721       10,302  
  2 months since invoicing date      23       38,484        8,998  
  3 months since invoicing date      55      322,461      178,060  
  Total                              31      672,739      210,906  
  At February 29, 2024                                             
  Since invoicing                     6