Page 78 - JTC-Annual Report-2025-Eng

JTC Logistics Transportation & Stevedoring Company K.S.C.P
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 2025
(All amounts are in Kuwaiti Dinars)

(a) Depreciation charge for the year has been allocated as follows:

2025 2024
Operating costs (Note 17) 5,555,617 5,087,451

General and administration expenses (Note 18) 248,555 226,109
5,804,172 5,313,560

(b) During the year, the Group has written off property and equipment with a net book value
amounting to KD 1,117 (2024: KD Nil) based on the approval from Executive Management on
August 19, 2025.

(c) Leasehold lands
During the year, the fair valuation was conducted by two accredited appraisers with a
recognized and relevant professional qualification and recent experience of the location and
category of leasehold land being valued. The change in fair value was calculated based on the
lower of the two values. Fair value of the leasehold land is arrived at by reference to industry
acknowledged methods of valuation that depends on market data including recent sales
value of comparable properties. The fair value was determined based on the sale comparison
methods and is measured under Level 2 fair value hierarchy. The revaluation gain amounting
to KD 601,410 (2024: KD 302,218) was included in the consolidated statement of other
comprehensive income and credited directly to equity as revaluation surplus. The significant
assumption used in the determination of fair value was the market price (per sqm). A decrease
of 5% (2024: 5%) in the estimated market price (per sqm) will reduce the value by KD 513,971
(2024: KD 483,900).
Leasehold lands are obtained from Public Authority of Industries and expire on May 5, 2028,
February 2, 2029, September 8, 2029, and are renewable.
Leasehold land amounting to KD 8,529,410 (2024: KD 7,828,000) is pledged against the term
loan obtained by the Group (Note 9).

(d) Capital work in progress majorly includes certain warehouses and buildings that are under
construction which is built on leasehold lands.

(e) Certain equipment with a net book value amounting to KD 9,870,164 (2024: KD 5,664,564) are
pledged against the term loan obtained by the Group (Note 9).

75 JTC LogisTiCs TransporTaTion & sTevedoring Company K.s.C.p.