Page 83 - 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)

11. Lease liabilities

Present value of
Minimum lease minimum lease
payments payments

2025 2024 2025 2024
Amounts payable relating to leases:

Within one year 621,041 659,493 600,035 635,110

Beyond one year 357,823 570,559 346,484 561,091
978,864 1,230,052 946,519 1,196,201

Less: unamortized future finance
charge (32,345) (33,851) - -

Present value of minimum lease
payments 946,519 1,196,201 946,519 1,196,201

The movement in the lease liabilities is as follows:

2025 2024
Balance as at the beginning of the year 1,196,201 1,131,373

Additions (Note 7) 440,251 715,653
Related to early termination of right-of-use assets (Note 19) (5,486) -

Related to modifications 464 (787)

Add: finance charges on lease liabilities 28,717 36,332

Less: lease payments (710,332) (687,747)
Foreign currency translation adjustments (3,296) 1,377

Balance as at the end of the year 946,519 1,196,201

The average lease term is ranging from 1 to 3 (2024: 1 to 3) years and the average effective borrowing
rate is ranging from 2.63% to 5% for the financial year ended December 31, 2025 (2024: 2.63% to
5%).

All leases are on a fixed repayment basis and no arrangements have been entered into for
additional contingent rental payments.

The classification of lease liabilities according to their due dates for payments is as follows:

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