Laduma Ltd entered into a non$-$cancellable lease on $1$ July $2022$ to lease $3$ photocopying and printing machines for the use of the company. The contract is a lease in terms of IFRS $16.$

The following information is applicable to the lease contract:

The initial lease term is $3$ years. An initial payment of R$3000$ was made. The lease payments are R$1250$ per month for the first $6$ months. The lease payments thereafter are $R750$ per month until the end of the three years. All actual lease payments made by Laduma Ltd are included in the operating expenses above.

Laduma Ltd has the option to extend the lease term by a further two years at R$500.$ At the commencement of the lease term Laduma Ltd is reasonably certain that it will exercise the option to extend the lease term by a further two years.

$5\%$ of every lease payment goes towards covering the maintenance costs incurred by and is to be paid for by the lessor. These values are similar to those with costs for similar maintenance services rendered by third parties.

Laduma Ltd elected to apply the recognition exemption in respect of low value assets to this lease agreement. Laduma Ltd accounts for the lease and non$-$lease components separately.