Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 596

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 8
Chunk 596
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 inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions or that the degree of compliance with the policies or procedures may deteriorate.

Material
Weakness in Internal Control over Financial Reporting

Management
assessed the effectiveness of the Company’s internal control over financial reporting as of March 31, 2025 based on the framework
established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on this assessment, management has determined that the Company’s internal control over financial reporting as of March 31,
2025 was not effective.

A
material weakness, as defined in the standards established by the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”),
is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility
that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

The
ineffectiveness of the Company’s internal control over financial reporting was due to the following material weaknesses which are
indicative of many small companies with small number of staff:

    ●
    inadequate
    segregation of duties consistent with control objectives;

    ●
    lack
    of independent Board of Directors and absence of Audit Committee to exercise oversight responsibility related to financial reporting
    and internal control;

    ●
    lack
    of risk assessment procedures on internal controls to detect financial reporting risks in a timely manner; and

    ●
    lack
    of documentation on policies and procedures that are critical to the accomplishment of financial reporting objectives.

Management
continues to implement measures designed to ensure that control deficiencies contributing to the material weakness are remediated, such
that these controls are designed, implemented, and operating effectively.

The
remediation actions planned include:

    ●
    identify
    gaps in our skills base and the expertise of our staff required to meet the financial reporting requirements of a public company;

    ●
    continue
    to obtain sufficient resources to achieve adequate segregation of duties; and

    ●
    continue
    to develop policies and procedures on internal control over financial reporting and monitor the effectiveness of operations on existing
    controls and procedures.

Our
management will continue to monitor and evaluate the relevance of