Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 109

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4A
Chunk 109
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 may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally
to public companies. These provisions include an exemption from the auditor attestation requirement in the assessment of our internal
control over financial reporting pursuant to the Sarbanes-Oxley Act.

We may take advantage of these provisions for up
to five years from our IPO or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth
company upon (A) the last day of the financial year in which we had more than US$1.235 billion in annual revenue, (B) the date on which
we are deemed to be a “large accelerated filer” under the rules of the SEC, which means the market value of our ordinary
shares held by non-affiliates exceeds US$700.0 million as of the prior June 30th, or (C) the date on which we have issued
more than US$1.0 billion of non-convertible debt over a three-year period. We may choose to take advantage of some but not all of these
reduced burdens. To the extent that we take advantage of these reduced reporting burdens, the information that we provide shareholders
may be different than you might obtain from other public companies in which you hold equity interests.

  LIQUIDITY AND CAPITAL RESOURCES  

Our principal sources of liquidity
are our cash generated from operations, cash and cash equivalents as well as borrowings available under our loan and funding facilities.
Cash and cash equivalents consist primarily of cash or deposit with banks. As at February 28, 2025, our cash and cash equivalents totaled
ZAR 1,042.9 million.

We believe that our cash generated
from operations, cash and cash equivalents on hand and availability under our funding facility will be sufficient to fund our working
capital and capital expenditure requirements for at least the next twelve months. In addition, we may choose to raise additional funds
at any time through equity or debt financing arrangements, if required for additional working capital, capital expenditures or other strategic
investments. Our belief concerning liquidity is based on currently available information. To the extent this information proves to be
inaccurate, or if circumstances change, future availability of credit or other sources of financing may be reduced, and our liquidity
could be adversely affected. Our future capital requirements and the adequacy of available funds will depend on many factors, including
those described in the section of this annual report titled “ Risk Factors.” Depending