Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 43

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 43
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 officers involved in SVR operations as part
of our services may also result in legal proceedings and claims which could then result in reputational harm to us or criminal and/or
civil liability, including monetary damages or other penalties. See “ Risk Factors - Risks Relating to Our Reliance on Third
Parties - The conduct of third-party security officers engaged in SVR operations in support of our services from time to time involves
the use of force, which could expose the Company to reputational harm or, potentially, civil and/or criminal liability.”

We are unable to predict the
outcome of such legal proceedings. Such proceedings might result in substantial costs, regardless of the outcome, and may divert management’s
attention and resources, which might seriously harm our business, financial condition and results of operations. Insurance might not cover
such claims, might not provide sufficient payments to cover all the costs to resolve one or more such claims, and might not continue to
be available on terms acceptable to us. A claim brought against us that is uninsured or underinsured could result in unanticipated costs,
potentially resulting in a material adverse effect on our business, financial condition, and results of operations.

Risks Relating to Our Operations in South Africa and
Other Emerging Markets

We conduct a material amount of our business in foreign
currencies, which heightens our exposure to the risk of exchange rate fluctuations.

We are subject to fluctuations
in foreign exchange rates between the South African rand, our reporting currency, and currencies of other countries where we market our
solutions or source our raw components, for example the Euro, Thai baht, the Singapore dollar, Polish zloty and U. S. dollar. Such fluctuations
may result in significant increases or decreases in our reported revenue and other results as expressed in South African rand, and in
the reported value of our assets, liabilities and cash flows. In addition, currency fluctuation may adversely affect receivables, payables,
debt, firm commitments and forecast transactions denominated in foreign currencies. In particular, translation risks arise where parts
of the cost of revenue are not denominated in the same currency of such sales. The U. S. dollar/South African rand exchange rates have
historically been volatile and we expect this volatility to continue. Fluctuation in exchange rates, depreciation of local currencies,
changes in monetary and/or fiscal policy or inflation in the countries in which we operate could negatively impact the prices at which
the ordinary shares trade and have a material adverse effect