Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 45

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 45
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 future, with a consequent increase in operational costs
could have a material adverse effect on our results of operations and our financial condition and could result in operations being discontinued
or reduced or rationalized, which could have a material adverse effect on our business, financial condition and results of operations.

Although higher interest rates
would increase the amount of income we earn on our cash balances, they would also adversely affect our ability to obtain cost-effective
debt financing in certain countries in which we operate.

The laws and regulations
which we are subject to, such as U. S. and other anti-corruption laws, trade controls, economic sanctions and similar laws and regulations
in the jurisdictions which we operate, are complex and the regulatory and political regimes under which we operate are volatile. Our failure
to comply with the relevant laws, regulations, executive orders and directives could subject us to civil, criminal and administrative
penalties and harm our reputation.

Doing business on a worldwide
basis requires us to comply with the laws and regulations of various foreign jurisdictions, including those not specifically related to
our industry. These laws, regulations, executive orders, directives and enforcement priorities place restrictions on our operations, trade
practices, partners and investment decisions. In particular, our operations are subject to U. S. and foreign anti-corruption and trade
control laws and regulations, such as the Foreign Corrupt Practices Act (the “ FCPA”), export controls and economic sanctions
programs, including those administered by the U. S. Treasury Department’s Office of Foreign Assets Control (“ OFAC”).
As a result of doing business in foreign countries and with foreign partners, we are exposed to a heightened risk of violating anti-corruption
and trade control laws and sanctions regulations.

The FCPA prohibits us from providing
anything of value to foreign officials for the purposes of obtaining or retaining business or securing any improper business advantage.
It also requires us to keep books and records that accurately and fairly reflect our transactions. As part of our business, we may deal
with state-owned business enterprises, the employees of which are considered foreign officials for purposes of the FCPA. In addition,
the United Kingdom Bribery Act (the “ Bribery Act”) extends beyond bribery of foreign public officials and also apply to transactions
with individuals not employed by a government. The provisions of the Bribery Act are also more onerous than the FCPA in a number of other
respects, including jurisdiction, non- exemption of facilitation payments and penalties. Some of the