Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 165

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 15
Chunk 165
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 effect on our financial statements.

Because of its inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective
can provide only reasonable assurance with respect to financial statement preparation and presentation in accordance with IFRS.

Management assessed the effectiveness of the Company’s internal
control over financial reporting as at February 28, 2025. In making these assessments, management used the criteria set forth by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO) in “ Internal Control - Integrated Framework (2013)’’
and because of the material weaknesses described below, management concluded that the Internal Control over Financial Reporting (“ ICFR”)
was not effective as at February 28, 2025.

As part of our ongoing project to evaluate and enhance our internal
control over financial reporting, during the financial year ended February 28, 2025, we refined our controls documentation, identified
control gaps, and conducted testing to evaluate the design, implementation and in certain regards the operating effectiveness of our key
controls. During this process, we identified material weaknesses with respect to privileged user access and change management controls
relating to certain of our systems as well as journal processing controls at one of our subsidiaries. A material weakness is a deficiency,
or combination of deficiencies, in ICFR, such that there is a reasonable possibility that a material misstatement of financial statements
will not be prevented or detected on a timely basis. To address the financial reporting risks arising from the material weaknesses identified,
management performed mitigation controls and validation procedures to determine that no inappropriate transactions were processed during
the year ended February 28, 2025.

Remediation of material weaknesses

As part of our iterative improvement efforts to our internal control
over financial reporting, following our identification of the material weaknesses described above, we enhanced our control procedures
and attributes, and subsequently implemented revised controls. These revised controls have been tested by our management subsequent to
February 28, 2025 and management believes that they are designed and implemented effectively; however, we will only conclude on remediation
once our revised controls have been fully tested and deemed to have been operating effectively for a sufficient period of time. As part
of our ongoing project to evaluate and enhance our internal control over financial reporting, we expect to continue to refine our internal
control over financial reporting.

  ATTESTATION REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  

As Karooooo is