{"url_path":"/sec/sxtc/10-k/2026/item-15","section_key":"item-15","section_title":"Item 15 CONTROLS AND","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-07-01","source_url":"https://www.sec.gov/Archives/edgar/data/1723980/0001213900-26-074310-index.html","accession_number":"0001213900-26-074310","cik":"0001723980","ticker":"SXTC","issuer_name":"China SXT Pharmaceuticals, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1723980/0001213900-26-074310-index.html","primary_entity_key":"0001723980","primary_entity_name":"China SXT Pharmaceuticals, Inc."},"word_count":671,"has_tables":true,"body_markdown":"ITEM 15. CONTROLS AND\nPROCEDURES\n\n \n\n(a) *Disclosure Controls and Procedures*\n\n \n\nOur management, with the\nparticipation of our chief executive officer and chief financial officer, has performed an evaluation of the effectiveness of our disclosure\ncontrols and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report, as\nrequired by Rule 13a-15(b) under the Exchange Act. \n\n \n\nBased upon that evaluation,\nour management has concluded that, as of March 31, 2026, our disclosure controls and procedures were not effective in ensuring that the\ninformation required to be disclosed by us in the reports that we file and furnish under the Exchange Act was recorded, processed, summarized\nand reported, within the time periods specified in the SEC’s rules and forms, and that the information required to be disclosed\nby us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our chief\nexecutive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.\n\n  \n\n(b) *Management’s Report on Internal\nControl Over Financial Reporting*\n\n \n\nOur management is responsible\nfor establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f).\nOur internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial\nreporting and the preparation of financial statements for external purposes in accordance with U.S. Generally Accepted Accounting Principles\n(“U.S. GAAP”). Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.\nAlso, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because\nof changes in conditions or because the degree of compliance with policies or procedures may deteriorate. Under the supervision and with\nthe participation of our management, including our chief executive officer and chief financial officer, we conducted an assessment of\nthe effectiveness of our internal control over financial reporting as of March 31, 2026.  The assessment was based on criteria established\nin the framework Internal Control-Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission.\nBased on this assessment, management determined that, as of March 31, 2024, our internal control over financial reporting was not effective\ndue to the existence of the following significant deficiencies and material weaknesses: \n\n \n\n \n●\nThe Company had inadequate\naccounting personnel who is capable of US GAAP and bilingual, and that it did not supply adequate training to new staff in a timely\nmanner.\n\n \n\n \n●\nThe Company has inadequate\nsegregation of duties in certain accounting processes, including the payroll, cash receipts and disbursements processes in its accounting\nsystem, partly because of its limited size and accounting staff.\n\n \n\n(c) *Attestation Report of Independent Registered\nPublic Accounting Firm*\n\n \n\nNot applicable.\n\n \n\n108\n\n \n\n \n\n(d) *Changes in Internal Control over Financial\nReporting*\n\n \n\nThe management is committed\nto improving the internal controls over financial reporting and will undertake consistent improvements or enhancements on an ongoing\nbasis. Except as described above, there were no changes in our internal controls over financial reporting during our fiscal year ended\nMarch 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.\n\n \n\nThe management plans to remediate\nthe material weakness in internal control over financial reporting identified by implementing the following actions:\n\n \n\n●continue\nto engage bilingual accounting consultant who is familiar with US GAAP while provide ongoing\nUS GAAP training to in-house accounting staff;\n\n \n\n●retain\nadditional accounting personnel and continue to enhance our internal finance and accounting\norganizational structure;\n\n \n\n●strengthen\nthe direct management oversight of transactions, along with the use of legal and accounting\nprofessionals; and\n\n \n\n●develop\nand conduct internal control training to executive officers, management personnel, and finance\nand accounting departments, so that management and key personnel understand the requirements\nof internal control over financial reporting under the SEC rules.\n\n \n\nWe estimate to complete our\nremediation plan by the end of this year and will not incur any material costs."}