Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 344

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 344
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 accounting and SEC reporting requirements.

(v)Our controls over the financial statement close process do
not provide sufficient evidence.

(vi)Our controls were not adequately designed to provide sufficient
documentation and review of the operating effectiveness of Information Technology General Controls (‘ITGC’) for information
systems that are relevant to the preparation of the Company’s unaudited condensed consolidated financials. Specifically, our user
access controls were not adequately designed or implemented, our change management process lacked rigor and documentation and our monitoring
of ITGC controls was insufficient.

Changes in Internal Control over Financial
Reporting

We are taking actions to
remediate the material weaknesses relating to our internal control over financial reporting, as described above. Except as otherwise described
herein, there were no changes in our internal control over financial reporting identified in connection with the evaluation required by
Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this quarterly report on Form 10-Q that have
materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Remediation Plans

We have commenced measures
to remediate the identified material weaknesses, including:

(i)The Company designed and implemented process for identification,
monitoring and regulatory compliance of transactions involving related parties. The Company’s process includes rolling out related
party transaction questionnaires quarterly to the identified related parties. The management intends to continue to take steps and monitor
the progress of the internal controls implemented.

(ii)Significant reduction in the number of complex financial
instruments post the reverse recapitalization. The management actively engages with valuation experts to communicate the underlying assumptions
and terms of the financial instruments. The management intends to continue to monitor the progress of the internal controls implemented.

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(iii)Developing financial reporting manuals including Standard
Operating Procedures for financial statement closure process to ensure compliance with US GAAP and SEC reporting requirements and monitoring
controls over financial statement closure process.

(iv)The Management is working on hiring, training and retention
of inhouse resources with requisite US GAAP knowledge. The management has also engaged external accounting professionals and developing
process for sufficient managements reviews.

(v)The Management is currently working on developing accounting
manuals, policies, and standard operating procedures in consultation with external consultants.

(vi)The management is in the process of developing ITGC policies
and procedures to address identified deficiencies, ensuring controls are designed and operating effectively. This will include establishing
monitoring mechanisms to