Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 1029

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 1029
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 from prior reporting
periods and remain unresolved as of the date of this filing. Based on the assessment performed as of March 31, 2025, we identified five
material weaknesses in our internal control over financial reporting related to:

    (i)
    Our controls over independent review and documentation of third-party advisors’ reports were not operating effectively. We rely on third-party advisors for assistance with the preparation of key schedules and financial statements. However, we failed to establish a consistent process for independently reviewing these third-party advisor documents before incorporating them into our financial statements.

    (ii)
    Our controls over financial reporting, specifically related to the inadequacy of our financial reporting policies and procedures, were not operating effectively. The Company lacks financial reporting policies and procedures that are commensurate with GAAP and SEC reporting requirements.

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

    (iv)
    Our resources are deficient in comprehensive knowledge and expertise pertaining to technical accounting and SEC reporting requirements.

    (v)
    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 consolidated financials. Specifically, our user access controls were not adequately designed or implemented and our monitoring of ITGC controls was insufficient.

In light of the aforementioned
material weaknesses, our management has performed additional analyses, reconciliations, and other post-closing procedures and has concluded
that, notwithstanding the material weaknesses in our internal control over financial reporting, the Unaudited Condensed Consolidated Financial
Statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial position, results of
operations and cashflows for the periods presented in conformity with GAAP.

To address the above material
weaknesses, management is undertaking the following remediation measures:

    (i)
    We have been working with consultant to assist in the preparation and presentation of financial statements in accordance with US GAAP and PCAOB guidelines. Furthermore, we are putting a framework in place to properly manage the review and approval process of work prepared by our third-party advisors.

    (ii)
    We will work on scheduling training sessions on a quarterly basis to provide relevant USGAAP knowledge. In addition to this management would look to hire people with USGAAP knowledge to bridge the gap over the next few quarters.

    (iii)
    Management will be finalizing work commenced on