Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2113

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7
Chunk 2113
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 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.

Based on the assessment performed,
as of March 31, 2025, our management concluded that the internal control over financial reporting was ineffective.

c) 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 annual report on Form 10 K 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)We have been working with Deloitte 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.

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(iii)Management will be finalizing work commenced on developing
accounting manuals, policies, and standard operating procedures in consultation with Deloitte, our external SOX consultants.

(iv)We are designing and implementing additional review procedures
within our accounting and finance department to provide