Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 170

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 170
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AP knowledge to bridge the gap over the next few quarters.

    (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 more robust and comprehensive internal controls over financial reporting.

    (v)
    We have properly concluded that ITGC controls over SAP (our accounting software) are operating effectively as of March 31, 2025. We are in the midst of reviewing and implementing proper ITGC controls in all other areas relevant to the preparation of the Company’s financial statements.

102

We intend to continue to
take steps to remediate the material weaknesses described above and further evolving our accounting processes. The actions we are taking
are subject to ongoing executive management review and are also subject to the oversight of the Audit Committee. We will not be able to
fully remediate these material weaknesses until these steps have been completed and have been operating effectively for a sufficient period
of time. If we are unable to successfully remediate these material weaknesses, or if in the future, we identify further material weaknesses
in our internal control over financial reporting, we may not detect errors on a timely basis and our consolidated financial statements
may be materially misstated.

While the Company has identified
the above mentioned remediation plans and is working on remediating these material weaknesses, no assurance can be made that the Company
will be successful in remediating any or all of the material weaknesses within the requisite timelines.

We are required to comply
with the SEC’s rules implementing Sections 302 and 404 of the Sarbanes-Oxley Act, which require management to certify financial
and other information in our quarterly and annual reports and provide an annual management report on the effectiveness of controls over
financial reporting. Although we are required to disclose changes made in its internal controls and procedures on a quarterly basis, we
will not be required to make our first annual assessment of its internal control over financial reporting pursuant to Section 404 until
the year following our first annual report required to be filed with the SEC.

To comply with the requirements
of being a public company, we have undertaken various actions, and will need to take additional actions, such as implementing numerous
internal controls and procedures and hiring additional accounting or internal audit staff or consultants. Testing and maintaining internal
control can divert Zoomcar’s management’s attention from other matters that are