Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 149

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 149
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 results of operations and cashflows
for the periods presented in conformity with GAAP.

90

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

(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.

(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.

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 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