Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1043

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 3
Chunk 1043
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ly 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 regularly evaluate and test the effectiveness of ITGC, including access controls, change management, and data
integrity validation.

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 unaudited condensed consolidated
financial statements may be materially misstated.

This quarterly report on
Form 10-Q does not include an attestation report of our registered public accounting firm due to a transition period established by rules
of the SEC for an “emerging growth company,” as defined in Section