Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 73

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 73
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 plans and procedures in order to remediate these weaknesses, which it expects to continue to develop and refine in the near term. 35 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 consolidated financial statements included in this registration statement fairly present, in all material respects, our financial position, results of operations and cashflows for the periods presented in conformity with GAAP. These material weakness are being addressed by the Company by taking the following measure listed below:

| (i) | We designed and implemented processes for identification, monitoring and regulatory compliance of transactions involving related parties. Our processes include 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) | 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. |

| (iii) | Developing financial reporting manuals including Standard Operating Procedures for financial statement closure processes to ensure compliance with US GAAP and SEC reporting requirements and monitoring controls over financial statement closure process. |
| (iv)  | 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 is developing processes for sufficient managements reviews.            |

| (v) | Management is currently working on developing accounting manuals, policies and standard operating procedures in consultation with external consultants. |

| (vi) | Management is in the process of developing Information Technology General Controls (“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