Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 107

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 107
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 control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally
accepted in the United States. Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions or because the degree of compliance with policies or procedures may deteriorate.

Management conducted, under
the supervision of our Principal Executive Officer and Principal Financial Officer, an evaluation of the effectiveness of our internal
control over financial reporting based on the framework in Internal Control – Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway Commission, commonly referred to as the “COSO” criteria. Based on the assessment
performed as of March 31, 2025, in our Annual Report on Form 10-K filed on June 30, 2025, we identified five material weaknesses in our
internal control over financial reporting, which remained unremediated as of September 30, 2025, related to:

(i)Our
controls over independent review and documentation of third-party advisors’ reports were not operating effectively. We rely on
third-party advisors for assistance with the preparation of key schedules and financial statements. However, we failed to establish a
consistent process for independently reviewing 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. 

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Changes in Internal Control