Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1162

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 4
Chunk 1162
---
 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 June 30, 2024, we identified six material weaknesses in our internal control over financial reporting related to:

(i)Our controls were not adequately designed to properly monitor
and document related party transactions.

(ii)Our controls over independent review and documentation of
third-party specialists and advisors’ reports were not operating effectively. We rely on third-party specialists for critical assessments,
such as fair value measurements and preparation of key schedules and financial statements. However, we failed to establish a consistent
process for independently reviewing these third-party specialist and advisor reports before incorporating them into our financial statements.

(iii)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.

(iv)Our resources are deficient in comprehensive knowledge and
expertise pertaining to technical accounting and SEC reporting requirements.

(v)Our controls over the financial statement close process do
not provide sufficient evidence.

(vi)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 unaudited condensed consolidated financials. Specifically, our user
access controls were not adequately designed or implemented, our change management process lacked rigor and documentation and our monitoring
of ITGC controls was insufficient.

Changes in Internal Control over Financial
Reporting

We are taking actions to
remediate the material weaknesses relating to our internal control over financial reporting, as described above. Except as otherwise described
herein, there were no changes in our internal control over financial reporting identified in connection with the evaluation required by
Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this quarterly report on Form 10-Q that have
materially 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,