Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 343

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 343
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ations, and other post-closing
procedures and has concluded that, notwithstanding the material weaknesses in our internal control over financial reporting, the unaudited
condensed consolidated financial statements for the periods covered by and included in this quarterly report on Form 10-Q fairly present,
in all material respects, our financial position, results of operations and cashflows for the periods presented in conformity with GAAP.

77

Material Weaknesses in Internal Control over Financial Reporting

Management’s Report on Internal Controls Over Financial Reporting

Management is responsible
for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the
Exchange Act. Internal 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 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