Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 358

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 358
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 coverage to satisfy
potential claims. As our business continues to grow, incidences of such claims may also increase and, unless we obtain insurance coverage
for such matters, we may choose or be required to absorb larger parts of such uninsured claims to avoid becoming subject to legal proceedings
that could be resolved against us, which could lead to business losses and adversely affect our business, financial conditions and results
of operations. Should uninsured losses occur, they could adversely affect our business, results of operations and financial condition.
Further, our being subject to claims of liability, we may be subject to negative publicity and incur additional expenses, which could
harm our business, financial condition, and operating results. 

We are in the process of remediating identified
material weaknesses in our internal controls and if we fail to remediate these weaknesses, or if we experience additional material weaknesses
in the future, or otherwise fail to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act, we
may not be able to accurately or timely report our financial condition or results of operations, or comply with the accounting and reporting
requirements applicable to public companies, which may adversely affect investor confidence in the Company and the market price of our
stock. 

Zoomcar has identified certain material weaknesses in Zoomcar’s internal
controls over financial reporting as more particularly described under Item 9A Controls and Procedures described elsewhere
in this Annual Report on Form 10-K. These material weaknesses have been recurring from prior reporting periods and remain unresolved as
of the date of this filing. Based on the assessment performed  as of March 31, 2025, we identified five material weaknesses in our
internal control over financial reporting 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