Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 235

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 235
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 public accounting firm due to a transition period established by rules of
the SEC for an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our
Business Startups Act of 2012. 

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.

A material weakness is a
deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility
that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

83

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 reporting