Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 711

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 711
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 and comprehensive internal controls over financial reporting.

(v)We have properly concluded that ITGC controls over SAP (our accounting software) are operating effectively
as of March 31, 2025. We are in the midst of reviewing and implementing proper ITGC controls in all other areas relevant to the preparation
of the Company’s financial statements.

We intend to continue to take steps to remediate
the material weaknesses described above and further evolving our accounting processes. The actions we are taking are subject to ongoing
executive management review and are also subject to the oversight of the Audit Committee. We will not be able to fully remediate these
material weaknesses until these steps have been completed and have been operating effectively for a sufficient period of time. If we are
unable to successfully remediate these material weaknesses, or if in the future, we identify further material weaknesses in our internal
control over financial reporting, we may not detect errors on a timely basis and our consolidated financial statements may be materially
misstated.

While the Company has identified remediation plans
and is working on remediating these material weaknesses, no assurance can be made that the Company will be successful in remediating any
or all of the material weaknesses within the requisite timelines.

We are required to comply with the SEC’s
rules implementing Sections 302 and 404 of the Sarbanes-Oxley Act, which require management to certify financial and other information
in our quarterly and annual reports and provide an annual management report on the effectiveness of controls over financial reporting.
Although we are required to disclose changes made in its internal controls and procedures on a quarterly basis, we will not be required
to make our first annual assessment of its internal control over financial reporting pursuant to Section 404 until the year following
our first annual report required to be filed with the SEC.

To comply with the requirements of being a public
company, we have undertaken various actions, and will need to take additional actions, such as implementing numerous internal controls
and procedures and hiring additional accounting or internal audit staff or consultants. Testing and maintaining internal control can divert
Zoomcar’s management’s attention from other matters that are important to the operation of Zoomcar’s business. Additionally,
when evaluating Zoomcar’s internal control over financial reporting, we may identify material weaknesses that we may not be able
to remediate in time to meet the applicable deadline imposed upon us for compliance with the requirements of Section 404. Investors may
lose confidence in the accuracy and completeness of our financial reports and the market price of