Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 148

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 148
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ediating 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 4 Controls and Procedures described
elsewhere in this Quarterly Report on Form 10-Q. 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 reporting requirements.

(v)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 consolidated financials. Specifically, our user access controls were not adequately designed or implemented and our
monitoring of ITGC controls was insufficient.

In light of the aforementioned material weaknesses,
our management has performed additional analyses, reconciliations, 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 included
in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial position,