Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 78

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 78
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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.

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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 consolidated financial statements included in this Annual Report on Form
10-K fairly present, in all material respects, our financial position, results of operations and cashflows for the periods presented in
conformity with GAAP. 

To address the above material weaknesses,
management is undertaking the following remediation measures:

(i)We have been working with Deloitte to assist in the preparation and presentation of financial statements
in accordance with US GAAP and PCAOB guidelines. Furthermore, we are putting a framework in place to properly manage the review and approval
process of work prepared by our third-party advisors.

(ii)We will work on scheduling training sessions on a quarterly basis to provide relevant USGAAP knowledge.
In addition to this management would look to hire people with USGAAP knowledge to bridge the gap over the next few quarters.

(iii)Management will be finalizing work commenced on developing accounting manuals, policies, and standard
operating procedures in consultation with Deloitte, our external SOX consultants.

(iv)We are designing and implementing additional review procedures within our accounting and finance department
to provide more robust 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