Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 89

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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 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.

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(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.

Based on the assessment performed, as of March
31, 2025, our management concluded that the internal control over financial reporting was ineffective. 

Changes in Internal Control over Financial
Reporting

We are taking actions to
remediate the material weaknesses relating to our internal control over financial reporting, as described above. Except as otherwise described
herein, there were no changes in our internal control over financial reporting identified in connection with the evaluation required by
Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this Quarterly Report on Form 10-Q that have
materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Remediation Plans

We have commenced measures
to remediate the identified material weaknesses, including:

(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