Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1091

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 3
Chunk 1091
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iv)
    The Management is working on hiring, training, and retention of inhouse resources with requisite US GAAP knowledge. The management has also engaged external accounting professionals and developing process for sufficient managements reviews.

    (v)
    The Management is currently working on developing accounting manuals, policies, and standard operating procedures in consultation with external consultants.

    (vi)
    The management is in the process of developing ITGC policies and procedures to address identified deficiencies, ensuring controls are designed and operating effectively. This will include establishing monitoring mechanisms to regularly evaluate and test the effectiveness of ITGC, including access controls, change management, and data integrity validation.

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 for the periods covered by and included in this Report fairly present, in all material respects, our financial position, results
of operations and cashflows for the periods presented in conformity with GAAP.

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 our Common Stock
could be negatively affected if any of the following occurs: (i) we identify any material weaknesses in its internal control over financial