Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 395

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 3
Chunk 395
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 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, results of operations and cashflows
for the periods presented in conformity with GAAP.

90

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