Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 445

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 4
Chunk 445
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 Officer, an evaluation of the effectiveness of our internal
control over financial reporting based on the framework in Internal Control – Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway Commission, commonly referred to as the “COSO” criteria. Based on the assessment
performed as of March 31, 2025, in our Annual Report on Form 10-K filed on June 30, 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.

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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