Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 840

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1C
Chunk 840
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). These disputes include disallowance
of input credits, service tax liabilities on booking fees and penalty charges, disputes on goods and service tax input availed, and GST
demands on gross booking value. The Company has taken necessary steps, including filing appeals, submissions, and deposits, and is awaiting
further communication from the authorities. In relation to the GST demands on gross booking value, the Company has filed a writ petition
with various authorities challenging the order. Based on the submissions provided and documents available, management believes that no
significant outflow is expected, and therefore, no provision has been recorded as of March 31, 2025, and March 31, 2024.

(C) In February 2023, a former employee of Zoomcar India instituted
a suit before the City Civil and Sessions Judge at Mayo Hall, Bengaluru against Zoomcar India, Zoomcar, Inc. and Zoomcar Holdings, Inc.
(formerly IOAC) challenging his termination, claiming damages amounting to $397,023 and claiming that 100,000 options to purchase shares
of Zoomcar, Inc. have vested. On March 3, 2023, the City Civil and Sessions Judge at Mayo Hall, Bengaluru, issued an interim injunction
to restrain each of Zoomcar, Inc. and Zoomcar Holdings, Inc. from “alienating or dealing” the 100,000 shares of Zoomcar,
Inc. claimed by the former employee while the suit is pending. Zoomcar believes that such claims are baseless and is attempting to have
the interim order vacated. In addition, Zoomcar India filed an application in the former employee’s suit, seeking that Zoomcar
Holdings, Inc. be deleted from the array of parties in the suit.

(D) On November 1, 2024, Gregory Moran, a former employee of Zoomcar
India, has filed a case with the Superior Court, Delaware, challenging his termination without a cause or a sufficient notice, claiming
$100,000 payment that was agreed to be paid on the 6 month anniversary of the effective date of closing of the SPAC transaction along
with a 8% fully diluted equity interest in Zoomcar Holdings, Inc., non-payment of “vacation” valued at approximately $30,000,
leave encashment of approximately $42,000, $96,000 entitled to him for severance pay and gratuity as per India’s Payment of Gratuity
Act, 1972. Additionally,