Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 89

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 89
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or periods for which such determination is made. Our tax positions or tax returns are subject to change, and therefore we cannot accurately
predict whether we may incur material additional tax liabilities in the future, which could impact our financial position.

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Our business is subject to extensive government regulation and oversight relating to the provision of payment and financial services.

The jurisdictions in which
we operate and jurisdictions we may enter may have laws that govern payment and financial services activities. These laws govern, among
other things, money transmission, prepaid access instruments, electronic funds transfers, anti-money laundering, counter-terrorist financing,
banking, systemic integrity risk assessments, and cyber-security of payment processes. Our business operations, including our payments
to Hosts and Guests, may not always comply with these financial laws and regulations. Regulators s may determine that certain aspects
of our business are subject to these laws and could require us to obtain licenses to continue to operate in India. We have evaluated
and will continue to critically evaluate our options for seeking applicable licenses and approvals in the jurisdictions where we operate
to optimize our payment solutions and support the future growth of our business. Laws related to money transmission and online payments
are evolving, and changes in such laws could affect our ability to provide payment processing on our platform in the same form and on
the same terms as we have historically, or at all.

Historical or future
non-compliance with these laws or regulations could result in significant criminal and civil lawsuits, penalties, forfeiture of significant
assets, or other enforcement actions. Costs associated with fines and enforcement actions, as well as reputational harm, changes in compliance
requirements, or limits on our ability to expand our product offerings, could harm our business.

Further, our payment system
may be susceptible to illegal and improper uses, including money laundering, terrorist financing, fraudulent transactions, and payments
to sanctioned parties. We have invested and will continue to invest substantial resources to comply with applicable anti-money laundering
and sanctions laws and conduct appropriate risk assessments and implement appropriate controls. Government authorities may seek to bring
legal action against us if our payment system is used for improper or illegal purposes or if our enterprise risk management or controls
are not adequately assessed, updated, or implemented appropriately, and any such action could result in financial or reputational harm
to our business.

Our reported financial results may be adversely affected by changes in accounting principles.

The accounting for our business
is complicated, particularly in the area of revenue recognition, and