Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 113

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 113
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 to the claim and is currently awaiting
the Court’s decision.

(H)Zoomcar Holdings, Inc. files tax returns in the U.S. federal,
various state, and foreign jurisdictions. In the normal course of business, the Company is subject to examination by tax authorities.
Our major tax jurisdiction is in India. The Indian tax authority is currently examining our 2016 through 2022 tax returns.

As at December 31, 2024, tax returns for years ended March
31, 2020 and onward remain subject to examination by tax authorities in India. There are other ongoing audits in various other jurisdictions
that are not material to our financial statements.

The Company received an order for fiscal year 2015-16 in
relation to non-deduction of tax deducted at source withholding taxes on certain payments to resident payees/service providers amounting
to $125,660 (March 31, 2024: $129,027). Penalty of $125,660 has been claimed but the proceedings are kept under abeyance until the above
order is disposed off.

The Company has filed appeals against the above orders before
higher authority. 

The Company has not recognized any
uncertain tax position as at December 31, 2024 and March 31, 2024, respectively. The Company believes these orders are unlikely to be
sustained at the higher appellate authorities.

(I)The Company entered into a placement agent agreement with Aegis
Capital Corp. (‘Aegis’) dated November 5, 2024 wherein Aegis will act as the placement agent in connection with the November 2024 and
December 2024 offering. Along with a cash fee payable and warrants issuable to Aegis as a placement agent commission, Aegis is also entitled
to a fee of 5% of the gross proceeds from cash exercise of any Series A warrants issued in the November 2024 and December 2024 offering,
payable upon exercise.

The Company has not recognized a provision
for such fee payable in the books as the Company believes that the exercise of warrants is not probable as of December 31, 2024. The Company
will record the fee in the books in the period in which the warrants will be exercised.

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Critical Accounting Policies and Estimates  

The Company prepared its
financial statements in accordance with GAAP. Our preparation of these financial statements requires us to make estimates, assumptions
and judgments that affect the reported amounts of assets, liabilities, and