Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 160

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 160
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legal proceedings and claims that arise in the ordinary course of business. The Company accrues for losses associated with legal claims
when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available
or circumstances change.

| (A) | Claims filed by customers and                                                                                                                     
 third-parties not acknowledged as liability amounted to $4,075,587 and $4,565,949 as at December 31, 2024 and March 31, 2024, respectively.       
 The claims made by the customers against the Company includes claims that have been made for amounts charged to customers by the Company          
 as damages for improper use of vehicles and/or physical damages made to vehicles during an active trip ; or claims made by customers              
 for unavailability of the booked vehicle or for any mechanical default in the booked vehicle ; or claims against any similar issue faced          
 by either the host or the customer. Under the erstwhile business model of the Company , the Company had procured third-party insurance            
 policies for fleet under its management which indemnifies against personal death and/or injuries suffered either by the customer or third-parties 
 during the use of its vehicles. Based on the insurance coverage, the Company is confident that liability, if any, arising from the claims         
 under the previous business model will be covered by the insurance. Further, under the current business model of the Company, wherein             
 the Company acts only as a facilitator, any issues arising from breach of any terms including improper use of vehicles and/or physical            
 damages made to the vehicles or any mechanical issues in the vehicle will be the responsibility of either the host or the customer. While         
 uncertainties are inherent in the final outcome of these matters, the Company believes that the disposition of these proceedings will             
 not have a material adverse effect on the Company’s financial position, results of operations or cash flows.                                      |

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| (B) | The Company has received various orders and show cause notices                                                                               
 from Indian indirect tax authorities relating to disputes on input tax credits, service tax liabilities, GST dues, and taxability of         
 car rental revenue for periods between 2014 and 2023, totaling $15,934,836 (March 31, 2024: $7,984,418). 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.