Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 300

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 300
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 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, he has claimed 210,520 stock units
already existing, fully vested. The Company filed a motion to dismiss the matter on November 27, 2024. On January 7, 2025, the
Company subsequently filed the opening brief in support of the motion to dismiss filed on November 27, 2024.

(G) On November 7, 2024,
the Company received a notice from ACM Zoomcar Convert LLC (“ACM”) regarding a breach of obligations under the Unsecured
Convertible Note executed on December 28, 2023. The Company had defaulted on its payment obligations to ACM on June 25, 2024,
resulting in the entire outstanding amount becoming payable on demand. ACM has initiated litigation with the Court to recover the
principal amount of $5,656,087, unpaid interest of $341,746, and interest at the contractual rate until the date of judgment. The
Company has filed an opposition 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