Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 93

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 93
---
 Personal Data
Protection Act, 2023 has been introduced in August of 2023 which has significant impact on the current regulatory environment with respect
to the lawful use of digital personal data, cross border data transfers and additional compliances that may be invoked for organizations
collecting and/or processing personal data.

Further, in India, the draft
of Digital Personal Data Protection Rules which aims to operationalize the Digital Personal Data Protection Act, 2023 (DPDP Act), in
line with India’s commitment to create a robust framework for protecting digital personal data, has been published in January 2025
for public comments. While the rules are yet to be finalized and formally adopted, the entire framework for data protection legislation
is fairly new in India and going through the phases of implementation right now. However, it may affect us in ways that we are currently
unable to predict.

50

Any liability we may incur
for violation of such laws and regulations and related costs of compliance and other burdens may adversely affect our business and profitability.
We could be adversely affected if legislation or regulations are expanded to require changes in our business practices or if governing
jurisdictions interpret or implement their legislation or regulations in ways that negatively affect our business, results of operations
or financial condition.

Failure to comply with labor laws and regulations
may cause us to incur additional costs, which may affect our business, financial conditions and results of operations.

Our business operations
are governed by various labor laws, regulations and government policies in multiple jurisdictions. The requirements for labor law compliance,
may change from time to time in each jurisdiction. We may be unable to comply with all these requirements in time, or at all, or we may
need to incur substantial costs to be compliant, which may adversely affect our business operations and financial condition.

In India, provisions were
released between 2019 and 2021 relating to the contribution of provident fund, employee state insurance, and professional taxes by employers
for the certain employees. Any delay or failure to make such contribution may result in penalties, interests, notices or other administrative
actions by the relevant local authorities in India. As of March 31, 2025, Zoomcar India has incurred a penalty of less than $35,999 (based
on the foreign exchange rates as of March 31, 2025) for failure to make timely contribution, which Zoomcar India plans to remit, with
associated interest due, as instructed by the relevant local authority. This outstanding penalty and interest will continue