Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 542

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 542
---
 condition, ability to forecast accurately, and results of operations.

If we are unable to maintain
our chargeback or refund rates at levels that credit or debit card issuers, or payment processors deem acceptable, these entities may
increase fees for chargeback transactions or for many or all categories of transactions; they may also increase the rates of declining
transactions or terminate their relationships with us. Any increases in fees could adversely affect our operating results, particularly
if we elect not to raise the prices for transactions on our platform to offset the increase. The termination of our ability to process
payments on any major credit or debit cards or through certain online payment service providers or payment processors could significantly
impair our ability to operate our business.

We may also be subject to,
or may voluntarily comply with, a number of other laws and regulations relating to money laundering, money transmission, international
money transfers, privacy and information security, and electronic fund transfers. If we are found to be in violation of such applicable
laws or regulations, we could be subject to civil and criminal penalties or forced to cease our payments processing services or otherwise
make changes to our business practices.

Any major disruption or failure of our information
technology systems, or our failure to successfully implement new technology effectively, could adversely affect our business and results
of operations or the effectiveness of internal controls over financial reporting. 

We rely on various information
technology systems, owned by us and third parties, to manage our operations. Over the last several years, we have been and continue to
implement modifications and upgrades to our systems, including making changes to legacy systems, replacing legacy systems with successor
systems with new functionality, and acquiring new systems with new functionality. These activities subject us to inherent costs and risks
associated with replacing and upgrading these systems, including impairment of our ability to fulfil trip bookings, maintain books and
records, potential disruption of our internal control structure, substantial capital expenditures, additional administration and operating
expenses, retention of sufficiently skilled personnel to implement and operate the new systems, demands on management time, and other
risks and costs of delays or difficulties in transitioning to new or upgraded systems or of integrating new or upgraded systems into our
current systems. Our system implementations may not result in productivity improvements at a level that outweighs the costs of implementation,
or at all. In addition, the difficulties with implementing new or upgraded technology systems may cause disruptions in our business operations
and may have an adverse effect on our business and operations if not anticipated and appropriately mitigated.

100

The