Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 1041

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 1041
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 possible that we are not now, or may not be in the future, compliant with those laws. Further, the use of criminal background
checks or credit checks in our marketplace may open us up to allegations of discrimination. Therefore, we may be subject to negative publicity
and incur additional expenses, which could harm our business, results of operations, and financial condition.

107

Our exposure to exchange rate fluctuations
and the translation of local currency results into U.S. dollars could negatively impact our results of operations. 

All of our business is transacted
and/or denominated in foreign currencies, and fluctuations in currency exchange rates could have a significant impact on our results of
operations, financial condition, and cash flows. Increased currency volatility, particularly in the Indian Rupee, could also positively
or negatively impact our foreign-currency-denominated costs, assets, and liabilities. In addition, any devaluation of the Rupee relative
to other foreign currencies could increase our operating expenses, adversely affecting the results of our operations. Any of these factors
could adversely affect our financial condition and the results of our operations in the future.

The effective tax rates governing car rental
and car subscription in India could change. 

The tax environment continues
to evolve in India on a routine basis and remains relatively fluid compared to other more mature markets. The indirect tax rates associated
with the Goods and Services Tax (GST) have changed on multiple occasions since the GST’s introduction in 2017 and these tax rate
shave further undergone changes most recently in September 2025. Any further increase in these indirect tax rates could result in a reduction
in the Company’s operating cash flow, which could impair our future profitability.

We may have exposure to materially greater
than anticipated tax liabilities. 

The tax laws applicable to
our business activities are subject to uncertainty and can be varied in the relevant jurisdictions. Like many other multinational companies,
we are subject to tax in diverse jurisdictions and have structured our business to reduce our effective tax rate. The taxing authorities
of the jurisdictions in which we operate have in the past, and may in the future, examine or challenge our methodologies for valuing developed
technology, which could increase our worldwide effective tax rate and harm our financial position and operating results. Furthermore,
our future income taxes could be adversely affected by earnings being lower than anticipated in jurisdictions that have lower statutory
tax rates and higher than anticipated in jurisdictions that have higher statutory tax rates, changes in the valuation of our deferred
tax assets and liabilities, or changes