Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 291

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 291
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 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 2023 tax returns. 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 $121,218 (March 31, 2025: $125,839). Penalty of $125,442
has been claimed but the proceedings are kept under abeyance until the above order is disposed off. The Company has filed appeals against
the above orders before higher authority.

The
Company has not recognized any uncertain tax position as at September 30, 2025 and March 31, 2025, respectively. The Company believes
these orders are unlikely to be sustained at the higher appellate authorities.

(F) On
August 2025, the Company received a notice from the legal representatives of certain holders of warrants to purchase Series E Preferred
Stock of Zoomcar, Inc. pursuant to the warrant agreement dated May 12, 2021. The warrant holders have raised a dispute regarding the
non-delivery of shares following the submission of their respective notices of exercise. The warrant holders are collectively entitled
to warrants amounting to $6,217,614. The Company believes that such claims are without merit and is in discussion with the legal representatives
to dismiss the same.

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space has been left intentionally blank)

51

ZOOMCAR
HOLDINGS, INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

30Subsequent
events

(A) On August 7, 2025, the Company received
a notice from OTC Markets Group Inc. (“OTC Markets”) indicating that the Company no longer meets certain eligibility requirements
for continued trading on the OTCQX U.S. tier as per the OTCQX Rules for U.S Companies Section 2.1(B) with respect to market capitalization.
Following receipt of the notice and after evaluating available alternatives, the Company elected to transition its quotation to the OTCQB
tier of OTC Markets Group (“OTCQB”). On November 4, 2025, the Company’s ordinary shares commenced trading on