Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 88

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 88
---
in these indirect tax rates could result in a reduction in our operating cash flow, which could impair our future profitability.

The Indian government could reduce highway infrastructure investments, thereby making car travel significantly less appealing.

The Indian government
is currently investing significantly in expanding the country’s underdeveloped network of interstate highways and expressways. Compared
to more mature markets, the Indian civil infrastructure is under-invested across its 28 states and 8 Union territories. The development
of new highways and expressways makes personal car transportation considerably more desirable, as new highway infrastructure could potentially
reduce travel time and overall traffic congestion. These new highways and expressways also have the potential to mitigate low-speed vehicle
intrusions on highways, which could potentially improve overall road safety. In the event that the Indian government slows down this investment
due to macroeconomic considerations, our business could observe a negative impact on overall customer demand, which could reduce 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 in tax laws, regulations, or accounting principles. We are subject to regular review and audit
by the tax authorities in the jurisdictions where we operate, and currently face numerous income and other tax claims pending appeals
before higher authorities in India. Any adverse outcome of such appeals or an adverse interpretation from the tax authorities on the tax
compliances and tax rates applicable to our car sharing business could have an adverse effect on our financial position and operating
results. In addition, the determination of our worldwide provision for income taxes and other tax liabilities requires significant judgment
by our management, and we have engaged in many transactions for which the ultimate tax determination remains uncertain. The ultimate tax
outcome may differ from the amounts recorded in our financial statements and may materially affect our financial results in the period