Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 407

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 407
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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.

112

Failure to comply with labour 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 labour laws, regulations, and government policies in multiple jurisdictions. The requirements for labour 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.

For example, in Egypt, an
employer is required to deduct the relevant taxes from the salary of its employees and remit the same to the tax authorities. Our Egypt
subsidiary is currently in the process of remitting these taxes as deducted to the local tax authorities. Any delay of remittance may
make us susceptible to penalty, notice and administrative action from tax authorities. Our Egypt subsidiary is also required to make social
insurance registration with the local authorities and is currently in the process of registration. Any delay or failure to register may
subject us to penalties, notice and administrative action from relevant local authorities.

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 December 31, 2024, Zoomcar India has incurred a penalty of less than $ 35,177/-
(based on the foreign exchange rates as of March 31, 2024) 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 to accrue
unless paid in full, which could adversely affect our business, financial conditions and results of operations.

Uncertain global macro-economic and political
conditions could materially and adversely affect our results of operations and financial condition. 

Our results of operations
could be materially