Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 684

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 684
---
 anti-money laundering
and sanctions laws and conduct appropriate risk assessments and implement appropriate controls. Government authorities may seek to bring
legal action against us if our payment system is used for improper or illegal purposes or if our enterprise risk management or controls
are not adequately assessed, updated, or implemented appropriately, and any such action could result in financial or reputational harm
to our business.

108

Our reported financial results may be adversely
affected by changes in accounting principles. 

The accounting for our business
is complicated, particularly in the area of revenue recognition, and is subject to change based on the evolution of our business model,
interpretations of relevant accounting principles, enforcement of existing or new regulations, and changes in SEC or other agency policies,
rules, regulations, and interpretations, of accounting regulations. Changes to our business model and accounting methods could result
in changes to our financial statements, including changes in revenue and expenses in any period, or in certain categories of revenue and
expenses moving to different periods, may result in materially different financial results, and may require that we change how we process,
analyze, and report financial information and our financial reporting controls.

We are subject to privacy laws and regulations,
and compliance with these laws and regulations could impose significant compliance burdens. 

The regulatory framework
for privacy issues worldwide is currently in flux and is likely to remain so for the foreseeable future. Practices regarding the collection,
use, storage, transmission, and security of personal information by companies operating over the internet have recently come under increased
public scrutiny. The European Union’s privacy and data security regulation, the General Data Protection Regulation (“GDPR”),
that went into effect in May 2018, requires companies to implement and remain compliant with regulations regarding the handling of personal
data, including its use, protection, and the ability of persons whose data is stored to correct or delete such data about themselves.
Other countries in Asia, Europe and Latin America have passed or are considering similar privacy regulations, resulting in additional
compliance burdens and uncertainty as to how some of these laws will be interpreted.

We receive, collect, and
store a large volume of personally identifiable data by processing car sharing transactions on our platform. This data is increasingly
subject to legislation and regulations in numerous jurisdictions around the world.

For example, the Indian Information
Technology Act, 2000, as amended, would subject us to civil liability to compensate for wrongful loss or gain arising from any negligence
by us in implementing and maintaining reasonable security practices and procedures with respect to sensitive personal data or