Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1045

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 2
Chunk 1045
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 severance pay and gratuity as per India’s Payment of Gratuity
Act, 1972. Additionally, he has claimed 210,520 stock units already existing, fully vested. The Company filed a motion to dismiss the
matter on November 27, 2024. On January 7, 2025, the Company subsequently filed the opening brief in support of the motion to dismiss
filed on November 27, 2024. The Company further filed the opening brief in support of the motion to dismiss on 7 January 2025. Mr. Moran
filed opposition to Zoomcar’s motion on February 5, 2025 and Zoomcar filed a reply in further support of its motion on February
20, 2025. Oral arguments on Zoomcar’s motion to dismiss were heard on April 29, 2025. The court granted the motion to dismiss Mr.
Moran’s quasi-contractual claims and reserved decision on the balance of the motion.

(E) Zoomcar Holdings, Inc. files tax returns in the U.S. federal,
various 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 $125,839 (March 31, 2024: $129,027). Penalty of $125,839 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 March
31, 2025 and March 31, 2024, respectively. The Company believes these orders are unlikely to be sustained at the higher appellate authorities.

79

Critical Accounting Policies and Estimates  

The Company prepared its financial statements in accordance with GAAP.
Our preparation of these financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts
of assets, liabilities, and related disclosures at the date of the financial statements, as well as revenue and expense recorded during
the reporting periods. The Company evaluates our estimates and judgments