Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1225

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 4
Chunk 1225
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 information
that we possess in our computer systems, networks, databases, and software. India has also implemented privacy laws, including the Information
Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, which impose limitations
and restrictions on the collection, use and disclosure of personal information. The Digital Personal Data Protection Act, 2023 has been
introduced in August of 2023 which has significant impact on the current regulatory environment with respect to the lawful use of digital
personal data, cross border data transfers and additional compliances that may be invoked for organizations collecting and/or processing
personal data.

Further, in India, the draft
of Digital Personal Data Protection Rules which aims to operationalize the Digital Personal Data Protection Act, 2023 (DPDP Act), in line
with India’s commitment to create a robust framework for protecting digital personal data, has been published in January 2025 for
public comments. While the rules are yet to be finalized and formally adopted,  the entire framework for data protection legislation
is fairly new in India and going through the phases of implementation right now. However, it may affect us in ways that we are currently
unable to predict.

Any liability we may incur
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