Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 81

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 81
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 Leasing and Financial Services India LTD 
     32,218 
  
    - Clix Finance India Private Limited 
     67,066 
  
    - AON Risk Insurance Services West, Inc 
     - 

    $2,629,635 

    Total maturity for the year ending on June 30, 2026 
    $2,629,635 

Contingencies

The Company is subject to
legal proceedings and claims that arise in the ordinary course of business. The Company accrues for losses associated with legal claims
when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available
or circumstances change.

(A)Claims filed by customers and third-parties not acknowledged as liability
amounted to $4,804,120 and $4,503,122 as at June 30, 2025 and March 31, 2025, respectively. The claims made by the customers against the
Company includes claims that have been made for amounts charged to customers by the Company as damages for improper use of vehicles and/or
physical damages made to vehicles during an active trip ; or claims made by customers for unavailability of the booked vehicle or for
any mechanical default in the booked vehicle ; or claims against any similar issue faced by either the host or the customer. Under the
erstwhile business model of the Company , the Company had procured third-party insurance policies for fleet under its management which
indemnifies against personal death and/or injuries suffered either by the customer or third-parties during the use of its vehicles. Based
on the insurance coverage, the Company is confident that liability, if any, arising from the claims under the previous business model
will be covered by the insurance. Further, under the current business model of the Company, wherein the Company acts only as a facilitator,
any issues arising from breach of any terms including improper use of vehicles and/or physical damages made to the vehicles or any mechanical
issues in the vehicle will be the responsibility of either the host or the customer. While uncertainties are inherent in the final outcome
of these matters, the Company believes that the disposition of these proceedings will not have a material adverse effect on the Company’s
financial position, results of operations or cash flows.

    (B)
    The Company has received various orders and show cause notices from Indian indirect tax authorities relating to disputes on input tax credits, service tax liabilities, GST dues, and taxability of car rental revenue for