Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 56

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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134,582 
  
    Balance as of June 30, 2025 
    $6,136,851 

During the three months ended June 30, 2025 and June 30,
2024, there were no non-recurring fair value measure of assets or liabilities subsequent to initial recognition.

29Commitments
and contingencies

Contingencies

(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 periods between 2014 and 2023, totaling $9,799,311 (March 31, 2025: $9,514,651). These
disputes include disallowance of input credits, service tax liabilities on booking fees and penalty charges, disputes on goods and service
tax input availed, and GST demands on gross