Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 221

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 221
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 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..

Recent Developments

(A)On August 5, 2025, the Company received a written notice from the OTCQX U.S. tier of OTC Markets Group
(“OTCQX”) stating that the Company’s Global Market Capitalization has remained below the minimum $5 million required
under Section 2.1(B) of the OTCQX Rules for U.S. Companies for more than 30 consecutive calendar days and, therefore, the Company no longer
satisfies the OTCQX Standards for Continued Qualification. Under those rules, the Company has a 90-calendar-day cure period, expiring
on November 3, 2025, to regain compliance by maintaining a Global Market Capitalization of at least $5 million for 10 consecutive trading
days.

(B)On July 29, 2025, the Company notified Grant Thornton Bharat LLP (“GT Bharat”) that it was
dismissed as the Company’s independent registered public accounting firm, effective immediately. The decision to dismiss GT Bharat
was approved by the Audit Committee of the Company’s Board of Directors. On July 29, 2025, the Audit Committee of the Company’s
Board of Directors approved the engagement of Bansal & Co LLP (“Bansal”) as the Company’s new independent registered
public accounting firm for the fiscal year ending March 31, 2026, effective immediately.

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 on an ongoing
basis.

The Company bases its estimates
on historical experience and/or other relevant assumptions that the Company believes to be reasonable under the circumstances. Actual
results may differ materially from management’s estimates.

See Note 2, Summary of Significant
Accounting Policies, to our Unaudited Condensed Consolidated Financial Statements for further information related to our critical accounting
policies and estimates, which are as follows:

Debt

The debt instruments
of the Company consist of debentures and term loans from financial institutions. The Company based on available