Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 321

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 321
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. 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 $121,218 (March 31,
2025: $125,839). Penalty of $125,442 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 September 30, 2025 and March 31, 2025, respectively. The Company believes these orders are unlikely to be sustained at the higher
appellate authorities.

    (F)
    On August 2025, the Company received a notice from the legal representatives of certain holders of warrants to purchase Series E Preferred Stock of Zoomcar, Inc. pursuant to the warrant agreement dated May 12, 2021. The warrant holders have raised a dispute regarding the non-delivery of shares following the submission of their respective notices of exercise. The warrant holders are collectively entitled to warrants amounting to $6,217,614. The Company believes that such claims are without merit and is in discussion with the legal representatives to dismiss the same.

69

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 proceeds makes periodic prepayments of scheduled
instalments and the same has been accounted for under