Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 327

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 327
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 business and operations.

Since November 2023, we
are in violation of our scheduled monthly installment payment obligations of $215,337 per month on our lease liability with Ayvens Group
(f/k/a Leaseplan India Private Limited) (“Leaseplan”). Leaseplan notified us on February 7, 2024, that we are in default of
our November 2023 payment. As of the date hereof, we are in default beyond the 30-day extended cure period (as envisaged under the terms
of our debt with Leaseplan) of our November 2023 payment and continue to be default of all EMIs thereafter. As a result of such defaults,
as of the date hereof, Leaseplan (i) has initiated the process of repossession of all vehicles, and (ii) has invoked the bank guarantee
of $120,482 which was a security created by Zoomcar in favor of Leaseplan. Such outcomes may have a material adverse impact on our business,
operations or financial condition. Based on the most recent discussions with Leaseplan, the Company continues to negotiate a payment
plan to the restructured debt proposal shared by the Company wherein the debt after certain waivers and discounts, will stand restructured
to $4,755,942 and the Company is hopeful that Leaseplan will issue a comfort letter in this regard acknowledging the proposed payment
schedule spread across six tranches repayment of the restructured debt. As of the date hereof, the Company has already cleared the first
three tranches in accordance with the proposed payment schedule as per the comfort letter, amounting to $2,851,924 (approx.) towards
the outstanding debt. Given the continuing negotiations and the expected comfort letter, we do not contemplate any immediate legal action
against the Company in this regard. If we are unable to execute a settlement agreement or fail to honor the obligations under any agreement
executed for the subject matter it may, possibly result in inter alia (a) the entire outstanding debt becoming due and payable,
and (b) the withdrawal of a conditional waiver of $1.2 million which was given during a prior restructuring and will become immediately
due and payable with interest of 1.5% per month.

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The Company is in breach
of the payment obligation of $408,351 pursuant to the terms of the settlement deed with Orix Leasing and Financial Services Limited (“Orix”).
Orix has issued a default notice during May 2024. Thereafter,