Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 184

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 184
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 increasingly
subject to legislation and regulations in numerous jurisdictions around the world.

For example, the Indian Information
Technology Act, 2000, as amended, would subject us to civil liability to compensate for wrongful loss or gain arising from any negligence
by us in implementing and maintaining reasonable security practices and procedures with respect to sensitive personal data or information
that we possess in our computer systems, networks, databases, and software. India has also implemented privacy laws, including the Information
Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, which impose limitations
and restrictions on the collection, use and disclosure of personal information. The Digital Personal Data Protection Act, 2023 (“DPDPA”)
has been introduced in August of 2023 which has significant impact on the current regulatory environment with respect to the lawful use
of digital personal data, cross border data transfers and additional compliances that may be invoked for organizations collecting and/or
processing personal data.

Further, in India, the draft
of Digital Personal Data Protection Rules (“DPDP Rules”) which aims to operationalize the Digital DPDPA, in line with India’s
commitment to create a robust framework for protecting digital personal data, has been published in January 2025 for public comments.
While the DPDP Rules are yet to be finalized and formally adopted,  the entire framework for data protection legislation is fairly
new in India and going through the phases of implementation right now which may add to cost of compliances and operations for us and may
affect us in ways that we are currently unable to predict.

Any liability we may incur
for violation of such laws and regulations and related costs of compliance and other burdens may adversely affect our business and profitability.
We could be adversely affected if legislation or regulations are expanded to require changes in our business practices or if governing
jurisdictions interpret or implement their legislation or regulations in ways that negatively affect our business, results of operations
or financial condition.

109

Failure to comply with labor laws and regulations
may cause us to incur additional costs, which may affect our business, financial conditions, and results of operations.

Our business operations are
governed by various labor laws, regulations, and government policies in multiple jurisdictions. The requirements for labor law compliance
may change from time to time in each jurisdiction. We may be unable to comply with all these requirements in time, or at all, or we may
need to incur substantial costs to be compliant, which may adversely affect our