Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 228

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 228
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 controls can provide absolute assurance that all control issues and instances of fraud, if any, within the company have
been detected. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events,
and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time,
controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.
Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

62

PART II - OTHER
INFORMATION

Item 1. Legal Proceedings

Except as described below,
we are not currently subject to any material claims, lawsuits, arbitration proceedings, administrative actions, government investigations
and other legal and regulatory disputes and proceedings (collectively, “Legal Proceedings”) and we are not subject to any
pending Legal Proceedings in any of the jurisdictions where we operate other than in India. We have received communications relating to
certain legal proceedings, as described in below under the following Risk Factor titles:

    A)
    “Risk Factors — A former employee of Zoomcar India has instituted a wrongful termination suit and claims that certain Zoomcar options have vested”;

    B)
    “Risk-Factor — The founder and former CEO of the Company has initiated a civil complaint against the Company contesting the reasons for his termination and has raised certain other claims with regards to his ownership of the Company and compensation for termination of his employment.” 

    C)
    “Risk Factors
    — ACM has filed a notice of motion for summary judgement in lieu of complaint against Zoomcar in New York courts for payment
    of amounts due under the Note pursuant to breach of the terms of a note

We may become subject to
other Legal Proceedings over time or from time to time, in the ordinary course of our business and as our business continues to grow and
expand over time. Becoming involved with Legal Proceedings, regardless of the outcome, may result in substantial cost and diversion of
our resources, including our management’s time and attention.

As a result of our business
operations in India, we are regularly subject to legal proceedings, many of which are de minimis in nature and amount and the majority
of which relate to local tax matters. Many of these tax and vehicle accident-related Legal Proceedings are pending before various forums
in India and involve localized practices and interpretations of regulatory matters that make the ultimate