Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 164

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 164
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, 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 business operations and financial condition.

In India, provisions were
released between 2019 and 2021 relating to the contribution of provident fund, employee state insurance, and professional taxes by employers
for the certain employees. Any delay or failure to make such contribution may result in penalties, interests, notices, or other administrative
actions by the relevant local authorities in India. As of March 31, 2025, Zoomcar India has incurred a penalty of less than $35, 999/-
(based on the foreign exchange rates as of March 31, 2025) for failure to make timely contribution, which Zoomcar India plans to remit,
with associated interest due, as instructed by the relevant local authority. This outstanding penalty and interest will continue to accrue
unless paid in full, which could adversely affect our business, financial conditions and results of operations.

Uncertain global macro-economic and political
conditions could materially and adversely affect our results of operations and financial condition. 

Our results of operations
could be materially affected by economic and political conditions in the United States and internationally, including inflation, deflation,
interest rates, availability of capital, war, terrorism, aging infrastructure, pandemics, energy and commodity prices, trade laws, election
cycles and the effects of governmental initiatives to manage economic conditions. Current or potential business and consumer members may
delay or decrease spending on our products and services sold through our platform as their business and/or budgets are impacted by economic
conditions. The inability of current and potential business and consumer members to pay us for products and services sold through our
platform may adversely affect our earnings and cash flow.

Natural disasters, including and not limited
to unusual weather conditions, epidemic outbreaks, terrorist acts and political events could disrupt our business schedule.

The occurrence of one or
more natural disasters, including and not limited to tornadoes, hurricanes, fires, floods and earthquakes, unusual weather conditions,
pandemics and endemic outbreaks, terrorist attacks or disruptive political events in certain regions where our facilities are located,
or where our third-party contractors’ and suppliers’ facilities are located, could adversely affect