Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1044

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 3
Chunk 1044
---
2(a) of the Securities Act, as modified by the Jumpstart
Our Business Startups Act of 2012.

Inherent Limitations on Effectiveness of Controls

Our management, including
our Chief Executive Officer and Chief Financial Officer, believes that our disclosure controls and procedures and internal control over
financial reporting are designed to provide reasonable assurance of achieving their objectives and are effective at the reasonable assurance
level. However, management does not expect that our disclosure controls and procedures or our internal control over financial reporting
will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable,
not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems,
no evaluation of 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.

79

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