Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 527

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 527
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 management oversight may be required. As a
result, the management’s attention may be diverted from other business concerns, which could harm our business, financial condition,
results of operations and prospects. Although we have already hired additional personnel to help comply with these requirements, we may
need to further expand our legal and finance departments in the future, which will increase our costs and expenses.

In addition, changing laws,
regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing
legal and financial compliance costs, and making some activities more time-consuming. These laws, regulations and standards are subject
to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve
over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance
matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply
with evolving laws, regulations and standards, and this investment may result in increased general and administrative expense and a diversion
of management’s time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new
laws, regulations and standards differ from the activities intended by regulatory or governing bodies, regulatory authorities may initiate
legal proceedings against us, and our business and prospects may be harmed. As a result of disclosure of information in the filings required
of a public company and in this quarterly report, our business and financial condition will become more visible, which may result in threatened
or actual litigation, including by competitors and other third parties. If such claims are successful, our business, financial condition,
results of operations and prospects could be materially harmed, and even if the claims do not result in litigation or are resolved in
our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and materially
harm our business, financial condition, results of operations and prospects.

114

We may have increasing difficulty attracting
and retaining qualified outside independent board members.

The directors and management
of publicly traded corporations are increasingly concerned with the extent of their personal exposure to lawsuits and shareholder claims,
as well as governmental and creditor claims that may be made against them in connection with their positions with publicly held companies.
Outside directors are becoming increasingly concerned with the availability of directors’ and officers’ liability insurance
to pay on a timely basis the costs incurred in defending shareholder claims. Directors’ and officers’ liability insurance
is