Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 164

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 164
---
 until
the above order is disposed of.

The Company has filed appeals against
the above orders before higher authority.

The Company has not recognized any uncertain
tax position as at December 31, 2024 and March 31, 2024, respectively. The Company believes these orders are unlikely to be sustained
at the higher appellate authorities.

The Company has not recognized a provision
for such fee payable in the books as the Company believes that the exercise of warrants is not probable as of December 31, 2024. The Company
will record the fee in the books in the period in which the warrants will be exercised.

<div align='center'>86</div>

Critical Accounting Policies and Estimates

The Company prepared its
financial statements in accordance with GAAP. Our preparation of these financial statements requires us to make estimates, assumptions
and judgments that affect the reported amounts of assets, liabilities, and related disclosures at the date of the financial statements,
as well as revenue and expense recorded during the reporting periods. The Company evaluates our estimates and judgments on an ongoing
basis.

The Company bases its estimates
on historical experience and/or other relevant assumptions that the Company believes to be reasonable under the circumstances. Actual
results may differ materially from management’s estimates.

See Note 2, Summary of Significant
Accounting Policies, to our unaudited condensed consolidated financial statements for further information related to our critical accounting
policies and estimates, which are as follows:

Debt

The debt instruments of the
Company consist of debentures and term loans from financial institutions. The Company based on available proceeds makes periodic prepayments
of scheduled instalments and the same has been accounted for under ASC 470-50.

Redeemable Promissory Notes

During the nine months ended
December 31, 2024, the Company has issued Redeemable Promissory Notes which are repayable at the principal value on maturity date and
has been accounted for under ASC 470-10. The Company issued these Redeemable Promissory notes on discount and incurred expenses on issue
of the Redeemable Promissory Notes. As per ASC 835, the discount and the expenses incurred on issue of the Redeemable Promissory Notes
have been amortized over the period of the Redeemable Promissory note on a straight-line basis. The Redeemable Promissory Notes liabilities
have been presented net off the discount and issue expenses.

Debt Issuance costs

Debt issuance costs consist