Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2051

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7
Chunk 2051
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 are included in accrued and other current liabilities in the Consolidated
Financial Statements.

viii.Restricted Cash

The Company is required to place cash
in an indemnification escrow fund with the placement agent for all indemnification liabilities and expenses payable by the Company as
per the placement agent agreement for a period of 3 years from closing of the November 2024 Offering. Such cash is classified as restricted
cash and reported as a component of other non-current assets in the Consolidated Balance Sheets.

ix.Accounts receivable, net of allowance

Accounts receivables are stated net
of allowances and primarily represent corporate debtors and dues from payment gateways for amounts paid by customers. In case of corporate
debtors, the payment terms generally include a credit of 30-60 days. The amounts receivable from payment gateways are settled within 2
days.

The Company records an allowance for credit
losses for amounts owed for completed transactions that may never settle or be collected. The Company estimates its exposure to
balances deemed to be uncollectible based on factors including known facts and circumstances, historical experience, and the age of
the uncollected balances. Accounts receivable balances are written off against the allowance of credit losses after all means
of collection has been exhausted and potential recovery is considered remote.

F-12

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

x.Other receivables

Other receivables include amounts
recoverable from host. The receivable from host is adjusted for an allowance on account of host which are not active on the platform for
more than 90 days.

xi.Balances with government authorities – Input Tax
Credit

Balances with government authorities
represent the tax credit with government agencies which are recognized when the Company has performed the required services and when they
meet the eligibility criteria outlined in the applicable government regulations.

The input tax credits are related
to Indian Goods and Service Tax (“GST”). These balances are classified based on their expected period of utilization of future
GST credit and GST debit that comes from domestic purchases and sales of services, respectively. If the tax credits are expected to be
utilized within twelve months from the reporting date, they are classified as current assets. If the tax credits are not expected to be
utilized within twelve months from the reporting date, they are classified as non-current assets.

xii.Concentration of credit risk

Cash and