Company: ZCARW
Filing Date: 2025-03-04
Form Type: S-1
Source: 0001213900-25-020176
Chunk: 326

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-04
Form: S-1
Chunk 326
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 a similar economic environment over the lease term on a collateralized basis.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

F-69 ZOOMCAR HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

| 2. | Summary of Significant Accounting 
 Policies (Continued)              |

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

| - | The                                                                                                                                      
 lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise    
 of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount 
 rate.                                                                                                                                    |

| - | A lease contract is modified, and                                                                                                        
 the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term 
 of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification. |

The Company recognizes the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, any remaining amount is recognized as a gain on modification in the Consolidated Statement of Operations.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

For operating leases, lease expense is recognized on a straight-line basis in operations over the lease term. For finance leases, amortization is recorded on a straight-line basis over the lease term and interest using the effective interest method.

As a Lessor

In the year ended March 31, 2023, the Company’s lease arrangements included vehicle rentals to its ultimate customers. Certain lease arrangements included the options to extend or terminate the lease before the end of the lease term. Due to the short-term nature of these arrangements, the Company classified these leases as operating leases. The Company did not separate lease and non-lease components in its lessor lease arrangements. Lease payments were primarily fixed and were recognized as revenue in the period over which the lease arrangement occurs. There are no such lease arrangements