Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 247

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 247
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 the company’s performance obligation is a part of a contract that has an original expected duration of one year or less.

(e)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 Condensed Consolidated Balance Sheets.

(f)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.

(g)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.

(h)Assets held for sale

The Company classifies vehicles to
be disposed of as held for sale in the period in which they are available for immediate sale in their present condition and the sale
is probable and expected to be completed within one year. The Company initially measures assets held for sale at the lower of their carrying
value or fair value less costs to sell and assesses their fair value annually until disposed. The fair