Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 17

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 presented in US Dollars (“$”) which is the reporting currency of the Company.

Monetary assets and liabilities, and
transactions denominated in currencies other than the functional currency are remeasured at the exchange rate on the Balance Sheet date
and non- monetary assets and liabilities are measured at historical exchange rates. The gains and losses resulting from remeasurement
are recorded as foreign exchange gains (losses), within other income (expense), in the Condensed Consolidated Statement of Operations.

The functional currency of the Company’s
foreign subsidiaries is either the local currency or U.S. dollar depending on the nature of the subsidiaries’ activities. The Company
determines the functional currency for each of its foreign subsidiaries by reviewing their operations and currencies used in their primary
economic environments.

Assets and liabilities of the subsidiaries
with functional currency other than U.S. Dollar are translated into U.S. Dollar at the rate of exchange existing at the Balance Sheet
date. Retained earnings and other equity items are translated at historical rates, revenues and expenses are translated at average exchange
rates during the year. Foreign currency translation adjustments are recorded within accumulated other comprehensive income, a separate
component of total equity (deficit).

v.Comprehensive Income (Loss)

Comprehensive income (loss) consists
of two components, net income (loss) and other comprehensive income (loss), net of tax. Other comprehensive income (loss), net of tax,
refers to revenue, expenses, gains, and losses that under generally accepted accounting principles are recorded as an element of members’
equity but are excluded from net income (loss). The Company’s other comprehensive income (loss), net of tax, consists of foreign
currency translation adjustments that result from consolidation of its foreign entities and actuarial gain/ (loss) on defined benefit
obligations.

vi.Revenue recognition

During the six months ended September
30, 2025 and September 30, 2024, the Company derives its revenue principally from the following:

Facilitation revenue

Zoomcar Host Services is a marketplace
feature of the platform that helps owners of vehicles (“Hosts/ Customer/Lessors”) connect with users (“Renters/Lessee”)
in temporary need of a vehicle on leasehold basis for their personal use.

10

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

2.Summary of Significant Accounting Policies (Continued)

Facilitation Services revenue consists
of facilitation