Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2057

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7
Chunk 2057
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 is 0.0% as the Company has not paid and does not anticipate paying dividend on its common stock.

The Company estimates a forfeiture
rate on an annual basis for the purpose of computation of stock-based compensation expense. The rate is used consistently across the subsequent
interim periods during the year.

In case of cancellation of stock-based
awards with no concurrent grant of a replacement award or other valuable consideration, any unrecognized compensation cost is recognized
immediately on the cancellation date.

xxi.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.

F-16

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

Redeemable Promissory Notes

During the year ended March 31, 2025,
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.

The Company had allocated a portion
of the proceeds from the issue of its Redeemable Promissory Note to the warrants and Redeemable promissory note based on the relative
fair values of warrants and Redeemable Promissory Note. Redeemable Promissory Notes may contain embedded features, such as accelerated
redemption options, which are evaluated under ASC 815 to determine if bifurcation is required. If the embedded feature meets the definition
of a derivative and is not clearly and closely related to the host, it is measured at fair value with changes recognized in earnings.
The embedded feature was assessed and determined to be immaterial.

Issuance costs on Debt and Equity

Debt issuance costs consist primarily
of arrangement fees paid to Placement agent, professional fees and legal fees. These costs are netted off with the related debt