Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 30

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. In accordance with ASC 820, Fair Value Measurement (“ASC 820”), the Company uses the fair value hierarchy,
which prioritizes the inputs used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of the
fair value hierarchy are set forth below:

    Level
    1
    Observable
    inputs such as quoted prices in active markets for identical assets or liabilities.

    Level
    2
    Observable
    inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets, quoted prices in markets
    that are not active or inputs other than the quoted prices that are observable either directly or indirectly for the full term of
    assets or liabilities.

    Level
    3
    Unobservable
    inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities.

During the nine months ended December
31, 2024, the Company’s primary financial instruments included cash and cash equivalents, investments, accounts receivables, other
financial assets, accounts payable, debt, unsecured convertible note, redeemable promissory note and other financial liabilities. The
estimated fair value of cash equivalents, accounts receivable, accounts payable, redeemable promissory note and accrued liabilities approximate
their carrying value due to short-term maturities of these instruments.

(o)Troubled debt restructuring

As
per ASC 470-60 Troubled Debt Restructuring (TDR) refers to a situation where the creditor, grants concessions to a borrower experiencing
financial difficulties. These concessions may include modifications to the terms of the payable, such as reducing the interest rate,
extending the repayment period, or forgiving a portion of the payable. Such restructuring is done with the intent to provide relief to
the borrower and to maximize the potential for payable recovery by the Company.

In
accordance with ASC 470-60, when the total future cash payments under the new terms are less than the carrying amount of the payable
at the date of restructuring, the difference between the carrying amount and the total future cash payments is recognized as a ‘Gain
on Troubled Debt Restructuring’ in the Condensed Consolidated Financial Statements. This gain is recorded immediately in the period