Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2378

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 8
Chunk 2378
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 an expense in consolidated statements of income.

F-14

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

The Company reviews ROU assets for impairment whenever events
or changes in circumstances indicate that the related carrying amount may not be recoverable.

xvii.Expenses

Cost of revenue

Cost of revenue expenses primarily
consist of personnel-related compensation costs of local operations teams and teams who provide phone, email and chat support to users,
repairs and maintenance expenses of vehicles, vehicle site rentals, devices depreciation, power, software support charges, payment gateway
charges and other direct expenses.

Technology and development

Technology and development expenses
primarily consist of personnel-related compensation costs and information technology and data science expenses. Technology and development
costs are expensed as incurred.

Sales and marketing

Sales and marketing expenses primarily
consist of personnel-related compensation costs, advertising expenses and marketing partnerships with third parties. Sales and marketing
costs are expensed as incurred. Advertising expenses incurred for the year ended March 31, 2025 amounts to $829,619 (March 31, 2024: $4,479,219).

General and administrative

General and administrative expenses
primarily consist of personnel-related compensation costs, professional services fees, administrative fees, depreciation, facility costs,
and other corporate costs. General and administrative expenses are expensed as incurred.

xviii.Finance costs

Finance costs comprises interest cost
on debt, transaction costs, fair value changes in financial instruments, SSCPN issue expenses, and interest expense on lease liabilities.
Borrowing costs and interest on leases are recognized in the Consolidated Statements of Operations using the effective interest method.

xix.Employee benefits

Defined benefit plan

Employees in India are entitled to a defined benefit
retirement plan covering eligible employees of the Company. The plan provides for a lump-sum payment to eligible employees, at retirement,
death, and incapacitation or on termination of employment, of an amount based on the respective employees’ salary and tenure of
employment. The Company’s benefit plan is unfunded.

Management makes certain assumptions
relating to discount rates, salary growth, retirement rates, mortality rates and other factors when calculating annual amounts to be recognized.
These assumptions are reviewed annually by management, assisted by the enrolled actuary, and updated as warranted.

F-15

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2