Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 171

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 171
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.Estimation of utilization of balances with government authorities

Changes in accounting estimates are accounted for in the period of
change and for prospective periods, if applicable. A change to an accounting estimate is recorded based on events, facts, or
circumstances that occurred during the period in which the estimate was changed.

iv.Currency translation

The consolidated financial statements
are 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 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).

F-10

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies  (Continued)

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 year
ended March 31, 2025 and March 31, 2024, the Company derives its revenue principally from the following:

Fac