Company: ZCARW
Filing Date: 2025-05-12
Form Type: S-1/A
Source: 0001213900-25-041769
Chunk: 330

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-12
Form: S-1/A
Chunk 330
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 them and vehicles leased from third-party leasing companies. The Company either leased or subleased vehicles to its customers as a result, the Company had considered itself to be the accounting lessor or sublessor, as applicable, in these arrangements in accordance with ASC 842. Rental revenues were recognized for rental and rental related activities on a straight-line basis evenly over the period of where an identified asset is transferred to the customer and the customer had the ability to control that asset in accordance with ASC 842. Transaction price charged by the Company was as per agreed rates between the Company and the customer. In the case of leased vehicles, the Company was solely responsible for paying vehicle lease costs to the lessor regardless of whether the vehicles were booked for use by guests on the platform and accordingly recognized vehicle lease revenue on a gross basis. For vehicles that are subleased, sublease income and related lease expense for these transactions were recognized on a gross basis in the consolidated financial statements. Rental periods are generally short-term in nature and are classified as operating leases. The Company collects taxes assessed by a governmental authority inclusive in its rentals and remits the same to the authority. Accordingly, such amounts are not included as a component of revenue. Loyalty program The Company offers loyalty program, Z-Points, wherein customers are eligible to earn loyalty points that are redeemable for payment towards facilitation fees, self-drive rentals and vehicle subscriptions. Under ASC 606 and ASC 842, each transaction that generates loyalty points results in the deferral of revenue equivalent to the retail value at the date the points are earned. The associated revenue or rental is recognized when the customer redeems the loyalty points at some time in future. The retail value of points is estimated based on the current retail value measured as of the date the loyalty points are earned, less an estimated amount representing loyalty points that are not expected to be redeemed (“breakage”). Breakage is reviewed on an annual basis and includes significant assumptions such as historical breakage trends, internal Company forecasts and extended redemption period, if any. As at March 31, 2024 and March 31, 2023, the Company’s deferred revenue balance amounted to $ 96,710and $ 260,705respectively. F-66 ZOOMCAR HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

| 2. | Summary                                        
 of Significant Accounting Policies (Continued) |

Contract liabilities Contract liabilities primarily consists of obligations to customers for advance received against bookings, revenue-share payable to customers for vehicles listed