Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 664

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1B
Chunk 664
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 sale in their present condition and the sale is
probable and expected to be completed within one year. The Company initially measures assets held for sale at the lower of their carrying
value or fair value less costs to sell and assesses their fair value annually until disposed. The fair value of Assets held for sale not
traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little
as possible on entity-specific estimates. If all significant inputs required to fair value an asset are observable, the Valuation is included
in Level 2.

In case of certain vehicles which
are not sold within one year from date of classification, the Company reassess the carrying value of the assets to adjust it for the realizable
value.

F-13

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

xv.Impairment

Long-lived assets such as property
and equipment, right-of-use assets and intangible assets that are held and used by the Company are reviewed for impairment when events
or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company monitors the long-lived
assets for impairment indicators on an on-going basis. If impairment indicators exist, the Company determines the recoverability of the
asset by comparing the undiscounted cash flows expected to be generated from the use and eventual disposition the long-lived asset groups
to the related net book values. If the net book value of the asset group exceeds the undiscounted cash flows, an impairment loss is recognized
as the difference between the carrying value of the asset and its estimated fair value.

The Company estimate cash flows and
fair value using internal budgets based on recent sales data and economic uncertainties. The key factors that affect estimates are (1)
future revenue estimates; (2) customer preferences and decisions; and (3) product pricing. Any differences in actual results from the
estimates could result in fair values different from the estimated fair values, which could materially affect our future results of operations
and financial condition. The Company believes the projections of anticipated future cash flows and fair value assumptions are reasonable;
however, changes in assumptions underlying these estimates could affect its valuations.

xvi.Leases

The Company determines if an
arrangement is a lease at inception of the contract. The Company’s assessment is based on whether: (1) the contract involves
the use of a distinct identified asset