Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 16

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 is considered remote.

x.Other receivables

Other receivables include amounts recoverable from host.
The receivable from host is adjusted for an allowance on account of host which are not active on the platform for more than 90 days.

xi.Balances with government authorities – Input Tax Credit

Balances with government authorities
represent the tax credit with government agencies which are recognized when the Company has performed the required services and when they
meet the eligibility criteria outlined in the applicable government regulations.

The
input tax credits are related to Indian Goods and Service Tax (“GST”). These balances are classified based on their expected
period of utilization of future GST credit and GST debit that comes from domestic purchases
and sales of services, respectively. If the tax credits are expected to be utilized within twelve months from the reporting date, they
are classified as current assets. If the tax credits are not expected to be utilized within twelve months from the reporting date, they
are classified as non-current assets.

12

ZOOMCAR HOLDINGS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

xii.Concentration of credit risk

Cash and cash equivalents, investments,
other receivables, and accounts receivable are potentially subject to credit risk concentration. The Company has not experienced any material
losses related to these concentrations during the years presented. No customers accounted for 10% or more of revenue for the three months
ended June 30, 2025 and June 30, 2024.

xiii.Property and equipment, net

Property and equipment are stated
at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful
lives.

The devices installed on host vehicles
in the marketplace business have been depreciated over 5 years. During the year ended March 31, 2025, the Company revised its estimate
of the salvage value of the devices from 30% to 0%.

When assets are retired or otherwise
disposed of, the cost and accumulated depreciation are removed from the Condensed Consolidated Balance Sheets and any resulting gain or
loss is reflected on the Condensed Consolidated Statements of Operations in the period realized.

xiv.Assets held for sale

The Company classifies vehicles
to be disposed of as held for sale in the period in which they are available for immediate sale in their present condition and the sale
is probable and expected to be completed within one year. The Company initially measures assets held