Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1473

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 4
Chunk 1473
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, 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, (2) the Company obtains the right to substantially all the economic benefit from the use of
the asset throughout the term of the contract, and (3) the Company has the right to direct the use of the asset. A lease is
classified as a finance lease if any one of the following criteria are met: (1) the lease transfers ownership of the asset by the
end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the
lease term is for a major part of the remaining useful life of the asset or (4) the present value of the lease payments equals