Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 258

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 258
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 and as per the revised agreements with the vendors, they have granted a short-term deferral in payments
and/or reduction in outstanding liability. As a part of the agreement, they cannot initiate any new proceedings and/or are required to
withdraw (if previously initiated) any legal notices or proceedings against the Company until the payments are due in accordance with
the revised agreed terms.

The Company has accounted for this transaction as troubled
debt restructuring under ASC 470-60. The Company has recorded a net gain on troubled debt restructuring in the Condensed Consolidated
Statements of Operations during the three months and nine months ended December 31, 2024 amounting to $106,819 and $343,267, respectively.

22

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Accounting considerations

The Company assessed the transactions
under the guidance of ASC 470-60 Troubled Debt Restructuring to determine if the transactions qualified as troubled debt restructuring.
For a payable restructuring to be considered troubled, the debtor must be experiencing financial difficulty, and the creditor must have
granted a concession. The Company is experiencing financial difficulties such as continuous default in debt repayments, significant doubt
about the ability of the Company to continue as a going concern, threat of being delisted from an exchange and vendors/lenders have granted
concessions, hence the Company has accounted the concessions in accordance with ASC 470-60. The restructured payables is significantly
less than the carrying value of old payables and in accordance with the guidance in ASC 470-60, gain on restructuring is recorded as the
difference between future undiscounted cash flows and the carrying value.

The total gain on troubled debt restructuring
recorded during the three months and nine months ended December 31, 2024 amounts to $124,299 and $476,746. Basic EPS was increased by
$0.06 ($0.0006 prior to Reverse Stock Split) and $0.34 ($0.0034 prior to Reverse Stock Split) as a result of these gains.

5Cash
and cash equivalents

The components of cash and cash equivalents were as follows:

    (In USD)
    As at 
    December 31,
 2024  
    March 31,
 2024 

    Balances in bank accounts 
    $4,396,189  
    $1,495,097 
  
    Cash