Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 166

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 166
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 the with and
without method and allocated a portion of the proceeds from the issuance to the Series A and Series B warrants based on the fair values
of these warrants at initial measurement. The remaining proceeds were then allocated between the Common Stock and the pre-funded warrants
using the relative fair value method.

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| (b) | Warrants issued along with  
 Redeemable Promissory Note: |

During the nine months ended
December 31, 2024, the Company issued warrants along with Redeemable Promissory Note and as consideration to the placement agent for the
issuance of the Redeemable Promissory Note.

These warrants were classified
as equity in accordance with ASC 815-40 since all the conditions required for equity classification are met. Upon issuance of the warrants,
the Company had allocated a portion of the proceeds from the issuance of its Redeemable Promissory Note to the warrant based on the relative
fair values of warrants and Redeemable Promissory Note in accordance with ASC 820.

| (c) | Warrants issued along with                                        
 SSCPN and to placement agent (‘Derivative financial instrument’): |

During the year ended March
31, 2024, the Company issued warrants along with Senior Subordinated Convertible Promissory Note (“SSCPN)” and as consideration
to the placement agent for the issuance of SSCPN.

These warrants were deemed
derivative instruments in accordance with ASC 815-10-15-83 since they contained an underlying, had cash less payment provisions, that
could have been net settled in shares and had a very minimal initial net investment. Accordingly, the derivatives were measured at fair
value and subsequently revalued at each reporting date until the close of Reverse Recapitalization consummated during year ended March
31, 2024.

| (d) | Warrants issued to preferred 
 stockholders:                |

Before the date of reverse
recapitalization, the Company had warrants issued to preferred stockholders convertible into shares of preferred stock and common stock
which were issued during the year ended March 31, 2022, and were classified as liabilities and equity respectively.

Each unit issued by the Company
consisted of one share of Series E preferred stock and a warrant which entitled the holder to purchase one share of common stock of the
Company on the satisfaction of certain conditions. Warrants were also issued to the placement agent of the Series E and Series E1