Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 269

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 269
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. The Company estimates its exposure
to balances deemed to be uncollectible based on factors including known facts and circumstances, historical experience, and the age of
the uncollected balances. Accounts receivable balances are written off against the allowance of credit losses after all means of collection
has been exhausted and potential recovery is considered remote.

| (g) | 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.

F- 13 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| (h) | 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 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.

| (i) | Debt |

The debt instruments of the Company
consist of debentures and term loans from financial institutions. The Company based on available proceeds makes periodic prepayments of
scheduled instalments and the same has been accounted for under ASC 470-50.

Redeemable Promissory Notes

During the nine months ended December
31