Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1482

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 4
Chunk 1482
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 the contract. The provision is measured at the present value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any
impairment loss on the assets associated with that contract. The Company does not have any onerous contracts.

F-19

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

xxvi.Fair value measurements and financial instruments

Fair value is defined as the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. In accordance with ASC 820, Fair Value Measurement (“ASC 820”), the Company uses the fair value hierarchy, which prioritizes
the inputs used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy
are set forth below:

Level 1Observable inputs such as quoted prices in active markets for identical assets or
                                                                                    liabilities.

Level 2Observable inputs other than Level 1 prices such as quoted prices for similar assets or
                                                                                    liabilities in active markets, quoted prices in markets that are not active or inputs other than the quoted prices that are
                                                                                    observable either directly or indirectly for the full term of assets or liabilities.

Level 3Unobservable inputs in which there is little or no market data and that are significant to the
                                                                                    fair value of the assets or liabilities.

During the year ended March 31,
2025, the Company’s primary financial instruments included cash and cash equivalents, investments, accounts receivables, other
financial assets, accounts payable, debt, unsecured convertible note, redeemable promissory note and other financial liabilities. The
estimated fair value of cash equivalents, accounts receivable, accounts payable, redeemable promissory note and accrued liabilities approximate
their carrying value due to short-term maturities of these instruments.

xxvii.Troubled debt restructuring

As per ASC 470-60 Troubled Debt Restructuring
(TDR) refers to a situation where the creditor, grants concessions to a borrower experiencing financial difficulties. These concessions
may include modifications to the terms of the payable, such as reducing the interest rate, extending the repayment period, or forgiving
a portion of the