Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1273

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 3
Chunk 1273
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LLC   Egypt   Zoomcar Netherlands Holding   VIE  Zoomcar Vietnam Mobility LLC   Vietnam   Fleet Holding Pte ltd   VIE 

The assets/liabilities consolidated for the VIE are not
material. Refer note 31 for details.

F-9

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

iii.Use of estimates and assumptions

The use of estimates and assumptions
as determined by management is required in the preparation of Consolidated Financial Statements in conformity with US GAAP. These estimates
are based on management’s evaluation of historical trends and other information available when the Consolidated Financial Statements
are prepared and may affect the amounts reported and related disclosures. Actual results could differ from those estimates.

Estimates and underlying assumptions are reviewed on an
ongoing basis.

The significant estimates, judgments
and assumptions that affect the Consolidated Financial Statements include, but are not limited to; are:

a.Estimation of defined benefit obligation

b.Fair value measurement of financial instruments

c.Estimation of utilization of loyalty points

d.Leases – assumption to determine the incremental borrowing rate

e.Valuation allowance on deferred tax assets

f.Estimation of utilization of balances with government authorities

Changes in accounting estimates are accounted for in the period of
change and for prospective periods, if applicable. A change to an accounting estimate is recorded based on events, facts, or
circumstances that occurred during the period in which the estimate was changed.

iv.Currency translation

The consolidated financial statements
are presented in US Dollars (“$”) which is the reporting currency of the Company.

Monetary assets and liabilities, and
transactions denominated in currencies other than the functional currency are remeasured at the exchange rate on the Balance Sheet date
and non- monetary assets and liabilities are measured at historical exchange rates. The gains and losses resulting from remeasurement
are recorded as foreign exchange gains (losses), within other income (expense), in the Consolidated Statement of Operations.

The functional currency of the Company’s
foreign subsidiaries is either the local currency or U.S. dollar depending on the nature of the subsidiaries’ activities. The Company
determines the functional currency for each of its foreign subsidiaries by reviewing their operations and currencies used in their primary
economic environments.

Assets and liabilities of the subsidiaries
with functional currency other than U.S. Dollar are translated into U.S. Dollar at the rate of exchange existing at the Balance Sheet
date