Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 248

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 248
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 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.

14

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(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, 2024, the Company has issued Redeemable Promissory Notes which are repayable at the principal value
on maturity date and has been accounted for under ASC 470-10. The Company issued these Redeemable Promissory notes on discount and incurred
expenses on issue of the Redeemable Promissory Notes. As per ASC 835, the discount and the expenses incurred on issue of the Redeemable
Promissory Notes have been amortized over the period of the Redeemable Promissory note on a straight-line basis. The Redeemable Promissory
Notes liabilities have been presented net off the discount and issue expenses.

Debt
Issuance costs 

Debt
issuance costs consist primarily of arrangement fees paid to Placement agent, professional fees and legal fees. These costs are netted
off with the related debt and are being amortized to interest expense over the term of the related.

The
debt has been classified into current or non-current based on the payment terms of the debt instruments. Non-current obligations are
those scheduled to mature beyond twelve months from the date of the Company’s Condensed Consolidated Balance Sheets.

(j)Warrants

When the Company issues warrants,
it evaluates the balance sheet classification of the warrant to determine whether the warrant should be classified as equity or as a
derivative liability on the Condensed Consolidated Balance Sheets. In accordance with ASC 815- 40, Derivatives and Hedging- Contracts
in the Entity’s Own Equity (ASC