Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1085

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 2
Chunk 1085
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 allowance is recorded for
deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company recognizes the effect
of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured
at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period
in which the change in judgment occurs. Interest related to unrecognized tax benefits in interest expense and penalties.

xxix.Contingencies

The Company is subject to legal proceedings
and claims that arise in the ordinary course of business. The Company accrues for losses associated with legal claims when
such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or
circumstances change.

xxx.Segment information

Operating segments are defined as
components of an entity for which discrete financial information is available and is regularly reviewed by the Chief Operating Decision
Maker (“CODM”) in making decisions regarding resource allocation and performance assessment. The Company’s CODM is its
Board of Directors. The Company has determined it has one operating and reportable segment as the CODM reviews financial information presented
on a consolidated basis for purposes of allocating resources and evaluating financial performance.

xxxi. Common Stock Reverse Split

In October 2024 and March 2025, the
Company effectuated a one-for-hundred and a one-for- twenty reverse stock split respectively. All share, stock option and warrant information
has been retroactively adjusted to reflect these stock splits. See Note 3 for additional disclosure.

xxxii. Recent Accounting Pronouncements

Accounting Pronouncement Adopted

In November 2023, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (ASC 280): Improvements
to Reportable Segment Disclosures” (“ASU 2023-07”). The guidance is effective for fiscal years beginning after December
15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company has adopted
the same for the fiscal year beginning on April 1, 2024 and the disclosures presented in the Company’s Consolidated Financial Statements
includes the same.

F-21

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant