Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2029

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7
Chunk 2029
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 as enumerated above. As at March 31, 2025, the Atalaya Note is measured at cost and no longer carried at fair value.
Refer Note 18. 

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 payable. Such restructuring is done with the intent to provide relief to the borrower and to maximize
the potential for payable recovery by the Company.

In accordance with ASC 470-60,
when the total future cash payments under the new terms are less than the carrying amount of the payable at the date of restructuring,
the difference between the carrying amount and the total future cash payments is recognized as a ‘Gain on Troubled Debt Restructuring’
in the Consolidated Financial Statements. This gain is recorded immediately in the period the restructuring occurs.

If the total future cash
payments under the new terms exceed the carrying amount of the payable at the date of restructuring, no adjustment to the carrying amount
of the payable is made. Instead, the company calculates a New Effective Interest Rate (EIR) based on the revised terms of the restructured
payable. The debt is then amortized over the remaining life of the payable using the new EIR, with interest expense recognized based
on this rate in future periods.

Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market
risks in the ordinary course of our business, which primarily relate to fluctuations in inflation and foreign currencies. Such fluctuations
to date have not been significant.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

As a “smaller reporting
company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

82

Item
8. Financial Statements and Supplementary Data 

ZOOMCAR
HOLDINGS, INC.

INDEX
TO CONSOLIDATE FINANCIAL STATEMENTS

  Report of Independent Registered Public Accounting Firm (Grant Thornton Bharat LLP, PCAOB ID: 2416)   F-2  Consolidated Balance Sheets as of March 31, 2025 and 2024   F-3  Consolidated Statements of Operations for the years ended March 31, 2025 and