Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 19

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 Inc.  Voting Interest  PT Zoomcar Indonesia Mobility Service  Indonesia  Fleet Holding Pte ltd  Voting Interest  Fleet Mobility Philippines Corporation  Philippines  Zoomcar, Inc.  VIE  Zoomcar Egypt Car Rental LLC  Egypt  Zoomcar Netherlands Holding  VIE  Zoomcar Vietnam Mobility LLC  Vietnam  Fleet Holding Pte ltd  VIE 

In determining whether the VIE model
was applicable to the subsidiaries the criteria prescribed under ASC 810 were examined as below:

-The
                                            subsidiaries were incorporated as legal entities under the laws and regulations of the country
                                            in which they are incorporated.

-The
                                            scope exemptions under ASC 810 were not applicable to the entities.

-Zoomcar
                                            Holdings, Inc holds variable interest in all the subsidiaries by way of contribution towards
                                            equity and in the form of debt.

-The
                                            entities are variable interest entities for Zoomcar Holdings, Inc since the legal entities
                                            do not have sufficient equity investment at risk and equity investors at risk.

For the purpose of equity interests,
the interests held by employees are also considered under ASC 810 since employees are considered as de-facto agents. Thus, Zoomcar Egypt
Car Rental LLC, Fleet Mobility Philippines Corporation, and Zoomcar Vietnam Mobility LLC are considered as wholly owned subsidiaries
of Zoomcar, Inc and step-down subsidiaries of Zoomcar Holdings, Inc.

9

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Through the direct and indirect interest
that Zoomcar Holdings, Inc. holds in the subsidiaries, Zoomcar Holdings, Inc. has the power to direct the activities of a VIE that most
significantly impact the VIE’s economic performance and has the obligation to absorb losses of the VIE that could potentially be
significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Accordingly, Zoomcar
Holdings, Inc. is the primary beneficiary to Zoomcar Egypt Car Rental LLC, Zoomcar Vietnam Mobility LLC and Fleet Mobility Philippines
Corporation under the VIE model. Zoomcar, Inc., Zoomcar India Private Limited, Zoomcar Netherlands Holding B.V, Fleet Holding Pte Ltd
and PT Zoomcar Indonesia Mobility Service are consolidated as per the voting interest model.

On August 14, 2023, Zoomcar Vietnam
Mobility LLC has voluntarily filed application for bankruptcy with the local authorities of Vietnam. In accordance with ASC 205-30,