Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 239

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 239
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 are stated net
of allowances and primarily represent corporate debtors and dues from payment gateways for amounts paid by customers. In case of
corporate debtors, the payment terms generally include a credit of 30-60 days. The amounts receivable from payment gateways are
settled within 2 days.

12

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

2.Summary of Significant Accounting Policies (Continued)

The Company records an allowance for
credit losses for amounts owed for completed transactions that may never settle or be collected. The Company estimates its exposure to
balances deemed to be uncollectible based on factors including known facts and circumstances, historical experience, and the age of the
uncollected balances. Accounts receivable balances are written off against the allowance of credit losses after all means of collection
has been exhausted and potential recovery is considered remote.

x.Other receivables

Other receivables include amounts
recoverable from host. The receivable from host is adjusted for an allowance on account of host which are not active on the platform for
more than 90 days.

xi.Balances with government authorities – Input Tax Credit

Balances with government authorities
represent the tax credit with government agencies which are recognized when the Company has performed the required services and when they
meet the eligibility criteria outlined in the applicable government regulations.

The input tax credits are related to
Indian Goods and Service Tax (“GST”). These balances are classified based on their expected period of utilization of future
GST credit and GST debit that comes from domestic purchases and sales of services, respectively. If the tax credits are expected to be
utilized within twelve months from the reporting date, they are classified as current assets. If the tax credits are not expected to be
utilized within twelve months from the reporting date, they are classified as non-current assets.

xii.Concentration of credit risk

Cash and cash equivalents, investments,
other receivables, and accounts receivable are potentially subject to credit risk concentration. The Company has not experienced any material
losses related to these concentrations during the years presented. No customers accounted for 10% or more of revenue for the six months
ended September 30, 2025 and September 30, 2024.

xiii.Property and equipment, net

Property and equipment are stated at
cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the