Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 846

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1C
Chunk 846
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 recognized under Finance costs shown as “Change in fair value of Notes” and “Change in
fair value of SSCPN” in the accompanying Consolidated Statement of Operations. With respect to the above Notes and SSCPN, as provided
for by ASC 825-10-50- 30(b), the estimated fair value adjustments were presented as a separate line item in the accompanying Consolidated
Statement of Operations, since the change in fair value of the Notes and SSCPN payable were not attributable to instrument specific credit
risk.

81

During the year ended March
31, 2024, as a result of consummation of the Business Combination by way of Reverse Recapitalization, the Notes and SSCPN outstanding
were converted into 59,757 shares (5,975,686 shares prior to the Reverse Stock Split) of the Company’s Common Stock.

The SSCPN and Notes were
adjusted for their carrying value through Consolidated Statement of Operations as on date of Reverse Recapitalization and credited at
carrying value to the capital accounts upon conversion to reflect the stock issued.

During the year ended March
31, 2024, the Company issued an unsecured convertible note (“Atalaya Note) which had features similar to that of SSCPN and were
accounted accordingly 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