Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 276

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 276
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 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 Condensed 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.

| (p) | 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.

F- 19 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| (q) | 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.

| (r) | Recent Accounting Pronouncements |

Accounting Pronouncement Pending Adoption

In November 2024, the Financial
Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Disaggregation
of Income Statement Expenses, which requires public companies to disaggregate key expense categories such as inventory purchases, employee
compensation and depreciation in their financial statements. Further, in January 2025, the Financial Accounting Standards Board (“FASB”)
issued Accounting Standards Update No. 2025-01, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation
Disclosures (Subtopic 220-40): Clarifying the Effective Date” which clarifies the effective date of ASU 2024-03. The guidance is
effective for all public entities with fiscal years