Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 224

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 224
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 full term of assets or liabilities.

    Level 3
    Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities.

During the three months ended June 30, 2025, the
Company’s primary financial instruments included cash and cash equivalents, investments, accounts receivables, other financial assets,
accounts payable, debt, unsecured convertible note and other financial liabilities. The estimated fair value of cash equivalents, accounts
receivable, accounts payable and accrued liabilities approximate their carrying value due to short-term maturities of these instruments.

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 Condensed Consolidated Financial Statements. This gain is recorded immediately in the period the restructuring occurs.

60

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.

Item 3. 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. 

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and
procedures are designed to ensure that information we are required to disclose in reports that we file or submit under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) is recorded