Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1076

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 2
Chunk 1076
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 lessor should be accounted
for as a lease modification.

The Company accounts for a modification
as a separate contract when it grants an additional right of use not included in the original lease and the increase is commensurate with
the standalone price for the additional right of use, adjusted for the circumstances of the particular contract. Modifications which are
not accounted for as a separate contract are reassessed as of the effective date of the modification based on its modified terms and conditions
and the facts and circumstances as of that date. Upon modification, the Company remeasures the lease liability to reflect changes to the
remaining lease payments and discount rates and recognizes the amount of the remeasurement of the lease liability as an adjustment to
the ROU assets. However, if the carrying amount of the ROU assets is reduced to zero as a result of modification, any remaining amount
of the remeasurement is recognized as an expense in consolidated statements of income.

F-14

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

The Company reviews ROU assets for impairment whenever events
or changes in circumstances indicate that the related carrying amount may not be recoverable.

xvii.Expenses

Cost of revenue

Cost of revenue expenses primarily
consist of personnel-related compensation costs of local operations teams and teams who provide phone, email and chat support to users,
repairs and maintenance expenses of vehicles, vehicle site rentals, devices depreciation, power, software support charges, payment gateway
charges and other direct expenses.

Technology and development

Technology and development expenses
primarily consist of personnel-related compensation costs and information technology and data science expenses. Technology and development
costs are expensed as incurred.

Sales and marketing

Sales and marketing expenses primarily
consist of personnel-related compensation costs, advertising expenses and marketing partnerships with third parties. Sales and marketing
costs are expensed as incurred. Advertising expenses incurred for the year ended March 31, 2025 amounts to $829,619 (March 31, 2024: $4,479,219).

General and administrative

General and administrative expenses
primarily consist of personnel-related compensation costs, professional services fees, administrative fees, depreciation, facility costs,
and other corporate costs. General and administrative expenses are expensed as incurred.

xviii.Finance costs

Finance costs comprises interest cost
on debt, transaction costs, fair value changes in financial instruments, SSCPN issue expenses, and