Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 243

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 243
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 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.

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 interest
expense on lease liabilities. Borrowing costs and interest on leases are recognized in the Condensed Consolidated Statements of Operations
using the effective interest method.

xix.Employee benefits

Defined
benefit plan

Employees
in India are entitled to a defined benefit retirement plan covering eligible employees of the Company. The plan provides for a lump-sum
payment to eligible employees, at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective
employees’ salary and tenure of employment. The Company’s benefit plan is unfunded.

16

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

2.Summary
of Significant Accounting Policies (Continued)

Management
makes certain assumptions relating to discount rates, salary growth, retirement rates, mortality rates and other factors when calculating
annual amounts to be recognized. These assumptions are reviewed annually by management, assisted by the enrolled actuary, and updated
as warranted.

Amortization
of a net gain or loss included in accumulated other comprehensive income shall be included as a component of net pension cost for a year
if, as of the beginning of the year, that net gain or loss exceeds 10 percent of the greater of the projected benefit obligation or the
market- related value of plan assets. If amortization is required, the minimum amortization shall be that excess divided by the average
remaining service period of active employees expected to receive benefits under the plan. Prior service cost is amortized on a straight-line
basis from the date recognized over the average remaining service period of active participants, when applicable.

Compensated
absences

The
Company’s liability for compensated absences is determined based