Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 29

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 dilutive.

xxiv.Provisions and accrued expenses

A
provision is recognized in the Condensed Consolidated Balance Sheets when the Company has a present legal or constructive obligation
as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the
effect is material, provisions are recognized at present value by discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money.

20

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

2.Summary
of Significant Accounting Policies (Continued)

Provisions
for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable
costs of meeting the future obligations under the contract. The provision is measured at the present value of the lower of the expected
cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company
recognizes any impairment loss on the assets associated with that contract. The Company does not have any onerous contracts.

xxv.Fair value measurements and financial instruments

Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. In accordance with ASC 820, Fair Value Measurement (“ASC 820”), the Company
uses the fair value hierarchy, which prioritizes the inputs used to measure fair value. The hierarchy, as defined below, gives the highest
priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.
The three levels of the fair value hierarchy are set forth below:

    Level 1
    Observable inputs such
    as quoted prices in active markets for identical assets or liabilities.

    Level 2
    Observable inputs other
    than Level 1 prices such as quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are
    not active or inputs other than the quoted prices that are observable either directly or indirectly for the 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 six months ended September 30, 2025, the Company