Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 53

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 Egypt Car Rental LLC***   Egypt   Debt   Zoomcar Netherlands Holding B.V   Zoomcar Egypt Car Rental LLC***   Egypt   Debt   Zoomcar Inc.  Fleet Mobility Philippines Corporation *   Philippines   Debt   Zoomcar Inc.  Zoomcar Vietnam Mobility LLC**   Vietnam   Debt   Fleet Holding Pte Ltd   Zoomcar Vietnam Mobility LLC**   Vietnam   Debt   Zoomcar Inc.  Zoomcar Vietnam Mobility LLC**   Vietnam   Equity   Fleet Holding Pte Ltd  

These amounts have been eliminated during the process of
consolidation.

*In May 2022, Company had initiated the process of winding-up
for Fleet Mobility Philippines Corporation. The assets consolidated for the VIE are not material.

  ** In August 2023, Zoomcar Vietnam Mobility LLC had filed for bankruptcy
with the local authorities. This application was admitted by the local authorities and bankruptcy proceedings were ordered to commence
on June 4, 2025. In accordance with ASC 810-10-15-10, the Company consolidated the VIE till June 3, 2025 since the Company held a variable
interest and continued to be the primary beneficiary. However on June 04, 2025, the Company ceased to be the primary beneficiary and consequently,
the Company has derecognized its cost of investment and assets and liabilities of the VIE and recognized a gain upon derecognition of
VIE. 

***On June 3, 2024, Zoomcar Egypt Car Rental LLC has closed
down its operations due to decrease in operations and rising economic difficulties. The assets consolidated for the VIE are not material.
Additionally, On December 15, 2024, Zoomcar Egypt Car Rental LLC held an extraordinary general meeting to initiate the liquidation process
and appoint a liquidator.

The VIEs included in the Condensed
Consolidated Financial Statements are separate legal entities and their assets are legally owned by them and are not available to the
Company’s creditors or creditors of the Company’s other subsidiaries.

39

ZOOMCAR HOLDINGS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Nature of, and changes (if any) in, the risks associated
with a reporting entity’s involvement with the VIE

In case of all the entities, the reporting entity is exposed
to foreign currency exchange risk of the subsidiaries since the subsidiaries are incorporated in countries other than the country in which
the reporting entity has been incorporated.