Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 34

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 January, 2024. As per the agreed terms, the company was to make payment in 3 installments
starting from September 2024 until November 30, 2024. As of December 31, 2024, the Company has fully repaid its outstanding liability
to Mercury Car Rentals Limited.

The Company has accounted for this transaction as troubled
debt restructuring under ASC 470-60. The gain on troubled debt restructuring recorded during the three and nine months ended December
31, 2024 is $NIL and $31,951, respectively.

Jain and Sons Services Limited

On November 06, 2024, the Company has
entered into a settlement arrangement with Jain and Sons Services Limited, under which the lender waived a portion of the outstanding
liability. The remaining liability was to be settled by December 23, 2024. The Company has repaid its liability as per the agreed dates,
and as a result, no liability remains outstanding to the lender.

This transaction has been accounted for as a troubled debt
restructuring in accordance with ASC 470-60. The gain on troubled debt restructuring recorded during the three and nine months ended December
31, 2024 is $17,883 and $17,883, respectively.

Accounts Payable

During the nine months ended December 31, 2024, the Company carried
out negotiations with its vendors and as per the revised agreements with the vendors, they have granted a short-term deferral in payments
and/or reduction in outstanding liability. As a part of the agreement, they cannot initiate any new proceedings and/or are required to
withdraw (if previously initiated) any legal notices or proceedings against the Company until the payments are due in accordance with
the revised agreed terms.

The Company has accounted for this transaction as troubled
debt restructuring under ASC 470-60. The Company has recorded a net gain on troubled debt restructuring in the Condensed Consolidated
Statements of Operations during the three months and nine months ended December 31, 2024 amounting to $106,819 and $343,267, respectively.

22

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Accounting considerations

The Company assessed the transactions
under the guidance of ASC 470-60 Troubled Debt Restructuring to determine if the transactions qualified as troubled debt restructuring.
For a payable restructuring to be considered troubled, the debtor must be