Company: ZCARW
Filing Date: 2025-05-12
Form Type: S-1/A
Source: 0001213900-25-041769
Chunk: 271

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-12
Form: S-1/A
Chunk 271
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 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.

F-18 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| (n) | 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 nine months ended
December 31, 2024, the Company’s primary financial instruments included cash and cash equivalents, investments, accounts receivables,
other financial assets, accounts payable, debt, unsecured convertible note, redeemable promissory note and other financial liabilities.
The estimated fair value of cash equivalents, accounts receivable, accounts payable, redeemable promissory note and accrued liabilities
approximate their carrying value due to short-term maturities of these instruments.

| (o) | Troubled debt restructuring |

As per ASC 470-60 Troubled Debt
Restructuring (TDR) refers to a situation where the creditor, grants concessions to a borrower experiencing financial difficulties. These
concessions may