Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 482

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 482
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adjusted 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’s primary financial instruments included cash and cash equivalents, investments, accounts receivables, other financial
assets, accounts payable, debt, unsecured convertible note and other financial liabilities. The estimated fair value of cash equivalents,
accounts receivable, accounts payable and accrued liabilities approximate their carrying value due to short-term maturities of these instruments.

71

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 include modifications to the terms of the payable, such as reducing the interest rate, extending the repayment period, or forgiving
a portion of the payable. Such restructuring is done with the intent to provide relief to the borrower and to maximize the potential for
payable recovery by the Company.

In accordance with ASC 470-60, when the total
future cash payments under the new terms are less than the carrying amount of the payable at the date of restructuring, the difference
between the carrying amount and the total future cash payments is recognized as a ‘Gain on Troubled Debt Restructuring’ in
the Condensed Consolidated Financial Statements. This gain is recorded immediately in the period the restructuring occurs.

If the total future cash payments under the new
terms exceed the carrying amount of the payable at the date of restructuring, no adjustment to the carrying amount of the payable is made.
Instead, the company calculates a New Effective Interest Rate (EIR) based on the revised terms of the restructured payable. The debt is
then amortized over the remaining life of the payable using the new EIR, with interest expense recognized based on this rate in future
periods.

Item