Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2024

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7
Chunk 2024
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 material to our financial statements. The Company received an order
for fiscal year 2015-16 in relation to non-deduction of tax deducted at source withholding taxes on certain payments to resident payees/service
providers amounting to $125,839 (March 31, 2024: $129,027). Penalty of $125,839 has been claimed but the proceedings are kept under abeyance
until the above order is disposed off. The Company has filed appeals against the above orders before higher authority.

The Company has not recognized any uncertain tax position as at March
31, 2025 and March 31, 2024, respectively. The Company believes these orders are unlikely to be sustained at the higher appellate authorities.

79

Critical Accounting Policies and Estimates  

The Company prepared its financial statements in accordance with GAAP.
Our preparation of these financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts
of assets, liabilities, and related disclosures at the date of the financial statements, as well as revenue and expense recorded during
the reporting periods. The Company evaluates our estimates and judgments on an ongoing basis.

The Company bases its estimates
on historical experience and/or other relevant assumptions that the Company believes to be reasonable under the circumstances. Actual
results may differ materially from management’s estimates.

See Note 2, Summary of Significant
Accounting Policies, to our audited consolidated financial statements for further information related to our critical accounting policies
and estimates, which are as follows:

Stock-Based Compensation

The Company accounts for
stock-based compensation expense in accordance with the fair value recognition and measurement provisions of US GAAP, which requires compensation
cost for grant-date fair value of stock-based awards to be recognized over the requisite service period. The Company includes a forfeiture
estimate in the amount of compensation expense being recognized based on the Company’s estimate of equity instruments that will
eventually vest. The fair value of stock-based awards, granted or modified, is determined on the grant date at fair value, using appropriate
valuation techniques.

For stock options with service-based
vesting conditions only, the valuation model, typically the Black-Scholes option-pricing model, incorporates various assumptions including
expected stock price volatility, expected term, and risk-free rates. Stock options with graded vesting the fair- value-based measure is
estimated of the entire award by using a single weighted-average expected term. The Company estimated the volatility of common stock on
the date of the grant based on weighted