Company: ZCARW
Filing Date: 2025-05-12
Form Type: S-1/A
Source: 0001213900-25-041769
Chunk: 266

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-12
Form: S-1/A
Chunk 266
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ess the carrying value of the assets to adjust it for the realizable
value.

| (i) | Debt |

The debt instruments of the Company
consist of debentures and term loans from financial institutions. The Company based on available proceeds makes periodic prepayments of
scheduled instalments and the same has been accounted for under ASC 470-50.

Redeemable Promissory Notes

During the nine months ended December
31, 2024, the Company has issued Redeemable Promissory Notes which are repayable at the principal value on maturity date and has been
accounted for under ASC 470-10. The Company issued these Redeemable Promissory notes on discount and incurred expenses on issue of the
Redeemable Promissory Notes. As per ASC 835, the discount and the expenses incurred on issue of the Redeemable Promissory Notes have been
amortized over the period of the Redeemable Promissory note on a straight-line basis. The Redeemable Promissory Notes liabilities have
been presented net off the discount and issue expenses.

Debt Issuance costs

Debt issuance costs consist primarily
of arrangement fees paid to Placement agent, professional fees and legal fees. These costs are netted off with the related debt and are
being amortized to interest expense over the term of the related.

The debt has been classified
into current or non-current based on the payment terms of the debt instruments. Non-current obligations are those scheduled to mature
beyond twelve months from the date of the Company’s Condensed Consolidated Balance Sheets.

F-14 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| (j) | Warrants |

When the Company issues warrants,
it evaluates the balance sheet classification of the warrant to determine whether the warrant should be classified as equity or as a derivative
liability on the Condensed Consolidated Balance Sheets. In accordance with ASC 815- 40, Derivatives and Hedging- Contracts in the Entity’s
Own Equity (ASC 815-40), the Company classifies a warrant as equity so long as it is “indexed to the Company’s equity”
and several specific conditions for equity classification are met. A warrant is not considered indexed to the Company’s equity,
in general, when it contains certain types of exercise contingencies or adjustments to exercise price. If a warrant is not indexed to
the Company’s equity or