Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 265

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 265
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 the voting
interest model.

On August 14, 2023, Zoomcar Vietnam
Mobility LLC has voluntarily filed application for bankruptcy with the local authorities of Vietnam. In accordance with ASC 205-30, the
liquidation of the VIE is imminent and thus, the financial statements of VIE are prepared on a liquidation basis, which entails valuing
assets at their estimated net realizable values and recording liabilities at their expected settlement amounts. Further, in accordance
with ASC 810-10-15-10, the Company consolidate the VIE as the bankruptcy application is pending with the authorities in Vietnam and unless
the application is admitted, the Company holds a variable interest and still is the primary beneficiary.

On May 30, 2024, PT Zoomcar
Indonesia Mobility Services has closed down its operations due to decrease in bookings and increased difficulties in carrying out the
day-to-day operations. Furthermore, on June 3, 2024, Zoomcar Egypt Car Rental LLC has closed down its operations due to decrease in operations
and rising economic difficulties. Additionally, On December 15 , 2024, Zoomcar Egypt Car Rental LLC held an extraordinary general meeting
to initiate the liquidation process and appoint a liquidator.

The assets/liabilities consolidated
for the VIE are not material.

| (c) | Use of estimates and assumptions |

The use of estimates and assumptions
as determined by management is required in the preparation of the Condensed Consolidated Financial Statements in conformity with US GAAP.
These estimates are based on management’s evaluation of historical trends and other information available when the Condensed Consolidated
Financial Statements are prepared and may affect the amounts reported and related disclosures. Actual results could differ from those
estimates.

Estimates and underlying assumptions
are reviewed on an ongoing basis.

The significant estimates, judgments
and assumptions that affect the Condensed Consolidated Financial Statements include, but are not limited to; are:

| a. | Estimation of defined benefit obligation |

| b. | Fair value measurement of financial instruments |

| c. | Estimation of utilization of loyalty points |

F- 10 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| d. | Leases – assumption to determine the incremental borrowing rate |

| e. | Valuation allowance on deferred tax assets |

| f. | Estimation of utilization of balances with government authorities |

| (d) | Revenue recognition |

During the
nine months