Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 663

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1B
Chunk 663
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 Accounts receivable balances are written off against the allowance of credit losses after all means
of collection has been exhausted and potential recovery is considered remote.

F-12

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

x.Other receivables

Other receivables include amounts
recoverable from host. The receivable from host is adjusted for an allowance on account of host which are not active on the platform for
more than 90 days.

xi.Balances with government authorities – Input Tax
Credit

Balances with government authorities
represent the tax credit with government agencies which are recognized when the Company has performed the required services and when they
meet the eligibility criteria outlined in the applicable government regulations.

The input tax credits are related
to Indian Goods and Service Tax (“GST”). These balances are classified based on their expected period of utilization of future
GST credit and GST debit that comes from domestic purchases and sales of services, respectively. If the tax credits are expected to be
utilized within twelve months from the reporting date, they are classified as current assets. If the tax credits are not expected to be
utilized within twelve months from the reporting date, they are classified as non-current assets.

xii.Concentration of credit risk

Cash and cash equivalents, investments,
other receivables, and accounts receivable are potentially subject to credit risk concentration. The Company has not experienced any material
losses related to these concentrations during the years presented. No customers accounted for 10% or more of revenue for the years ended
March 31, 2025 and 2024.

xiii.Property and equipment, net

Property and equipment are stated
at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful
lives.

The devices installed on host vehicles
in the marketplace business have been depreciated over 5 years. During the year ended March 31, 2025, the Company revised its estimate
of the salvage value of the devices from 30% to 0%.

When assets are retired or otherwise
disposed of, the cost and accumulated depreciation are removed from the Consolidated Balance Sheets and any resulting gain or loss is
reflected on the Consolidated Statements of Operations in the period realized.

xiv.Assets held for sale

The Company classifies vehicles to
be disposed of as held for sale in the period in which they are available for immediate