Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 20

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 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.

10

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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 ended December
31, 2024 and December 31, 2023, the Company derives its revenue principally from the following:

Facilitation revenue (“Host
services”)

The Company launched its platform
“Zoomcar Host Services” during the year ended March 2022. Zoomcar Host Services