Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 20

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 retirement plan covering eligible employees of the Company. The plan provides for a lump-sum payment to eligible
employees, at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective employees’
salary and tenure of employment. The Company’s benefit plan is unfunded.

Management makes certain assumptions
relating to discount rates, salary growth, retirement rates, mortality rates and other factors when calculating annual amounts to be recognized.
These assumptions are reviewed annually by management, assisted by the enrolled actuary, and updated as warranted.

Amortization of a net gain or
loss included in accumulated other comprehensive income shall be included as a component of net pension cost for a year if, as of the
beginning of the year, that net gain or loss exceeds 10 percent of the greater of the projected benefit obligation or the market- related
value of plan assets. If amortization is required, the minimum amortization shall be that excess divided by the average remaining service
period of active employees expected to receive benefits under the plan. Prior service cost is amortized on a straight-line basis from
the date recognized over the average remaining service period of active participants, when applicable.

Compensated absences

The Company’s liability
for compensated absences is determined based on an actuarial valuation using the projected unit credit method and is charged to Condensed
Consolidated Statements of Operations in the year in which they accrue.

Defined contribution plan

Eligible employees of the Company
in India participate in a defined contribution fund in accordance with the regulatory requirements in the Indian jurisdiction. Both the
employee and the Company contribute an equal amount to the fund which is equal to a specified percentage of the employee’s salary.

The Company has no further obligation
under defined contribution plans beyond the contributions made under these plans. Contributions are charged to profit or loss and are
included in the Condensed Consolidated Statements of Operations in the year and/or
period in which they accrue.

16

ZOOMCAR HOLDINGS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

xx.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