Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2061

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7
Chunk 2061
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 computes net profit/(loss)
per share using the two-class method required for participating securities. The two-class method requires income available to common stockholders
for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends
as if all the income for the period had been distributed. The Company’s convertible preferred stock is participating security. The
holders of the convertible preferred stock would be entitled in preference to common shareholders, at specified rate, if declared.

Then any remaining earnings would
be distributed to the holders of common stock and convertible preferred stock on a pro-rata basis assuming conversion of all convertible
preferred stock into common stock. This participating security do not contractually require the holders of such shares to participate
in the Company’s losses. As such, net losses for the periods presented were not allocated to the Company’s participating securities.

The Company’s basic profit/(loss)
per share is computed using the weighted-average number of ordinary shares outstanding during the period. The diluted profit/(loss) per
share is computed by considering the impact of potential issuance of common stock on the weighted average number of shares outstanding
during the period, except where the results would be anti-dilutive.

xxv.Provisions and accrued expenses

A provision is recognized in the Consolidated
Balance Sheets when the Company has a present legal or constructive obligation as a result of a past event, and it is probable that an
outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are recognized at present
value by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money.

Provisions for onerous contracts are
recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the
future obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any
impairment loss on the assets associated with that contract. The Company does not have any onerous contracts.

F-19

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

xxvi.Fair value measurements and financial instruments

Fair value is defined as the price
that would be received to sell an asset or paid to transfer a liability in an orderly