Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1476

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 4
Chunk 1476
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 assisted by the enrolled actuary, and updated as warranted.

F-15

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

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 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 Consolidated Statements of Operations in the year and/or period in which they accrue.

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 will
eventually vest. The fair value of stock-based awards, granted or modified, is determined on the grant date at fair value, using appropriate
valuation techniques.

For stock options or restricted stock units
with service-based vesting conditions only, the valuation model, typically the Black-Scholes option-pricing model, incorporates
various assumptions including expected stock price volatility, expected term, and risk-free rates. For stock options or restricted
stock units with graded vesting, the fair