Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2216

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7A
Chunk 2216
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 asset or (4) the present value of the lease payments equals or
exceeds substantially all of the fair value of the asset.

Operating leases are presented within
“Operating lease right-of-use assets,” “Current portion of operating lease liabilities” and “Operating lease
liabilities, less current portion” in the Company’s consolidated balance sheets. The current portion of finance lease liabilities
are presented within “Finance lease liabilities” in the Company’s consolidated balance sheets.

ROU assets represent the Company’s
right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments
arising from the lease arrangement. Lease liabilities are recognized at commencement date based on the present value of lease payments
over the lease term. Operating lease ROU assets are recognized at commencement date in an amount equal to lease liability, adjusted for
any lease prepayments, initial direct costs, and lease incentives. For leases in which the rate implicit in the lease is not readily determinable,
the Company uses its incremental borrowing rate based on the information available at commencement date. Lease terms includes the effects
of options to extend or terminate the lease when it is reasonably certain at commencement of the lease that the Company will exercise
that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term reflecting single
operating lease cost. The Company evaluates lease agreements to determine lease and non- lease components, which are accounted for separately.

Lease payments that depend on factors
other than an index or rate are considered variable lease payments and are excluded from the operating lease assets and liabilities and
are recognized as expense in the period in which the obligation is incurred. The Company accounts for lease-related concessions in accordance
with guidance in Topic 842, Leases, to determine, on a lease-by-lease basis, whether the concession provided by lessor should be accounted
for as a lease modification.

The Company accounts for a modification
as a separate contract when it grants an additional right of use not included in the original lease and the increase is commensurate with
the standalone price for the additional right of use, adjusted for the circumstances of the particular contract. Modifications which are
not accounted for as a separate contract are reassessed as of the effective date of the modification based on its modified terms and conditions
and the facts and circumstances as of that date. Upon modification, the Company remeasures the lease liability to reflect changes to the
remaining lease payments and discount rates and recognizes the amount of the