Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 13

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 items are translated at historical rates, revenues and expenses are translated at average
exchange rates during the year. Foreign currency translation adjustments are recorded within accumulated other comprehensive income, a
separate component of total equity (deficit).

9

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

v.Comprehensive Income (Loss)

Comprehensive income (loss)
consists of two components, net income (loss) and other comprehensive income (loss), net of tax. Other comprehensive income (loss), net
of tax, refers to revenue, expenses, gains, and losses that under generally accepted accounting principles are recorded as an element
of members’ equity but are excluded from net income (loss). The Company’s other comprehensive income (loss), net of tax, consists
of foreign currency translation adjustments that result from consolidation of its foreign entities and actuarial gain/ (loss) on defined
benefit obligations.

vi.Revenue recognition

During the three months ended
June 30, 2025 and June 30, 2024, the Company derives its revenue principally from the following:

Facilitation revenue

Zoomcar Host Services is a marketplace
feature of the platform that helps owners of vehicles (“Hosts/ Customer/Lessors”) connect with users (“Renters/Lessee”)
in temporary need of a vehicle on leasehold basis for their personal use.

Facilitation Services revenue
consists of facilitation fees charged to Hosts, net of incentives and refunds and trip protection charged to the Renters. The Company’s
primary performance obligation in the transaction towards the Host is to facilitate the successful completion of the rental transaction
and towards the renter is to offer trip protection.

Customer support is rendered
to both the Host (customer/lessor) and the renter (lessee). Company being the intermediary between the two provides its platform through
which all communication takes place related to any services e.g., extension of trip period. Such services also include the normal customer
support related to any vehicle breakdowns, tracking of vehicles, renter background checks, vehicle ownership checks and various other
activities which are part of an ongoing set of series required for successful listing, renting and completion of trip. These activities
are not distinct from each other and are not separate performance obligations. As a result, these series of services integrate together
to form a single performance obligation.

In case of booking value collected
from the renter on behalf of the Host