Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 275

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 275
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 onerous contracts.

F- 18 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| (n) | 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 transaction between market participants at the measurement
date. In accordance with ASC 820, Fair Value Measurement (“ASC 820”), the Company uses the fair value hierarchy, which prioritizes
the inputs used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy
are set forth below:

| Level 1 | Observable inputs such as quoted prices in active markets for identical assets or liabilities.                                                                                                                                                                                                           |
| Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active or inputs other than the quoted prices that are observable either directly or indirectly for the full term of assets or liabilities. |
| Level 3 | Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities.                                                                                                                                                                  |

During the nine months ended
December 31, 2024, the Company’s primary financial instruments included cash and cash equivalents, investments, accounts receivables,
other financial assets, accounts payable, debt, unsecured convertible note, redeemable promissory note and other financial liabilities.
The estimated fair value of cash equivalents, accounts receivable, accounts payable, redeemable promissory note and accrued liabilities
approximate their carrying value due to short-term maturities of these instruments.

| (o) | Troubled debt restructuring |

As per ASC 470-60 Troubled Debt
Restructuring (TDR) refers to a situation where the creditor, grants concessions to a borrower experiencing financial difficulties. These
concessions may include modifications to the terms of the payable, such as reducing the interest rate, extending the repayment period,
or forgiving a portion of the payable. Such restructuring is done with the intent to provide relief to the borrower and to maximize the
potential for payable recovery by the Company.

In accordance with ASC 470-60,
when the total future cash payments under the new terms are less than the carrying amount of the payable at the