Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 466

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 466
---

                                                                                    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 3Unobservable 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 year ended March 31,
2025, 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.

xxvii.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 date of restructuring, the
difference between the carrying amount and the total future cash payments is recognized as a ‘Gain on Troubled Debt Restructuring’
in the Consolidated Financial Statements. This gain is recorded immediately in the period the restructuring occurs.

If the total future cash payments
under the new terms exceed the carrying amount of the payable at the date of restructuring, no adjustment to the carrying amount of the
payable is made. Instead, the company calculates a New Effective Interest Rate (EIR) based on the revised terms of the restructured payable.
The debt is then amortized over the remaining life of the payable using the new EIR, with interest expense recognized based on this rate
in future periods.

F-20

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

xxviii.Taxes

Income taxes are accounted for under
the asset and liability method. Deferred tax assets and liabilities are recognized for the future