Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 367

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 367
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| ● | The                                                                                         
 underlying asset is of such a specialized nature that it is expected to have no alternative 
 use to the lessor at the end of the lease term                                              |

Leases that do not meet any of the above criteria are accounted for as operating leases.

Right of use (“ROU”) assets and lease liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Lease liabilities represent the present value of lease payments not yet paid and ROU assets represent the Company’s right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of lease assets, if any.

Lease payments may be fixed or variable; however, only fixed payments or in-substance fixed payments are included in the Company’s lease liability calculation. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments is incurred.

The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate (“IBR”), because the interest rate implicit in most of the Company’s leases is not readily determinable. The IBR is obtained from financial institutions based on the understanding of the Company’s credit rating and resulting interest rate the Company would have to pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

<div align='center'>F-68

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

| 2. | Summary                                        
 of Significant Accounting Policies (Continued) |

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

| - | The                                                                                               
 lease term has changed or there is a significant event or change in circumstances resulting       
 in a change in the assessment of exercise of a purchase option, in which case the lease liability 
 is remeasured by discounting the revised lease payments using a revised discount rate.            |

| - | A                                                                                              
 lease contract is modified, and the lease modification is not accounted for as a separate      
 lease, in which case the lease liability is remeasured based on the lease term of the modified 
 lease by discounting the