Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 244

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 244
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 Statements are prepared and may affect the amounts reported and related disclosures. Actual results could differ from those
estimates.

Estimates and underlying assumptions
are reviewed on an ongoing basis.

10

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The significant estimates, judgments
and assumptions that affect the Condensed Consolidated Financial Statements include, but are not limited to; are:

a.Estimation of defined benefit obligation

b.Fair value measurement of financial
                                            instruments

c.Estimation of utilization of loyalty points

d.Leases – assumption to determine
                                            the incremental borrowing rate

e.Valuation allowance on deferred tax
                                            assets

f.Estimation of utilization of balances
                                            with government authorities

(d)Revenue recognition

During the nine months ended December
31, 2024 and December 31, 2023, the Company derives its revenue principally from the following:

Facilitation revenue (“Host
services”)

The Company launched its platform
“Zoomcar Host Services” during the year ended March 2022. 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 charges
facilitation fees to its customers as a percentage of the value of the total booking, excluding taxes. The Company collects both the
booking value on behalf of the Host and the trip protection charges from the renter. On a daily basis the Company, or its third-party
payment processors, disburse the booking value to the host, less the fees due from the host to the Company. The amounts charged for trip
fees for the Marketplace service vary based on factors such as the vehicle type, the day of the week, time of the trip, and the duration
of the trip. Hence, 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