Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 35

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 experiencing financial difficulty, and the creditor must have
granted a concession. The Company is experiencing financial difficulties such as continuous default in debt repayments, significant doubt
about the ability of the Company to continue as a going concern, threat of being delisted from an exchange and vendors/lenders have granted
concessions, hence the Company has accounted the concessions in accordance with ASC 470-60. The restructured payables is significantly
less than the carrying value of old payables and in accordance with the guidance in ASC 470-60, gain on restructuring is recorded as the
difference between future undiscounted cash flows and the carrying value.

The total gain on troubled debt restructuring
recorded during the three months and nine months ended December 31, 2024 amounts to $124,299 and $476,746. Basic EPS was increased by
$0.06 ($0.0006 prior to Reverse Stock Split) and $0.34 ($0.0034 prior to Reverse Stock Split) as a result of these gains.

5Cash
and cash equivalents

The components of cash and cash equivalents were as follows:

    (In USD)
    As at 
    December 31,
 2024  
    March 31,
 2024 

    Balances in bank accounts 
    $4,396,189  
    $1,495,097 
  
    Cash 
     1,184  
     1,047 
  
    Cash and cash equivalents 
    $4,397,373  
    $1,496,144 

6Accounts
receivable, net of allowance for doubtful accounts

The components of accounts receivable were as follows:

    (In USD)
    As at 
    December 31,
 2024  
    March 31,
 2024 

    Accounts receivable 
    $110,542  
    $207,971 
  
    Allowance for credit losses 
     (13,414) 
     (13,774)
  
    Net accounts receivable 
    $97,128  
    $194,197 

The Company records an allowance for credit losses for
amounts owed for completed transactions that may never settle or be collected. For the three months and nine months ended December 31,
2024, allowance amounting to $NIL and $NIL was created for expected credit losses respectively (March 31, 2024 : $13,774).

7Balances