Company: ZCARW
Filing Date: 2025-03-04
Form Type: S-1
Source: 0001213900-25-020176
Chunk: 318

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-04
Form: S-1
Chunk 318
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MENTS

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

On August 14, 2023, Zoomcar Vietnam Mobility LLC has voluntarily filed application for bankruptcy with the local authorities of Vietnam. In accordance with ASC 205-30, the liquidation of the VIE is imminent and thus the financial statements of VIE are prepared on a liquidation basis, which entails valuing assets at their estimated net realizable values and recording liabilities at their expected settlement amounts. Further, in accordance with ASC 810-10-15-10, the Company consolidate the VIE as the bankruptcy application is pending with the authorities in Vietnam and unless the application is admitted, the Company holds a variable interest and still is the primary beneficiary. Refer Note 33.

The assets/liabilities consolidated for the VIE are not material.

| iii. | Use of estimates and assumptions |

The use of estimates and assumptions as determined by management is required in the preparation of the consolidated financial statements in conformity with US GAAP. These estimates are based on management’s evaluation of historical trends and other information available when the consolidated financial 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.

The significant estimates, judgments and assumptions that affect the consolidated financial statements include, but are not limited to; are:

| a. | Estimation of defined benefit obligation |

| b. | Estimation of useful lives and residual                     
 values of property, plant & equipment and intangible assets |

| c. | Fair value measurement of financial 
 instruments                         |

| d. | Fair value measurement of share 
 based payments                  |

| e. | Leases – assumption to determine 
 the incremental borrowing rate   |

| f. | Valuation allowance on deferred 
 tax assets                      |

| g. | Estimation of utilization of balances 
 with government authorities           |

| iv. | Currency translation |

The consolidated financial statements are presented in US Dollars (“$”) which is the reporting currency of the Company. Monetary assets and liabilities, and transactions denominated in currencies other than the functional currency are remeasured at the exchange rate on the balance sheet date and nonmonetary assets and liabilities are measured at historical exchange rates. The gains and losses resulting from remeasurement are recorded as foreign exchange gains (losses), within other income (expense), in the Consolidated Statement of Operations.

F-64 ZOOMCAR HOLDINGS, INC. NOTES TO CONSOLIDATED