Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 465

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 465
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. This participating security do not contractually require the holders of such shares to participate
in the Company’s losses. As such, net losses for the periods presented were not allocated to the Company’s participating securities.

The Company’s basic profit/(loss)
per share is computed using the weighted-average number of ordinary shares outstanding during the period. The diluted profit/(loss) per
share is computed by considering the impact of potential issuance of common stock on the weighted average number of shares outstanding
during the period, except where the results would be anti-dilutive.

xxv.Provisions and accrued expenses

A provision is recognized in the Consolidated
Balance Sheets when the Company has a present legal or constructive obligation as a result of a past event, and it is probable that an
outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are recognized at present
value by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money.

Provisions for onerous contracts are
recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the
future obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any
impairment loss on the assets associated with that contract. The Company does not have any onerous contracts.

F-19

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

xxvi.Fair value measurements and financial instruments

Fair value is defined as the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. In accordance with ASC 820, Fair Value Measurement (“ASC 820”), the Company uses the fair value hierarchy, which prioritizes
the inputs used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy
are set forth below:

Level 1Observable inputs such as quoted prices in active markets for identical assets or
                                                                                    liabilities.

Level 2Observable inputs other than Level 1 prices such as quoted prices for similar assets or