v3.25.1
Leases
 9 Months Ended 12 Months Ended
Dec. 31, 2024
Mar. 31, 2024
Leases [Abstract]    
Leases
12Leases

 

The Company’s leases primarily include vehicles and corporate offices which have been classified as finance leases and operating leases, respectively. The lease term of operating and finance leases varies between 3 to 7 years. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements. In assessment of the lease term, the Company considers the extension option as part of its lease term for those lease arrangements where the Company is reasonably certain of availing the extension option.

 

The components of lease expense were as follows:                
                 
(In USD)  Three months ended
December 31,		   Nine months ended
December 31,		 
Period ended  2024   2023   2024   2023 
Finance lease cost:                
Amortization of right-of-use assets  $
-
   $
-
   $
-
   $
-
 
Interest on lease liabilities   180,841    152,659    448,050    469,140 
Operating lease cost   85,570    127,399    280,140    387,681 
Short term lease cost   328,932    43,691    501,855    123,364 
Total lease cost  $595,343   $323,749   $1,230,045   $980,185 

 

Supplemental cash flow information related to leases was as follows:

 

(In USD)
For the Nine months ended		  December 31,
2024		   December 31,
2023		 
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash outflows for operating leases  $259,503   $341,981 
Financing cash outflows for finance leases       $1,603,626   $816,744 
           
Right-of-use assets obtained in exchange for lease obligations:          
Operating leases  $
-
   $
-
 
Finance leases   $
-
   $
-
 

 

Supplemental balance sheet information related to leases was as follows:

 

(In USD)
As at		  December 31,
2024		   March 31,
2024		 
Operating Leases        
Operating lease right-of-use assets  $1,067,777   $1,290,608 
           
Current operating lease liabilities  $312,491   $365,542 
Non-current operating lease liabilities   847,700    1,009,681 
Total operating lease liabilities   $1,160,191   $1,375,223 
           
Finance Leases          
           
Property and equipment, at cost  $5,768,936   $5,923,555 
Accumulated depreciation   (4,009,932)   (4,117,406)
Accumulated impairment   (1,759,004)   (1,806,149)
Property and equipment, net   $
-
   $
-
 
           
Current finance lease liabilities  $4,015,692   $5,738,239 
Non-current finance lease liabilities   
-
    
-
 
Total finance lease liabilities   $4,015,692   $5,738,239 
           
Weighted Average Remaining Lease Term          
Operating leases   51 months    58 months 
Finance leases   21 months    30 months 
Weighted Average Discount Rate          
Operating leases   13.00%   13.00%
Finance leases   21.00%   9.00%

The Company determines the incremental borrowing rate by adjusting the benchmark reference rates, with appropriate financing spreads applicable to the respective geographies where the leases were entered and lease specific adjustments for the effects of collateral.

 

    December 31, 2024     March 31, 2024  
    Operating Leases     Finance Leases     Operating Leases     Finance Leases  
Maturities of lease liabilities are as follows:                        
2025   $ 80,245     $ 4,817,953     $ 392,443     $ 6,475,668  
2026     336,564       73,401       345,584       -  
2027     352,926        -       362,385       -  
2028     370,106       -       380,025       -  
2029     388,144       -       398,548       -  
Total Lease Payments   $ 1,527,985     $ 4,891,354       $ 1,878,985     $ 6,475,668  
Less : Imputed Interest     367,794       875,662       503,762       737,429  
Total Lease Liabilities   $ 1,160,191     $ 4,015,692     $ 1,375,223     $ 5,738,239  

 

During the period ended December 31, 2024, the Company entered into re-structuring agreements with Orix Leasing and Financial Services India Limited (Orix). Under the restructured terms with Orix, the Company was to pay 50% of the outstanding liability by November 25, 2024, with the remaining 50% due in 12 monthly installments at 12% interest, starting January 15, 2025. If the Company defaults, the entire liability, plus 18% annual compounded interest, will be due after a 15-day grace period. As of December 31, 2024, the Company has fulfilled all payment obligations under the restructured terms.

 

In adherence to the agreement, the Company has accumulated penal interest at a simple interest rate of 1% per month on the overdue EMIs after adjustment of amounts paid during the three months ended December 31, 2024, amounting to $226,093.

 

As per the terms of the agreement, an additional simple interest of 1.5% per month is levied on the overdue amount as it is still unpaid after 60 days from date of default.
12Leases

 

The Company’s leases primarily include vehicles and corporate offices which have been classified as finance leases and operating leases, respectively. The lease term of operating and finance leases varies between 3 to 7 years. The lease agreements do not contain any covenants to impose any restrictions except for market- standard practice for similar lease arrangements. In assessment of the lease term, the Company considers the extension option as part of its lease term for those lease arrangements where the Company is reasonably certain of availing the extension option.

The components of lease expense were as follows:

Period ended  March 31,
2024		   March 31,
2023		 
Finance lease cost:        
Amortization of right-of-use assets  $-   $3,298 
Interest on lease liabilities   625,523    844,424 
Operating lease cost   516,219    540,908 
Short term lease cost   423,693    181,337 
Total lease cost   1,565,435    1,569,967 

 

Supplemental cash flow information related to leases was as follows:  

Period ended  March 31,
2024		   March 31,
2023		 
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash outflows for operating leases  $(441,843)  $(485,453)
Financing cash outflows for finance leases   (526,959)   (1,618,551)
Right-of-use assets obtained in exchange for lease obligations:          
Operating leases   -    1,575,468 
Finance leases   -    - 

 

Supplemental balance sheet information related to leases was as follows: 

Period ended  March 31, 2024   March 31, 2023 
Operating Leases        
Operating lease right-of-use assets  $1,290,608   $1,694,201 
           
Current operating lease liabilities  $365,542   $466,669 
Non current operating lease liabilities   1,009,681    1,284,755 
Total operating lease liabilities   1,375,223    1,751,424 
           
Finance Leases          
           
Property and equipment, at cost  $5,923,555   $6,012,559 
Accumulated depreciation   (4,117,406)   (4,179,272)
Accumulated impairment   (1,806,149)   (1,833,287)
Property and equipment, net   -    - 
           
Current finance lease liabilities  $5,738,239   $1,257,423 
Non current finance lease liabilities   -    5,098,262 
Total finance lease liabilities   5,738,239    6,355,685 
           
Weighted Average Remaining Lease Term          
Operating leases   58 months    63 months 
Finance leases   30 months    41 months 
Weighted Average Discount Rate          
Operating leases   13.00%   13.00%
Finance leases   9.00%   10.00%

The Company determines the incremental borrowing rate by adjusting the benchmark reference rates, with appropriate financing spreads applicable to the respective geographies where the leases were entered and lease specific adjustments for the effects of collateral.

 

 

   Year ended March 31, 
   2024   2023 
Maturities of lease liabilities are as follows:  Operating Leases   Finance Leases   Operating Leases   Finance Leases 
2024  $-   $-   $497,344   $1,877,744 
2025   392,443    6,475,668    471,185    2,103,127 
2026   345,584    -    350,777    3,048,501 
2027   362,385    -    367,830    672,269 
2028   380,025    -    385,735    - 
2029   398,548    -    404,536    - 
Total Lease Payments   1,878,985    6,475,668    2,477,407    7,701,641 
Less : Imputed Interest   503,762    737,429    725,982    1,345,957 
Total Lease Liabilities  $1,375,223   $5,738,239   $1,751,425   $6,355,684 

 

During the year ended March 31, 2024, the Company has terminated the operating lease with M/s Siddharth Assets against which lock-in period rental expense and liability amounting to $66,915 has been recorded.

 

An amount of $363,545 and $369,007 which is receivable from Leaseplan India Private Limited has been netted off with lease liability balance as on March 31, 2024 and March 31, 2023 respectively.

 

As of March 31, 2024, the Company continues to default on EMI payments for November 2023 to March 2024 owed to Leaseplan India Private Limited (Lender). The total lease commitment balance as of March 31, 2024 is $5,692,363 (including $813,976 of defaulted lease rentals). In adherence to the agreement, the Company has accumulated penal interest at a simple interest rate of 1% per month on the overdue EMIs, amounting to $43,063 for the year ended March 31, 2024.

 

As per the terms of the agreement, an additional simple interest of 1.5% per month is levied on the overdue amount as it is still unpaid after 60 days from date of default. In accordance with the agreement, the lender is entitled to any of the below 6 remedies on account of non-payment of lease rentals by the Company:

 

a)withdrawal of conditional waiver of $ 1.2 million (INR 10 crores) given during restructuring and shall become immediately due and payable with interest of 1.5% per month;

 

b)entire outstanding debt becoming due and payable, inclusive of all accrued interests;

 

c)enforcement of the consent award for the entire amount of default (along with applicable interest thereon);

 

d)seek and cause compulsory re-possession of all vehicles from Zoomcar which were financed from the Lender;

 

e)enforcement of the security created in pursuance of this Resolution Agreement for the amount of default (along with applicable interest thereon);

 

f)invoke the personal guarantee issued by the promoter for satisfaction of the amount of default (along with applicable interest thereon).

 

In April 2024, Lease Plan India Private Limited has invoked the bank guarantee created against fixed deposit amounting to $127,609 which has been adjusted against their outstanding liability as on March 31, 2024 (refer to note 8(a)). Lease Plan India Private Limited has not yet withdrawn the conditional waiver of $1.2 million given during the restructuring.

 

The Company has defaulted on EMI for the months of December 2023, January, February and March 2024 owed to Orix Leasing and Financial Services India Limited. As per the restructuring agreement, in case of default on payment, interest charge of 15% p.a. on the outstanding amount shall be levied by Orix Leasing and Financial Services India Limited.