The components of long term and short term debt were as follows:

On September 25, 2024, the Company entered into a settlement agreement with Blacksoil Capital Private Limited, wherein the lender waived 25% of the outstanding amount. As of December 31, 2024, the Company had fully repaid its liability to the lender. This transaction was accounted for as troubled debt restructuring under ASC 470-60 (Refer to Note 4), resulting in a net gain of $NIL and $83,645 for the three and nine months ended December 31, 2024, respectively.

The Company has recorded an interest expense amounting to $NIL and $9,834 for the three and nine months ended December 31, 2024 ($9,523 and $31,609 for the three and nine months ended December 31, 2023).

Includes loans outstanding as at December 31, 2024 and March 31, 2024 amounting to $2,973,192 and $4,713,936, respectively.

The Company has recorded an interest expense amounting to $68,067 and $220,282 for the three and nine months ended December 31, 2024 ($100,243 and $294,872 for the three and nine months ended December 31, 2023).

As of December 31, 2024, the Company has defaulted on debt obligations, totaling $1,070,281, owed to various lenders, including Kotak Mahindra Finance, Tata Motors Finance Limited, Mahindra & Mahindra Financial Services Limited and Clix Finance India Private Limited. The Company has also recorded a penal interest expense amounting to $25,051 and $112,635 for the three and nine months ended December 31, 2024 ($5,157 and $5,157 for the three and nine months ended December 31, 2023). The Company is in negotiations or has entered into settlement agreements with these lenders to restructure payment terms and resolve outstanding claims.

During the nine months ended December 31, 2024, the Company entered into settlement agreements with Mercury Car Rentals Limited and Jain and Sons Services Limited, resulting in waiver of partial liabilities. These transactions were accounted for as troubled debt restructuring under ASC 470-60 (Refer to Note 5), and all outstanding amounts owed to these lenders were fully repaid by December 31, 2024.

On June 18, 2024, the Company entered into a Securities Purchase Agreement with certain institutional accredited investors pursuant to which the Company issued and sold an aggregate of $3,600,000 in principal amount of notes and warrants to purchase up to an aggregate of 132,416 shares (1,267,728 shares prior to Second Reverse Stock Split and 52,966,102 shares prior to First Reverse Stock Split) of Company Common Stock for gross proceeds of $3,000,000. The closing occurred on June 20, 2024.

Pursuant to the funding received on November 7, 2024, the Company has repaid the outstanding amount of the redeemable promissory notes (including interest accrued) and the difference between the amount paid and the net carrying amount of the redeemable promissory notes (post amortization of discount on issue and issuance cost until the date of payment) has been recognized as ‘Loss on extinguishment of the redeemable promissory note’ under other income/(expense) in the Condensed Consolidated Statements of Operations.

Terms of Warrants issued along with Redeemable Promissory Note

The warrants are each exercisable for one share of Common Stock at an exercise price of $56.64 per share ($2.832 per share prior to Second Reverse Stock Split and $0.1416 per share prior to First Reverse Stock Split) and may be exercised at any time after six months and upto 5 years the date of issue.

During the period ended December 31, 2024, 46,527 (930,522 prior to Second Reverse Stock Split) warrants have been exercised and are converted into Common Stock. As of December 31, 2024, 69,704 warrants (1,394,062 prior to Second Reverse Stock Split) are outstanding (after considering antidilution effect). Furthermore, the placement agent warrants outstanding as of December 31, 2024 are 5,296 warrants (105,934 prior to Second Reverse Stock Split).

These Warrants are classified as equity on the Condensed Consolidated Balance Sheets.

The components of long term and short term debt were as follows:

(In USD)

Non-convertible debentures

The Company had issued Non Convertible Debentures to Blacksoil Capital Private Limited for a period of 36 months from the date of allotment i.e. April 16, 2019. The original issue of debentures was at a variable interest rate of MCLR + 2%, with MCLR at the date of signing being 12%. The debentures are secured against:

In February 2021, the Company restructured the debt with the lender with a coupon rate of 10%. The effective interest rate pursuant to the restructuring is 7.7% per annum. The Company also received temporary moratorium until December 30, 2021 along with extension in maturity term by twenty eight (28) months starting from 31 October 2021.  

The Company has defaulted on the lumpsum payment that was due in January 2024 owed to Blacksoil Capital Private Limited for an amount of $335,052.

The Company has recorded an interest expense amounting to $64,635 and $65,047 for the year ended March 31, 2024 and March 31, 2023.

Term loans from NBFCs

Includes loans outstanding as at March 31, 2024 and March 31, 2023 of $3,976,093 and $5,054,979. The Company entered into debt restructuring with certain NBFCs during the year ended March 31, 2022 which resulted in the revision of repayment schedules. The revised rate of interest ranges between 2% - 14.50% per annum. These loans were repayable in 36-118 monthly instalments after restructuring.

In the month of August 2021 there has been a restructuring agreement entered between the group and Volkswagen Finance wherein as per the revised terms the debt has been restructured in the form of upfront payment and revised repayment schedules. The repayment of sustainable debt starts from December 30, 2020 to September 30, 2023 and thereafter the unsustainable debt starting from 31 July 2023 to 31 August 2027. One time settlement payment shall be based on the liquidation of proceeds collected from sale of secured assets on completion of their useful life on or before 30 September 2023. 

The Company has recorded an interest expense amounting to $396,502 and $536,567 for the year ended March 31, 2024 and March 31, 2023.

As of March 31, 2024, the Company continues to default on Equated Monthly Installment (“EMI”) for November 2023 to March 2024 owed to Kotak Mahindra Finance (Lender). The outstanding balance as of March 31, 2024 is $348,599 (including $121,787 for defaulted EMI). As per the restructuring agreement, in case of any default by the Company (Borrower), the Lender may issue Loan Recall notice thereafter the outstanding loan amount shall become payable immediately with penal interest of 1% per month.

The Company has defaulted on EMI for the months of January, February and March 2024 owed to Tata Motors Finance Limited for an amount of $136,325. As per the restructuring agreement, in case of default on payment by the Company, the outstanding loan balance becomes payable immediately with interest charge of 36% pa.  

The Company has defaulted on EMI for the months of February and March 2024 owed to Clix Finance India Unlimited for an amount of $14,516. As per the restructuring agreement, in case of default on payment by the Company, the outstanding loan becomes payable immediately.  

The outstanding amounts for the above loans are classified under current liabilities in the Consolidated Balance Sheet.

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 for an amount of $45,638. 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. The Company has defaulted on EMI for the months of December 2023 and March 2024 due to Jain and Sons Services Limited amounting to $19,197.

The Company has defaulted on the lumpsum payment due in the month of January 2024 owed to Mahindra & Mahindra Financial Services Limited and Mercury Car Rentals Private Limited for an amount of $873,924 and $239,962 respectively. The Company received a notice of “Invocation of Arbitration” from Mercury Car Rentals Private Limited. As per the notice, the case shall be transferred to arbitrator for dispute resolution on non payment of dues by the Company by May 15, 2024. As of date, these outstanding dues remain unpaid.  

The Company has recorded a penal interest expense amounting to $29,757 for the year ended March 31, 2024.

AON Insurance Limited

The Company has entered into a contract with AON Premium Finance LLC (‘AON’) in order to refinance its D&O insurance with Allied world insurance company, Axis insurance company, National union fire insurance company, XL specialty insurance company and Berkshire hathway specialty. The loan amount of $1,078,050 is required to be paid in 9 equal monthly installment amounting to $123,679, commencing from January 28, 2024.

The Company has recorded a interest expense amounting to $18,920 for the year ended March 31, 2024.