| Variable Interest Entities |
| 30 | Variable
Interest Entities |
An entity is a VIE if it has any of the following characteristics
:
| ● | The
entity does not have enough equity to finance its activities without additional subordinated financial support. |
| ● | The
equity holders, as a group, lack the characteristics of a controlling financial interest. |
| ● | The
entity is structured with non-substantive voting rights (i.e., an anti-abuse clause). |
We consolidate VIEs in which Company
hold a variable interest and are the primary beneficiary. Company is the primary beneficiary because it has the power to direct the activities
of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that potentially
could be significant to the VIE and the right to receive benefits from the VIE that potentially could be significant to the VIE (benefits).
As a result, we consolidate the assets and liabilities of these consolidated VIEs.
The VIEs have been incorporated in their respective locations
to perform the business of providing mobility solutions to consumers and businesses.
The following table summarizes the assets and liabilities
related to the Company’s consolidated VIEs:
| | |
December 31,
2024 | | |
March 31,
2024 | |
| Assets | |
| | |
| |
| Cash and Cash equivalents | |
$ | 4,534 | | |
$ | 11,888 | |
| Accounts receivable | |
$ | - | | |
$ | 7,341 | |
| Other current assets | |
$ | 388 | | |
$ | 3,868 | |
| Prepaid expenses | |
$ | - | | |
$ | 4,282 | |
| Property and equipment, net | |
$ | - | | |
$ | 41,849 | |
| Intangible assets, net | |
$ | - | | |
$ | 3,012 | |
| Long term Investments | |
$ | 4,003 | | |
$ | 4,112 | |
| Receivable from government authorities - non-current | |
$ | 3,940 | | |
$ | 18,126 | |
| Liabilities | |
| | | |
| | |
| Accounts payable | |
$ | 382,947 | | |
$ | 374,692 | |
| Contract Liabilities | |
$ | - | | |
$ | 3,755 | |
| Current portion of pension and other employee obligations | |
$ | 78 | | |
$ | 986 | |
| Other current liabilities | |
$ | 141,756 | | |
$ | 148,950 | |
| Pension and other employee obligations, less current portion | |
$ | - | | |
$ | 1,189 | |
Total investment in the VIEs is as follows:
| Name of the VIE entity | | Place of incorporation | | Nature of investment | | Investor entity | | Zoomcar Egypt Car Rental LLC*** | | Egypt | | Debt | | Zoomcar Netherlands Holding B.V | | Zoomcar Egypt Car Rental LLC*** | | Egypt | | Debt | | Zoomcar Inc. | | Fleet Mobility Philippines Corporation* | | Philippines | | Debt | | Zoomcar Inc. | | Zoomcar Vietnam Mobility LLC** | | Vietnam | | Debt | | Fleet Holding Pte Ltd | | Zoomcar Vietnam Mobility LLC** | | Vietnam | | Debt | | Zoomcar Inc. | | Zoomcar Vietnam Mobility LLC** | | Vietnam | | Equity | | Fleet Holding Pte Ltd |
These amounts have been eliminated during the process of consolidation
| * | In May 2022, Company had initiated the process of winding-up for
Fleet Mobility Philippines Corporation. The assets consolidated for the VIE are not material. |
| ** | In August 2023, Zoomcar Vietnam Mobility LLC has filed for bankruptcy
with the local authorities. In accordance with ASC 810-10-15-10, the Company consolidates 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. The assets/liabilities consolidated for the VIE are not material. |
| *** | On June 3, 2024, Zoomcar Egypt Car Rental LLC has closed down
its operations due to decrease in operations and rising economic difficulties. The assets consolidated for the VIE are not material.
Additionally, On December 15 , 2024, Zoomcar Egypt Car Rental LLC held an extraordinary general meeting to initiate the liquidation process
and appoint a liquidator. |
The VIEs included in Condensed Consolidated
Financial Statements are separate legal entities and their assets are legally owned by them and are not available to the Company’s creditors
or creditors of the Company’s other subsidiaries.
Nature of, and changes (if any)
in, the risks associated with a reporting entity’s involvement with the VIE
In case of all the entities, the reporting
entity is exposed to foreign currency exchange risk of the subsidiaries since the subsidiaries are incorporated in countries other than
the country in which the reporting entity has been incorporated.
Further, Zoomcar Netherlands Holding B.V has advanced loan to Zoomcar Egypt Car Rental LLC. Accordingly, Zoomcar Netherlands Holding B.V
is exposed to the credit risk of Zoomcar Egypt Car Rental LLC.
|
| 33 | Variable
Interest Entities |
An
entity is a VIE if it has any of the following characteristics:
| ● | The
entity does not have enough equity to finance its activities without additional subordinated
financial support. |
| ● | The
equity holders, as a group, lack the characteristics of a controlling financial interest. |
| ● | The
entity is structured with non-substantive voting rights (i.e., an anti-abuse clause). |
We
consolidate VIEs in which Company hold a variable interest and are the primary beneficiary. Company is the primary beneficiary because
it has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation
to absorb losses of the VIE that potentially could be significant to the VIE and the right to receive benefits from the VIE that potentially
could be significant to the VIE (benefits). As a result, we consolidate the assets and liabilities of these consolidated VIEs.
The
VIEs have been incorporated in their respective locations to perform the business of providing mobility solutions to consumers and businesses. The
following table summarizes the assets and liabilities related to the Company’s consolidated VIEs:
| | |
March
31, 2024 | | |
March
31, 2023 | |
| Assets | |
| | |
| |
| Cash and Cash equivalents | |
$ | 11,888 | | |
$ | 50,498 | |
| Accounts receivable | |
| 7,341 | | |
| 100,691 | |
| Other current assets | |
| 3,868 | | |
| 14,279 | |
| Prepaid expenses | |
| 4,282 | | |
| 4,148 | |
| Property and equipment, net | |
| 41,849 | | |
| 147,579 | |
| Intangible assets, net | |
| 3,012 | | |
| 11,900 | |
| Long term Investments | |
| 4,112 | | |
| 4,347 | |
| Receivable from government authorities -non
current | |
| 18,126 | | |
| 51,838 | |
| | |
| | | |
| | |
| Liabilities | |
| | | |
| | |
| Accounts payable | |
$ | 374,692 | | |
$ | 417,884 | |
| Contract Liabilities | |
| 3,755 | | |
| 11,912 | |
| Current portion of pension and other employee
obligations | |
| 986 | | |
| - | |
| Other current liabilities | |
| 148,950 | | |
| 370,831 | |
| Pension and other employee obligations, less
current portion | |
| 1,189 | | |
| - | |
Total
investment in the VIEs is as follows:
| Name of the VIE entity | | Place of incorporation | | Nature of investment | | Investor entity | | Zoomcar Egypt Car Rental LLC | | Egypt | | Debt | | Zoomcar Netherlands Holding B.V | | Zoomcar Egypt Car Rental LLC | | Egypt | | Debt | | Zoomcar Inc. | | Fleet Mobility Philippines Corporation * | | Philippines | | Debt | | Zoomcar Inc. | | Zoomcar Vietnam Mobility LLC** | | Vietnam | | Debt | | Fleet Holding Pte Ltd | | Zoomcar Vietnam Mobility LLC** | | Vietnam | | Debt | | Zoomcar Inc. | | Zoomcar Vietnam Mobility LLC** | | Vietnam | | Equity | | Fleet Holding Pte Ltd |
These
amounts have been eliminated during the process of consolidation
| * | In May 2022, Company had initiated the process of winding-up for Fleet Mobility Philippines Corporation. The assets consolidated for the VIE are not material. |
| ** | In August 2023, Zoomcar Vietnam Mobility LLC has filed for bankruptcy with the local authorities. 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. The assets/liabilities consolidated for the VIE are not material. |
The
VIEs included in Consolidated Financial Statements are separate legal entities and their assets are legally owned by them and are not
available to the Company’s creditors or creditors of the Company’s other subsidiaries.
Nature
of, and changes (if any) in, the risks associated with a reporting entity’s involvement with the VIE
In
case of all the entities, the reporting entity is exposed to foreign currency exchange risk of the subsidiaries since the subsidiaries
are incorporated in countries other than the country in which the reporting entity has been incorporated.
Further,
Zoomcar Netherlands Holding B.V has advanced loan to Zoomcar Egypt Car Rental LLC. Accordingly, Zoomcar Netherlands Holding B.V is exposed
to the credit risk of Zoomcar Egypt Car Rental LLC.
|