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Variable Interest Entities
9 Months Ended
Dec. 31, 2023
Variable Interest Entities [Abstract]  
Variable Interest Entities
31Variable 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 the Company holds 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, 2023   March 31, 2023 
Assets        
Cash and Cash equivalents  $26,159   $50,498 
Accounts receivable   9,351    100,691 
Other current assets   8,019    14,279 
Prepaid expenses   240    4,148 
Property and equipment, net   69,108    147,579 
Intangible assets, net   4,125    11,900 
Long term Investments   4,204    4,347 
Receivable from government authorities -non current   14,939    51,838 
           
Liabilities          
Accounts payable  $387,805   $417,884 
Contract Liabilities   8,267    11,912 
Current portion of pension and other employee obligations   2,538    
-
 
Other current liabilities   201,366    370,831 
Pension and other employee obligations, less current   3,353    
-

 

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.
PT Zoomcar Indonesia Mobility Service ***  Indonesia  Equity  Fleet Holding Pte Ltd
PT Zoomcar Indonesia Mobility Service ***  Indonesia  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.
***As of March 31, 2022, Fleet Holding Pte Ltd. was consolidated under VIE model as it does not have enough equity to finance its activities to operate the business. During the year ended March 31, 2023, Fleet Holding Pte Ltd. has made equity investment in PT Zoomcar Indonesia Mobility Service, and as a result, the entity has sufficient equity at risk to operate the business. Therefore, PT Zoomcar Indonesia Mobility Service has been consolidated as a voting interest entity as at March 31, 2023 and not as a VIE.

 

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 Company’s other subsidiaries.

 

Nature of, and changes (if any) in, the risks associated with a reporting entity’s involvement with the VIE

 

In the 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.