Variable Interest Entities |
31 | 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 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.
|