Notes to Accounts of Cool Caps Industries Ltd.

Mar 31, 2025

(d) Rights, Preference and Restrictions attached to Equity Shares of Rs.10 each.

The Company has only one class of share referred to as Equity Shares having a par value of Rs.10/- each. Each holder of Equity Shares is entitled to one vote per share.Dividend (if any) recommended by board of directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of winding up of the company, the holder of Equity Shares will be entitled to receive any of the remaining assets of the company after all preferential amounts and external liabilities are paid in full. However, no such preferential amount exists currently. The distribution of such remaining assets will be on the basis of number of Equity Shares held and the amount paid up on such shares.

(d) EPCG Grant

1. Custom duty saved on import of capital goods under EPCG Scheme is Rs. 234.27 Lakhs on 08.02.2017. Total Export Obligation ( EO) under the EPCG Scheme is Rs. 1,405.62 Lakhs. The original Export period was 6 years upto 07.02.2023. Further the Company had obtained an extension of 2 years with 20% EO enhancement, up to 07.02.2025.

DGFT has further extended the EO period by 18 months, i.e., up to 08.08.2026.

2. Custom Duty saved on import of Capital Goods is Rs. 350.18 Lacs. Total Export Obligation (EO) was Rs. 525.27 lakhs with export period of 6 years from the EPCG issue date i.e. 21.11.2023.

(b) Defined Benefit Obligation:

Post employment and other long-term employee benefits in the form of gratuity is considered as Defined Benefit Obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits obligation recognized in the Balance Sheet represent the present value of the obligation as adjusted for unrecognized past service cost.

(f) Actuarial Assumptions used as at the balance sheet date:

The principal economic & demographic assumptions considered in the valuation are:

Discount Rate - 6.75 %

Salary Escalation Rate - 7.00 %

Retirement Age - 58 year

Attrition rate - 5% at younger ages and reducing to 1% at older ages according to graduated scales

2.31 The Company is engaged in manufacturing of Plastic Caps & Closures and trading of Shrink Films, Trading of Granules, Plastic Caps & Closures.Considering the nature of Business and financial reporting of the company, the company is operating in only one segment. Hence segment reporting is not applicable.

In accordance with the provisions of the Accounting Standard on Impairment of Assets, AS -28, the management has made assessment of assets 2.33 in use in respect of each cash-generating unit and considering the business prospects related thereto, no provision is considered necessary on account of impairment of assets.

Based on Information available with the company and relied by us, principal amount due and remaining unpaid to Micro & Small Enterprises as 2 34 defined under the Micro, Small & Medium Enterprises Development Act, 2006 as on 31st March, 2025 amounted to Rs 45.35 Lakhs and no interest was paid or is payable to Micro & Small Enterprises for the year. The Company has initiated the process of identification of Creditors which falls under category of MSME, the disclosure relating to amount due to MSME are made to the extent information received.

2 35 The Balances of Advances , Trade Receivables and Trade Payables are subject to confirmation from the parties and subsequent adjustment if any on reconciliation.

2.36 Previous year''s figures have been regrouped / rearranged, wherever considered necessary to conform to current year presentation.

2.37 Additional Regulatory Information (Amount in Lakhs)

a) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease Agreements are duly executed in favour of the lessee) are held in the name of the Company.

b) The Company does not have any investment property.

c) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

d) There are loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are outstanding as on 31st March, 2025 are as follows which is repayables on demand:

e) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions ¹ (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

f) The company is not declared willful defaulter by any bank or financial institution or other lender.

g) The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

h) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

i) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

j) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. There are no such previously unrecorded income or related assets.

l) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

C Debt Service Coverage Ratio(in times)

Company''s Earnings increased from Rs. 1200.61 lakhs to Rs. 2205.87 lakhs and Principle Interest increase from 761.11 to 1082.93 because of this return on Debt Service Coverage Ratio improved from 1.58 to 2.04 times.

D Return on Equity Ratio (in %)

Return on Equity Improved due to increase in net profit after tax from Rs. 467.72 Lakhs to Rs. 1090.04 Lakhs of the Company and Average Shareholders Equity from 3856.21 Lakhs to 4772.59 Lakhs during the year as compared to Previous Year.

F Trade Receivables Turnover Ratio (In times)

Although Company''s Revenue increased from Rs. 9974.65 lakhs to Rs. 10062.55 lakhs and Average Receivables increased from Rs. 1617.48 Lakhs to Rs. 2416.06 Lakhs, The Trade Receivables Turnover ratio decreased from 6.17 times to 4.16 times.

G Trade Payables Turnover Ratio (In times)

Trade payables turnover ratio is increased from 7.84 to 9.94 due to a proportionally higher increase in credit purchases compared to the rise in average trade payables.

H Net Capital Turnover Ratio (In times)

The movement in the net capital turnover ratio from 26.22 to 108.27 is a result of proportionally higher increase in Revenue from operations compared to working capital .

I Net Profit Ratio (In %)

Net Profit Ratio improved from 4.69% to 10.83% due to significant increase in revenue from operations from Rs. 9,974.65 Lakhs to Rs. 10,062.55 Lakhs during the year and Net Profit from 467.72 to 1090.04 Lakhs as compared to previous year.

J Return on Capital Employed (In %)

Company''s Earnings increased from Rs. 1140.87 lakhs to Rs. 2074.88 lakhs,on account of this return on Capital Employed Ratio improved from 14.77% to 24.53%. k Return on Investment (In %)

In current Year, income generated from Invested fund decrease from 9.83 Lakhs to 2 lakhs and Invested fund Increase from 470.35 Lakhs to 566.28 Lakhs and due to this, Return on investment decreases.

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Mar 31, 2024

_M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

(i) Provisions

A provisions is recognized when the Company has a present obligation as a result of past event, if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation.

(ii) Contingent Liability

Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

(iii) Contingent Assets

Contingent Assets are neither recognised nor disclosed in the financial statements.

N. CASH & CASH EQUIVALENTS

Cash & cash equivalents comprise cash and cash on deposit with banks and corporations. The company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amount of cash to be cash equivalents.

(d) Rights, Preference and Restrictions attached to Equity Shares of Rs.10 each.

The Company has only one class of share referred to as Equity Shares having a par value of Rs.10/- each. Each holder of Equity Shares is entitled to one vote per share. Dividend on such shares is payable in proportion to the paid up amount. Dividend (if any) recommended by board of directors (other than interim dividend) is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of winding up of the company, the holder of Equity Shares will be entitled to receive any of the remaining assets of the company after all preferential amounts and external liabilities are paid in full. However, no such preferential amount exists currently. The distribution of such remaining assets will be on the basis of number of Equity Shares held and the amount paid up on such shares.

(f) Actuarial Assumptions used as at the balance sheet date:

The principal economic & demographic assumptions considered in the valuation are:

Discount Rate - 6.80 %

Salary Escalation Rate - 7.00 %

Retirement Age - 58 year

Attrition rate - 5% at younger ages and reducing to 1% at older ages according to graduated scales

2.33 The Company is engaged in manufacturing of Plastic Caps & Closures and trading of Shrink Films, Trading of Granules, Plastic Caps & Closures.Considering the nature of Business and financial reporting of the company, the company is operating in only one segment. Hence segment reporting is not applicable.

2.35 In accordance with the provisions of the Accounting Standard on Impairment of Assets, AS -28, the management has made assessment of assets in use in respect of each cash-generating unit and considering the business prospects related thereto, no provision is considered necessary on account of impairment of assets.

2.36 Based on Information available with the company and relied by us, principal amount due and remaining unpaid to Micro & Small Enterprises as defined under the Micro, Small & Medium Enterprises Development Act, 2006 as on 31st March ''24 amounted to Rs 672.84 Lakhs and no interest was paid or is payable to Micro & Small Enterprises for the year. The Company has initiated the process of identification of Creditors which falls under category of MSME, the disclosure relating to amount due to MSME are made to the extent information received.

2.37 The Balances of Advances , Trade Receivables and Trade Payables are subject to confirmation from the parties and subsequent adjustment if any on reconciliation.

2.38 Previous year''s figures have been regrouped / rearranged, wherever considered necessary to conform to current year presentation.

2.39 Additional Regulatory Information

a) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease Agreements are duly executed in favour of the lessee) are held in the name of the Company.

b) The Company does not have any investment property.

c) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible

d) There are loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are outstanding as on 31st March ''24 are as follows which is repayables on demand:

* Reason for variance More than 25 %

E Inventory Turnover Ratio ( In times)

Average Inventory increased from Rs.1151.79 Lakhs to Rs. 1522.86 Lakhs and Cost of Goods Sold decreased from 11,094.26 Lakhs to 8615.9 Lakhs because of this Inventory Turnover Ratio decreased from 9.63 times to 5.66 times.

F Trade Receivables Turnover Ratio (In times)

Company''s Revenue decreased from Rs. 12819.11 lakhs to Rs. 9974.65 lakhs and Average Receivables increased from Rs. 1100.65 Lakhs to Rs.1617.48 Lakhs because of this Trade Receivables Turnover ratio decreased from 11.65 times to 6.17 times.

G Trade Payables Turnover Ratio (In times)

Company''s Credit Purchase decreased from Rs. 11636.85 lakhs to Rs. 8048.41 lakhs and Average Payables increased from Rs. 726.39 Lakhs to Rs. 1026.03 Lakhs because of this Trade Payable Turnover ratio decreased from 16.02 times to 7.84 times.

H Net Capital Turnover Ratio (In times)

In the FY 2023-24, Turnover decreased from Rs.12819.11 Lakhs to Rs. 9974.65 Lakhs and Inventroy Increased from Rs. 1269.91 Lakhs to Rs. 1965.05 Lakhs because of this Net Capital Turnover Ratio decreased from 61.08 to times to 26.22 times

As per our Report of even date.

For Keyur Shah & Co. For & on behalf of Cool Caps Industries Limited

Chartered Accountants

Firm Registration No.: 141173W

Sd/- Sd/- Sd/-

Keyur Shah Rajeev Goenka Poonam Goenka

Proprietor DIN:00181693 DIN:00304729

Membership No.: 153774 Chairman Cum Managing

Director

Director

Sd/- Sd/-

Arijit Ghosh Shivam Thakkar

PAN: BYJPG6370B PAN: AKKPT5780A

Company Secretary and

_ Chief Financial Officer

Compliance Officer

Place: Ahmedabad Place:Kolkata

Date:- 29th May ''24 Date:- 29th May ''24

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Mar 31, 2023

(a) Rights, Preference and Restrictions attached to Equity Shares of H10 each.

The Company has only one class of share referred to as Equity Shares having a par value of H10/- each. Each holder of Equity Shares is entitled to one vote per share. Dividend on such shares is payable in proportion to the paid up amount. Dividend (if any) recommended by board of directors (other than interim dividend) is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of winding up of the company, the holder of Equity Shares will be entitled to receive any of the remaining assets of the company after all preferential amounts and external liabilities are paid in full. However, no such preferential amount exists currently. The distribution of such remaining assets will be on the basis of number of Equity Shares held and the amount paid up on such shares.

d) Custom duty saved on import of capital goods under EPCG Scheme is H234.27 Lacs on 08.02.2017. Total Export Obligation ( EO) under the EPCG Scheme is H1,405.62 Lacs. Export period is 6 years upto 07.02.2023. Further the Company has filed an application with DGFT fulfilment of EO with 20% EO enhancement with extented period of 2 Years i.e up to 07.02.2025.

b) Defined Benefit Obligation:

Post employment and other long-term employee benefits in the form of gratuity is considered as Defined Benefit Obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits obligation recognized in the Balance Sheet represent the present value of the obligation as adjusted for unrecognized past service cost.

2.31 The Company is engaged in manufacturing of Plastic Caps & Closures. Considering the nature of Business and financial reporting of the company, the company is operating in only one segment. Hence segment reporting is not applicable.

2.33 In accordance with the provisions of the Accounting Standard on Impairment of Assets, AS -28, the management has made assessment of assets in use in respect of each cash-generating unit and considering the business prospects related thereto, no provision is considered necessary on account of impairment of assets.

2.34 Based on Information available with the company and relied by us, principal amount due and remaining unpaid to Micro & Small Enterprises as defined under the Micro, Small & Medium Enterprises Development Act, 2006 as on 31.03.2023 amounted to H117.79 Lakhs and no interest was paid or is payable to Micro & Small Enterprises for the year. The Company has initiated the process of identification of Creditors which falls under category of MSME, the disclosure relating to amount due to MSME are made to the extent information received.

2.35 The Balances of Advances , Trade Receivables and Trade Payables are subject to confirmation from the parties and subsequent adjustment if any on reconciliation.

2.36 Previous year''s figures have been regrouped / rearranged, wherever considered necessary to conform to current year presentation.

2.37 Additional regulatory information

A) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease Agreements are duly executed in favour of the lessee) are held in the name of the Company.

B) The Company does not have any investment property.

C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

D) There are loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are outstanding as on 31st March, 2023 are as follows which is repayables on demand:

E) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

F) The company is not declared willful defaulter by any bank or financial institution or other lender.

G) The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

H) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

I) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

J) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

K) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. There are no such previously unrecorded income or related assets.

L) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

M) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are applicable to the Company for the financial year 2023-24 and Details of the required CSR spending are as follows:

A Current Ratio (In times)

During the year, Company took more short term loans from the bank and increased in Trade Payables on account of this Current Liabilities increased from H1224.19 lakhs to H4285.27 lakhs, hence Current Ratios decresed from 2.76 times to 1.05 times.

E Inventory Turnover Ratio ( In times)

Average Inventory increased from H661.46 Lakhs to H1151.79 Lakhs because of this Inventory Turnover Ratio improved from 5.52 times to 9.63 times.

F Trade Receivables Turnover Ratio (In times)

Company''s Revenue increased from H4691.25 lakhs to H12819.11 lakhs and Average Receivables increased from H940.83 Lakhs to H1100.65 Lakhs because of this Trade Receivables Turnover ratio improved from 4.99 times to 11.65 times.

H Net Capital Turnover Ratio (In times)

In the FY 2022-23, Receivables and Inventory increased as compared to previous year and Company took more Short Term Loan and increased in Trade Payables as compared to previous year, Company''s Net Working Capital decreased from from 2153.51 to 209.88 lakhs on account of this ratio increased from 2.11 times to 61.08 times.

I Net Profit Ratio (In %)

Due to increased in the finance cost and other expenses, Company''s Net profit ratios decreased from 6.84 % to 3.83%.

J Return on Capital Employed (In %)

Company''s Earnings increased from H663.12 lakhs to H1071.20 lakhs,on account of this return on Capital Employed Ratio improved from 12.22% to 18.69%.

K Return on Investment (In %)

During the year, Company generated more Income from Operation on account of that Return on Investment increased from 10.72% to 14.08%.