We have audited the standalone financial statementsof The Indian Wood Products Co Ltd (“the Company”),which comprise the standalone balance sheet as at31st March 2025, and the statement of Profit and Loss,statement of changes in equity and statement of cashflows for the year ended, and notes to the standalonefinancial statements, including a summary of significantaccounting policies and other explanatory information.
In our opinion and to the best of our informationand according to the explanations given to us, theaforesaid standalone financial statements give theinformation required by the Companies Act, 2013 (“theAct”) in the manner so required and give a true and fairview in conformity with Indian Accounting Standardsprescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules, 2015,as amended, (“Ind AS”) and other accounting principlesgenerally accepted in India, of the state of affairs of theCompany as at 31st March, 2025, and its profit, totalcomprehensive income, the changes in equity and itscash flows for the year ended on that date.
We conducted our audit in accordance with the Standardson Auditing (SAs) specified under section 143(10) ofthe Companies Act, 2013. Our responsibilities underthose Standards are further described in the Auditor’sResponsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independentof the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevantto our audit of the standalone financial statements underthe provisions of the Companies Act, 2013 and theRules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirementsand the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
Key Audit Matters
Key audit matters (‘KAM’) are those matters that, in ourprofessional judgment, were of most significance in ouraudit of the standalone financial statements of the currentperiod. These matters were addressed in the context ofour audit of the standalone financial statements as awhole, and in forming our opinion thereon, and we donot provide a separate opinion on these matters.
The Key Audit Matters
Auditors response
Revenue from Sale of Goods
The Company recognizes revenue when control of thegoods is transferred to the customer at an amount thatreflects the consideration to which the Company expectsto be entitled in exchange for those goods. As describedin the accounting policy in note 2(f) and as reflected innote 29 to the Ind AS Standalone financial statements,revenue from sale of goods is measured at fair value ofthe consideration received or receivable, net of returnsand allowances and trade discounts.
Considering the judgment and estimates involved inrevenue recognition, it is considered to be a key auditmatter.
Our audit procedure includes the following:
• Considered the adequacy of the company’s revenuerecognition policy and its compliance in terms of IndAS 115 “Revenue from contracts with customers.
• Assessed the design and tested the operatingeffectiveness of the internal financial controls relatedto revenue recognition.
• Performed sample tests of individual sales transactionand traced to sales invoices and other relateddocuments. In respect of the samples selected, testedand the revenue has been recognized in accordancewith Ind AS 115.
• We discussed and obtained an understanding fromthe management on the key assumptions applied andinputs used in estimating provisions for discounts,sales incentives and sales returns and compared thesame with the past trends and the provision made bythe management.
Assessed the relevant disclosure made in the standalonefinancial statement.
We have determined that there are no other key auditmatters to communicate in our report.
The Company’s Board of Directors is responsible forthe other information. The other information comprisesthe information included in the Company’s annual reportbut does not include the standalone financial statementsand our auditors’ report thereon.
Our opinion on the standalone financial statements doesnot cover the other information and we do not expressany form of assurance conclusion thereon.
In connection with our audit of the standalone financialstatements, our responsibility is to read the otherinformation and, in doing so, consider whether the otherinformation is materially inconsistent with the standalonefinancial statements or our knowledge obtained in theaudit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the otherinformation obtained prior to the date of the auditor’sreport, we conclude that there is a material misstatementof this other information, we are required to report thatfact. We have nothing to report in this regard.
Responsibility of Management and Those Chargedwith Governance for Standalone FinancialStatements
The Company’s Board of Directors is responsible forthe matters stated in section 134(5) of the CompaniesAct, 2013 (“the Act”) with respect to the preparationof these standalone financial statements that give atrue and fair view of the financial position, financialperformance, changes in equity and cash flows of the
Company in accordance with the accounting principlesgenerally accepted in India, including the IndianAccounting Standards specified under section 133 ofthe Act. This responsibility also includes maintenanceof adequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets ofthe Company and for preventing and detecting fraudsand other irregularities; selection and application ofappropriate accounting policies; making judgmentsand estimates that are reasonable and prudent; anddesign, implementation and maintenance of adequateinternal financial controls, that were operating effectivelyfor ensuring the accuracy and completeness of theaccounting records, relevant to the preparation andpresentation of the standalone financial statement thatgive a true and fair view and are free from materialmisstatement, whether due to fraud or error.
In preparing the standalone financial statements,management is responsible for assessing the Company’sability to continue as a going concern, disclosing,as applicable, matters related to going concern andusing the going concern basis of accounting unlessmanagement either intends to liquidate the Company orto cease operations, or has no realistic alternative butto do so.
Those Board of Directors are also responsible foroverseeing the Company’s financial reporting process.
Our objectives are to obtain reasonable assuranceabout whether the standalone financial statements as awhole are free from material misstatement, whether dueto fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an auditconducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatements canarise from fraud or error and are considered material if,individually or in the aggregate, they could reasonablybe expected to influence the economic decisions ofusers taken on the basis of these Standalone FinancialStatements.
As part of an audit in accordance with SAs, we exerciseprofessional judgement and maintain professionalscepticism throughout the audit. We also:
• Identify and assess the risks of material misstatementof the Standalone financial statements, whetherdue to fraud or error, design and perform auditprocedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriateto provide a basis for our opinion. The risk of notdetecting a material misstatement resulting fromfraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override ofinternal control.
• Obtain an understanding of internal financialcontrols relevant to the audit in order to designaudit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of theCompanies Act, 2013, we are also responsible forexpressing our opinion on whether the company hasadequate internal financial controls system in placeand the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policiesused and the reasonableness of accountingestimates and related disclosures made bymanagement.
• Conclude on the appropriateness of management’suse of the going concern basis of accounting and,based on the audit evidence obtained, whether amaterial uncertainty exists related to events orconditions that may cast significant doubt on theCompany’s ability to continue as a going concern.If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’sreport to the related disclosures in the StandaloneFinancial Statements or, if such disclosures areinadequate, to modify our opinion. Our conclusionsare based on the audit evidence obtained up to thedate of our auditor’s report. However, future eventsor conditions may cause the Company to cease tocontinue as a going concern.
• Evaluate the overall presentation, structure andcontent of the standalone financial statements,including the disclosures, and whether thestandalone financial statements represent theunderlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governanceregarding, among other matters, the planned scope andtiming of the audit and significant audit findings includingany significant deficiencies in internal control that weidentify during our audit.
We also provide those charged with governancewith a statement that we have complied with relevantethical requirements regarding independence, andto communicate with them all relationships and othermatters that may reasonably be thought to bear onour independence, and where applicable, relatedsafeguards.
From the matters communicated with those chargedwith governance, we determine those matters thatwere of most significance in the audit of the financialstatements of the current period and are therefore thekey audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rarecircumstances, we determine that a matter should notbe communicated in our report because the adverseconsequences of doing so would reasonably beexpected to outweigh the public interest benefits of suchcommunication.
As required by the Companies (Auditor’s Report) Order,2020 (“the Order”), issued by the Central Governmentof India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the Annexure “A” a
statement on the matters specified in paragraphs 3 and
4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the informationand explanations which to the best of our knowledgeand belief were necessary for the purposes of ouraudit.
(b) In our opinion, proper books of account as requiredby law have been kept by the Company so far as itappears from our examination of those book.
(c) The Standalone Balance Sheet, the StandaloneStatement of Profit and Loss including OtherComprehensive Income, the Standalone CashFlow Statement and the Standalone Statement ofChanges in Equity dealt with by this Report are inagreement with the books of account.
(d) In our opinion, the aforesaid Standalone FinancialStatements comply with the Indian AccountingStandards specified under Section 133 of the Actread with relevant rules issued thereunder.
(e) On the basis of the written representations receivedfrom the directors as on 31st March, 2025 takenon record by the Board of Directors, none of thedirectors is disqualified as on 31st March, 2025 frombeing appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company andthe operating effectiveness of such controls, referto our separate Report in “Annexure B”. Our reportexpresses an unmodified opinion on the adequacyand operating effectiveness of the Company’sinternal financial controls over financial reporting.
(g) With respect to the matter to be included in theAuditor’s Report under section 197(16)
In our opinion and according to the information andexplanation given to us, the remuneration paid bythe Company to its directors during the current yearis in accordance with the provisions of section 197of the Act. The remuneration paid to any director is
not in excess of the limit laid down under Section197 of the Act. The Ministry of Corporate Affairs hasnot prescribed other details under section 197 (16)which are required to be commented upon by us.
(h) With respect to the other matters to be included inthe Auditor’s Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014, inour opinion and to the best of our information andaccording to the explanations given to us:
i. The Company has disclosed the impact ofpending litigations on its financial position in itsStandalone Financial Statements - Refer NoteNo.- 52 to the standalone financial statements.
ii. The Company did not have any long-termcontracts including derivative contracts forwhich there were any material foreseeablelosses.
iii. There has been no delay in transferring theamounts required to be transferred to theInvestor Education and Protection Fund by theCompany.
iv. a) The management has represented that, tothe best of its knowledge and belief, other thanas disclosed in the notes to the accounts, nofunds have been advanced or loaned or invested(either from borrowed funds or share premiumor any other sources or kind of funds) by thecompany to or in any other person or entity,including foreign entities (“Intermediaries”),with the understanding, whether recordedin writing or otherwise, that the Intermediaryshall, whether, directly or indirectly lend orinvest in other persons or entities identified inany manner whatsoever by or on behalf of thecompany (“Ultimate Beneficiaries”) or provideany guarantee, security or the like on behalf ofthe Ultimate Beneficiaries.
b) The management has represented, that, tothe best of its knowledge and belief, other thanas disclosed in the notes to the accounts, nofunds have been received by the company fromany person or entity, including foreign entities
(“Funding Parties”), with the understanding,whether recorded in writing or otherwise,that the company shall, whether, directly orindirectly, lend or invest in other persons orentities identified in any manner whatsoeverby or on behalf of the Funding Party (“UltimateBeneficiaries”) or provide any guarantee,security or the like on behalf of the UltimateBeneficiaries.
c) Based on the audit procedures that havebeen considered reasonable and appropriatein circumstances, nothing has come to ourattention that has caused us to believe that therepresentations under sub-clause (i) and (ii)of Rule 11 (e) as provided under (a) and (b)above, contain any material misstatement.
v. The dividend proposed in the previous year,declared and paid by the Company during theyear is in accordance with section 123 of theAct, as applicable.
As stated in Note 16 to the financial statement,the Board of Directors of the Company hasproposed dividend for the year which issubject to the approval of the members at theensuing Annual General Meeting. The amountof dividend proposed is in accordance withsection 123 of the Act, as applicable.
vi. Based on our examination which included testchecks, the company has used accountingsoftware for maintaining its books of account,which have a feature of recording audit trailand it is capable of creating an edit log for eachchange made in books. The same has operatedthroughout the year for all relevant transactionsrecorded in the respective software.
Further, for the periods where audit trail (edit log) facilitywas enabled and operated throughout the year for therespective accounting software, we did not come acrossany instance of the audit trail feature being tampered.
For S K Agrawal and CoChartered Accountants LLP
Chartered AccountantsFRN - 306033E/E300272
Jugal Kishore Choudhury
Place: Kolkata Partner
Dated: 29th May 2025 Membership No. 009367
UDIN-25009367BMKZFF1367