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The Indian Wood Products Company Ltd.

BSE: 540954 Sector: Others
NSE: N.A. ISIN Code: INE586E01020
BSE 10:53 | 17 Sep 38.85 0.35
(0.91%)
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38.30

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38.95

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NSE 05:30 | 01 Jan The Indian Wood Products Company Ltd
OPEN 38.30
PREVIOUS CLOSE 38.50
VOLUME 1770
52-Week high 56.60
52-Week low 21.75
P/E 68.16
Mkt Cap.(Rs cr) 248
Buy Price 38.25
Buy Qty 26.00
Sell Price 38.85
Sell Qty 43.00
OPEN 38.30
CLOSE 38.50
VOLUME 1770
52-Week high 56.60
52-Week low 21.75
P/E 68.16
Mkt Cap.(Rs cr) 248
Buy Price 38.25
Buy Qty 26.00
Sell Price 38.85
Sell Qty 43.00

The Indian Wood Products Company Ltd. (INDIANWOODPROD) - Auditors Report

Company auditors report

To The Members of

The Indian Wood Products Co Ltd

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements

The Indian Wood Products Co Ltd ("the Company") which comprise thestandalone balance sheet as 31st March 2020 and the statement of Profit and statement ofchanges in equity and statement of cash flows for the year then ended and notes to thestandalone financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the in the manner so required and give a true and viewin conformity with Indian Accounting Standards prescribed under section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of Company as at 31st March 2020 and its profit comprehensive income thechanges in equity and cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant of to our audit of thestandalone financial statements under the provisions of the Companies Act 2013 and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained sufficient and appropriate is to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note 49 to the standalone financial statement which describes theuncertainties and potential impact of the Covid-19 pandemic of the fair Company'soperation and results as assessed by the management. The actual results may differ fromsuch theestimates depending upon future developments. Our opinionisnotmodifiedin .matterrespect ofthis the Key Audit Matters

Key audit matters (‘KAM') are those matters that in our total itsprofessionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole 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 Our audit procedure includes the following:
The Company recognizes revenue when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. As described in the accounting policy in note 2(f) and as reflected in note 27 to the Ind AS Standalone financial statements revenue from sale of goods is measured at fair value of the consideration received or receivable net of returns and allowances and trade discounts. ? Considered the adequacy of the company's revenue recognition policy and its compliance in terms of Ind
Considering the judgment and estimates involved in revenue recognition it is considered to be a key audit matter. AS 115 "Revenue from contracts with customers'
? Assessed the design and tested the operating effectiveness of the internal financial controls related to revenue recognition.
? Performed sample tests of individual sales transaction and traced to sales invoices and other related documents. In respect of the samples selected tested and the revenue has been recognized in accordance with Ind AS 115.
? We discussed and obtained an understanding from the management on the key assumptions applied and inputs used in estimating provisions for discounts sales incentives and sales returns and compared the same with the past trends and the provision made by the management.
Assessed the relevant disclosure made in the standalone Ind AS financial statement.

We have determined that there are no other key audit matters to communicate in ourreport.

Other Information

The Company's Board of Directors is responsible for the other information.The otherinformation comprises the information included in the Company's annual report but does notinclude the standalone financial statements and our auditors' report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon. In connection with ouraudit of the standalone financial statements our responsibility is to read the otherinformation and in doing so consider whether the information is materially inconsistentwith the financial statements or our knowledge obtained audit or otherwise appears to bematerially If based on the work we have performed on information obtained prior to thedate of this report we conclude that there is a material of this other information weare required to fact. We have nothing to report in this regard.

Responsibility of Management and Those Charged with Governance for Standalone FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under section 133 of the Act. Thisresponsibilityother also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company the and. forpreventing and detecting frauds and other irregularities;other selection and applicationof appropriate auditor's accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statement that give a true and fair view and free from materialmisstatement whether due to fraud or error. In preparing the standalone financialstatements management is responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern using the goingconcern basis of accounting unless management either intends to liquidate the Company tocease operations or has no realistic alternative but do so. Those Board of Directors arealso responsible overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements doubtOur objectives are to obtain reasonable assurance about whether the standalone financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Standalone Financial Statements. As part of an audit in accordance withSAs we exercise professional judgement and maintain professional scepticism throughoutthe audit. We also:

? Identify and assess the risks of material misstatement of the Standalone financialstatementswhether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for opinion. The risk of not detecting a material misstatement resulting from fraudis higher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal are control.

? Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act2013we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectivenessof such controls.

? Evaluate the appropriateness of accounting policies toused and the reasonableness ofaccounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that on the Company's ability may cast significantto continue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in theStandalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report.However future events or conditions may cause the Company to cease tocontinue as a going concern.

? Evaluate the overall presentation structure and content of thestandalone financialstatements including the disclosuresand whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure "B" a statement on the mattersspecified 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. (b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those book.

(c) The Standalone Balance Sheet the Standalone Statement of Profit and Loss includingOther Comprehensive Income the Standalone Cash Flow Statement and the StandaloneStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

(d) In our opinion the aforesaid Standalone Financial Statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with relevantrules issued thereunder.

(e) On the basis of the written representations received from the directors as on31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act. (f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A". Our report expresses anunmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

(g) With respect to the matter to be included in the Auditor's Report under section197(16) In our opinion and according to the information and explanation given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under section 197 (16) which arerequired to be commented upon by us.

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsStandalone Financial Statements Refer Note No.- 48 ii. The Company did not have any longterm contracts including derivative contracts for which there were any materialforeseeable losses. iii. There has been no delay in transferring the amounts required tobe transferred to the Investor Education and Protection Fund by the Company.

AnnEXuRE "A" TO THE IndEPEndEnT AudITOR'S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of The IndianWood Products Co Ltd ("the Company") as of March 31 2020 to the extent ofrecords available with us in conjunction with our audit of the standalone financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute sufficient and of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating the orderly and efficient conduct of effectivelyits business the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the Companies

Act 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols effectivelyin all operated material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is appropriate to provide a basisfor our audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of Standalone FinancialStatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a materialeffect . onthe Standalone Financial as at March31Statements

Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating 2020 based on the internal effectively control over financialreporting criteria established by the Company.

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) i. In respect of the Company's fixedassets: (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular program of verification to cover all the items of fixedassets in a phased manner which in our opinion is reasonable having regard to the sizeof the Company and the nature of its assets. Pursuant to the program certain fixedphysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and the records examinedby us including registered title deeds we report that the title deeds comprising allthe immovable properties are held in the name of the

Company as at the balance sheet date. ii. According to the information and explanationsgiven to us the inventory has been physically verified during the year by the managementat regular intervals. In our opinion the frequency of such verification is reasonable. Nomaterial discrepancies were noticed on physical verification. iii. The Company has notgranted any loans secured or unsecured to Companies firms limited liabilitypartnerships or other persons covered in the Register maintained under section 189 of theCompanies Act 2013. Accordingly paragraph 3(iii) of the order is not applicable to theCompany iv. In our opinion and according to the information and explanations given to usthe Company hascomplied with the provisions of Sections 185 and 186 of the Act in respectof grant of loans making investments and providing guarantees and securities asapplicable. v. In our opinion and according to the information and explanations given tous the Company has not accepted any deposit from the public in accordance with theprovisions of Sections 73 to 76 or any other relevant provisions of the Act and the rulesframed thereunder. Accordingly paragraph 3 (v) of the Order is not applicable to theCompany. vi. The Central Government of India has not prescribed the maintenance of costrecords by the Company as required under section 148(1) of the Companies Act. 2013 for anyof its products. vii. According to the information and explanations given to us inrespect of statutory dues: assets were (a) The Company has been regular in depositingundisputed statutory dues including Provident Fund Employees' State InsuranceIncomeTax Goods and Service Tax Cess and other material statutory dues applicable to itwith the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Goods and Service Tax Cess and material statutory dues inarrears as at March 31 for a period of more than six months from the date became payable.

(c) According to the records of the Company the outstanding of Sales tax Customgoods and taxon account of any dispute are as follows:-

Particulars Amount under dispute not yet deposited (Rs. in lakhs) Financial year to which the amount relates Forum where dispute is pending
Central Sales tax New Delhi 0.23 1987-88 Appellate Tribunal
Central Sales tax New Delhi 74.58 2001-02 Appellate Tribunal
Central Sales tax New Delhi 2.16 2002-03 Additional Commissioner
Local Sales tax New Delhi 43.75 2002-03 Additional Commissioner
Mandi Samity 2.18 1997-98 Hon'ble High Court Allahabad
UP Sales Tax 0.46 2010-11 Appeal before Additional Commissioner
Custom Act 643.56 2017-18 CESTAT Nhava Seva

viii. In our opinion and according to the information and explanations given to us bythe management the

Company has not defaulted in the repayment of dues to banks during the year.

ix. The Company has not raised moneys by way of initial public offer or further publicoffer debt instruments) during the year. To the best knowledge and belief and according tothe and explanations given to us term loans availed Company were applied for the purposefor loans were obtained.

x. To the best of our knowledge and according information and explanations given to usno fraud Company or nofraud on the Company by its employees has been noticed or reportedduring the

xi. According to the information and explanations to us the Company has paid orprovided for remunerations in accordance with the provisions section 197 read withSchedule V to the Act;

xii. In our opinion and according to the information explanations given to us theCompany is not a Company and hence reporting under clause 3 (xii) of Order is notapplicable to the Company.

xiii. In our opinion and according to the information explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act where applicablefor all transactions with the related parties and the details of related partytransactions been disclosed in theStandalone financial statements as required by theapplicable Indian accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with its Directors or persons connected with them. Accordingly paragraph 3(xv) of the Order is (including of not applicable. our

xvi. According to the information and explanation given byto us the Company is notrequired to be registered under the section 45-IA of the Reserve Bank of India Act 1934.the

.