n) Provisions and Contingent Liabilities and
Assets:

Contingent Liabilities are disclosed in respect of
possible obligations that arise from past events but their
existence will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control of the Company or where any
present obligation cannot be measured in terms of future
outflow of resources or where a reliable estimate of the
obligation cannot be made.

Provisions are recognized when the Company has a
present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount
can be reliably estimated. Provisions are not recognized
for future operating losses.

A contingent asset is disclosed, where an inflow of
economic benefits is probable. An entity shall not
recognize a contingent asset unless the recovery is
virtually certain.

o) Cash and Cash Equivalents:

For the purpose of presentation in the Statement of
Cash Flows, cash and cash equivalents includes cash
on hand, deposits held at call with financial institutions,
other short- term, highly liquid investments with original
maturities of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

p) Impairment of Assets:

Assets are assessed by the Company at each reporting
period whether there is an indication of impairment that
the carrying amount may not be recoverable.

An impairment loss is recognised for the amount by
which asset’s carrying amount exceeds its recoverable

amount. The recoverable amount is higher of an asset’s
fair value less cost of disposal and value in use.

q) Earnings Per Share:

Basic earnings per share: A basic earnings per share
is calculated by dividing:

i. the profit attributable to owners of the Company

ii. by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the
year .

Diluted earnings per share: Diluted earnings per
share adjusts the figures used in the determination of
basic earnings per share to take into account:

i. the after income tax effect of interest and other
financing costs associated with dilutive potential
equity shares, and

ii. the weighted average number of additional equity
shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.

r) Segment Reporting:

The Company’s operating businesses are organized and
managed separately according to the nature of products
and services provided, with each segment representing
a strategic business unit that offers different products and
serves different markets. The analysis of geographical
segments is based on the areas in which the customers
of the Company are located.

Segment Accounting Policies:

The Company prepares its segment information in
conformity with the accounting policies that are adopted
for preparing and presenting the financial statements of
the Company as a whole.

s) Rounding off:

All amounts disclosed in the financial statement
and notes have been rounded off to the nearest Lakhs,
unless otherwise stated.

t) Critical Estimates and Judgements

The preparation of financial statements requires the
use of accounting estimates which, by definition, will
seldom equal the actual results. Management also
needs to exercise judgement in applying the Company’s
accounting policies. This note provides an overview of
the areas that involved a higher degree of judgement
or complexity, and of items which are more likely to be
materially adjusted due to estimates and assumptions
turning out to be different than those originally assessed.
Detailed information about each of these estimates
and judgements is included in relevant notes together
with information about the basis of calculation for each
affected line item in the financial statements.

The preparation of the financial statements in conformity
with GAAP requires the Management to make estimates
and assumptions that affect the reported balances
of assets and liabilities and disclosures relating to
contingent assets and liabilities as at the date of the
financial statements and reported amounts of income
and expenses during the period. These estimates
and associated assumptions are based on historical
experience and management’s best knowledge of
current events and actions the Company may take in
future.

Information about critical estimates and assumptions that
have a significant risk of causing material adjustment to
the carrying amounts of assets and liabilities are:

i. Impairment of financial assets (including trade
receivable)

ii. Estimation of defined benefit

iii. Estimation of current tax expenses and payable

iv. Estimation of provisions and contingencies

u) Leases

The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the right
to use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for
any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease
payments made at or before the commencement date
less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the lease
term.

If ownership of the leased asset transfers to the Company
at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated
using the estimated useful life of the asset. The right-of-
use assets are also subject to impairment.

ii) Lease liabilities

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present
value of lease payments to be made over the lease term.
The lease payments include fixed payments (including
in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on
an index or a rate, and amounts expected to be paid
under residual value guarantees. The lease payments
also include the exercise price of a purchase option
reasonably certain to be exercised by the Company and
payments of penalties for terminating the lease, if the
lease term reflects the Company exercising the option to
terminate. Variable lease payments that do not depend
on an index or a rate are recognised as expenses
(unless they are incurred to produce inventories) in the
period in which the event or condition that triggers the
payment occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a
change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate

used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying
asset.

The Company’s lease liabilities are included in Interest¬
bearing loans and borrowings.

iii) Short-term leases and leases of low-value
assets

The Company applies the short-term lease recognition
exemption to its short-term leases of Land & building
(i.e., those leases that have a lease term of 12 months
or less from the commencement date and do not contain
a purchase option). It also applies the lease of low-
value assets recognition exemption to leases of office
equipment that are considered to be low value. Lease
payments on short-term leases and leases of low value
assets are recognized as expense on a straight-line
basis over the lease term.

Company as a lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental to
ownership of an asset are classified as operating leases.
Rental income arising is accounted for on a straight-line
basis over the lease terms and is included in revenue in
the statement of profit or loss due to its operating nature.
Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of
the leased asset and recognized over the lease term on
the same.

(b) Terms and Rights attached to Equity Shares

The Company has only one class of Equity shares having a par value of Rs. 2/- per share. Each holder of
equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The
dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to
receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.

(d) Shares reserved for issue under options

As at 31st March 2025 the Company does not have any outstanding options.

(e) Information regarding issue of shares for the period of five years immediately preceding the date at
which the Balance Sheet is prepared:

i) The Company has not issued any shares without payment being received in cash

ii) The Company has not undertaken any buy-back of shares.

39 a) Working Capital facilities and ECLGS Loan are from Union Bank of India, DBS Bank India Ltd and Yes
Bank Ltd under Multiple Banking Arrangements (MBA) secured by charge of stocks of Raw material, Katha
and Cutch whether Raw or in process of manufacture and all articles manufactured there from, Stores,
Book debts, Plant & Machinery and certain other assets and mortgaged by deposit of title deeds of Land
at Bareilly measuring 91,600 square meter on pari - passu basis and have been guaranteed by Promoter
Director(s).

b) Fair Value Hierarchy

All Financial Assets & Financial Liabilities are carried at amortised cost except Current Investments and Foreign
Currency Forward Contracts, which have been fair valued using Level 1 & Level 2 Hierarchy respectively.

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

The following table represents the fair value hierarchy of Financial Assets and Financial Liabilities measured at
Fair Value on a recurring basis :

46. Financial Risk Management Objectives and Policies

“The Company’s financial liabilities comprise loans, Trade and other payables. The main purpose of these
financial liabilities is to finance the Company’s operation. The Company’s principal financial assets include
Investments, loans, Trade and other receivables and cash and cash equivalents that derive directly from its
operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company regularly assess
these risks, monitor, evaluate and deploy mitigation measures to manage the risks within risk appetite.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised
below:

a. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial assets will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
loans and borrowing, investments ,trade receivables etc.

i. Interest Rate Risk and Sensitivity

The Company’s exposure to the risk of changes in market interest rates relates primarily to the long term
debt obligations with Floating rate of interest.

The following table demonstrates the sensitivity to a reasonably possible changes in interest rates on that
portion of loans and borrowings affected. With all other variables remaining constant, the company’s profit
before tax and equity before tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in basis points for interest rate sensitivity is based on the currently observable market
environment.

ii. Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates.The Company’s exposure to the risk of changes in foreign exchange
rates relates primarily to the Company’s operating activities.Such foreign currency exposures are hedged
by the Company.

b. Credit Risk

Credit risk is the risk that the counter party will not meet its obligation under a financial instruments or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating
activities (primarily trade receivables).

The Company extends credit to customers in normal course of business. The Company considers factors
such as credit track record in the market and past dealings for extension of credit to customers. The Company
monitors the payment track record of the customers and Outstanding receivables are regularly monitored.

c. Liquidity Risk

Liquidity Risk is the risk that the company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the
use of Bank loans, Credit purchases etc.

The table below provides undiscounted cash flows towards Financial Liability into relevant maturity based
on the remaining period at the balance sheet date to the contract maturity date.

47. Capital Management

For the purpose of the Company’s Capital Management, Capital includes issued equity capital, shares premium
and all other Equity Reserves attributable to the Equity holders of the Parent. The Primary objective of the
Company’s capital management is to maximise the Shareholder value.

The Company manages its capital structure and makes adjustments inlight of changes in economic conditions
and the requirements of the financial covenants.

51. The main Products of the Company i.e. Katha & Cutch along with its Raw Materials like Khair Wood, Katha
Lugdi, Cutch Lugdi, are covered under U. P. Forest Act and a transit fee has to be paid on movement of all these
items. Uttar Pradesh Government by its various amendments changed the transit fee from Rs. 38/- Per M.T to
Rs. 200/- Per Cubic Meter and subsequently 5% advolrum.

Honorable Supreme Court in its interim order dated 26/04/2016, directed the Uttar Pradesh Government to
collect transit fees @ 5% advolrum subject to final outcome of the case and also directed U. P Government to
keep the said amount in a separate account so that it can be paid back to the effected parties with interest @
9% Per Annum if final order is in favour of the parties.

Subsequently Honorable Supreme Court by its final order dated 15/09/2017 directed Uttar Pradesh Government
to collect transit fees @ Rs 38/- Per M.T only and refund the excess amount collected from parties along with
interest @ 9% per annum.

In view of the above, an excess amount of Rs. 1000.29 lakhs paid as transit fees to the Forest Department of
Uttar Pradesh is refundable with interest @ 9% per annum. The company has made necessary applications
which is under process and will be accounted for as and when the company will get the refund.

52. Contingent Liabilties and Commitments

a) Demand for sales tax and GST amounting to Rs. 165.05 lacs (Rs. 165.05 lacs) which are not acknowledged
as debts. Against the same company has paid under protest a total of Rs. 30.28 lacs (Rs. 30.28 lacs)
included in loans and Advances and TDR of Rs. 2.64 lacs (Rs. 2.64 lacs) are deposited with the sales tax
authorities.

b) Mandi Samitee demand on Katha amounting to Rs. 2.38 lacs (Rs. 2.38 Lacs) has been disputed by the
Company and stayed by Honorable High Court, Allahabad.

c) During the FY 2017 - 18, Commissioner of Customs, Nhava Sheva had passed an Ex-Partie Judgement
and raised a demand of Rs. 341.78 Lacs and imposed a penalty of Rs 341.78 Lacs against a Show Cause
Notice issued by the Additional Director General, Directorate of Revenue Intelligence, Kolkata in the year
2010. The said order passed by the Commissioner being contrary to law and against the principle of natural
justice, based on assumption and presumptions without any evidence on record and was not acceptable to
the Company, hence an appeal was preferred by the Company before CESTAT Nhava Sheva by producing
evidence of pre-deposit of Rs.40.00 lacs being 11.7% of duty demanded against the requirement of 7.5%
of the duty demanded while filing the appeal.Simultaneously, (2) two of the Whole Time Directors were also
made liable in the above said order on whom a penalty of Rs.15.00 lacs and Rs.10.00 lacs respectively
imposed. An appeal was also preferred on their behalf and a sum of Rs.1.90 lacs was deposited by the
Company and the amount is appearing in Loans & Advances account.Consequently, as per the legal
advice obtained, no provision is made at this stage. Final adjustment if any will be done as and when the
matter is crystalized.

d) During the year, the Company had received a revised order from the Income Tax Department under section
154/147 of the Income Tax Act, for the Assessment Year 2018 - 19. Wherein the Income Tax department
has reduced the tax demand from Rs. 1717.49 Lacs to Rs. 1017.17 Lacs. The reduction in the demand
was due to error in the computation of interest U/s 234B, which resulted in a excess levy of interrest in the
previous order. The appeal against the said order is still pending before the Commissioner of Income Tax(
Appeals).

53. Disclosure of Transactions with Struck Off Companies

The Company did not have any material transactions with companies struck off under Section 248 of the

Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

54 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:

i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the funding party (ultimate beneficiaries) or

ii) Provide any Guarantee, Security, or the like on behalf of the ultimate beneficiaries.

55. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (ultimate beneficiaries) or

ii) Provide any Guarantee, Security, or the like on behalf of the ultimate beneficiaries.

56. No transactions to report against the following disclosure requirements as notified by MCA pursuant to
amended Schedule III:

(a) Crypto Currency or Virtual Currency

(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and Rules made
thereunder

(c) Registration of charges or satisfaction with Registrar of Companies

(d) Relating to borrowed funds:

i. Wilful defaulter

ii. Utilisation of borrowed funds & share premium

iii. Discrepancy in utilisation of borrowings

iv. Current maturity of long term borrowings.

58. For better presentation previous year’s figures have been regrouped / re-arranged wherever necessary.

In terms of our Report attached For and on behalf of Board of Directors of

For S K Agrawal and Co Chartered Accountants LLP The Indian Wood Products Co. Ltd.

Chartered Accountants

Firm Registration Number - 306033E/E300272 Krishna Kumar Mohta Bharat Mohta

Jugal Kishor Choudhury Chairman & MD WTD & CEO

Partner DIN: 00702306 DIN: 00392090

Membership No.: 009367

Raj Kumar Agarwal Anup Gupta

Place: Kolkata Chief Financial Officer Company Secretary

Date: May 29, 2025 M. No. - A36061