Indian Wood Company Annual Report

Telephone No.
: 82320 23820, Fax : 033 2242 6799

Website : www.iwpkatha.com, E-mail : iwpho@iwpkath i
_CIN : L20101WB1919PLC003557 [email protected]
t
a a cata
ee
THE INDIAN WOOD PRODUCTS CO. LTD.
Me Registered Office : 9, Brabourne Road,Kolkata - 700 001
Date: - 27 August 2022
To,
BSE Limited
Phiroze Jeejeebhoy Towers
Dalal Street
Mumbai — 400 001
Script Code - 540954
Dear Sir/Madam
Sub: - Submission of Annual Report for the Financial Year 2021-22
le III and
Pursuant to Regulation 30 read with Part A (Para A) of Schedu
Requirements)
Regulation 34(1) of the SEBI (Listing Obligation and Disclosure
Regulation, 2015, we are enclosing herewith a copy of Annual Report of the
Company for the Financial Year 2021-2022.
the
Please also note that the Company has completed electronic dispatch of
to
Annual Report 2022 of the Company on 26 August, 2022 through an e-mail
the members whose e-mail address are registered with the Compan y or
Depositories Participants as the case may be, and whose name appears as in
the register of members/beneficial owners as on O5th August 2022.
The same has also been uploaded on the website of the Company at
www.iwpkatha.com.
This is for your information and dissemination.
Thanking You.
Yours Faithfully,
For The Indian Wood P
GS
ho LS
Anup Gupta YS
Company Secretary & &
ACS36061
Enclosed: - As Above
THE INDIAN WOOD PRODUCTS
COMPANY LIMITED
ORDER NOW AT IWPSPICES.IN
Statutory Report
CORPORATE INFORMATION
Board of Directors
Chairman & Managing Director Gndependent Director

Sanjay Kumar Maheswary
Krishna Kumar Mohta
Vinod Kumar Maheshwary
Drisha Poddar
Whole Jime Director & CEO
Surendra Bagri
Bharat Mohta
Chick Financial Officon (C70) Company Secretary (CS)

Anup Gupta
Raj Kumar Agarwal
Yon Executive Non Independent Director

Rajendra Prasad Chetani
Audit Committee Nomination and Remuneration Committee

Sanjay Kumar Maheswary Chairman Sanjay Kumar Maheswary Chairman
Vinod Kumar Maheshwary Member Vinod Kumar Maheshwary Member
Rajendra Prasad Chetani Member Rajendra Prasad Chetani Member
Stakeholders Relationship Committec CSR Committee

Rajendra Prasad Chetani Chairman Krishna Kumar Mohta Chairman
Bharat Mohta Member Bharat Mohta Member
Sanjay Kumar Maheswary Member Surendra Bagri Member
Vinod Kumar Maheshwary Member
Bankonrs 1. Union Bank of India, Bareilly 2. DBS Bank India Ltd., Kolkata 3. CITI Bank, Kolkata
Statutony Cuditon Registered Office Rogistrar

Agrawal Tondon & Co. Bombay Mutual Building Mis. Niche Technologies (P) Ltd
(Formerely Known as 9, Brabourne Road, 7th Floor, 3A, Auckland Place,
Agrawal Sanjay & Company) Kolkata - 700 001 Room No. 7A & 7B, 7th Floor
Room No. 1, Ist Floor CIN L20101VVB1919PLC003557 Kolkata - 700 017
59, Bentinck Street Phone : 8232023820 Phone No. 033 2280 6616/ 6617
Fax : (033) 2242-6799 Fax No. 033 2280 6619
Kolkata- 700 069
Email : [email protected] Email- [email protected]
Website: www.iwpkatha.com
ANNUAL REPORT 2021 - 22

THE INDIAN WOOD PRODUCTS COMPANY LIMITED
102ND
ANNUAL GENERAL MEETING
ON
MONDAY 26TH SEPTEMBER, 2022
THROUGH VIDEO CONFERENCE
OR
OTHER AUDIO VISUAL MEANS
SE ANNUAL REPORT 2021 - 22

Statutory Report

STANDALONE
FIVE YEAR PROGRESS AT A GLANCE
(= In Lacs)
2017-18} 2018-19] 2019-20} 2020-21 2021-22
1 Turnover/Revenue 21956.18) 20159.40) 19491.15] 15790.36| 17789.63
2 Profit Before Depreciation Interest & Tax 3491.02 3387.37 2080.09 1129.93 927.80
3 | Interest 549.85 494.26 653.48 682.41 660.59
4 | Depreciation 278.01 329.83 378.97 396.75 385.40
5 | Profit Before Tax 2663.16] 2563.28 1047.64 50.77 (118.19)
6 | Tax 931.63 778.88 288.66 18.03 (14.46)
7 | Net Profit 1731.53 1784.40 758.98 32.74 (103.73)
8 | Rate of Dividend (%) 12.50 10.00 5.00 5.00 *2.50
9 | Equity 640.03 1279.75 1279.75 1279.75 1279.75
10 | Reserve & Surplus 32608.32| 33651.07) 34178.90) 34156.58) 34028.25
11 Earning Per Share In Rs. 2.71 2.79 1.19 0.05 (0.16)
* Proposed
Note: Figure has been recasted or regrouped

CONTENTS
From the Desk of Chairman 01
Board’s Report 03
Certificate of Non-Disqualification of Directors 20
Management Discussion & Analysis 26
Corporate Governance Report 34
Certificate of Compliance with respect to Corporate Governance 47
CEO and CFO Compliance Certificate 48
Additional Shareholder’s Information 49
Standalone Financial Report
Independent Auditor’s Report 58
Balance Sheet 68
Statement of Profit & Loss 69
Cash Flow Statement 70
Statement of Changes in Equity 72
Notes to the Financial Statement 74
Consolidated Financial Report
Independent Auditor’s Report 112
Balance Sheet 118
Statement of Profit & Loss 119
Cash Flow Statement 120
Statement of Changes in Equity 122
Notes to the Financial Statement 124
SE ANNUAL REPORT 2021 - 22

Statutory Report
From the desk of Chairman

Dear Fellow Shareholders,
FY2022 was just another year full of ups and downs, started with the second wave of COVID-19 in
India, and ended on a note of high geopolitical tension and surging inflation.
The Indian economy grew 8.7 per cent in 2021-22, with the gross domestic product (GDP) expanding
4.1% in the March quarter from a year ago. The GDP growth for 2021-22 takes the economy above its
pre-pandemic level and is an improvement after contracting 6.6% in 2020-21. But the January-March
quarter expansion was the weakest in the previous fiscal year. It is lesser than the 5.4% growth seen
during the December quarter of 2021-22. Incidentally, the economic growth during the entire fiscal
of 2021-22 has gradually spiralled downwards with each quarter. India has also been witnessing
significant inflationary pressures similar to the global economy, incliding the impact of Russia —
Ukraine conflict, quicker tightening of financial conditions with RBI's rate hikes, high oil prices
impacting current account balance and fiscal deficit and subsequent Covid-19 outbreaks. However,
the Indian economy is well prepared for any challenges that it might face in FY 2022-23.
The FY2022 was an event full year for our Company too. Now, I would like to present to you the
operational highlights of FY 2021-22 of the Company.
Katha Division: IWP continued to be the dominant player in India’s Katha Industry holding position
of marker leader. The last financial year FY2022, due to adverse market scenario, prices of Raw
Material increased significantly as against finished goods products i.e. Katha which effects in the
profit margins of our Company.
The Catechin extraction unit set up in Indonesia through our Joint Venture Company in Singapore is
fully operational and 100% of the Catechin extraction is imported in India and used in the production
of the Katha by the Company. Moreover, efforts are being made to debottleneck and increase capacity
by minimum 50% in coming quarters.

During the year under review, the Company achieved a sales volume of 3443.88 MT Katha in FY 2022
compared to 3210.85 MT in FY 2020 -2021 during the turbulence time. However, the sales of Cutch (by-
product) increased from 802.08 MT in FY 2021 to 1236.33 MT in FY2022, thereby registering a growth
of 54.14%.
Spice Division: The IWP's Spices is now being the one of the most preferred spices and well recognized
by the customers in the markets it operates. Presently, IWP Spices are available in the State of Bihar
Uttar Pradesh, Assam, Delhi NCR. The IWP Spice’s demand is growing steadely, however the Company
is facing stiff competition from the established brands.
Spice Division is growing consistently, however, due to the initial period of brand awareness and with
various sales promotion activities, this division is still incurring losses. We are taking appropriate steps to
achieve breakeven in the upcoming quarters. The Covid-19 has impacted the growth in the spice segment
of the Company.
The operational and financial highlights are:
¢ = Achieved sales volume of 3443.88 MT Katha as compared to 3210.85 MT in FY 2021;
@ = Sales of Cutch (by-product) increased from 802.08 MT in FY 2021 to 1236.33 MT in FY 2022,
¢ = Spice Division recorded a turnover of Rs. 1230.29. lakhs in FY2022 as compared to Rs. 1283.46
lakhs in FY2021;
We firmly believe that employees are our biggest assets. Their safety and good health have been my top
priority during these tough times. We have continued with the safety initiatives placed during the first wave
of the pandemic for the well-being of our people. However, considering the significance of the physical
presence of employees in our operations, the work from home was discontinued with the relaxation in
government rules.
1 am hopeful of better operational and fmancial and operational performance of the Company in FY 2023. I
would like to thank our employees. We are also grateful to our customers, suppliers,partners, and of course
our shareholders for their support.
Krishna Kumar Mohta
Chairman & Managing Director
(DIN : 00702306)

Statutory Report
BOARD'S REPORT
FY2022 represents the fiscal year 2021-22, from 1 April 2021 to 31 March 2022, and analogously for FY2021 and
previously such labelled years.
Dear Shareholders,
The Board of Directors are pleased to present the 102nd Annual Report of The Indian Wood Products Co. Ltd (IVWP/
the Company), together with Audited Financial Statements for the Financial Year ended 31st March 2022.
1. FINANCIAL HIGHLIGHTS/PERFORMANCE OF THE COMPANY

Key financial performances of the Company for the FY2022 are as under: (® in Lakhs)
Standalone Consolidated
Particulars
FY2022 FY2021 FY2022 FY2021
Revenue From Operations 17789.63 15790.36 17789.63 15790.36
Profit Before Tax (PBT) (118.19) 50.77 (72.93) 226.23
Tax Expenses (14.46) 18.03 (14.46) 18.03
Profit After Tax (PAT) (103.73) 32.74 (58.47) 208.20
Earnings Per Share (0.16) 0.05 (0.09) 0.33
Equity Share Capital 1279.75 1279.75 1279.75 1279.75
Other Equity / Reserves And Surplus 34028 .25 34156.58 33845.37 33923 .88
FY2022 came with a wave of incidents including the

effect of the COVID-19 pandemic. The year began in a be paid to those shareholders whose names appear
positive manner in April 2022, but as we moved ahead on the register of members of the Company as on 19
through the month, the second wave of COVID-19 hit us. September 2022.
It was more challenging as the pandemic in India claimed 4. SHARE CAPITAL
innumerable lives and overwhelmed the nation’s health
infrastructure owing to the surge in infection caseload. There is no change in the Share Capital of the Company
While the situation eased from the second quarter during FY2022. The paid-up Share Capital of the
onward in the 4th quarter, the world encountered war Company as on 31 March 2022 comprises of 6,39,72,720
between Ukraine and Russia. Due to this, businesses Equity shares of Rs. 2/- each. During the year under
encountered high inflationary pressures including higher review, the Company has not issued any shares.
input costs. 5. TRANSFER TO RESERVES
3. DIVIDEND Your director does not propose to transfer any amount
The Board of Directors recommends a final dividend to Reserves.
of Re.0.05 per equity share, i.e., 2.5% on the paid-up 6. REVIEW OF OPERATIONS AND STATE OF
value of the equity shares for the Financial Year ended AFFAIRS
31 March 2022, out of free reserves / retained earnings.
Dividend is subject to the approval of shareholders at The global economy recovered strongly in FY2022 even
the ensuing Annual General Meeting (AGM)and shall as new variants of the COVID-19 virus fulled additional
be subject to deduction of income tax at source. The waves of the pandemic. Your Company has been able to
dividend, if approved at the ensuing 102nd AGM, will perform well. I\VWP Katha division has witnessed significant

challenges in terms of the increased cost of raw materials, Note No. 50 to the notes to the accounts.
production results and revenue growth during the FY2022.
8. ALTERATION OF MEMORANDUM AND
During the year under review, the Company has achieved ARTICLES OF ASSOCIATION
a sales volume of 3443.88 MT Katha in FY2022 as
During the FY2022, the Company had not altered any of
compared to 3210.85 MT in FY 2021 during the turbulence
its clauses in the Memorandum and Article of Association.
time. The sales of Cutch (by-product) increased from
802.08 MT in FY2021 to 1236.33 MT in FY2022, thereby 9. MATERIAL CHANGES AND COMMITMENTS
registering a growth of 54.14 %. AFFECTING THE FINANCIAL POSITION OF
THE COMPANY BETWEEN THE END OF THE
The Company has recorded a turnover of Rs 17789.63 FINANCIAL YEAR AND DATE OF THIS REPORT
Lakhs in FY2022, as compared with Rs.15790.36. Lakhs
in FY2021.IWP, with its focus and continuous monitoring Material changes and commitments affecting the financial
of the situation, has been able to achieve desired results position of the Company between the end of the financial
coupled with sustained production levels. The trend is year and the date of this report are given below:
likely to continue and we are hopeful to have a better The FY2022 was challenging year for the Company,
operational and financial performance with the revival of and with the second wave of Covid-19, the operations
the overall economy further FY2023. of the Company has witnessed significant challenges.
However, the Company has been able to control the
The Spice Division has recorded a turnover of Rs. 1,230.29
damages to a minimal level with the help of proactive
lakhs in FY2022 as compared to Rs. 1,283.46 lakhs in
measures and reactive safety measure in the workplace.
FY2021. Spice Division due to a higher focus on brand
The Company also adheres to the guidelines issued by
awareness and with more expenditure on retailer-level
the Central and State Governments from time to time to
schemes this division continues to incur cash losses. We
fight the Covid-19.
are taking aggressive steps to achieve better performance
by using specific Software with Al to expand our B to C Except as stated above there are no significant material
outreach and through online sales to retailers. changes and commitments affecting the financial position
of the Company, which have occurred between the end of
Our Company is committed to a clean environment and, the Financial Year of the Company to which the financial
thus, always thrives to ensure the best measures are statements relate and the date of this Report.
implanted to ensure environmental safety. The best of
environment, safety and pollution control measures are 10. HOLDING, SUBSIDIARIES, ASSOCIATES &
implemented across all our manufacturing units and JOINT VENTURE
the measures adopted are adequate. The management Your Company has no holding, subsidiary or associates’
continuously reviews the measures adopted and their company as on 31st March 2022.
efficiency to ensure environmental safety.
The Company has one (1) overseas joint venture namely
The operational performance and results are provided in M/s. Agro and Spice Trading Pte Limited, Singapore, as
the “Management Discussion and Analysis Report” as on 31st March 2022, which is engaged in the business
a separate section in this Annual Report. of trading of spices. PT Sumatra Resources International
& Pt. Thea Universal Trade are subsidiaries of the said
7. DETAILS OF SIGNIFICANT AND MATERIAL
joint venture M/s. Agro and Spice Trading Pte Limited.
ORDERS PASSED BY THE REGULATORS OR
PT Sumatra Resources International is incorporated and
COURTS OR TRIBUNALS
engaged in the business of manufacturing Catechins
No significant and material orders have been passed by from Gambier with the use of innovative technology.
the Regulators, Courts, or Tribunals impacting the going
Astatement containing the salient features of the financial
concern status of the Company and its operation in the
statement of the joint venture Company in the prescribed
future.
format AOC-1 is annexed herewith as “Annexure - 1”.
For further details on Indirect Tax Cases, please refer Further, pursuant to the provisions of Section 136 of the

Statutory Report
CompaniesAct, 201 3, the standalone financial statements The Company has paid the Annual Listing Fees for
of the Company, consolidated financial statements FY2022-23.
along with relevant documents and separate audited
14. FIXED DEPOSITS
accounts in respect of the joint venture, are available
on the website of the Company at www.iwpkatha.com The Company has neither accepted nor renewed
under investors’ section. These documents will also be any deposits during the year under review. Further,
available for inspection till the date of the AGM during the Company does not have any outstanding amount
business hours at the Registered Office of the Company. qualified as a deposit as on 31st March 2022.
11. INDIAN ACCOUNTING STANDARD 15. MANAGEMENT DISCUSSION & ANALYSIS

REPORT
Pursuant to the Companies (Indian Accounting Standard)
Rules 2015, the Company has adopted INDAS from April In term of requirements of Regulation 34(2)(e) of SEBI
1,2017. The Company's Audited Financial Statements (LODR) Regulation 2015, a “Management Discussion
for FY2021-22 are Indian Accounting Standard (INDAS) and Analysis Report” are set out as a separate section
complied. in this Annual Report which forms an integral part of this
report.
12. INTERNAL FINANCIAL CONTROL SYSTEMS
AND THEIR ADEQUECY 16. REPORT ON CORPORATE GOVERNANCE
The Company has an adequate Internal Control System, In terms of Regulation 34(3) of the SEBI (LODR)
commensurate with the size, scale and complexity of its Regulation 2015, a “Report on Corporate Governance”
operations. To maintain its objectivity and independence, together with a certificate from the Practicing Company
the Internal Auditor reports to the Chairman of the Audit Secretary regarding compliance with the requirements of
Committee of the Board. Corporate Governance is included as a separate section
and form an integral part of this report.
Internal Audit is conducted by an_ Independent
Professional Firm of Chartered Accountants. The 17. DIRECTORS RESPONSIBILITY STATEMENT
Internal Audit Reports are reviewed and discussed
In terms of Section 134(5) of the Companies Act, 2013,
with the senior management team. The representative
your Directors hereby confirm and state that:
of Statutory Auditors and the Internal Auditors are
permanent invitees to the Audit Committee meetings. i) in the preparation of the annual accounts, the
The measures as suggested by the Audit Committee are applicable accounting standards had been followed
implemented as per the direction of the Audit Committee. along with proper explanation relating to materials
departures;
The controls comprise of:
iil) the Directors had selected such accounting policies
a) Officials of the Company have defined authority and
and applied them consistently and made judgments
responsibilities within which they perform their duty;
and estimates that are reasonable and prudent so
b) All the Banking transactions are under joint authority as to give a true and fair view of the state of affairs
and no individual authorization is given; of the company at the end of the financial year and
the Profit of the Company for that period;
c) Maker-checker system is in place.
iii) The Directors had taken proper and _ sufficient
d) Any deviations from the previously approved matter
care for the maintenance of adequate accounting
require fresh prior approval.
records in accordance with the provisions of the
M/s. P Suman & Co., Chartered Accountants, appointed to Companies Act, 2013 for safeguarding the assets of
carry out Internal Audit of the Company for the FY2022-23. the Company and for preventing and detecting fraud
and other irregularities;
13. LISTING STATUS
iv) Thatthe Directors had prepared the annual accounts
The Company’s equity shares are listed on BSE Limited
on a going concern basis;
under Script Code 540954 and ISIN No. INE586E01020.

v) That the Directors had laid down internal financial Time Director of the Company designated as Executive
controls in the Company that are adequate and Director retired on 14th April 2021.He was relieved from
were operating effectively; and the post of Executive Director of the Company. The Board
places on record appreciation for the contribution made
vi) The Directors have devised proper systems to
by Mr. Krishna Kumar Damani during his tenure as an
ensure Compliance with the provisions of all
Executive Director. He was instrumental in supervising
applicable laws and that such systems are adequate
the operations of the Company.
and operating effectively.
A brief profile of Mr. Bharat Mohta is given in the Chapter
18. CORPORATE SOCIAL RESPONSIBILITY
on Corporate Governance and the Notice convening the
Your Company is conscious of its Social Responsibility and 102nd AGM for reference of the shareholders.
the environment in which it operates. Over the years, the
The criteria for selection of Directors and remuneration
Company aimed towards improving the lives of the people.
policy are disclosed in the Corporate Governance section
The Company's CSR policy covers activities in the field of which forms part of this Annual Report.
eradication of extreme hunger and poverty, promotion of
Pursuant to the provisions of Section 203 of the Act,the
education, promotion of gender equality, empowerment
Key Managerial Personnel of the Company as on 31st
of women, improvement of mental health, slum area
March 2022 are Mr. Anup Gupta, Company Secretary
development and rural development projects, employment
and Mr. Raj Kumar Agarwal, Executive Vice President
enhancing vocational skills, ensuring environmental
and Chief Financial Officer. There is no change in the
sustainability, animal welfare, sanitation including
KMPs during the year under review.
contribution to Swachh Bharat Kosh set up by the Central
Government, contribution to the Prime Ministers National 20. DECLARATIONS BY INDEPENDENT DIRECTORS
Relief Fund or any other project set up by the Central
In accordance with the provisions of Section 149(7)
Government.
of the Companies Act, 2013, each of the Independent
During FY2021-22, in compliance with Section 135 of the Directors has confirmed to the Company that he or
Act, an amount of Rs.24.42 Lakhs is required to be spent she meets the criteria of independence laid down in
by the Company on CSR activities. The Company has Section 149(6) of the Companies Act, 2013 read with
spent Rs.24.42 Lakhs as CSR activities towards Animal Regulation 16(1)(b) of the SEBI (Listing Obligations and
Welfare, Women Empowerment and Upliftment of People Disclosure Requirements), Regulations 2015 (the Listing
with disability through IWP CSR Trust. There is no unspent Regulations) as emended.
CSR amount as on 31st March 2022.
In the opinion of the Board, the independent directors
The CSR Policy may be accessed on the Company's on the Board of the Company are persons with integrity,
website at z:/Mwww.iwpkatha.com/files/IWP_CSR_ expertise and experience relevant to the operation of
Policy. pdf the Company and they all have qualified in the online
proficiency self-assessment test conducted by the
The Annual Report on CSR activities is annexed herewith
prescribed institute.
as Annexure - 2 and forms a part of this Annual Report.
In the opinion of the Board of Directors, all Independent
19. DIRECTORS AND KEY MANAGERIAL
Directors of the Company fulfills the conditions specified
PERSONNEL
in the Act and Rules made thereunder.
In accordance with the provisions of Section 152 of the
21. BOARD EVALUATION
Companies Act, 2013 and as per provisions of Articles
of Association of the Company Mr. Bharat Mohta Pursuant to the provisions of the Companies Act, 2013,
(DIN:00392090), Director of the Company, retire by Regulation 17(10) of the Listing Regulations and in
rotation and is eligible offer himself for re-appointment. line with our corporate governance guidelines, peer
evaluation of all Board members, annual performance
Mr. Krishna Kumar Damani (Din 01385252) Whole
EE-B ANNUAL REPORT 2021 - 22

Statutory Report
evaluation of its own performance, as well as the 24. AUDIT COMMITTEE

evaluation of the working of Board’s Committees was
The Audit Committee of the Board comprises of:
undertaken. This evaluation is led by the Chairman of the
Nomination and Remuneration Committee with a specific Name of Directors Category
focus on the performance and effective functioning of
Mr. Sanjay Kumar Maheswary Independent Director
the Board and its Committees. The evaluation process,
Mr. Vinod Kumar Maheshwary Independent Director
inter alia, considers attendance of Directors at Board
and committee meetings, acquaintance with business, Mr. Rajendra Prasad Chetani Non-Executive Non-
communication inter se board members, the time spent Independent Director
by each of the Board members, core competencies, During the year under review, there has been no instance
personal characteristics, accomplishment of specific where the recommendations of the Audit Committee
responsibilities and expertise. have not been accepted by the Board. The details of the
Audit Committee meetings are provided in the Report on
The performance of the Board was evaluated by the Corporate Governance, which forms part of this Annual
Board after seeking inputs from all the Directors on the Report.
basis of the criteria such as the Board composition and
structure, effectiveness of Board processes, information 25. DISCLOSURE UNDER INSOLVENCY AND
and functioning etc. BANKRUPTCY CODE, 2016 (31 OF 2016)
The performance of the Committees was evaluated by the During the year under review, neither any application
Board after seeking inputs from the Committee Members was made nor any proceeding is pending against the
on the basis of the criteria such as the composition of Company under the Insolvency and Bankruptcy Code,
Committees, effectiveness of committee meetings, etc. 2016
The report on the performance evaluation of the Individual 26. MAINTENANCE OF COST RECORDS AND COST
Directors was reviewed by the Chairman of the Board AUDIT
and feedback was given to the Directors. During the year under review the requirement of
maintenance of cost records as specified by the Central
22. MEETING OF THE BOARD OF DIRECTORS
Government under sub-section (1) of section 148 of the
During the year under review, the Board met 5(Five) Companies Act, 2013, and audit of cost records were not
times. The details of the Board meetings are provided in applicable to the Company.
the Report on Corporate Governance, which forms a part
27. DETAILS OF DIFFERENCE BETWEEN AMOUNT
of this Annual Report.
OF THE VALUATION:
The intervening gap between two consecutive meetings
There was no one-time settlement by the Company with
was within the limit prescribed under the Companies Act,
the Banks or Financial Institutions during the year under
2013.
review, thus, the details of the difference between the
23. MEETING OF THE INDEPENDENT DIRECTORS amount of the valuation done at the time of one-time
settlement and the valuation done while taking a loan
During FY2021-22, one meeting of Independent
from the Banks or Financial Institutions along with the
Directors was held without the presence of the Executive
reasons thereof are not applicable.
Directors or Management Personnel on 18th March
2022. At such meeting, the Independent Directors have 28. VIGIL MECHANISM
discussed, among other matters, the challenges faced
To meet the requirement under Section 177(9) and (10)
by the Company, growth strategies, flow of information
of the Companies Act, 2013 and Regulation 22 of the
to the Board, strategy, leadership strengths, compliance,
Listing Regulations the Company has adopted a vigil
governance, HR related matters and performance of mechanism named Whistle Blower Policy for directors
Executive Directors. and employees to report genuine concerns, which shall

provide adequate safeguards against victimization of Companies Act, 2013 and Rules made thereunder,
persons who use such mechanism. Under this policy, the Company had appointed CS Md. Shahnawaz
we encourage our employees to report any reporting (Membership No. 21427 CP No. 15076), Practicing
of fraudulent financial or other information to the Company Secretary, to carry out the Secretarial Audit
stakeholders, any conduct that results in violation of the of the Company for the FY2022-23. The Secretarial
Company’s Code of Business Conduct, to management Audit Report submitted by him, for FY2021-22 is
(on an anonymous basis, if employees so desire). annexed herewith marked as Annexure — 3 to this
Report.
Likewise, under this policy, we have prohibited
discrimination, retaliation or harassment of any kind The Secretarial Audit Report does not contain any
against any employee who, based on the employee's qualification, reservation or adverse remark, and,
reasonable belief that such conduct or practice have therefore, does not call for any further comments.
occurred or are occurring, reports that information or 31. SECRETARIAL STANDARDS
participates in the said investigation.
During the year under review, the Company has duly
No individual in the Company has been denied access to complied with the applicable provisions of the Secretarial
the Audit Committee or its Chairman during the FY2021-22. Standards on Meetings of the Board of Directors (SS-1)
29. AUDITOR AND AUDITORS’ REPORT and General Meetings (SS-2) issued by The Institute of
Company Secretaries of India (ICSI).
The term of Our Statutory Auditors of the Company M/s.
Agrawal Tondon & Co, expiring in upcoming AGM i.e., 32. NOMINATIONS AND REMUNERATION
102nd AGM of the Company. Further M/s. S K Agrawal COMMITTEE
& Co Chartered Accountants LLP (Firm Registration The Board has on the recommendation of the Nomination
Number: 306033E), Suite Nos: 606-608, The Chambers, and Remuneration Committee framed a policy for the
opp. Gitanjali Stadium, 1865, Rajdanga Main Road, selection and appointment of Directors and Senior
Kasba, Kolkata- 700 107 has given their consent to act Management Personnel and their remuneration. The
as Statutory Auditor of the Company and has confirmed Remuneration Policy is available on the Website of the
that they are eligible for appointment if made, would be Company at www.iwpkatha.com.
within the prescribed limit under the Companies Act, 33. REMUNERATION RATIO OF THE DIRECTORS/
2013. for appointment as Statutory Auditor. KEY MANAGERIAL PERSONNEL (KMP)/
The Audit Committee and the Board of Directors EMPLOYEES
recommended the appointment of M/s. S K Agrawal Disclosures relating to remuneration and other details as
& Co Chartered Accountants LLP (Firm Registration required under section 197(12) of the Companies Act,
Number: 306033E) as Statutory Auditor in place of the 2013 read with rules 5(1) of the Companies (Appointment
retiring auditor M/s. Agrawal Tondon & Co, Chartered and Remuneration of Managerial Personnel) Rules,
Accountant (Firm Registration No. 329088E) as statutory 2014, is annexed herewith as ‘Annexure -4’ and forms
Auditors of the Company for a period of5 years i.e., from part of this Board’s report.
the conclusion of the 102nd AGM until the conclusion of
the 107th Annual General Meeting to be held in the year The particulars of Managerial remuneration as stated in
2027. section 197(12) of the Companies Act, 2013 read with
rules 5(2) and 5(3) of the Companies (Appointment and
The Statutory Audit Report does not contain any Remuneration of Managerial personnel) Rules, 2014, is
qualification reservation or adverse remark or disclaimer annexed herewith as ‘Annexure- 5’and forms part of this
made by Statutory Auditors. The notes to the accounts Board’s report
referred to in the Auditors’ Report are self-explanatory
and, therefore, do not call for any further comments. 34. RISK MANAGEMENT POLICY
Your Company's Risk Management Framework is
30. SECRETARIAL AUDIT REPORT
designed to enable risks to be identified, assessed
Pursuant to the provisions of Section 204 of the and mitigated appropriately. The Risk Management
SE- ANNUAL REPORT 2021 - 22

Statutory Report
framework seeks to create transparency, minimize seven years. Further, according to the Rules, the shares
adverse impact on the business objectives and enhance on which dividend has not been paid or claimed by the
the Company’s competitive advantage. shareholders for seven consecutive years are also to be
The Company has constituted a Risk Management transferred to the Demat account of the IEPF Authority.
Committee. The details of the Committee and its terms During the year, the Company has transferred the
of reference are set out in the Corporate Governance unclaimed and unpaid dividend of Rs.1,27,217/-. Further,
Report forming part of the Board’s Report. 16,525 corresponding equity shares on which dividend
were unclaimed for seven consecutive years were also
35. INSIDER TRADING POLICY
transferred as per the requirement of the IEPF Rules.
The Company’s Insider Trading Policy provides the The details are provided in the Shareholder Information
framework for in dealing with securities of the Company section available on our website, at www.iwpkatha.com.
by the insider. The Company's Policy in line with SEBI
40. PARTICULARS OF CONTRACTS OR
(Prohibition of Insider Trading) Regulations, 2015, as
ARRANGEMENT MADE WITH’ RELATED
amended, is available on the website of the Company at
PARTIES
www.iwpkatha.com
Pursuant to Section 134(3)(h) of the Companies Act,
36. EXTRACT OF ANNUAL RETURN
2013 read with Rule 8(2) of the Companies (Accounts)
Pursuant to Section 92(3) read with Section 134(3)(a) Rules, 2014, the particulars of contractual arrangement
of the Act, the Annual Return as on 31 March 2022 is with related parties referred to in section 188(1) of the
available on the Company's website at www.iwpkatha. Companies Act, 2013, in the prescribed Form AOC-2 is
com. appended as ‘Annexure — 6’ to the Board’s Report.
37. PARTICULARS OF LOANS, GUARANTEES OR The details of related party transaction are disclosed in
INVESTMENTS the notes to the financial statements.
The Company has notgiven any Loan or Guarantee covered Pursuant to SEBI Listing Regulations, the resolution for
under the provisions of Section 186 of the Companies Act, seeking approval of the shareholders on material-related
2013. The details of Investments are disclosed in the Note party transactions is being placed at the AGM.
No. 4 to the standalone financial statements, which are The policy on Related Party Transactions as approved
within the prescribed statutory limits. by the Board is uploaded on the Company’s website
38. CREDIT RATING www.iwpkatha.com
During the year under review, ICRA Limited (ICRA) 41. DISCLOSURES AS PER SEXUAL HARASSMENT
has affirmed the long-term Credit Rating of [ICRA] OF WOMEN AT WORKPLACE (PREVENTION,
BBB- (Negative) and a short-term rating of [ICRA] A3 PROHIBITION AND REDRESS) ACT, 2013
(pronounced ICRAA three). The Company has zero-tolerance for sexual harassment
39. TRANSFER OF UNPAID AND UNCLAIMED at the workplace and has adopted a policy on prevention,
AMOUNTS TO INVESTOR EDUCATION AND prohibition and redressal of sexual harassment at
PROTECTION FUND (IEPF) the workplace in line with the provisions of the Sexual
Harassment of Women at Workplace (Prevention,
Pursuant to the applicable provisions of the Companies Prohibition and Redressal) Act, 2013 and the rules framed
Act, 2013, read with the IEPF Authority (Accounting, thereunder. The Company has set up Internal Complaint
Audit, Transfer and Refund) Rules, 2016 (“the IEPF Committee (ICC) under the Sexual Harassment of
Rules’), all unpaid or unclaimed dividends are required to Women at Workplace (Prevention, Prohibition and
be transferred by the Company to the IEPF, established Redressal) Act, 2013 along with its relevant Rules.
by the Government of India, after the completion of
ANNUAL REPORT 2021 - 22 SE

The Committee met once during the FY2022 on February A The Company does not have any scheme of
14, 2022 provision of money for the purchase of its own
shares by employees or by trustees for the benefit
There was no complaint pending at the beginning and
of employees.
at the end of FY2021-22. No complaints have been
received by the Committee during the FY2021-22. A No fraud has been reported by the Auditors to the
Audit Committee or the Board.
42. PARTICULARS OF ENERGY, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE 45. ACKNOWLEDGEMENT
EARNINGS AND OUTGO. Your Directors take this opportunity to express their
Information in accordance with the provisions of Section sincere thanks to the Central Government and
134(3)(m) of the Companies Act, 2013 read with Rule 8 Governments of various states, Financial Institutions,
of the Companies (Accounts) Rules 2014 is given in the Bankers and Customers for their co-operation and
Annexure - 7 to this Report. assistance extended.
43. HUMAN RESOURCES The Directors regret the loss of lives due to COVID-19
pandemic and are deeply grateful and have immense
Our employees are our core resource and the Company respect for every person who risked his life and safety to
has continuously evolved policies to strengthen its fight this pandemic.
employee value proposition. Your Company was able
to attract and retain best talent in the market and the Your Directors also wish to express their deep
same can be felt in the past growth of the Company. appreciation for the integrity and hard work of all the
The Company is constantly working on providing the employees of the Company at all levels to cope-up the
best working environment to its Human Resources with challenging scenario and strive for the growth of our
a view to inculcate leadership, autonomy and towards Company.
this objective; your company makes all efforts on training. The Board also takes this opportunity to express their
Your Company shall always place all necessary emphasis deep gratitude for the continued co-operation and
on continuous development of its Human Resources. The support received from the shareholders.
belief “Great People create Great Organization” has been
at the core of the Company's approach to its people.
44. GENERAL
Your Directors state that no disclosure or reporting is
required in respect of the following matters as there were
no transactions on these items during the year under
review:
For and on behalf of the Board Directors of
A Issue of equity shares with differential rights as to The Indian Wood Products Co. Ltd.
dividend, voting or otherwise. K K Mohta
A Issue of shares (including sweat equity shares) to Kolkata Chairman & Managing Director
employees of the Company under any scheme. 30 May, 2022 Din No : 00702306

Statutory Report
ANNEXURE - 1
Form AOC-1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate

companies/joint ventures
Part “A”: Subsidiaries
Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint
Ventures
Name of Associates/Joint Ventures M/s Agro and Spice Trading Pte Ltd, Singapore
Latest Audited Balance Sheet Date 31.03.2022
2. | Date on which the Associates or Joint Venture was 18th April, 2016
associated or acquired
3 | Shares of Associate/Joint Ventures held by the
company on the year end
i. No. of share 14,00,050 ordinary shares
ii. Amount of Investment in Associates/Joint Venture Rs. 9,31,86,353.65
ili. Extend of Holding% 50%
Description of how there is significant influence Through Shareholding
Reason why the associate/joint venture is not Not Applicable
consolidated
Net worth attributable to shareholding as per latest Rs. 8,72,23,421.84
audited Balance Sheet
Profit/Loss for the year
i. Considered in Consolidation Rs. 49,80,824.96
ii. Not Considered in Consolidation NIL
Above named Joint Venture are yet to commence operation - NIL
Names of joint ventures which have been liquidated or sold during the year: NIL
For and on behalf of Board of Directors of

The Indian Wood Products Co. Ltd.
Krishna Kumar Mohta Bharat Mohta

Chairman & Managing Director CEO &WTD
(DIN:00702306) (DIN: 00392090)
Kolkata R.K. Agarwal Anup Gupta

30 May, 2022 Chief Financial Officer Company Secretary
(M. No. A36061)
ANNEXURE -2
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
for the financial year 2021-22
[Pursuant to Section 135 of the Companies Act, 2013 as amended read with Notification issued by
the Ministry of Corporate Affairs dated the 22nd of January, 2021 & Rules made thereunder]
1. A Brief Outline of the Company’s CSR Policy

In accordance with the provisions of the Companies Act, 2013, as amended read with the Notification issued by the
Ministry of Corporate Affairs dated the 22nd of January, 2021 and the rules made thereunder, the Company has
framed its CSR Policy to carry out its CSR activities in accordance with Schedule VII of the Act. The CSR activities
of the Company are executed through “IVWWP CSR Trust”.IVWP is committed to ensuring the social well-being of the
communities in the vicinity of its business operations through Corporate Social Responsibility initiatives (CSR).
Although CSR was introduced by the Companies Act, of 2013, but was followed by the Company since long to
serve society. A CSR policy was framed in accordance with the provisions of the Companies Act, 2013 and Rules
framed there under in line with Schedule VII of the said Act. Our CSR Policy covers activities in the field of health,
education, environment, Animal Welfare, conservation, sustainability and social business projects.
2. Composition of CSR Committee
No of CSR No. of CSR
ne Name of Director Nature of Directorship Mesting hel d ‘Meetings.
during the year attended
1 | Mr. Krishna Kumar Mohta | Chairman & Managing Director 4 4
2 | Mr. Bharat Mohta Whole Time Director & CEO 4 4
3 | Mr. Surendra Bagri Independent Director 4 3
3. Web-link where the composition of CSR committee, CSR Policy and CSR projects approved by
the board are disclosed on the website of the company:
The web link of the Company where composition of CSR Committee, CSR Policy and CSR Project
approved by the Board are disclosed is http:/Awww.iwpkatha.com/csr_policy.pdf
4. Provide the details of impact assessment of CSR projects carried out in pursuance of Subrule
(3) of rule 8 of the companies (Corporate Social Responsibility Policy) rules, 2014, if applicable:
The Company at present is not required to carry out impact assessment in pursuance of sub-rule (3)
of Rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014.

Statutory Report
5. Details of the amount available for set off in pursuance of sub rule (3) of Rule 7 of the companies
(Corporate Social Responsibility Policy) Rules, 2014 and amount required for setoff for the
financial year, if any:
Financial Year Amount available for set-off from Amount required to be set-off for
preceding financial years (in Rs) the financial year, if any (in Rs)
Prior to 2021-2022 Nil Nil
Total Nil Nil
6. Average net profit of the Company as per Section 135(5):

The average net profit of the Company for the last three financial years is Rs. 1220.56 lakhs
7. (A) Two percent of average net profit of the Company as per Section 135(5):
The prescribed CSR expenditure @ 2% of the average net profits for the last three financial years
is Rs. 24.41 Lakhs.
(B) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years
> NIL
(C) Amount required to be set off for the Financial Year, if any : NIL
(D) Total CSR obligation for the Financial Year (7a+7b-7c): Rs. 24.41 Lakhs
8. (A) CSR amount spent or unspent for the Financial Year 2021 - 2022: Rs. in Lakhs
Total Amount Total Amount Spent for the Financial Year 2021 — 2022
Spent for the Total Amount transferred to Amount transferred to any fund specified under
Financial Year Unspent CSR Account as per Schedule VII as per second proviso to section
2021 -2022 section 135(6). 135(5).
(Rs in lakhs) Amount Date of Name of the Amount Date of
(Rs. Lakhs) Transfer Fund transfer
Rs. 24.41 Lakhs - - - - -
(B) Details of csr amount spent against ongoing projects for the Financial Year 2021 - 2022:
(1) (2) (3) (4) (5) Location of (6) (7) (8) (9) (10) Mode (11)
Sr. | Name of | Item from | Local the Project Project |} Amount |} Amount | Amount | ofImple- | Mode of Imple-
No | Project | the listof | area Duration} allocated} spent | Transferred | mentation mentation -
activities | (Yes/No) for the in the tothe Un- | (Yes No) | Through Imple-
in Sched- project | current | spentCSR menting Agency
ule VIl to (Rs. in | financial | Account for
the Act State | District Lakhs) | Year (Rs. | the project Name | CSR
in Lakhs) | as per Sec- Regis-
tion 135(6) tration
(Rs. Lakhs) Number

(C) Details of CSR amount spent against other than ongoing projects for the Financial Year 2021- 2022:
(1) (2) (3) (4) (5) Location of the |(8) Amount] (10) Mode of (11)
Sr. Name of Project Item from the | Local area Project spentin |Implementa-| Mode of Implementation
No list of activities} (Yes/No) the currentition (Yes/No)| - Through Implementing
in Schedule VII financial Agency
to the Act Year (Rs.
in Lakhs)
State | District Name | CSR Registra-
tion Number
1 |Contribution towards cow] Environmental | In U.P Uttar | Bareilly 9.98 Through =| IWP CSR| CSRO00011873
fodder Sustainability | Bareilly | Pradesh Lakhs |Implementing] Trust
Agency
2 |Upliftment of people with livelihood | In Haryana | Haryana | Gurgaon] 14.43 Through =| IWP CSR| CSRO00011873
disability enhancement | Gurgaon Lakhs |Implementing] Trust
projects Agency
24.41
Total Lakhs
(D) Amount Spent in Administrative Overheads: NIL

(E) Amount spent on Impact Assessment, if applicable: NIL
(F) Total amount spent for the Financial Year: Rs. 24.41 Lakhs
(G) Excess amount for set off, if any: Nil
Sr. No. Particulars Amount in Rs (lakhs)
1 Two percent of average net profit of the company as per Section 135(5) 24.41
2 Total amount spent for the Financial Year 24.41
3 Excess amount spent for the financial year [(ii)-(i)] -
4 Surplus arising out of the CSR projects or programmes or activities of the -

previous financial years, if any
5 Amount available for set off in succeeding financial years (iii-iv) -
(9) (A) Details of unspent CSR amount for the preceding three Financial Years:
Sr | Preceding | Amount transferred Amount spent Amount transferred to any fund specified under Amount remaining
No | Financial to Unspent CSR in the reporting Schedule VIl as per Section 135(6), if any. to be spent in
Year Account under Financial Year (in | Name of the Amount Date of Transfer succeeding
section 135 (6) (in Rs) Fund (in Rs.) financial year
Rs)
1 2020-21 Nil Nil Nil Nil Nil Nil

Statutory Report
(B) Details of CSR amount spent in the Financial Year for ongoing projects of the preceeding Financial
Year (s):
(1) (2) (3) (4) (5) (6) (7) (8) (9)

Sr. | ProjectID | Name of Financial Project Total Amount Amount spent Cumulative Amount Status of the
No Project Year in Duration | allocated for the in the reporting spent at the end of | project completed/
which was project (Rs. in | financial Year (Rs. | Reporting Financial Ongoing
commenced Lakhs) in Lakhs) year (in Rs)
(10) In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or
acquired through CSR spent in the financial year (asset wise details):
Nil
(11) Specify the reason(s), if the company has failed to spend two percent of the average net profit as per
section 135(5) —
Not applicable


Kolkata Chairperson, CSR Committee WTD & CEO
30 May, 2022 DIN — 00702306 DIN- 00392090

ANNEXURE - 3
Form No. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2022
[Pursuant to section 204(1) of the Companies Act, 2013 and rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To, to the extent, in the manner and subject to the reporting

The Members made here in after:
THE INDIAN WOOD PRODUCTS CO LTD | have examined the books, papers, minute books, forms
CIN: L20101VWVB1919PLC003557 and returns filed and other records maintained by the
9 Brabourne Road, 7th floor, Company for the financial year ended on 31st March
Kolkata — 700 001 2022, according to the provisions of.
| have conducted the Secretarial Audit of the compliance of (i) The Companies Act, 2013 (the Act) and the rules
applicable statutory provisions and the adherence to good made thereunder;
corporate practices by The Indian Wood Products Co
(ii) The Securities Contracts (Regulation) Act, 1956
Ltd (hereinafter referred as ‘the Company’). Secretarial
(‘SCRA) and the rules made thereunder;
Audit was conducted in a manner that provided me a
(ill) The Depositories Act, 1996 and the Regulations and
reasonable basis for evaluating the corporate conducts/
Bye-laws framed thereunder;
statutory compliances and expressing my opinion
thereon. (iv) Foreign Exchange Management Act, 1999, and the
rules and regulations made thereunder to the extent
Based on my verification of the Company's books,
of Overseas Direct Investment;
papers, minute books, forms and returns filed and
(v) The following Regulations and Guidelines prescribed
other records maintained by the Company and also the
under the Securities and Exchange Board of India
information provided by the Company, its officers, agents
Act, 1992 (‘SEBI Act’):
and authorized representatives during the conduct of
Secretarial Audit and considering the relaxations granted (a) The Securities and Exchange Board of
by the Ministry of Corporate Affairs and Securities and India (Substantial Acquisition of Shares and
Exchange Board of India warranted due to the spread Takeovers) Regulations, 2011;
of the COVID-19 pandemic, | hereby report that in my (b) The Securities and Exchange Board of India
opinion, the Company has, during the audit period (Prohibition of Insider Trading) Regulations,
covering the financial year ended on 31st March 2022 2015;
(‘Audit Period’) complied with the statutory provisions (c) The Securities and Exchange Board of India
listed hereunder and also that the Company has proper (Issue of Capital and Disclosure Requirements)
Board-processes and compliance-mechanism in place Regulations, 2018 — No events / actions

Statutory Report
occurred during the Audit Period in pursuance | have also examined compliance with the applicable
of this regulation; clauses of the Secretarial Standards issued by The
(d) The Securities and Exchange Board of India Institute of Company Secretaries of India.
(Share Based Employee Benefits) Regulations, | have relied on the representation made by the Company
2014 — No events / actions occurred during the and its Officers for systems and mechanism formed by
Audit Period in pursuance of this regulation; the Company for compliances under other applicable
(e) The Securities and Exchange Board of Acts, Laws and Regulations to the Company.
India (Issue and Listing of Debt Securities) During the period under review, the Company has
Regulations, 2008 — No events / actions complied with the provisions of the Act, Rules,
occurred during the Audit Period in pursuance Regulations, Guidelines, Standards, etc. mentioned
of this regulation; above.
(f) The Securities and Exchange Board of India | further report that:
(Registrars to an Issue and Share Transfer @ The Board of Directors of the Company is duly
Agents) Regulations, 1993 regarding the constituted with proper balance of Executive
Companies Act and dealing with client; Directors, Non-Executive Directors and Independent
(g) The Securities and Exchange Board of India Directors including a Woman Director. The changes
(Delisting of Equity Shares) Regulations, 2009 in the composition of the Board of Directors that took
— No events / actions occurred during the Audit place during the period under review were carried
Period in pursuance of this regulation; out in compliance with the provisions of the Act.
(h) The Securities and Exchange Board of India @ Adequate notice is given to all directors for the Board
(Buyback of Securities) Regulations, 1998 — Meetings, including Committees thereof, along with
No events / actions occurred during the Audit agenda and detailed notes on agenda at least seven
Period in pursuance of this regulation;; and days in advance, and a system exists for seeking
(i) The Securities and Exchange Board of and obtaining further information and clarifications
India (Listing Obligations and Disclosure on the agenda items before the meeting and for
Requirements) Regulations 2015; and meaningful participation at the meeting by the

directors.
(vi) Other specifically applicable laws to the Company,
namely; @ All decisions at Board Meetings and Committee
a. Water (Prevention and Control of Pollution) Meetings are carried out unanimously and recorded
Act, 1974 and Air (Prevention and Control of in the minutes of the meetings of the Board of
pollution) Act,1981; Directors or Committee of the Board, as the case
b. Factories Act, 1948; may be.
c. Food Safety and Standards Act, 2006; and | further report that the compliance by the Company of
applicable financial laws such as direct and indirect tax
d. Boiler Act 1923 & Indian Boiler Regulation,
laws and maintenance of financial records and books
1950

of accounts have not been reviewed in this audit since b. Mr. Krishna Kumar Mohta (DIN: 00702306) as
the same have been subject to review by the statutory Managing Director and
financial auditors, tax auditors and other designated
c. Mr. Bharat Mohta as Wholetime Director of the
professionals.
Company.
| further report that as per the explanations given to me 2. Mr K.K. Damani (DIN: 01385252) retired and
and the representation made by the Management and submitted his resignation from the post of Executive
relied upon by me, there are adequate systems and Director of the Company w.e.f April 15, 2022.
processes in the Company commensurate with the size
and operations of the Company to monitor and ensure
compliance with applicable laws, rules, regulations and
guidelines.
M Shahnawaz & Associates
| further report that during the audit period, there were Company Secretaries
following specific events / actions having a major bearing Firm Regn. No. $2015WB331500
on Company’s affairs in pursuance of the above-referred
CS Md. Shahnawaz
laws, rules, regulations, guidelines, standards, etc.: (Proprietor)
Membership No.: 21427
1. The shareholders of the Company at their AGM
CP No.: 15076
held on September 28, 2021, have approved
UDIN: A021427C0000550813
reappointment of:
a. Mrs. Drisha Poddar (DIN: 07729080) as an Kolkata

Independent Director of the Company; May 30, 2022
Note: This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part
of this report.

Statutory Report
ANNEXURE-A
To,
The Members
THE INDIAN WOOD PRODUCTS CO LTD
CIN:L20101VWWB1919PLC003557
9 Brabourne Road, 7th floor,
Kolkata—700001
My report of even date is to be read along with this letter. 5. The compliance of the provisions of Corporate and
other applicable laws, rules, regulations, standards
1. Maintenance of secretarial record is the
is the responsibility of management. My examination
responsibility of the management of the company.
was limited to the verification of procedures on test
My responsibility is to express an opinion on these
basis.
secretarial records based on our audit.
6. The Secretarial Audit report is neither an assurance
| have followed the audit practices and processes
as to the future viability of the company nor of the
as were appropriate to obtain reasonable assurance
efficacy or effectiveness with which the management
about the correctness of the contents of the
has conducted the affairs of the company.
Secretarial records. The verification was done on
test basis to ensure that correct facts are reflected M Shahnawaz & Associates
in secretarial records. | believe that the processes Company Secretaries
and practices, | followed provide a reasonable basis Firm Regn. No: $2015WB331500
for our opinion.
CS Md. Shahnawaz
| have not verified the correctness and
(Proprietor)
appropriateness of financial records and Books of
Accounts of the Company.
CP No.: 15076
Wherever required, | have obtained the Management UDIN: A021 4270000550813
representation about the compliance of laws, rules
and regulations and happening of events etc. Kolkata
30 May 2022

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015)
To,
The Members
THE INDIAN WOOD PRODUCTS CO LTD
CIN:L20101WB1919PLC003557
9 Brabourne Road, 7th Floor,
Kolkata—700001
| have examined the relevant registers, records, forms, returns and disclosures received from the Directors of The Indian
Wood Products Co Ltd having CIN L20101WB1919PLC003557 and having registered office at 9, Brabourne Road, 7th
Floor, Kolkata — 700001 (hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose of
issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In my opinion and to the best of my information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company &
its officers, | hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year
ending on March 31, 2022, have been debarred or disqualified from being appointed or continuing as Directors of companies
by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such other Statutory Authority:
Sr. No. Name of Director DIN Date of appointment in

Company*
1. Krishna Kumar Mohta 00702306 29/05/1980
2. Bharat Mohta 00392090 30/10/2005
3. Rajendra Prasad Chetani 00392215 27/04/2004
4. Sanjay Kumar Maheswary 00497335 30/01/2004
5. Vinod Kumar Maheshwary 02659320 13/04/2009
6. Drisha Poddar 07729080 18/02/2017
7. Surendra Bagri 00659888 13/02/2021
*the date of appointment is as per the MCA Portal.
Ensuring the eligibility of the appointment/continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification.
This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
M Shahnawaz & Associates
Company Secretaries
Firm Regn. No. $2015WB331 500
CS Md. Shahnawaz
(Proprietor)
ACS No. 21427
C.P. No: 15076
UDIN: A021 427C000550758
Kolkata, 30 May, 2022

Statutory Report
ANNEXURE- 4
INFORMATION PURSUANT TO SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF
THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
(i) The ratio of the remuneration of each Executive Director to the median remuneration of the employees
of the Company for the financial year 2021-22
Sr. No Name of Director Designation Ratio of remuneration of each

Director to the Median Remuneration
1 Krishna Kumar Mohta_ | Chairman and Managing Director 19.06
2 Bharat Mohta Whole Time Director and CEO 19.83
(ii) he percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer,
Company Secretary or Manager, if any, in the financial year
Sr. No Name of Director Designation Percentage increase in

and KMP Remuneration
1 Krishna Kumar Mohta =| Chairman and Managing Director -
2 Bharat Mohta Whole Time Director and CEO -
3 Raj Kumar Agarwal EVP Cum CFO 20.58
4 Anup Gupta Company Secretary and Compliance Officer 4.50
(iii) Percentage increase in the median remuneration of all employees in the financial year 2021-22:
The median remuneration of employees increased by 21% in the financial year 2021-22.
(iv) Number of permanent employees on the rolls of the Company as on 31st March, 2022:
There were 343 permanent employees on the rolls of the Company as on 31st March 2022.
(v) Comparison of average percentage increase in salary of employees other than Key Managerial Personnel
and the percentage increase in the remuneration paid to Key Managerial Personnel.
The average percentage increase of non-managerial employees other than Whole Time Director for FY 2021-22
was 21% as compared to last FY 2020-21. The average increase in the Managerial Remuneration during the FY
2021-22 is 6.27%. The Median Salary taken in 2021-22 is Rs. 522765 (Number of Employees 343) compare to
Median Salary taken for the previous year was Rs. 432481 (Number of Employees 367).
(vi) Affirmation that the remuneration is as per the Notification and Remuneration Policy of the Company:
It is hereby affirmed that the remuneration paid to all the Director, KMP, Senior Managerial Personnel and all
other employees of the Company during the financial year ended 31st March 2022 were as per the Nomination
and Remuneration Policy of the Company.
K K Mohta Bharat Mohta

Kolkata Chairman & Managing Director CEO & WTD
30 May 2022 DIN - 00702306 DIN - 00392090

ANNEXURE- 5
Statement of Particulars of employees pursuant to the provisions of Section 197(12) of the

Companies Act, 2013 with Rule 5(2) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 for the year ended 31st March, 2022
Top 10 Employees including those Employed throughout the financial year under review and were in
receipt of remuneration aggregating not less than Rs. 1, 02, 00,000 per annum
Sr Name Designation Nature of Qualification Age Date of | Remuneration The Last The
No. Employement} andExperience | (Years) |Commenceof| received | employementheld | Percentage of
Whether of the Employee Employement (Rs. in Lakhs) | before joining the | equity share
Contractual or} including previous Company held
Otherwise employement
1. | Bharat Mohta Whole Time | Contractual Bachelor of 47 | 30.10.2005 | 103.71 AEW Ltd. 11.94
Director Commerce
and Chief from Kolkata
Executive University
Officer and Business
Diploma from
ICFAI, 28 Years
2. | Krishna Kumar Chairman | Contractual Bachelor of 74 | 29.05.1980 99.66 NA 3.09

Mohta and Science from
Managing Calcutta
Director University,
53 Years
3. {Rajiv Mundra Vice Permanent Bachelor of 59 | 01.04.2005 54.24 B.C.PL. NA

President- Commerce, 37
Marketing Years
4. |Krishna Kumar Principal | Contractual | B. Tech (Hons) 73° | 15.04.1998} 37.91 BEC Food Ltd. NA
Damani Advisor - Chem. Engg. ,51
Technical & Years
Strategy
5. |Ravi Chandak AGM Permanent | C.A.&M.B.A., 54 | 10.03.1998 26.76 Orient Fans Ltd. NA
(Commercial) 28 Years
6. |Raj Kumar Agarwal EVP Permanent | B.Com & LLB, 68 | 31.07.1982 21.75 AEW Ltd. NA
cum 50 Years
CFO
7. {Anil Kumar Agarwal | Sr. Manager | Permanent | Diploma inElect.| 65 | 18.10.1984 19.15 Camphor & Allied NA
Production Engg. , 45 Years Products Ltd.

Statutory Report
Sr Name Designation Nature of Qualification Age Dateof | Remuneration The Last The
No. Employement} and Experience | (Years) |Commence of| received | employementheld | Percentage of
Whether of the Employee Employement| (Rs. in Lakhs) ) before joining the | equity share
Contractual or| including previous Company held
Otherwise employement
8. |Anand Kumar Rai | AGM (HR& | Permanent |M.A. (Social Work); 46 | 07.05.2012 19.10 MJP Rohailkhand NA
Admin) ,PHD & LLB, 23 University
Years
9. |Ram Kumar Binani Sr. Permanent | M.Com, 30 Years} 55 | 21.07.1993 17.07 Kothari Trading NA
Commercial & Investment Co.
Manager Pvt. Ltd
10. |Jagdish Chandra |Sr. Manager| Permanent|B.S.C &M.S.C.,| 55 |30.07.1999) 16.51 Mahesh Udyog NA
Tiwari Production 31 Years (BDM)
Notes :
1. None of the employees employed for part of the Financial Year 2021-2022, who is in receipt of remuneration in
excess of the prescribed limit.
2. Except for Mr. Krishna Kumar Mohta & Mr. Bharat Mohta, none of the employees mentioned above are related
to any of the Directors of the Company.
All appointments are terminable by notice on either side.
Remuneration includes salary, bonus, commission, various allowances, performances incentive, contribution to
provident and superannuation fundand taxable value of perquisites but excludes provision for gratuity and leave
encashment.
5. The term of Service of Mr. Krishna Kumar Mohta and Bharat Mohta are governed by the Special Resolution,
passed by the Shareholders of the Company dated September 28, 2021.

K K Mohta Bharat Mohta

Kolkata Chairman & Managing Director CEO & WTD
30 May 2022 DIN - 00702306 DIN - 00392090

ANNEXURE
- 6
FORM NO. AOC —- 2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the
Companies(Accounts) Rules, 2014.
Form for Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred
to in sub section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third
proviso thereto.
1. Details of contracts or arrangements or transactions not at Arm’s length basis.
SI. No. Particulars Details
A Name(s) of the related party & Nature of relationship NIL
B Nature of Contracts/arrangements/transaction NIL
Cc Duration of the Contract/arrangement/transaction NIL
D Salient terms of the contracts or arrangement or transaction including the value, if any NIL
E Justification for entering into such contracts or arrangements or transactions NIL
F Date of approval by the Board NIL
G Amount paid as advance if any NIL
H Date on which the special resolution was passed in General Meeting as required under NIL
first proviso to section 188
2. Details of material contracts or arrangements or transactions at Arm’s length basis.

SI.
No. Particulars Details
A Name(s) of the related party & Agro and Spice Pt Sumatra Resources Pt. Thea Universal
Nature of relationship Trading Pte Ltd International Subsidiary Trade
Joint Venture of Joint Venture Subsidiary of Joint
Company Company Venture Company
B Nature of contracts/ Purchase of Raw Purchase of Raw Purchase of Raw
arrangements/transaction material material material
Cc Duration of the contracts/ Ongoing Ongoing Ongoing
arrangements/transaction
D Salient terms of the contracts/ On Arm’s Length On Arm’s Length Basis On Arm’s Length
arrangements/transaction Basis Basis
E Date of approval by the Board 30th June 2021 30th June 2021 30th June 2021
F Amount paid as advance, if any NIL NIL NIL

Chairman & Managing Director CEO & Whole Time Director
(DIN 00702306) (DIN 00392090)
Kolkata R.K. Agarwal Anup Gupta

30 May, 2022 Chief Financial Officer Company Secretary
(M.No. A36061)

Statutory Report
Annexure — 7
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN

EXCHANGE EARNINGS & OUTGO ETC.
Information on conservation of Energy Technology absorption, Foreign Exchange and outgo as required to be
disclosed U/s. 134 of the Companies Act, 2013 read with Companies (Accounts) Rule, 2014
A. CONSERVATION OF ENERGY
(i) The Step taken or impact on energy Energy Conservation continues to be the top priority attention
conservation at all levels. The Company ensures the use of energy-efficient
equipment and appliance in operations to conserve energy.
(ii) The Step has been taken by the The Company had been utilizing spent wooden chips and spent
Company for utilizing an alternate Cashew Husk along with waste chips of popular/Eucalyptus in
source of Energy place of Coal. Company has also started using new sources of
Fuel like Mustard Husk, Bagasse, Roots, Ply Waste etc.
(iii) The Capital Investment in Energy The Company has already installed an improved Refrigeration
Conservation Equipment System in our manufacturing process. This has resulted in saving
in energy as well as quality improvement of our products to improve
cooling and to save energy.
TECHNOLOGY ABSORPTION
The efforts made toward technology Updation of technology is a continuous process. Company is
absorption continuously adopting and implementing new and upgraded
technology in operations
(ii) the benefits derived like product The use of improved technology resulted in an improvement in the
improvement, cost reduction, product quality of Katha.
development or import substitution
(iii) Incase of imported technology (imported
during the last three years reckoned No imported technology was adopted.
from the beginning of the financial year)
(iv) Expenditure incurred on Research & 2021-22 (Rs) 2020-21 (Rs)
Development Capital Expenditure 6,850/- 18,91,703/-
Recurring Expenditure 5,21,582/- 13,89,755/-
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
The export market is not consistent and favorable for Katha. Moreover, as per the past trend, the ratio of Export
Sales to Domestic Sales of the company is neither significant nor material. However, Company is regularly
importing Raw Materials for its consumption resulting in earnings / outgo as under:
2021-22 (Rs) 2020-21 (Rs)
1. Earnings 24,33,901/- 11,94,637/-
2. Outgo 38,60,53,482/- 28,46, 12,938/-

K K Mohta
Kolkata Chairman & Managing Director
30 May, 2022 DIN - 00702306

MANAGEMENT DISCUSSION & ANALYSIS

FY2022 represents the fiscal year 2021-22, from 7 April Global growth prospects have weakened significantly
2021 to 31 March 2022, and analogously for FY2021 and amid the war in Ukraine. The World Economic Situation
previously such labelled years. and Prospects as of mid-2022 warned that the global
economy may be on the cusp of a new crisis, while
Global Economic
still recovering from the pandemic. The war in Ukraine
It is two years into the COVID-19 pandemic and the has upended the fragile global recovery, triggering
global community still confronts extreme social and a devastating humanitarian crisis, pushing up food
economic strain as the human toll rises and millions and commodity prices, slowing growth globally and
remain unemployed. Yet, even with high uncertainty exacerbating inflationary pressures worldwide.
about the path of the pandemic, a way out of this health Geopolitical and economic uncertainties are dampening
and economic crisis is increasingly visible. Thanks business confidence and investment and_ further
to the ingenuity of the scientific community hundreds weakening short-term economic prospects.
of millions of people are being vaccinated and this is
expected to power recoveries in many countries later this Growth of world gross product, 2015-2023
Percentage
year. Economies also continue to adapt to new ways of =- WESP 20272
-- WESP mid: 2022
working despite reduced mobility, leading to a stronger-
+ os
than-anticipated rebound across regions. Additional
|
fiscal support in large economies, particularly the United |
De
2015 2016
tr
2017 2018
eer
2019
ee
20
States, has further improved the outlook.

a |
GROWTH PROJECTIONS The war in Ukraine and the sanctions against the
Russian Federation have rattled commodity markets,
exacerbating supply-side shocks. In 2022, global trade
growth is projected to slow down markedly, after a strong
rebound in 2021. The conflict has directly disrupted
exports of crude oil, natural gas, grains, fertilizer and
metals, pushing up energy, food and commodity prices.
uoae eta at The Russian Federation and Ukraine are key suppliers
of agricultural goods, accounting for 25 per cent of global
As per the latest April 2022 World Economic Outlook
wheat exports, 16 per cent of corn exports and 56 per
(WEO) report, Global growth is projected to slow from an
cent of exports of sunflower oil.
estimated 6.1% in 2021 to 3.6% in 2022 and 2023. This
is 0.8 and 0.2 percentage points lower for 2022 and 2023 The world economy is facing substantial inflationary
than projected in January. Beyond 2023, global growth pressures. Global inflation is projected to increase to
is forecast to decline to about 3.3% over the medium 6.7% in 2022, twice the average of 2.9% recorded
term. War-induced commodity price increases and during 2010-2020. Headline inflation in the United
broadening price pressures have led to 2022 inflation States has reached the highest level in four decades.
projections of 5.7% in advanced economies and 8.7% in In developing regions, inflation is rising in VWWestern Asia
emerging market and developing economies—1.8 and and Latin America and the Caribbean. Soaring food and
2.8 percentage points higher than projected last January. energy prices are having knock-on effects on the rest of

Statutory Report
the economy, as reflected in the significant rise in core increase in capital expenditure on infrastructure to build
inflation in many economies as well. back medium-term demand as well as aggressively
Major commodity prices, January 20128 to March 2022
implemented supply-side measures to prepare the
Index, 20192100
economy for a sustained long-term expansion.
Onset of COVID-19
pandemic
ores and Onset of
nor-preeious mrvetals wir in Ukraine The Indian economy grew 8.7 per cent in 2021-22, with
the gross domestic product (GDP) expanding 4.1% in
the March quarter from a year ago. The GDP growth for
2021-22 takes the economy above its pre-pandemic level
and is an improvement after contracting 6.6% in 2020-
21. But the January-March quarter expansion was the
weakest in the previous fiscal year. It is lesser than the
Rising inflation is posing an additional challenge to an
5.4% growth seen during the December quarter of 2021 -
inclusive recovery as it disproportionally affects low-
22. Incidentally, the economic growth during the entire
income households that spend a much larger share of
fiscal of 2021-22 has gradually spiralled downwards with
their income on food items. The decline in real incomes
each quarter.
is particularly pronounced in developing countries,
where poverty is more prevalent, wage growth remains In the first quarter of 2021-22, the economic growth had
constrained, and fiscal support measures to alleviate the been a stupendous 20.1%, which however was mainly
impact of higher oil and food prices on the vulnerable due to the low base effect. In the second quarter it was
groups are more limited. Surging food inflation is 8.4%, while it was 5.4% in third quarter. Now for the fourth
worsening food insecurity and pushing many below the quarter it has slid down to 4.1%. The GDP for 2021-22
poverty line as developing countries are still struggling though is lesser than the 8.9% growth estimated by the
with economic shocks from the pandemic. Ministry of Statistics and Programme Implementation
(MoSPI), which releases the GDP data. The 8.7% growth
Glebal annual inflation, 2010-2022
rea
Percentage also falls way short of the Reserve Bank of India’s (RBI)
estimation of 9.5% of GDP growth for 2021-22. Even the
March quarter growth of 4.1% is much lesser than RBI’s
projection for the period, which was estimated to be at
Averages@ world inflation 6.1%.
7010-7070 is 7.9%.
The overall value of global trade reached the value of

2010. "2o1e 2018 2016 2018 “2020 no22
$28.5 trillion in FY 2021 , 25 per cent higher than FY 2020.
India’s exports of both goods and services have been
Indian Economic good in 2021-22. Despite rising trade costs, merchandise
The last two years have been difficult for the world exports have crossed the US$30 billion mark in eight
economy on account of the COVID-19 pandemic. consecutive months in FY 2021-22. The reasons for
Repeated waves of infection, supply-chain disruptions rising trade costs are global supply constraints such as
and, more recently, inflation have created particularly fewer operational shipping vessels, exogenous events
challenging times for policy-making. Faced with these such as blockage of the Suez Canal and the Covid-19
challenges, the Government of India’s immediate pandemic in China’s port city, Shenzen, etc.
response was a bouquet of safety-nets to cushion India has been consistently emphasizing on supply-
the impact on vulnerable sections of society and the side reforms, rather than a total reliance on demand
business sector. It next pushed through a significant management. These reforms include deregulation of

numerous sectors, simplification of processes, removal tree such as Acacia Sundra, Acacia Catechuoides and
of legacy issues like ‘retrospective tax’, privatization and Acacia Catechu. Manufacture of Kattha is an important
production-linked incentives, higher rural income, and forest based industry.
the boost from pent-up household savings in addition It has medicinal values as well and is used in ayurvedic
to continued emphasis on infrastructure spending by medicines. It cures itching, indigestion, bronchitis and is
the government. Vaccination has played an important effective in treatment of leprosy, ulcers, boils, piles, and
role in minimizing loss of lives, boosting confidence in throat diseases etc. It’s by-product cutch has various
the economy towards the resumption of activity and industrial applications. It is one of the important sources
containing the sequential decline in output due to the of vegetable tanning material used extensively as an
second wave. Government CAPEX is budgeted to grow additive to the drilling mud used for oil drilling and for
to 2.9% of GDP in FY 2022-23 the highest in nearly two preservation of sailing rods, fishing nets, mail bags etc.
decades. Private corporate investment is also expected Both the products are versatile with varied applications.
to pick up in the second half of the year with improvement The process of Katha making is a long and arduous
in demand leading to increased manufacturing sector process, which takes up to 45 days. Each step in the
capacity utilization and rollout of the Production-Linked production process is closely monitored and proper
Incentive Scheme climatic conditions are maintained for optimum colour
India has also been witnessing significant inflationary and quality. Katha (Catechu) is one of the principal
ingredients used in the preparation of PAAN from betel
pressures similar to the global economy. The outlook
leaves, for chewing purposes when, in combination with
stands to be impacted given sustained inflation pressures
lime, it gives the characteristic red coloration. With the
in the next few quarters including the impact of Russia —
advent of Paan-Masala and its ever-growing popularity
Ukraine conflict, quicker tightening of financial conditions
among masses, the usages of katha have increased
with RBI’s rate hikes, high oil prices impacting current
multi folds during the last 4 decades.
account balance and fiscal deficit and subsequent
Covid-19 outbreaks. However the Indian economy is The overall size of the Katha Industries (B to B) is about
well prepared for any challenges that it might face in FY 2000 crores p.a. with the organized segment being
approx. 30%. It has also been estimated that the (B to C)
2022-23.
Katha market is approx. 2500 crores per annum, which
Indian Katha Industry is mainly consumption in Paan etc The demand of quality
In India chewing paan is quite popular. This habit is Katha is growing significantly. Our Company continues
predominantly followed in eastern India like Assam, Vest to be the leading player in Katha Industries
Bengal, Bihar, Orissa., Andhra Pradesh, Tamil Nadu, Indian Spice Industry
Karnataka and Maharashtra. In other words paan is
Since Historic times, India has been a front-runner in the
consumed in nearly all parts of the country. Katha is one
race for export of spices. A spice is a seed, fruit, root,
of the essential ingredients in the preparation of paan.
bark, or other plant substance primarily used for flavoring
The root of usages of Katha in India goes back to ancient
or coloring food. Spices are distinguished from herbs,
time. Katha was in use even before Morya Dynasty as
which are the leaves, flowers, or stems of plants used
Ayurvedic medicine. However, initial the manufacturing
for flavouring or as a garnish. Indian spices include a
of Katha was carried by unorganized sector. and it is a
variety of spices grown across the Indian subcontinent
mass consumption item. Katha and cutch are extracted
(a sub-region of South Asia). With different climates in
from wood of Khair tree. These trees with their botanical
different parts of the country, India produces a variety
name as Acacia are found in abundance in the forests
of spices, many of which are native to the subcontinent.
of Uttar Pradesh, Bihar, Rajasthan, Gujarat, Himachal
Others were imported from similar climates and have
Pradesh and Nepal. There are different varieties of this

Statutory Report (we)
since been cultivated locally for centuries. Pepper, It is a fact that industry of spice in India is divided. The
turmeric, cardamom, and cumin are some examples of largest spices-producing states in India are Madhya
Indian spices. A whole dried spice has the longest shelf Pradesh, Rajasthan, Gujarat, Andhra Pradesh,
life, so itcan be purchased and stored in larger amounts, Telangana, Karnataka, Maharashtra, Assam, Orissa,
making it cheaper on a per-serving basis. A fresh spice, Uttar Pradesh, West Bengal, Tamil Nadu and Kerala.
such as ginger, is usually more flavorful than its dried
Nem wite contribution to total production quantity im 2020-24
form, but fresh spices are more expensive and have
a much shorter shelf life. Some spices are not always
available either fresh or whole, for example turmeric, and
often must be purchased in ground form. Small seeds,
such as fennel and mustard seeds, are often used both
whole and in powder form.
Spices are used in different forms: whole, chopped, 10%
ground, roasted, sautéed, fried, and as a topping. They
= Chilli = Cumin =Tunnerix = Ginger = Coriander = Others
blend food to extract the nutrients and bind them in a
palatable form. Some spices are added at the end asa Source: Spicos Board of Incia
flavouring
The production of spices is huge and the farming and
India is the world’s largest spice producer. It is also the
small farms continue to play an important role in near
largest consumer and exporter of spices. The overall
future. These farms are usually owned by private Indian
production of different types of spices has been growing
Spices Traders and now by companies. The growing
rapidly over the last few years. Production in 2020-21
ambition and passion of local Indian companies to
stood at 10.7 million tonnes growing at an 8% CAGR
introduce fresh products has led to new revolutions in the
since 2014-15.
market. In order to meet this demand, various brands are
eet eC tS] looking towards other countries like Vietnam and China
to secure supplies. Sensing the increased profits from
export market, the MNCs are also trying to partner with
Indian companies with a purpose of meeting the global
demands of Indian spices.
The Indian spice market is largely unorganized and the
branded segment makes up about 15%. The branded
2020-21 market is dominated by players such as MTR, Catch,
Everest, Ramdev etc. Recently, Tata Chemicals has
Source: Spicom Hoard India launched its spices brand Tata Sampann Spices. The old
culture of buying loose spices and grinding them in old-
India produces about 75 of the 109 varieties listed by fashioned equipment called “Chakki’ is still dominant,
the International Organization for Standardization (ISO). But its reducing Year on Year which opens up the market
The most produced and exported spices are pepper, to organized players .
cardamom, chilli, ginger, turmeric, coriander, cumin, India is the largest exporter of spice and spice items.
celery, fennel, fenugreek, garlic, nutmeg & mace, curry For the year 2020-21, the country exported spices worth
powder, spice oils and oleoresins. Out of these spices, US$ 4.18 billion, a 34% increase from the year 2019-20.
chilli, cumin, turmeric, ginger and coriander make up The five-year CAGR of India’s spice export was 12%.
about 76% of the total production. In February 2022, the exports of spices from India

increased by 7.3% to US$ 291.17 million from US$ 271.4 organization has adopted stringent quality control tests
million in January 2022. In 2020-21, India exported 1.76 from intermediate stages of input of raw materials till
million tonnes of spices. This was a 46% increase from output of finished products. To achieve this, we have
2019-20 exports of 1.21 million tonnes. From 2016-17 to qualified team of 20 engineers & chemists who monitor
2020-21, the total exported quantity from India grew at a the operation and the quality.
CAGR of 17%.
We are well equipped with laboratory facilities and
For FY21, total volumes of chilli, cumin, turmeric and modern equipments such as HPTLC, GLC, Polarimeters,
ginger exports were 0.65, 0.3, 0.18 and 0.15 million TLC, Spectrophotometer, Moisture meter, Hygroscopes
tonnes. besides Kjeldahl extractor etc.
This initiative by the Spices Board of India aims to The Company also owns a research lab having plant &
support the exporter to adopt high tech processing equipments for Pilot Plant scale research for improving
technologies and upgrade the existing level of technology quality & research.
for the development of industry and to meet the changing
During the year under review, the Company has achieved
food safety standards of the importing countries. The
a sales volume of 3443.88 MT Katha in FY2022 as
initiative provides benefits of infrastructure development,
compared to 3210.85 MT in FY 2020 -2021 during the
promotion of Indian spice brands abroad, setting up
turbulence time. However the sales of Cutch (by-product)
infrastructure in the major spice growing centres,
increased from 802.08 MT in FY2021 to 1236.33 MT in
promotion of organic spices and special programmes for
FY2022, thereby registering a growth of 54.14%.
north-eastern entrepreneurs.
The Company has recorded a turnover of Rs 17789.63
Operations
Lakhs in FY2022, as compared with Rs. 15790.36 Lakhs
Katha in FY2021. IWP, with its focus and continuous monitoring
of the situation, has been able to achieve desired results
Our company is a strong player in the organized section
coupled with sustained production levels. The trend is
of Katha Industry in India with a market share of scenario.
likely to continue and we are hopeful to have a better
35~38%. Post launch of GST and E-Weay bill, the market
operational and financial performance with the revival of
share of the unorganized sector was expected to shrink
the overall economy during the further FY 2022-2023.
drastically, but unfortunately, still rampant tax evasion
continues, but fortunately the Govt is taking proactive Spices
steps. We remain hopeful in the coming financial year
India has always been known as the land of spices.
the implementation would improve. We also expect to
Given its culinary history and diversity, spices and
add new customers in comming year in view of the new
herbs are an integral part of our culture, tradition, and
plant in J&K now in operations.
health practices. To continue this legacy of spices, IVWP
During the year as already mentioned above and changes spices came into existence intending to provide pure,
in the prices of Raw Material increased significantly as authentic, and yet affordable spices in India. Initially,
against finished goods products i.e. Katha which effects we began to manufacture Haldi, Dhaniya, and Mirchi
in the profit of the Company powder. But, looking at the popularity and patronization
of our products, we also introduced an array of blended
The Catechin extraction unit set up in Indonesia
spices too. IVWWP Spices are now available in the states
through our Joint Venture Company in Singapore is fully
of Bihar Uttar Pradesh, Assam, and Delhi NCR. The
operational and Catechin extraction is imported in India
IWP Spice’s demand is growing steadily, today we
and used in the production of the Katha.
have over 29 variants of spices and blends, packaged
Achieving ultimate customer satisfaction is the prime in over 90 packaging options, to suit the requirements
outlook of the Company. To materialize this, the of every customer, however, the Company is facing stiff

Statutory Report
competition from the established players which was Future Outlook

expected in first five years.
e@ Increasing demand for Premium quality Katha
IWP Spices are accredited with the coveted ISO
e Increasing awareness amongst the consumers
22000:2005 certification and are also HACCP and
about the quality of packed spice leading to growing
FSSAI certified. Our Company is using highly advanced demand for branded packed spices.
technologies and our packaging units. We procure
choicest Raw Material with Special Quality checks (Purity, e@ Market expansion of IWP Spices by introducing
Quality, and rich taste), Grinding under high standards other product categories
and Durable packaging, the pure and authentic spices/ Financial and operational Performance:
blends are manufactured at our production units. We
don’t use artificial colours or fillers in the production Production Performance:
process. For considerable production, the high-capacity At present, the Company has two business segments viz.
machines are engaged. The machines are user-friendly Katha and Spices. Our Company is one of the leading
and do not affect production efficacy. manufacturers of Katha in India. Our company has
recorded total revenue from operation of Rs.15243.31
The Spice Division has recorded a turnover of Rs.
Lakhs, being 85.69% of the total turnover from the sale
1,230.29 lakhs in FY2022 as compared to Rs.1,283.46
of Katha and Rs. 1230.29 Lakhs being 6.92% of the total
lakhs in FY2021. Spice Division due to a higher focus
turnover from Spices.
on brand awareness and with more expenditure on
retailer-level schemes this division continues to incur During FY21-22, the Company has produced 3443.88
cash losses. We also are taking aggressive steps to MT of Katha as compared to 3210.85 MT in FY 20-21.
achieve better performance by using specific software
The operational performance of the Company during the
with artificial intelligence to expand our B to C outreach
period under review was stable. We intend to achieve
and through online sales to retailers.
sustainable and profitable growth through our consistent
Opportunities: efforts.
e Growing and untapped market Operating Results:
e@ Absence of large player in organized Katha Industry Key highlights of financial performance for the Company
e Largely unorganized market of Spices with only for FY2022 on standalone basis are tabulated below:
~15% market share held by branded players
(Rs. in Lacs)
e Strong acceptability of IWP brand amongst the mass
consumption segment customers Particulars FY2022 FY2021 FY2020
e Strong demand for the small packet spices in the Sales and Other 17789.63| 15,790.36] 19,491.15
mass consumption segment customers with lower Income
disposable income
Earnings before 927.80} 1,129.60] 2,080.09
Threats:
interest, tax,
e Impact of Covid-19 Pandemic depreciation and
e@ Growing competition from the other similar amortisation
manufacturers in informal sector
Profit before Tax (118.19) 50.77| 1,047.64
Changes in Government Policy
Profit after Tax (103.73) 32.74 758.98
Strong presence of large branded _ spices
manufacturers EPS (0.16) 0.05 1.19

However on consolidated basis, revenue from role definitions, inter alia, are aimed at ensuring
operations for FY2022 at Rs 17789.63 Lakhs. Profit after formulation of appropriate risk management policies
tax (“PAT”) for the year was Rs. (58.47) Lakhs. and procedures, their effective implementation,
independent monitoring and reporting by internal
Risks and Concern
audit.
Risk and its Management: Risk accompanies prospects.
e Appropriate structures are in place to proactively
As a responsible corporate, it is the endeavor of the
monitor and manage the inherent risks in businesses
management to minimize the risks inherent in the
with proper risk profiling.
business with the view to maximize returns from
business situations. @ Wherever possible and necessary, appropriate
insurance cover is taken for financial risk mitigation.
The architecture: At the heart of the Company’s risk
Confirmation of compliance with applicable statutory
mitigation strategy is a comprehensive and integrated
requirements are obtained from the respective unit/
risk management framework that comprises prudential
divisions and subjected to an elaborate verification
norms, structured reporting and control. This approach
process.
ensures that the risk management discipline is centrally
initiated by the senior management but prudently e@ Quarterly reports on statutory compliances, duly
decentralized across the organization, percolating to certified, are submitted to the Audit Committee as
managers at various organizational levels helping them well as the Board of Directors for review.
mitigate risks at the transactional level. e Status of Demand/Notices on the Company, under
The discipline: The Company has clearly identified and various Acts and Rules, as well as status of litigations
segregated its risks into separate components, namely are reported to the Board of Directors every quarter.
operational, financial, strategic and growth execution. Internal Control Systems
All the identified risks are inter-linked with the Annual
The Company has both external and internal audit
Business Plans of the Company, so as to facilitate
systems in place. Auditors have access to all records
Company-wide reviews.
and information of the Company. The Board recognizes
The review: A Risk Management Committee of the Board the work of the auditors as an independent check on
of Directors, comprising Board Members, has been the information received from the management on the
constituted to review periodically updates on identified operations and performance of the Company. The Board
risks, implementation of mitigation plans and adequacy and the management periodically review the findings and
thereof, identification of new risk areas etc. recommendations of the statutory and internal auditors
The Board of Directors also reviews the Risk and takes corrective actions whenever necessary.
identification process and mitigation plans regularly. A The Company maintains a system of internal controls
senior executive has been entrusted at all the levels of designed to provide reasonable assurance regarding:
business operation in the Company whose role is not
e Effectiveness and efficiency of operations.
only to identify the Risk but also to educate about the
identified risk and to develop Risk Management culture e Adequacy of safeguards for assets.
within the business. e Reliability of financial controls.
Keycountermeasures: The Company hasinstitutionalized @ Compliance with applicable laws and regulations.
certain risk mitigation procedures outline as under:
Corporate Social Responsibility
e Roles and responsibilities of the various entities in
Company’s CSR policy covers activities in the field of
relation to risk management have been clearly laid
eradication of extreme hunger and poverty, promotion of
down. A range of responsibilities, from the strategic
education, promotion of gender equality, empowerment
to the operational, is specified therein. These

Statutory Report
of women, improvement of mental health, slum Key Ratios

area development and rural development projects,
employment enhancing vocational skills, ensuring Particulars FY 2021 FY 2022
environmental sustainability, sanitation including Revenue (Rs. In lacs) 15790.36 | 17789.63
contribution to Swachh Bharat Kosh set up by the Central
Net Profit After Tax 32.74] (103.73)
Government, ensuring animal welfare, contribution to
(Rs. In lacs)
the Prime Ministers National Relief Fund or any other
project set up by the Central Government. Earnings per share 0.05 (0.16)
The Company has created a trust in the name of IVWWP Operating Profit Margin (%) 4.66% 3.05%
CSR Trust for undertaking CSR activities for and on Net Profit Margin (%) 0.21% | (0.58) %
behalf of the Company.
Return on Net worth 0.09% | (0.29) %
During FY2021-22, in compliance with Section 135 of
Current Ratio (times) 1.43 1.43
the Act, an amount of Rs.24.42 Lakhs is required to be
spent by the Company on CSR activities. The Company Debtors Turnover (times) 3.37 3.80
has spent Rs.24.42 Lakhs as CSR activities towards Debt-equity (times) 0.49 0.52
Animal Welfare, Women Empowerment and Upliftment
Interest Coverage Ratio 1.07 0.82
of People with disability through IWP CSR Trust. There
(times)
are no unspent CSR amount as on 31st March 2022.
Human Resources and Industrial Relations Cautionary Statement
Our employees are our core resource and the Company Statements in this Management Discussion and Analysis
has continuously evolved policies to strengthen its report detailing the Company's objectives, projections,
employee value proposition. Your Company was able estimates, expectations or predictions may be “forward-
to attract and retain best talent in the market and the looking statements” within the meaning of applicable
same can be felt in the past growth of the Company. securities laws and regulations. Actual results could differ
The Company is constantly working on providing the materially from those expressed or implied. Important
best working environment to its Human Resources with factors that could make a difference to the Company’s
a view to inculcate leadership, autonomy and towards operations include global and Indian demand-supply
this objective; your company spends large efforts on conditions, raw material prices, finished goods prices,
training. Your Company shall always place all necessary cyclical demand and pricing in the Company’s products
emphasis on continuous development of its Human and their principal markets, changes in Government
Resources. The belief “great people create great regulations, tax regimes, economic developments
organization” has been at the core of the Company’s within India and the countries with which the Company
approach to its people. conducts business and other factors such as litigation
and/or labor negotiations.

CORPORATE GOVERNANCE REPORT

FY 2022 represents fiscal year 2021-22, from 1st from time to time, and adequate notice with detailed
April 2021 to 31st March 2022, and analogously for explanation is sent to the shareholders well in advance
FY 2021 and previously such labelled years. whenever required to obtain necessary approvals.
PHILOSOPHY ON CODE OF GOVERNANCE BOARD OF DIRECTORS
The Indian Wood Products Co. Limited (IWP), Composition of the Board
‘the Company’ firmly believes that good corporate As on 31st March 2022, the Board of Directors of IWP
governance practices ensure efficient conduct of the consists 7 (seven) Directors, comprising (i) 2 (two)
affairs of the Company while upholding the core values Executive Directors; (ii) 4 (four) Independent Directors,
of transparency, integrity, honesty and accountability and including a woman director; and (iii) 1 (one) Non-
help the Company to achieve its goal to maximize value Executive Non-Independent Director; as defined under
for all its stakeholders. It is a system by which business the Companies Act, 2013 and Listing Regulations. The
corporations are directed and controlled. Chairman of the Board is an Executive Director and
Our Company is committed to the adoption of and Promoter. The Board is entrusted with the ultimate
adherence to Corporate Governance practices atall levels responsibility of the management with powers and
which are essentially aimed at ensuring transparency in duties and is headed by the Chairman and Managing
all dealings and focused on the enhancement of long- Director. It comprises eminent persons with high
term shareholder value. Our Company believes that credentials or considerable professional expertise and
sound Corporate Governance is critical for enhancing experience in diversified fields. Our Board members are
and retaining investors’ trust and the Company always having expertise in various domains such as corporate
seeks to ensure that its performance with integrity help governance, industries, legal and compliances, finance
to achieve its desired goals. and accounts. Our Board has an appropriate mix of
Our Company considers that it is absolutely essential to Executive, Non-Executive and Independent Director(s)
abide by the laws and regulations of the land in letter to maintain its independence, and separate its functions
and spirit and is committed to the highest standards of of governance and management as under:
Corporate Governance and be considered as a good
Name of Board Core competency
corporate citizen of the Country.
Members
Our Company is in compliance with the corporate
Mr. Krishna Kumar | Manufacturing, Management,
governance provisions as stipulated in the Securities
Mohta Governance and CSR
and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“SEBI Mr. Bharat Mohta Manufacturing, Operation, Planning
Listing Regulations’). & Strategy, Human Resources,
This chapter of the annual report together with the Sustainability (water, sanitation,
information given under the chapters titled as ‘Management community development), CSR and
Discussion and Analysis’ and ‘Additional Shareholders’ Investors’ Relation
Information’ constitute the compliance report of the Mr. Rajendra Prasad Manufacturing, Finance, Taxation,
Company on Corporate Governance for FY 2022. Chetani Investor Relation and Human
SHAREHOLDERS Resources
The Companies Act, 2013 and the SEBI Listing Mr. Sanjay Kumar Taxation, Finance, Investor Relation
Regulations stipulate the governance mechanism by Maheswary and Human Resources
shareholders in terms of passing of ordinary and special Mr. Vinod Kumar Investor Relation, Finance and
resolutions, voting rights, participation in corporate Maheshwary Human Resources
actions such as bonus, declaration of dividends, etc. Your
Mrs. Drisha Poddar Corporate Affairs and Finance
Company has in place the process to ensure that the
Mr. Surendra Bagri Accounting, Taxation, Finance and
shareholders of the Company are well informed of both
CSR
on financial and non-financial information as necessary

Statutory Report
All 4 (four) Independent Directors of the Company are him/her in other companies including Chairmanships,
free from any business or other relationship with the and notifies the changes that occurred therein during
Company or its promoters that could materially influence
the term of their directorship in the Company. Table 1
their judgment. The Board is well diversified and consists
gives the composition of IWP’s Board, their positions,
of one Women Independent Directors.
relationship with other Directors, dates of joining the
Each Director informs the Company on an annual
Board, number of Directorships and memberships of the
basis about the Board and Board Committee positions
Board’s Committee held by each of them
Table 1:Board and committee positions held by the Directors
Number of Other Committee Directorship in other

ae Date of | |. act vhi Positions (2) listed companies
Joining EC ay Ips As As and Category of
Chairman Member Directorships
Mr. Krishna Kumar Mohta

Chairman & Managing 29-05-1980 4 - - None
Director
Mr. Bharat Mohta

Whole-Time Director & CEQ | 90-10-2005 6 - 1 None
. 3
Mr. Krishna Kumar Damani 15-04-1998 1 _ _ None
Executive Director
Mr. Rajendra Prasad

Chetani Non-Executive-Non- | 27-04-2004 4 1 2 None
Independent Director
Mr. Sanjay Kumar Maheswary 30-01-2004 1 1 2 None

Mr. Vinod Kumar Maheshwary 43-04-2009 1 _ 2 None

Mrs. Drisha Poddar

Independent Director 18-02-2017 1 ~ ~ None
Mr. Surendra Bagri
Independent Director 13-02-2021 6 ~ ~ None
(1) Excluding directorships in Private Limited Companies, Foreign Companies and Section 8 Companies under the provision of the Companies
Act, 2013. None of the Directors on the Board hold directorships in more than ten public companies. Further, none of them is a member of
more than ten committees or chairman of more than five committees across all the public companies in which he or she is a director
(2) Membership/Chairmanship in Audit and Stakeholders’ Relationship Committee of all public limited companies, whether listed or not, including
IWP’s are considered.
(3) Ceased to be director of the Company w.e.f. 15 April 2021

As per declarations received from the Directors, as on 31 Directors, who are subject to retire by rotation, retire
March 2022, none of the Directors of the Company are every year; and approval of shareholders is sought for
related to each other in terms of Section 2(77) of the Act, the re-appointment of such retiring members, if eligible.
except Mr. Bharat Mohta who is the son of Mr Krishna
Executive Directors are appointed by Board for a
Kumar Mohta.
period not exceeding three years at a time and are
DECLARATION OF INDEPENDENCE: eligible for re-appointment upon completion of the term.
In terms of Regulation 25(8) of SEBI Listing Regulations, Their appointments are subsequently approved by the
the Company had received declarations on the criteria shareholders.
of Independence as prescribed in Section 149(6) of
Mr. Bharat Mohta, Director, (Din 00392090) retires by
the Companies Act, 2013, Regulation 16(1)(b) and
rotation at the forthcoming Annual General Meeting, and
Regulation 25(8) of SEBI (LODR) Regulations, 2015,
being eligible, seeks re-appointment.
from all the Independent Directors of the Company as on
31st March 2022. They have also registered themselves SELECTION AND APPOINTMENT OF NEW
in the databank with the Institute of Corporate Affairs of DIRECTORS
India as an Independent Director as per Rule 6(1) of the Induction of any new member on the Board of Directors
Companies (Appointment and Qualifications of Directors) is the responsibility of the Nomination and Remuneration
Rules, 2014. Committee. Taking into account the existing composition
Based on the declarations received from the Independent and organization of the Board, and the requirement of
Directors, the Board confirms that the Independent new skill sets, if any, the Nomination and Remuneration
Directors fulfil the conditions specified in Section 149 Committee reviews potential candidates in terms of their
of the Companies Act, 2013 and as mentioned under expertise, skills, attributes, personal and professional
Regulation 16(1)(b) of the SEBI Listing Regulations and backgrounds, gender and their ability to attend
that they are independent of the management. meetings. The potential Board member for the office of
TERM OF BOARD MEMBERSHIP Independent Director is also assessed on the basis of
independence criteria defined in Section 149(6) of the
The Board, on the recommendations of the Nomination
Companies Act, 2013 and Regulation 16(1)(b) of Listing
and Remuneration Committee, considers the
Regulations. The Committee then places the details of
appointment and re-appointment of Directors.
such candidates that meet these criteria to the Board of
Section 149 of the Companies Act, 2013, provides that Directors for their consideration. If the Board approves,
an Independent Director can be appointed for a term of the person is appointed as an Additional Director, subject
up to five consecutive years on the Board of a Company to the approval of shareholders in the Company’s Annual
and shall be eligible for re-appointment on passing of General Meeting.
special resolution by the shareholders of the Company.
BOARD EVALUATION
The Independent Directors shall not be liable to retire by
rotation. The Board has carried out an annual evaluation of its own
performance, as well as the working of its committees.
Accordingly, all the Independent Directors of the
The Nomination and Remuneration Committee laid
Company were appointed under Section 149 of the
down the criteria for such performance evaluation.
Companies Act, 2013, for a term ranging up to 5 years.
The evaluation process was carried out internally in
As per the provisions of the Companies Act, 2013, one- FY2021-22. The contribution and impact of individual
third of the Board members other than Independent members were evaluated on parameters such as level

Statutory Report
of engagement, independence of judgment, conflicts DIRECTORS’ SHARE HOLDING IN THE COMPANY

resolution and their contribution in enhancing the Board’s
Table 2 gives details of shares held by the Directors
overall effectiveness.
as on 31 March 2022.
The Performance of the Chairman and Managing Table 2: Shares held by the Directors as on 31
Director has been evaluated on key aspects of their March 2022
role, which include, inter-alia, effective leadership to Name No. of shares held
the Board and adequate guidance at each level of
Mr. Krishna Kumar Mohta 1979802
Management. Based on prescribed criteria as laid down,
Mr. Bharat Mohta 7637530
the performance of the Board, various Committees viz.
Mr. Krishna Kumar Damani* -
Audit Committee, Stakeholders’ Relationship Committee,
Nomination and Remuneration Committee, Corporate Mr. Rajendra Prasad Chetani 4560
Social Responsibility Committee and Risk Management Mr. Sanjay Kumar Maheswary 2800
Committee, and Individual Director were evaluated Mr. Vinod Kumar Maheshwary 2000
and found satisfactory. During the year under review, Mrs. Drisha Poddar -
the Independent Directors of your Company reviewed Mr. Surendra Bagri -
the performance of Non- Independent Directors and
*Retired on 15 April 2021
Chairperson of the Company, taking into account
the views of Executive Directors and Non-Executive MEETINGS OF THE BOARD
Directors. The Board as a whole is a balanced unit
The Company plans and prepares the schedule of the
where diverse views are expressed and dialogued when
Board and Board Committee meetings in advance to
required. All the directors are participative, interactive
assist the Directors in scheduling their program. The
and communicative. The Chairman had abundant
schedule of meetings and agenda for the meeting is
knowledge, experience, skills and understanding of the
finalized in consultation with the Directors. The agenda
Board's functioning and processes. The information flow
of the meeting is pre-circulated with detailed notes,
between your Company’s Management and the Board is
supporting documents and an executive summary
timely & sufficient.
wherever required.
LETTER OF APPOINTMENT
As per the provisions of the Companies Act, 2013 read
The Independent Directors on the Board of the Company, with Regulation 17(2) of the Listing Regulations and
upon appointment, are given a formal appointment letter, Secretarial Standard 1, the Board of Directors must meet
inter-alia containing the term of appointment, roles, at least four times a year, with a maximum time gap of
function, duties & responsibilities, code of conduct, 120 (one hundred and twenty) days between two Board
disclosures, confidentiality, etc. The terms and conditions meetings.
of the appointment of Independent Directors are available The Board meets 5 (five) times during the FY2021-22
on the Company’s website at www.iwpkatha.com. and the gap between two meetings did not exceed 120
DIRECTORS’ PROFILE (one hundred and twenty days). The dates on which the
Board Meetings were held are as follows:
A profile of each of the Directors and their expertise in
specific functional areas are put up on the Company's 1 April 2021, 30 June 2021, 14 August 2021, 12 November
website and can be accessed at http:/Avww.iwpkatha. 2021 and 14 February 2022. Details of Directors and
com/board.html. their attendance in Board Meetings and Annual General
Meeting are given in Table 3.

Table 3: Directors’ attendance at Board meetings and AGM held during FY 2021-22
Name Meetings held in Number of Board | Attendance in last AGM
Director’s tenure Meeting Attended on 28 September 2021
Mr. Krishna Kumar Mohta 5 Present

Mr. Bharat Mohta 5 5 Present
Mr. Krishna Kumar Damani* 1 1 NA
Mr. Rajendra Prasad Chetani 5 5 Present

Mr. Sanjay Kumar Maheswary 5 5 Present
Mr. Vinod Kumar Maheshwary 5 5 Present
Mrs. Drisha Poddar 5 3 Present
Mr. Surendra Bagri 5 5 Present
*Retired on 15 April 2021
The Board and its Committee meetings at IVVP’s typically Fatal or serious accidents, dangerous occurrences,
comprise one-day sessions. In the course of these any material effluentor pollution problems.
meetings, the business unit heads and key management Any material default in financial obligations to and
personnel make presentations to the Board. The Board by the listed entity, or substantial non-payment for
is updated on the discussions at the Committee meetings goods sold by the listed entity.
and their recommendations through the Chairman of the
Any issue,which involves possible public or product
respective Committees.
liability claims of substantial nature, including
INFORMATION GIVEN TO THE BOARD any judgment or order which, may have passed
The Company provides the following information, inter structures on the conduct of the listed entity or taken
alia, to the Board and Board-level Committees, either as adverse view regarding another enterprise that may
part of the agenda papers in advance of the meetings or have negative implications on the listed entity.
by way of presentations and discussion material during Details of any joint venture or collaboration
the meetings: agreement.
@ Annual operating plans and budgets and any Transactions that involve substantial payment
updates. towards goodwill, brand equity, or intellectual
@ Capital budgets and any updates. property.
@ Quarterly results for the listed entity and its operating Significant labour problems and their proposed
divisions or business segments. solutions. Any significant development in Human
@ Minutes of meetings of audit committee and other Resources/Industrial Relations front like signing
committees of the board of directors. of wage agreement, implementation of Voluntary
Retirement Scheme etc.
@ The information on recruitment and remuneration
of senior officers just below the level of board of Sale of investments, subsidiaries, assets which are
directors, including the appointment or removal material in nature and not in the normal course of
of the Chief Financial Officer and the Company business.
Secretary. Quarterly details of foreign exchange exposures and
@ Show cause, demand, prosecution notices and the steps taken by management to limit the risks of
penalty notices, which are materially important. adverse exchange rate movement, if material.

Statutory Report
@ Non-compliance of any regulatory, statutory or DIRECTOR’S REMUNERATION

listing requirements and share holders service such The Company has a policy for the remuneration of
as non-payment of dividend, delay in share transfer Directors, Key Managerial Personnel (KMPs), Senior
etc. Management Personnel (SMPs) and other employees.
POST MEETING FOLLOW-UP MECHANISM The remuneration of the Directors is based on the
Company’s size, presence, its economic and financial
The decisions taken at the Board /Board Committees’ position, compensation paid by other companies, the
meetings are communicated to the concerned qualification of the appointee(s), their experience, past
departments/divisions promptly. An action taken/status performance and other relevant factors.
reporton the decisionsofthe previous meeting(s)
is placed The Nomination and Remuneration policy is available on
at the next meeting of the Board/Board Committees for in www.iwpkatha.com
formation and further recommendation/ action(s) if any. The Executive Directors of the Company, Mr. Krishna
MEETINGS OF INDEPENDENT DIRECTORS Kumar Mohta, Chairman and Managing Director and
Mr. Bharat Mohta, CEO, are appointed by shareholders’
During FY2021-22, the Independent Directors met1 (one) resolution for a period of three years. No severance fees
time on 18 March 2022 in executive sessions without are payable to the Executive Directors. All components
the presence of management. During the meeting, the of remuneration to the Executive Directors are fixed and
independent directors reviewed the performance of the are in line with the Company’s policies.
company and its senior management, that of the chairman The Non-Executive Directors are not entitled to any
and the board, operational strategy,risks, succession remuneration other than a sitting fee for attending
planning for the board and senior management and the meetings of the Board and its Committees as approved
information given to the board. In addition to this meeting, by the Board. The sitting fee is payable only for Board
the Company is ready to facilitate such sessions as meetings and meetings of the Audit Committee and
Nomination and Remuneration Committee.
and when required by the Independent Directors. An
Independent Director, with or without other Independent No sitting fee is paid to Executive Directors for attending
meetings of the Board and its Committees. The
Directors, takes the lead to provide structured feedback
remuneration paid or payable to the Directors for their
to the Board about the key elements that emerge out of
services rendered during FY2021-22 is given in Table-4.
these executive sessions.
Table 4:Remuneration paid or payable to the Directors during FY2021-22 (Rs. in lacs)
Name of Directors Sitting fees Salaries Perquisites Total
Mr. Krishna Kumar Mohta - 76.50 23.16 99.66
Mr. Bharat Mohta - 69.00 34.71 103.72

Mr. Krishna Kumar Damani* - 3.51 - 3.51
Mr. Rajendra Prasad Chetani 0.47 - - 0.47
Mr. Sanjay Kumar Maheswary 0.47 - - 0.47
Mr. Vinod Kumar Maheshwary 0.47 - - 0.47
Mrs. Drisha Poddar 0.23 - - 0.23
Mr. Surendra Bagri 0.38 - - 0.38
* Retired on 15 April 2021

THE CRITERIA FOR MAKING PAYMENTS TO THE Periodic presentations are made by senior management
EXECUTIVE DIRECTORS ARE: on business and performance updates of the Company,
The Nomination and Remuneration Committee business risk and its mitigation strategy. The Company
recommends the remuneration for the Executive has uploaded its Familiarization Programme for
Chairman and Managing Director, other Executive Independent Directors on the website of the Company at
Directors, Senior Management and Key Managerial www.iwpkatha.com.
Personnel. The payment of remuneration to the Executive RISK MANAGEMENT
Directors is approved by the Board and Members. There The Company has enterprise-wide risk management
has been no change in the remuneration policy during (ERM) system in place. An independent Risk
the financial year. The Directors are also entitled to Management Committee of the Board oversees and
commission and reimbursement of expenses incurred reviews the risk management framework, assessment
by them for undertaking their duties as Directors of the of risks, and management and minimization procedures.
Company. The Committee reports its findings and observations to
In determining the remuneration of Executive Chairman the Board. Risk management practices of the Company
and Managing Director, Executive Directors, Senior are covered in the chapter on Management Discussion
Management Employees and Key Managerial Personnel, and Analysis in this annual report.
the Nomination and Remuneration Committee and the COMPLIANCE REVIEWS
Board considers the following: IWP’s has a dedicated team under an_ identified
@ the balance between fixed salary, perquisites and Compliance Officer for overseeing compliance activities,
retirement benefits reflecting short and long-term including monitoring, and a defined framework to review
performance objectives, appropriate to the working the compliances with all laws applicable to the Company.
of the Company and its goals. The compliance status is periodically updated to the
@ alignment of remuneration of Directors and Key senior management team including the CEO and the
Managerial Personnel with long-term interests of the CFO through review meetings. Presentations are made
Company. in the quarterly Audit Committee meetings regarding the
status on compliance and the reports are also shared
@ Company’s performance vis-a-vis the individuals’
with Board members. The CFO and the Company
achievement & experience, industry benchmark and
Secretary of Company furnishes a certificate at each
current compensation trends in the market.
Board meeting, held for approval of financial results,
The Non-Executive Directors are not entitled to any confirming the overall compliance by the Company with
remuneration. applicable statutes including financial and commercial
FAMILIARIZATION PROGRAM FOR INDEPENDENT laws.
DIRECTOR CODE OF CONDUCT FOR BOARD MEMBERS AND
To familiarize a new Independent Director with the SENIOR MANAGEMENT
Company, its policies and procedures, a familiarize kit As per the Listing Regulations and the Companies Act,
containing informative documents about the Company 2013, the Company adopted a ‘The Code of Conduct
like past five years Annual Reports, CSR Report, for Board Members and Senior Management which
Memorandum and Articles of Association, Company’s applies to all its directors and employees, and affiliates.
Code of Conduct, presentation on financial and It is the responsibility of all Directors and employees to
operational highlights etc. are provided to him/her. familiarize themselves with this Code and comply with
The new Independent Director meets individually with its standards.
each Board member, KMPs and senior management The Board and the Senior Managementaffirm compliance
personnel. Visits to plant location(s) are also organized with the Code of Business Conduct and Ethics annually. A
for the new Director to understand the Company’s certificate of the Chief Executive Officer of the Company
product and operations. to this effect is enclosed as Annexure- A.

Statutory Report
RELATED PARTY TRANSACTIONS there is no treatment of any transaction different from

There are no material related party transactions during that prescribed in the Accounting Standards notified by
the year under review. Further, none of the related party the Government of India under the Companies Act, 2013.
transaction involves conflict with the interest of the COMMITTEES OF THE BOARD
Company. Transactions entered into with related parties
The Board Committees focus on specific areas and
during FY2022 were in the ordinary course of business and
make informed decisions within the authority delegated.
at arms’ length basis and were approved by the members
Each such Committee is guided by its Charter, which
of Audit Committee including Independent Directors.
defines the composition, scope and powers in line with
The Board’s approved policy for related party transactions
the statutory requirements. The Committees also make
is uploaded on the website of the Company.
specific recommendations to the Board on various matters
The details of Related Party Transactions are discussed
whenever required. All observations, recommendations
in detail in Note No. 36 of Notes to the Financial
and decisions of the Committees are placed before the
Statements.
Board for information, consideration, approval or action,
SUBSIDIARY COMPANIES as the case may be.
The Company does not have any subsidiary Company The Company has five Board-level Committees,
and none of the Companies was ceased to a subsidiary of namely:
the Company during the year. Further, the Company has
@ Audit Committee
one overseas joint venture namely M/s. Agro and Spice
Nomination and Remuneration Committee
Trading Pte Limited, Singapore, as on 31st March 2022.
Stakeholders’ Relationship Committee
DISCLOSURE ON ACCOUNTING TREATMENT Corporate Social Responsibility Committee
In the preparation of financial statements for FY2021-22, Risk Management Committee
Composition of the Board Committees as on 31st March, 2022, are disclosed in Table-5:
Table 5: Composition of the Board Committees

Name of the Director Audit Nomination & Corporate Risk Stakeholders
Committee | Remuneration Social Management | Relationship
Committee Responsibility | Committee Committee
Committee
Krishna Kumar Mohta ae aw

Bharat Mohta ais ae ain
Rajendra Prasad Chetani aa ae ae a
Sanjay Kumar Maheswary am R an Ri ae

Vinod Kumar Maheshwary ale ain as
Drisha Poddar
Surendra Bagri ais ae
A Signifies Chairman of the Committee
ale Signifies Member of the Committee

Table 6: Composition of the Board Committees

Audit Nomination & Corporate Risk Stakeholders
Committee | Remuneration Social Management | Relationship
(1) Committee Responsibility | Committee Committee
Committee
Date of meetings 30-06-2021; | 01-04-2021 02-07-2021; 30-06-2021 16-08-2021

14-08-2021; and 18-08-2021; and 22-03-2022
12-11-2021 30-06-2021 16-11-2021
and and
14-02-2022 18-02-2022
No. of meeting held 4 2 4 1 2
No. of meetings attended
Name of the Director
Krishna Kumar Mohta - - 4 1 -
Bharat Mohta - - 4 1 2
Rajendra Prasad Chetani 4 2 - - 2
Sanjay Kumar Maheswary 4 2 - - 2
Vinod Kumar Maheshwary 4 2 - - 2
Drisha Poddar - - - - -
Surendra Bagri - - 4 1 -
(1) The Company is in compliance with the provisions of Regulation 18 of Listing Regulations, as amended, on the time gap between any 2 (two)
Audit Committee Meetings.
Audit Committee sufficient and credible;

The management is responsible for the Company's 2. Recommendation for appointment, remuneration
internal controls and the financial reporting process while and terms of appointment of auditors of the
Company.
the statutory auditors are responsible for performing
independentaudits of the Company’s financial statements
3. approval of payment to statutory auditors for any
other services rendered by the statutory auditors;
in accordance with generally accepted auditing practices
4. reviewing, with the management, the annual
and for issuing reports based on such audits.
financial statements and auditor’s report thereon
The Board of Directors has entrusted the Audit Committee before submission to the board for approval, with
with the responsibility to supervise these processes and particular reference to:
thus ensure accurate and timely disclosures that maintain a. matters required to be included in the director
the transparency, integrity and quality of financial control ‘s responsibility statement to be included in
and reporting. the board's report interms of clause(c) of sub-
A. The role of the audit committee shall include the section (3) of Section 134 of the Companies
following: Act, 2013;
1. oversight of the Company’s financial reporting b. changes, if any, in accounting policies and
process and the disclosure of its financial information practices and reasons for the same;
to ensure that the financial statement is correct, c. major accounting entries involving estimates

Statutory Report
based on the exercise of judgment by well as post-audit discussion to ascertain any area
management; of concern;
d. significant adjustments made in the financial 17. to look into the reasons for substantial defaults in
statements arising out of audit findings; the payment to the depositors, debenture holders,
e. compliance with listing and other legal share holders (in case of non-payment of declared
requirements relating to financial statements; dividends) and creditors;
f. disclosure of any related party transactions; 18. to review the functioning of the whistle blower
g. modified opinion(s) in the draft audit report; mechanism;
reviewing, with the management, the quarterly 19. approval of the appointment of a chief financial
financial statements before submission to the board officer after assessing the qualifications, experience
for approval: and background, etc. of the candidate;
reviewing, with the management, the statement of 20. Carrying out any other function as in mentioned in
uses/application of funds raised through an issue the terms of reference of the audit committee.
(public issue, rights issue, preferential issue, etc.), B. The audit committee shall mandatorily review
the statement of funds utilized for purposes other the following information:
than those stated in the offer document/prospectus/ 1. management discussion and analysis of financial
condition and results of operations;
notice and the report submitted by the monitoring
agency monitoring the utilization of proceeds of 2. statement of significant related party transactions
(as defined by the audit committee), submitted by
a public or rights issue, and making appropriate
management;
recommendations to the board to take up steps in
3. management letters/letters of internal control
this matter,
weaknesses issued by the statutory auditors;
reviewing and monitoring the auditor‘s independence 4. internal audit reports relating to internal control
and performance, and effectiveness of audit process; weaknesses;and
approval or any subsequent modification of 5. the appointment, removal and terms of remuneration
transactions of the Company with related parties; of the internal auditor shall be subject to review by
scrutiny of inter-corporate loans and investments; the audit committee.
. valuation of undertakings or assets of the Company, 6. statement of deviations:
wherever it is necessary; a. quarterly statement of deviation(s) including
11. evaluation of internal financial controls and risk report of monitoring agency, if applicable,
submitted to stock exchange(s) in terms of
management systems;
Regulation 32(1).
12. reviewing, with the management, performance of
b. annual statement of funds utilized for purposes
statutory and internal auditors, adequacy of the other than those stated in the offer document/
internal control systems; prospectus/ notice in terms of Regulation 32(7).
13. reviewing the adequacy of the internal audit All members of the Audit Committee are financially
function, if any, including the structure of the internal
literate and bring in expertise in the fields of finance,
audit department, staffing and seniority of the
economics, strategy and management.
official heading the department, reporting structure
coverage and frequency of internal audit; The Audit Committee meets the key members of the
14. discussion with internal auditors of any significant finance team and internal audit team along with the
findings and follow up thereon; CEO and the CFO to discuss matters relating to audit,
15. reviewing the findings of any internal investigations compliance and accounting. During the year, the
by the internal auditors into matters where there is Committee also meets Statutory Auditors without the
suspected fraud or irregularity or a failure of internal presence of the management
on more than one occasion.
control systems of material nature and reporting the The Chairman and Managing Director, the CEO, the
matter to the board;
CFO and the Internal Auditor are permanent invitees to
16. discussion with statutory auditors before the audit
all Audit Committee meetings. The Statutory Auditors
commences, about the nature and scope of audit as

of the Company was present in all the Audit Committee The CEO and the CFO are special invitees to the
meetings held during the year. The Company Secretary Nomination and Remuneration Committee meetings.
officiates as the secretary of the Committee. The Company Secretary officiates as the secretary of
the Committee.
The Chairman and Managing Director, the CEO, the
Stakeholders’ Relationship Committee
CFO and the Internal Auditor are permanent invitees to
all Audit Committee meetings. The Statutory Auditors The Stakeholders’ Relationship Committee is empowered
of the Company was present in all the Audit Committee to perform the functions of the Board relating to the
meetings held during the year. The Company Secretary handling of shareholders’ queries and grievances. It
officiates as the secretary of the Committee. primarily focuses on:
Nomination and Remuneration Committee @ Review the process and mechanism of Redressal
of investor grievances and suggest measures
The Nomination and Remuneration Committee is entirely
for improving the system of redressal of investor
comprised of Non- Executive Director. The primary
grievances.
functions of the Committee are to:
@ Review and resolve the pending investor's
@ Examine the structure, composition and functioning
complaints, if any, relating to the transfer of shares,
of the Board, and recommend changes, as
non-receipt of share certificate(s), non-receipt of
necessary, to improve the Board’s effectiveness.
dividend warrants, non-receipt of the annual report
@ Formulation of the criteria for determining and any other grievance/complaints with Company
qualifications, positive attributes and independence or any officer of the Company arising out in discharge
of a director and recommend to the Board a policy, of his duties.
relating to the remuneration of the directors, key
@ Over see the performance of the Registrar & Share
managerial personnel and other employees;
Transfer Agent and also review and take note of
@ Formulation of criteria for evaluation of Independent complaints directly received and resolve them.
Directors and the Board; @ Review of corporate actions related to security
@ Devising a policy on Board diversity; holders.
@ ldentifying persons who are qualified to become The Chairman of the Committee is a Non-Executive Non-
directors and who may be appointed in senior Independent Director. The Company Secretary officiates
management in accordance with the criterial as the secretary of the Committee. The Company has
aid down and recommend to the Board for their received and resolved all complaints within the stipulated
appointment and removal. time as received from the shareholders during FY2021-
@ Whether to extend or continue the term of 22, and no complaints were pending at the end of
appointment of the independent director, on the FY2021-22.
basis of the report of performance evaluation of Corporate Social Responsibility Committee
independent directors.
The CSR Committee is empowered to perform the
@ Regularlyexaminewaysto strengthenthe Company's functions of the Board relating to handling the social
organizational health, by improving the hiring, initiatives. Its primary functions are to:
retention, motivation, development,deployment and
@ Formulate, review and recommend to the Board, a
behaviour of management and other employees.
CSR policy indicating the activities to be undertaken
In this context, the Committee also reviews the by the Company as specified in Schedule VII of the
framework and processes for motivating and rewarding Companies Act, 2013.
performance at all levels of the organization reviews
@ Recommend the amount of expenditure to be
the resulting compensation awards, and makes
incurred on the initiatives as per the CSR policy.
appropriate proposals for Board approval. In particular,
it recommends all forms of compensation to be granted @ Provide guidance on various CSR _ initiatives
to Directors, executive officers and senior management undertaken by the Company and monitoring their
employees of the Company. progress.

Statutory Report
@ Monitor implementation and adherence to the CSR @ Overall Company performance, including those of
Policy of the Company from time to time. various business units.
The CSR Committee reviewed and recommended the @ Expansion plan

CSR policy to the Board, during the year. The Chairman @ Discussion and sign-off on annual plans, budgets,
of the Committee is an Executive Director. The Company investments and other major initiatives.
Secretary officiates as the secretary of the Committee. @ Discussion on business alliance proposals.
Risk Management Committee MANAGEMENT DISCUSSION AND ANALYSIS
The Company has constituted a Risk Management
A separate chapter on the ‘Management Discussion
Committee of the Board to oversee the risk management
and Analysis’ is included in this annual report,
of the Company.
constitutes a part of this report.
The Company has a Risk Management framework to
MANAGEMENT DISCLOSURES
identify, and evaluate business risks and opportunities.
This framework seeks to create transparency, minimize Senior Management of the Company (Senior Manager
adverse impact on the business objectives and enhance level and above, as well as certain identified key
the Company’s competitive advantage. employees) make annual disclosures
to the Board relating
to all material financial and commercial transactions
The Board of Directors is overall responsible for
in which they may have a personal interest if any, and
identifying, evaluating, and managing all significant Risk
which may have a potential conflict with the interest of the
factors faced by the Company. The Company has also
Company. Transactions with key managerial personnel
laid down a procedure to inform the Board on a periodic
are listed in the financial section which forms part of this
basis about the identification of Risks and the steps to be annual report under Related Party Transactions.
taken to mitigate and minimize the same.
PROHIBITION OF INSIDER TRADING
A senior executive has been entrusted at all the levels
of business operation in the Company whose role is not The Company has a policy Prohibiting Insider Trading in
only to identify the Risk but also to educate about the conformity with applicable SEBI regulations. Necessary
identified risk and to develop Risk Management culture procedures have been laid down for Directors, officers
and designated employees for trading in the securities
within the business..
of the Company. The policy and procedures are
MANAGEMENT
periodically communicated to the employees who are
The management of the Company develops and considered as insiders of the Company. Trading window
implements policies, procedures and practices that closure periods, when the Directors and employees are
attempt to translate the Company’s core purpose and not permitted to trade in the securities of the Company,
mission into reality. The management also identifies, are intimated to all Directors and employees, in advance,
measures, monitors and minimizes risk factors in the whenever required.
business and ensures safe, sound and efficient operation.
INTERNAL CONTROL SYSTEMS
These are internally supervised and monitored by CEO
and the CFO. The Company has both external and internal audit
systems in place. Auditors have access to all records
Listed below are some of the key issues that were
and information of the Company. The Board recognizes
considered by the management during the year under
the work of the auditors as an independent check on
review:
the information received from the management on the
@ Company’s long-term strategy, growth initiatives and operations and performance of the Company. The Board
priorities. and the management periodically review the findings and

recommendations of the statutory and internal auditors MEANS OF COMMUNICATION

and takes corrective actions whenever necessary. The Company ensures that the following filings and
INTERNAL CONTROLS reports are available on its website:
The Company maintains a system of internal controls @ The notices and official press releases, are posted
designed to provide reasonable assurance regarding: on our website, at httos:// www.iwpkatha.com. In
e@ Effectiveness and efficiency of operations. light of difficulties posed by the COVID-19 pandemic,
@ Adequacy of safeguards for assets. SEBI vide various circulars relaxed the requirement
@ Reliability of financial controls. of publishing financial results in the newspapers.
However, the Company ensured publishing the
@ Compliance with applicable laws and regulations.
financial results for the benefit of the stakeholders.
The integrity and reliability of the internal control systems
The quarterly/annual results are generally published
are achieved through clear policies and procedures,
in at least one English language national daily
process automation, careful selection, training and
newspaper circulating in the whole or substantially
development of employees and an_ organizational
the whole of India (Financial Express) and in one
structure that segregates responsibilities. Internal Audit
regional daily newspaper circulating in West Bengal
at IWP is an independent and objective assurance
(ArthikLipi).
function, responsible for evaluating and improving
the effectiveness of risk management, control and @ Quarterly and = annual financial statements,
governance processes. standalone and consolidated are also posted on our
website, at https: www.iwpkatha.com
The Audit Committee of the Board monitors the
performance of internal audit department in a periodic @ The proceedings of the AGM are available on our
basis through review of audit plans, audit findings and website, at https: www.iwpkatha.com
speed of issue resolution through follow-ups. Each year, @ The shareholders can also access the details
there are at least four meetings held, where the Audit of annual reports, Board and committee details,
Committee reviews internal audit findings, in addition to Memorandum and Articles of Association, financial
special meetings and discussions. information, share holding patterns, details of
unclaimed dividends and shares transferred / liable
CEO AND CFO CERTIFICATION
to transfer to IEPF, etc. on the Company’s website.
A certificate of the Chief Executive Officer and the Chief
@ Other information, such as_ stock exchange
Financial Officer of the Company on financial statements
disclosures, is regularly updated on the Company’s
and applicable internal controls as stipulated under
website. The shareholders can also visit www.
Regulation 17(8) of the Listing Regulations is enclosed
bseindia.com where the investors can view statutory
below as Annexure - B.
filings of the Company with the BSE.
STATUTORY AUDITS
For FY2021-22 M/s. Agrawal Tondon & Co, Chartered For and on behalf of Board of Directors of
Accountants, has audited the financial statements The Indian Wood Products Co. Ltd.
prepared under the INDAS
AUDITORS’ FEES K K Mohta
During FY 2022, the Company paid Rs.3.00 Lacs to M/s. Kolkata Chairman & Managing Director
Agrawal Tondon & Co., the Statutory Auditors as audit 30 May 2022 DIN : 00702306
fees.

Statutory Report
Annexure A
Compliance with the Code of Conduct for Board Members and Senior Management
[Declaration as per Regulation 34(3) Listing Regulations]
| hereby confirm that all the members of the Board and senior management personnel have affirmed that they have
complied with the Company's Code of Conduct for Board Members and Senior Management for the FY2021 -22.
For The Indian Wood Products Co. Ltd.

Bharat Mohta
Kolkata, 30 May 2022 Chief Executive Officer
Certificate on Corporate Governance
To
The Members of
The Indian Wood Products Co Ltd.
CIN NO. L20101WB1919PLC003557
| have examined the relevant records of The Indian Wood Products Co Ltd (“the Company”) for the purpose of
certifying compliance of conditions of Corporate Governance as stipulated in Regulations 17 to 27 and clauses
(b) to (i) and (t) of sub-regulation (2) of Regulation 46 and para C, D and E of Schedule V of the Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing
Regulations) for the period from April 1, 2021 to March 31, 2022. We have obtained all the information and
explanations which to the best of our knowledge and belief were necessary for the purposes of certification.
The compliance of conditions of Corporate Governance is the responsibility of the management. My

examination was limited to procedures and implementation thereof, adopted by the Company for ensuring
the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion
on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and the
representations made by the Management, we certify that the Company has complied with all the mandatory
conditions of Corporate Governance as stipulated in the above mentioned Listing Regulations, during the
year ended March 31, 2022.
| further state that this certificate is neither an assurance as to the future viability of the Company nor the
efficiency or effectiveness with which the management has conducted the affairs of the Company.
Ashok Kumar Daga

Practicing Company Secretary
FCS- 2699 & C.P. No. 2948
Kolkata, 30 May, 2022

UDIN No. F002699D000426276

Annexure B
CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO)
CERTIFICATION
{Pursuant to Regulation 17(8) of the Listing Regulations}
The Board of Directors

The Indian Wood Products Co Ltd
Dear Member of the Board,
We, Bharat Mohta, Chief Executive Officer (CEO), Raj Kumar Agarwal, Chief Financial Officer (CFO), ofthe Company,
to the best of our knowledge and belief, hereby certify that:
a) We have reviewed the Financial Statements including the cash flow statement (Standalone & Consolidated) for
the year ended 31st March, 2022 and that these Statements:
(i) do not contain any materially untrue statement or omit any material fact or contain statements that might be
misleading;
(ii) together present a true and fair view of the Company’s affairs and are in compliance with the existing
accounting standards, applicable laws and regulations.
b) There are, no transactions entered into by the Company during the year ending 31st March, 2022 which are
fraudulent, illegal or violative of the Company’s code of business conduct and ethics.
c) We accept responsibility for establishing and maintaining internal controls for financial reporting and that have
evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting
and have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such
internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these
deficiencies.
d) We have disclosed , to the Auditors and the Audit committee
(i) that there was no deficiencies in the design or operations of internal controls that could adversely affect the
company’s ability to record, process, summarize and report financial data including any corrective actions;
(ii) that there are no material weaknesses in the internal controls over financial reporting;
(iii) that there are no significant change in internal control over financial reporting during the year;
(iv) all significant changes in accounting policies during the year, if any and that the same have been disclosed
in the notes to the financial statement; and
(v that there are no instance during the year of significant fraud of which we have become aware of and
=
involvement therein of the management or any employee having a significant role in the Company’s internal
control system over financial reporting.
For and on behalf of the Board
Kolkata Bharat Mohta R. K. Agarwal

30 May, 2022 Chief Executive Officer Chief Financial Officer

Statutory Report
ADDITIONAL SHAREHOLDER INFORMATION

FY2022 represents fiscal year 2021-22, from 1 April 2021 to 31 March 2022, and analogously for FY2021 and
previously such labeled years.
1. General Body Meetings
Below table gives the details of date, time, location and business transacted through special resolution at last three
Annual General Meetings:
Financial Date & Time Location Special Resolution(s) Passed

Year
2020-21 28 September 2021 | AGM Conducted Through Video |1. Reappointment of Mrs. Drisha Poddar
at 3.00 P.M Conferencing (VC)/ Other Audio- | (Din 07729080) as an Independent Director.
Visual Means (OAVM) 2. Reappointment of Mr Krishna Kumar

Mohta (Din 00702306) as Whole Time
Director designated as Chairman and
Managing Director.
3. Reappointment of Mr. Bharat Mohta

(Din 00392090) as Whole Time Director
Designated as CEO.
2019-20 25 September 2020 | AGM Conducted Through Video | 1. Reappointment of Mr. Vinod Mimani
at 3.15 P.M Conferencing (VC)/ Other Audio- | (Din 00053976) as an Independent Director
Visual Means (OAVM)
2018-19 17 September 2019 Bharatiya Bhasha Parishad, 1. Reappointment of Mr. Sanjay Kumar
at 3.30 P.M 36A Shakespeare Sarani Maheswary (Din 00497335) as = an
,Kolkata — 700017 Independent Director
2. Reappointment of Mr. Vinod Kumar

Maheshwary (Din 02659320) as an
Resolution(s) passed through Postal Ballot
During the year, the Company did not pass any special resolution through postal ballot. The details of the previous
postal ballots are available on the website, at www.iwpkatha.com.
Annual General Meeting (AGM) :
As per the Circulars issued by the Ministry of Corporate Affairs and the SEBI, from time to time, the 102nd Annual
General Meeting of the Company is scheduled to be held on Monday, 26 September 2022, at 3.00 P.M through
Video Conference /Other Audio-Visual Means (“VC/OAVM”) facility. The venue if the AGM shall be deemed to be
the register office of the Company at Bombay Mutual Building, 7th Floor, 9 Brabourne Road, Kolkata- 700001. The
detailed instructions for participation and voting at the meeting is available in the notice of the 102nd AGM.

Proposal to Conduct Postal Ballot for any Matter in the Ensuing Annual General Meeting
There is no proposal to conduct a postal ballot for any matter in the ensuing Annual General Meeting.
2. Book Closure Date:-
From 20th September 2022 to 26th September 2022 (both days inclusive) for the purpose of payment of dividend
in AGM.
3. Dividend
Dividend, if approved by the shareholders at the 102nd Annual General Meeting, shall be paid to all the
Shareholders whose name appears on the registrar of members as on closing hours of 19 September 2022,
being the Record Date fixed for this purpose. Dividend will be credited/dispatched on or after 26 September
2022.
4. Financial Calendar
The financial year of the Company starts on 1st April every year and ends on 31st March subsequent year.
Indicative calendar of events for the financial year 2022-23 are as under
For the quarter ending 30 June 2022 Second week of August 2022
For the quarter and half- year ending 30 September 2022 Second week of November 2022
For the quarter and nine months ending 31 December 2022 Second week of February 2023
For the year ending 31 March 2023 Fourth week of May 2023
AGM for the year ending 31 March 2023 Last week of August 2023
5. Listing of Stock Exchange and Stock Codes

Stock Exchange Scrip code
BSE Limited 540954
Phiroze Jeejeebhoy Tower,
Dalal Street, Mumbai- 400 001
Listing fees to BSE Limited for the listing of equity shares have been paid for the FY 2022-23. The Custodian fee
for NSDL & CDSL has also been paid for the FY2022-23.
6. The International Security Identification Number (ISIN)
ISIN is a unique identification number of traded scrip. This number has to be quoted in each transaction relating
to the dematerialized securities of the Company. The ISIN of the Company's equity shares is INE586E01020.
7. Market Price Data
The Equity Shares of the Company are presently listed on BSE Limited. The monthly high/low and the total
number of shares traded per month on the BSE during FY2022 are given below:

Statutory Report
High/low and number of shares traded per month on BSE during FY2022
BSE
Month High (Rs.) Low (Rs.) Total Number of equity
Shares Traded
Apr 2021 41.00 30.70 166818
May 2021 42.00 29.70 560405
Jun 2021 56.60 47.00 1438065
July 2021 51.35 47.60 654926
August 2021 49.35 38.60 404205
September 2021 41.95 35.95 192423
October 2021 43.00 40.45 377542
November 2021 42.40 34.95 354994
December 2021 40.90 38.10 624361
January 2022 38.90 36.30 438245
February 2022 45.95 34.60 1333377
March 2022 40.90 33.20 641193
Performance in comparison to board based indicies

The Equity Shares of the Company are presently listed only on BSE Limited. The trading data of the Company’s
Equity Shares and its performance comparison to board based indices for FY2021-22 are as under:
Registrar and Share Transfer Agents

M/s. Niche Technologies Pvt. Ltd., 3A, Auckland Place, Room No. 7A & 7B, 7th Floor, Kolkata- 700 017 is the
Registrar and Share Transfer Agent of the Company, both for Physical & Demat Share holders. Accordingly, all
communications on matters relating to Share Transfers, Dividend etc. may be sent directly to them. Complaints,
if any, on these matters may also be sent to the Compliance Officer of the Company.
5000 60
55000
50000
45000
40000
35000
30000
25000
20000
15000
10000
Sensex eo IP

10. Share Transfer System
In terms of Regulation 40(1) of SEBI Listing Regulations, as amended, Securities can be only in dematerialized
form w.e.f. April 1, 2019, except in case of request received for transmission or transposition of securities.
Members holding shares in physical form are requested to convert their holdings to dematerialized form. Transfer
of Equity shares in electronic form is affected through the depositories with no involvement of the Company.
The share transfersfAransmission/splits and /or issue of duplicate share certificates are processed on behalf
of the Company by the Registrar and Transfer Agents, M/s. Niche Technologies Pvt. Ltd. and is then placed
before the Stakeholder Relationship Committee to approve transfers. The Company Secretary addressed all the
requests weekly.
All queries and requests relating to share /debenture transfers/ transmissions may be addressed to our Registrar
and Transfer Agents.
The Company periodically reviews the operations of its Registrar and Transfer Agent.
11. Description of Voting Rights
All shares issued by the Company carry equal voting rights, and one share confirms one vote.
12. Nomination Facility
Shareholders / Debenture Holders holding physical shares/debentures may, if they so desire, may send
their nominations in Form SH13 to the Registrar & Transfer Agents of the Company. Those holding shares in
dematerialized form may contact their respective Depository Participant (DP) to avail nomination facility.
13. Shareholding Pattern as on 31st March 2022:
Distribution of shareholdings on the basis of ownership

. As on 31 March 2021 As on 31 March 2022
Particulars % change
No. of shares % of total No. of shares | % of Total
Promoter’s Holding
- Individuals 31133692 48.67 31133692 48.67 -
- Companies 14363966 22.45 14363966 22.45 -
Sub-Total 45497658 71.12 45497658 71.12 -
Indian Financial Institutions
Banks 201680 0.32 201680 0.32 -
Mutual Funds - - - - -
Foreign holdings
- Foreign Institutional Investors - - - - -
- Non Resident Indians 1258266 1.97 1233097 1.93 (0.04)
- ADRs
/ Foreign Nationals - - - - -
Sub total 1459946 2.29 1434777 2.25 (0.04)
Indian Public and Corporates 17015116 26.59 17040285 26.63 0.04
Total 63972720 100.00 63972720 100.00 -

Statutory Report
14. Distribution of Shareholding as on March 31, 2022
Range No of Shareholders | % of Total Shareholders | No. of Shares | % of Total Shares
1 -— 5,000 4219 87.35 3131271 4.90
5,001 — 10,000 251 5.20 1908072 2.98
10,001 — 50,000 294 6.09 5764171 9.01
50,001 — 1,00,000 35 0.72 2534452 3.96
100,001 and above 31 0.64 50634754 79.15
Total 4830 100.00 63972720 100.00
15. Outstanding ADR’s & GDR’s Warrants or any other convertible instruments, conversion date and likely
impact on equity shares
During the FY2021-22, the Company has not issued any ADR’s GDR’s, Warrants or any other convertible
instruments. The Company at present has no outstanding ADR’s/GDR’s/Warrants to be converted that have an
impact on the equity shares of the Company.
16. Commodity Price Risk on Foreign Exchange Risk.
The Company is exposed to the risk of price fluctuation of raw materials as well as finished goods. The company
proactively manages these risks through forward booking, inventory management and proactive vendor
development practices. The Company's reputation for quality, products differentiation, coupled with existence of
a powerful brand image with a robust marketing network mitigates the impact of price risk on finished goods.
17. Credit Rating
ICRA Limited (ICRA) has affirmed the long-term credit rating of (ICRA) BBB-(Negative) and a short-term rating
(ICRA) A3 (pronounced ICRAA three)
18. Dematerialization of Shares
The Company’s scrip forms part of the compulsory dematerialization segment for all investors. To facilitate easy
access of the dematerialized system to the investors, the Company has signed up with both the depositories
namely National Securities Depository Limited (“NSDL”) and the Central Depository Services (India) Limited
(“CDSL’) — and has established connectivity with the depositories through its Registrar and Transfer Agents,
Niche Technologies Pvt. Ltd.
Dematerialization of shares is done through Niche Technologies Pvt. Ltd. and on an average the dematerialization
process is completed within 10 days from the date of receipt of a valid dematerialization request along with the
relevant documents. Chart 1 gives the breakup of dematerialized shares and shares in certificate form as on 31
March 2022 as compared with that as on 31 March 2021.

The breakup of dematerialized shares and shares in certificate form as on March 31, 2022 as under:
Physical NSDL CDSL

4064786 54288413 5619521
LOO Oe,
90.908
Oo
5.23% 84.86%
80.00%
FO,
60:00%
50.00%
40,00%
20 O03
OOS,
NSDL CBSL Physical
19. Other Disclosures
Disclosures on materially significant related party transaction

The statements containing the transactions with related parties were submitted periodically to the Audit
Committee. The details of Related Party Transaction are discussed in detail in Note No. 36 of Notes to the
Financial Statements.
All the contracts/ arrangements/transactions entered by the Company during the financial year with related
parties were in its ordinary course of business on an Arm’s Length Basis.
None of the transactions with any of related parties were in conflict with the Company’s interest.
Details of non-compliance(s) by the company
No penalties have been imposed or strictures have been issued by SEBI, Stock Exchanges or any Statutory
Authorities on matters relating to Capital Markets during the last three years against the non-compliance relating
to the matter aforesaid.
Whistle Blower Policy/Vigil Mechanism
The Board of Directors of the company has adopted Whistle Blower Policy. The management of the Company,

Statutory Report
through the policy envisages encouraging the employees of the Company to report the higher authorities any
unethical, improper, illegal, or questionable acts, deeds & things which the management or any superior may
indulge in. This policy has been circulated to the employees of the Company. However, no employee has been
denied access to the Audit Committee.
Details of Compliance with mandatory requirements and adoption of the non-mandatory requirements
The Company has complied with the mandatory requirements of Corporate Governance under listing Regulations
and is in the process of implementation of non- mandatory requirements.
Disclosure of Accounting Treatments
The financial statements of the Company have been prepared in accordance with Indian Accounting Standard
(IndAS) to comply in all material aspects under Section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (“the 2013 Act’)/
Companies Act, 1956 (“the Act 1956”), as applicable. These financial statements have been prepared on an
accrual basis and under the historical cost conventions.
20. Name, Designation & Address of Compliance Officer and RTA for Complaints & Correspondence
Mr. Anup Gupta
Company Secretary & Compliance Officer
Kolkata — 700001
Tel: 82320 23820
Registered / Corporate Office Address for Correspondence
Kolkata — 700001
Tel: 82320 23820
Email Id: [email protected]
CIN: L20101VVB1919PLC003557
Registrar & Share Transfer Agents

M/s. Niche Technologies Pvt. Ltd.
CIN : U74140WB1994PTC062636
3A, Auckland Place, Room No. 7A & 7B,
7th Floor, Kolkata- 700 017
Tel: 033 2280-661 6/6617/6618, Fax: 033 2280-6619
Email: nichetechp|@nichetechpl.com
URL: www.nichetechpl.com

21. Plant Location

Manufacturing Plants
Bareilly Baroda
Izatnagar, Bareilly (UP) Clo. Bhagyoday Katha Products Pvt Ltd
Pin Code: - 243122 PO: Asoj, Opposite Hotel Decent
Phone: 09027695554 Vadodara- 391510
Phone: 9816141231
Daman (Contractual Manufacturing) Jammu & Kashmir
Clo. Nanhemal Agro (India) Ltd IGC, SIDCO, Phase Ill, Samba (J &K)
Diwali Nagar, Kadiaya, Daman: 396210 Samba (Jammu & Kashmir)
Phone: 09825128720 Pin code: 184121
Phone: 09319929098
22. Disclosure with respect to demat suspense account/unclaimed suspense account
SI. No. Particulars Applicability

1. Aggregate number of Shareholder and the outstanding shares in the suspense Nil
account lying in the beginning of the year
2. Number of Shareholder who approached the Company for transfer of shares from Nil
suspense account during the year
3. Number of Shareholders to whom shares were transferred from suspense account Nil
during the year
4. Aggregate number of shareholders and the outstanding shares in the suspense Nil
account lying at the end of the year
5. That the voting rights on these shares shall remain frozen till the rightful owner of Nil
such shares claims the shares
23. Transfer of Unpaid / Unclaimed Amounts and Shares to Investor Education and Protection Fund
In line with the IEPF Rules, the Company sends a reminder letter to all such shareholders, whose dividend has
remained unpaid/unclaimed for a consecutive period of 7 years with a request to claim the dividends, failing
which the shares would be transferred to IEPF Authority on the due date. The details of unclaimed dividend are
available at the Company's website www.iwpkatha.com.
During the year under review, the Company has credited Rs. 1,27,217/- to the Investor Education and
Protection Fund(IEPF) pursuant to the provision of the Companies Act, 2013.
In accordance with the provision of the Companies Act, 2013 the Company has transferred 16,525 Equity Shares
of Rs. 2/-, to the credit of IEPF Authority, on January 25, 2022, in respect of which dividend had not been paid or
claimed by the members for Seven consecutive years.
In order to educate the shareholders and with an intent to protect their rights, the Company sends reminders to
all such shareholders, whose dividend has remained unpaid/unclaimed for a consecutive period of 7 years with
a request to claim the dividends, failing which the shares would be transferred to IEPF Authority on the due date
which is available at the Company’s website www.iwpkatha.com.

Statutory Report
The following table provides a list of years for which unclaimed dividends and their corresponding shares would
become eligible to be transferred to the IEPF on the dates mentioned below:
Year Type of dividend Dividend per Date of Due date for Amount (Rs.)?
share (Rs.)! declaration transfer
2014-15 Final Dividend 1.25 28.09.2015 28.11.2022 168278.75
2015-16 Final Dividend 1.25 28.06.2016 28.11.2023 171526.25
2016-17 Final Dividend 0.60 18.09.2017 18.11.2024 311823.60
2017-18 Final Dividend 1.25 17.09.2018 17.11.2025 639302.50
2018-19 Final Dividend 0.20 17.09.2019 17.11.2026 781639.40
2019-20 Final Dividend 0.10 25.09.2020 25.11.2027 358851 .50
2020-21 Final Dividend 0.10 28.09.2021 29.11.2028 347729.00
“) Not adjusted for bonus issue ° Amount unclaimed as on March 31, 2022
Dividends remitted to IEPF during the last three years
Year Type of dividend | Dividend declared on | Date of transfer to IEPF | Amount transferred to IEPF (Rs.)
2021-22 | Final Dividend 25.09.2014 26.11.2021 127217
2020-21 | Final Dividend 24.09.2013 26.11.2020 123227
2019-20 | Final Dividend 11.09.2012 04.11.2019 120358
24. Reminder to Investors:
Reminders for unclaimed shares, unpaid dividend are sent to the shareholders as per records every years.


Kolkata Chairman & Managing Director CEO& WTD
30 May, 2022 DIN: 00702306 DIN: 00392090

INDEPENDENT AUDITORS’ REPORT

To The Members of Basis for Opinion
We conducted our audit in accordance with the Standards
Report on the Audit of the Standalone Financial on Auditing (SAs) specified under section 143(10) of
Statements the Companies Act, 2013. Our responsibilities under
those Standards are further described in the Auditor’s
Opinion
Responsibilities for the Audit of the Standalone Financial
We have audited the standalone financial statements Statements section of our report. We are independent
of The Indian Wood Products Co Ltd (“the Company’), of the Company in accordance with the Code of Ethics
which comprise the standalone balance sheet as at issued by the Institute of Chartered Accountants of India
31st March 2022, and the statement of Profit and Loss, together with the ethical requirements that are relevant
statement of changes in equity and statement of cash to our audit of the standalone financial statements under
flows for the year then ended, and notes to the standalone the provisions of the Companies Act, 2013 and the
financial statements, including a summary of significant Rules thereunder, and we have fulfilled our other ethical
accounting policies and other explanatory information. responsibilities in accordance with these requirements
In our opinion and to the best of our information and and the Code of Ethics. We believe that the audit
according to the explanations given to us, the aforesaid evidence we have obtained is sufficient and appropriate
standalone financial statements give the information to provide a basis for our opinion.
required by the Companies Act, 2013 (“the Act”) in the Key Audit Matters
manner so required and give a true and fair view in
conformity with Indian Accounting Standards prescribed Key audit matters (‘KAM’) are those matters that, in our
under section 133 of the Act read with the Companies professional judgment, were of most significance in our
(Indian Accounting Standards) Rules, 2015, as amended, audit of the standalone financial statements of the current
(‘Ind AS”) and other accounting principles generally period. These matters were addressed in the context of
accepted in India, of the state of affairs of the Company our audit of the standalone financial statements as a
as at 31st March, 2022, and its loss, total comprehensive whole, and in forming our opinion thereon, and we do
income, the changes in equity and its cash flows for the not provide a separate opinion on these matters.
year ended on that date.
The Key Audit Matters Auditors response
Revenue From Sale of Goods

The Company recognizes revenue when control of the Our audit procedure includes the following:
goods is transferred to the customer at an amount that
® Considered the adequacy of the company’s revenue
reflects the consideration to which the Company expects
recognition policy and its compliance in terms of Ind
to be entitled in exchange for those goods. As described
AS 115 “Revenue from contracts with customers’
in the accounting policy in note 2(f) and as reflected in
note 27 to the Ind AS Standalone financial statements, @ Assessed the design and tested the operating
revenue from sale of goods is measured at fair value of effectiveness of the internal financial
the consideration received or receivable, net of returns controls related to revenue recognition.
and allowances and trade discounts.
@ Performed sample tests of individual sales
Considering the judgment and estimates involved in transaction and traced to sales invoices and
revenue recognition, it is considered to be a key audit other related documents. In respect of the
matter. samples selected, tested and the revenue has
been recognized in accordance with Ind AS 115.

Standalone Financial Statements
The Key Audit Matters Auditors response
@® 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 performance,changes in equity and cash flows of the
matters to communicate in our report. Company in accordance with the accounting principles
generally accepted in India, including the Indian
Other Information
Accounting Standards specified under section 133 of
The Company’s Board of Directors is responsible for the the Act. This responsibility also includes maintenance
other information. The other information comprises the of adequate accounting records in accordance with the
information included in the Company’s annual report but provisions of the Act for safeguarding of the assets of
does not include the standalone financial statements and the Company and for preventing and detecting frauds
our auditors’ report thereon. and other irregularities; selection and application of
Our opinion on the standalone financial statements does appropriate accounting policies; making judgments
not cover the other information and we do not express and estimates that are reasonable and prudent; and
any form of assurance conclusion thereon. design, implementation and maintenance of adequate
internal financial controls, that were operating effectively
In connection with our audit of the standalone financial for ensuring the accuracy and completeness of the
statements, our responsibility is to read the other accounting records, relevant to the preparation and
information and, in doing so, consider whether the other presentation of the standalone financial statement that
information is materially inconsistent with the standalone give a true and fair view and are free from material
financial statements or our knowledge obtained in the misstatement, whether due to fraud or error.
audit, or otherwise appears to be materially misstated.
In preparing the standalone financial statements,
If, based on the work we have performed on the other managementis responsible for assessing the Company's
information obtained prior to the date of this auditor’s ability to continue as a going concern, disclosing,
report, we conclude that there is a material misstatement as applicable, matters related to going concern and
of this other information, we are required to report that using the going concern basis of accounting unless
fact. We have nothing to report in this regard. management either intends to liquidate the Company or
Responsibility of Management and Those Charged to cease operations, or has no realistic alternative but to
with Governance’ for Standalone Financial do so.
Statements Those Board of Directors are also responsible for
The Company’s Board of Directors is responsible for overseeing the Company’s financial reporting process.
the matters stated in section 134(5) of the Companies Auditor’s Responsibilities for the Audit of the
Act, 2013 (‘the Act”) with respect to the preparation Standalone Financial Statements
of these standalone financial statements that give a
true and fair view of the financial position, financial Our objectives are to obtain reasonable assurance

about whether the standalone financial statements as a use of the going concern basis of accounting and, based
whole are free from material misstatement, whether due on the audit evidence obtained, whether a material
to fraud or error, and to issue an auditor’s report that uncertainty exists related to events or conditions that
includes our opinion. Reasonable assurance is a high may cast significant doubt on the Company's ability
level of assurance, but is not a guarantee that an audit to continue as a going concern. If we conclude that a
conducted in accordance with SAs will always detect a material uncertainty exists, we are required to draw
material misstatement when it exists. Misstatements can attention in our auditor’s report to the related disclosures
arise from fraud or error and are considered material if, in the Standalone Financial Statements or, if such
individually or in the aggregate, they could reasonably disclosures are inadequate, to modify our opinion. Our
be expected to influence the economic decisions of conclusions are based on the audit evidence obtained
users taken on the basis of these Standalone Financial up to the date of our auditor’s report. However, future
Statements. events or conditions may cause the Company to cease
As part of an audit in accordance with SAs, we exercise to continue as a going concern.
professional judgement and maintain professional @ Evaluate the overall presentation, structure and
scepticism throughout the audit. We also: content of the standalone financial statements, including
@ Identify and assess the risks of material misstatement the disclosures,and whether the standalone financial
of the Standalone financial statements,whether due statements represent the underlying transactions and
to fraud or error, design and perform audit procedures events in a manner that achieves fair presentation.
responsive to those risks, and obtain audit evidence that We communicate with those charged with governance
is sufficient and appropriate to provide a basis for our regarding, among other matters, the planned scope and
opinion. The risk of not detecting a material misstatement timing of the audit and significant audit findings including
resulting from fraud is higher than for one resulting from any significant deficiencies in internal control that we
error, as fraud may involve collusion, forgery, intentional identify during our audit.
omissions, misrepresentations, or the override of internal
We also provide those charged with governance with
control.
a statement that we have complied with relevant
@ Obtainan understanding of internal financial controls
ethical requirements regarding independence, and
relevant to the audit in order to design audit procedures
to communicate with them all relationships and other
that are appropriate in the circumstances. Under section
matters that may reasonably be thought to bear on our
143(3)(i) of the Companies Act,2013,we are also
independence, and where applicable, related safeguards.
responsible for expressing our opinion on whether the
From the matters communicated with those charged with
company has adequate internal financial controls system
governance, we determine those matters that were of
in place and the operating effectiveness of such controls.
most significance in the audit of the financial statements
@® Evaluate the appropriateness of accounting policies
of the current period and are therefore the key audit
used and the reasonableness of accounting estimates
matters. VWWe describe these matters in our auditor's report
and related disclosures made by management.
unless law or regulation precludes public disclosure about
@® Conclude on the appropriateness of management's the matter or when, in extremely rare circumstances, we
EO ANNUAL REPORT 2021 - 22

determine that a matter should not be communicated in the operating effectiveness of such controls, refer to our
our report because the adverse consequences of doing separate Report in “Annexure A’. Our report expresses
so would reasonably be expected to outweigh the public an unmodified opinion on the adequacy and operating
interest benefits of such communication. effectiveness of the Company's internal financial controls
over financial reporting.
Report on Other Legal and Regulatory Requirements
(g) With respect to the matter to be included in the
As required by the Companies (Auditor’s Report) Order,
Auditor's Report under section 197(16)
2016 (“the Order”), issued by the Central Government
of India in terms of sub-section (11) of section 143 of In our opinion and according to the information and
the Companies Act, 2013, we give in the Annexure “B” a explanation given to us, the remuneration paid by the
statement on the matters specified in paragraphs 3 and Company to its directors during the current year is in
4 of the Order, to the extent applicable. accordance with the provisions of section 197 of the Act.
As required by Section 143(3) of the Act, we report that: The remuneration paid to any director is not in excess
of the limit laid down under Section 197 of the Act. The
(a) We have sought and obtained all the information and
Ministry of Corporate Affairs has not prescribed other
explanations which to the best of our knowledge and
details under section 197 (16) which are required to be
belief were necessary for the purposes of our audit.
commented upon by us.
(b) In our opinion, proper books of account as required
(h) With respect to the other matters to be included in
by law have been kept by the Company so far as it
the Auditor’s Report in accordance with Rule 11 of the
appears from our examination of those book.
Companies (Audit and Auditors) Rules, 2014, in our
(c) The Standalone Balance Sheet, the Standalone opinion and to the best of our information and according
Statement of Profit and Loss including Other to the explanations given to us:
Comprehensive Income, the Standalone Cash Flow
i. The Company has disclosed the impact of pending
Statement and the Standalone Statement of Changes in
litigations on its financial position in its Standalone
Equity dealt with by this Report are in agreement with the
Financial Statements — Refer Note No.- 50
books of account.
ii. The Company did not have any long-term contracts
(d) In our opinion, the aforesaid Standalone Financial
including derivative contracts for which there were any
Statements comply with the Indian Accounting Standards
material foreseeable losses.
specified under Section 133 of the Act read with relevant
rules issued thereunder. ili. There has been no delay in transferring the amounts
required to be transferred to the Investor Education and
(e) On the basis of the written representations received
from the directors as on 31st March, 2022 taken on Protection Fund by the Company.
record by the Board of Directors, none of the directors is iv. a) The management has represented that, to the
disqualified as on 31st March, 2022 from being appointed best of its knowledge and belief, other than as disclosed
as a director in terms of Section 164 (2) of the Act. in the notes to the accounts, no funds have been
(f) With respect to the adequacy of the internal financial advanced or loaned or invested (either from borrowed
controls over financial reporting of the Company and funds or share premium or any other sources or kind

of funds) by the company to or in any other person circumstances, nothing has come to our attention that
or entity, including foreign entities (“Intermediaries’), has caused us to believe that the representations under
with the understanding, whether recorded in writing or sub-clause (i) and (ii) of Rule 11 (e) as provided under (a)
otherwise, that the Intermediary shall, whether, directly and (b) above, contain any material misstatement
or indirectly lend or invest in other persons or entities
v. The dividend proposed in the previous year,
identified in any manner whatsoever by or on behalf of
declared and paid by the Company during the year is in
the company (“Ultimate Beneficiaries”) or provide any
accordance with section 123 of the Act, as applicable.
guarantee, security or the like on behalf of the Ultimate
As stated in Note 16 to the financial statement, the Board
Beneficiaries.
of Directors of the Company has proposed dividend for
b) The management has represented, that, to the
the year which is subject to the approval of the members
best of its knowledge and belief, other than as disclosed
at the ensuing Annual General Meeting. The amount of
in the notes to the accounts, no funds have been
dividend proposed is in accordance with section 123 of
received by the company from any person or entity,
the Act, as applicable.
including foreign entities (“Funding Parties”), with the
understanding, whether recorded in writing or otherwise,
that the company shall, whether, directly or indirectly,
lend or invest in other persons or entities identified in any For Agrawal Tondon & Co.
manner whatsoever by or on behalf of the Funding Party Chartered Accountants
FRN — 329088E
(“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf
of the Ultimate Beneficiaries. Radhakrishan Tondon
Place: Kolkata Partner
c) Based on the audit procedures that have
Dated: 30th May 2022 Membership No. 060534
been considered reasonable and appropriate in the UDIN No. 22060534AJXBJJ5493

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT (Contd.)

Report on the Internal Financial Controls Over assurance about whether adequate internal financial
Financial Reporting under Clause (i) of Subsection controls over financial reporting was established and
3 of Section 143 of the Companies Act, 2013 (“the maintained and if such controls operated effectively in all
Act”) material respects.
We have audited the internal financial controls over Our audit involves performing procedures to obtain audit
financial reporting of The Indian Wood Products Co Ltd evidence about the adequacy of the internal financial
(‘the Company”) as of March 31, 2022 to the extent of controls system over financial reporting and_ their
records available with us in conjunction with our audit of operating effectiveness. Our audit of internal financial
the standalone financial statements of the Company for controls over financial reporting included obtaining an
the year ended on that date. understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness
Management’s Responsibility for Internal Financial
exists, and testing and evaluating the design and
Controls
operating effectiveness of internal control based on the
The Board of Directors of the Company is responsible for assessed risk. The procedures selected depend on the
establishing and maintaining internal financial controls auditor’s judgement, including the assessment of the
based on the internal control over financial reporting risks of material misstatement of the standalone financial
criteria established by the Company considering the statements, whether due to fraud or error.
essential components of internal control stated in the
We believe that the audit evidence we have obtained, is
Guidance Note on Audit of Internal Financial Controls
sufficient and appropriate to provide a basis for our audit
Over Financial Reporting issued by the Institute of
opinion on the Company's internal financial controls
Chartered Accountants of India. These responsibilities
system over financial reporting.
include the design, implementation and maintenance of
adequate internal financial controls that were operating Meaning of Internal Financial Controls Over Financial
effectively for ensuring the orderly and efficient conduct of Reporting
its business, the safeguarding ofits assets, the prevention
A Company’s internal financial control over financial
and detection of frauds and errors, the accuracy and
reporting is a process designed to provide reasonable
completeness of the accounting records, and the timely
assurance regarding the reliability of financial reporting
preparation of reliable financial information, as required
and the preparation of financial statements for external
under the Companies Act, 2013.
purposes in accordance with generally accepted
Auditor’s Responsibility accounting principles. A Company's internal financial
control over financial reporting includes those policies
Our responsibility is to express an opinion on the
and procedures that
internal financial controls over financial reporting of
the Company based on our audit. We conducted our (1) pertain to the maintenance of records that, in
audit in accordance with the Guidance Note on Audit of reasonable detail, accurately and fairly reflect the
Internal Financial Controls Over Financial Reporting (the transactions and dispositions of the assets of the
“Guidance Note”) issued by the Institute of Chartered company;
Accountants of 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 (2) provide reasonable assurance that transactions
financial controls. Those Standards and the Guidance are recorded as necessary to permit preparation
Note require that we comply with ethical requirements of Standalone Financial Statements in accordance
and plan and perform the audit to obtain reasonable with generally accepted accounting principles, and

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT
that receipts and expenditures of the company are Opinion

being made only in accordance with authorisations of
In our opinion, to the best of our information and according
management and directors of the company; and
to the explanations given to us, the Company has, in all
(3) provide reasonable assurance regarding prevention material respects, an adequate internal financial controls
or timely detection of unauthorised acquisition, use, or system over financial reporting and such_ internal
disposition of the company’s assets that could have a financial controls over financial reporting were operating
material effect on the Standalone Financial Statements. effectively as at March 31, 2022, based on the internal
control over financial reporting criteria established by the
Limitations of Internal Financial Controls Over
Company.
Financial Reporting
Because of the inherent limitations of internal financial

controls over financial reporting, including the possibility
of collusion or improper managementoverride of controls,
material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation For Agrawal Tondon & Co.
of the internal financial controls over financial reporting Chartered Accountants
to future periods are subject to the risk that the internal FRN — 329088E
financial control over financial reporting may become
Radhakrishan Tondon
inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures
may deteriorate.
UDIN No. 22060534AJXBJJ5493

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal given to us, the inventory has been physically verified
and Regulatory Requirements’ section of our report of during the year by the management. In our opinion,
even date) the frequency of such verification is reasonable. The
To the best of our information and according to the discrepancies noticed on verification between the
explanations provided to us by the Company and the physical stocks and the book records were not material
books of account and records examined by us in the and have been dealt with in books of accounts.
normal course of audit, we state that: (b) According to the information and explanations given
i. In respect of the Company’s Property, Plant and to us, at any point of time of the year, the Company has
Equipment and Intangible Assets: been sanctioned working capital limits in excess of Rs. 5
crores, in aggregate from banks or financial institutions
(a) (A) The Company has maintained proper records on the basis of security of current assets. In our opinion
showing full particulars, including quantitative details and and according to information and explanations given
situation of Property, Plant and Equipment and relevant to us, the quarterly returns or statements filed by the
details of right-of-use assets. Company with such banks or financial statements are
(B) The Company does not have any intangible assets materially in agreement with the unaudited books of
and hence reporting under this clause is not applicable. account of the Company of the respective quarters.
(b) The Company has a regular programme of iii. During the year, the company has not made any
verification to cover all the items of Property, Plant and investments in, provided any guarantee or security, or
Equipment in a phased manner which, in our opinion, is granted any loans or advances in the nature of loans,
reasonable having regard to the size of the Company secured or unsecured, to companies, firms, Limited
and the nature of its assets. According to the information Liability Partnerships, or any other parties. Accordingly,
and explanations given to us, some of the Property, paragraph 3(iii)(a), (b), (c), (d), (e), (f)of the Order is not
plant and equipment has been physically verified by the applicable to the Company.
management in accordance with the programme and no iv. In our opinion and according to the information and
material discrepancies were noticed on such verification. explanations given to us, the Company has complied
(c) With respect to immovable properties (other than with the provisions of Sections 185 and 186 of the Act
properties where the Company is the lessee and the lease in respect of loans granted, making investments and
agreements are duly executed in favour of the Company) providing guarantees and securities as applicable.
disclosed in the financial statements included in property, v. The Company has not accepted any deposit or
plant and equipment, according to the information and amounts which are deemed to be deposit. Hence,
explanations given to us and based on the examination reporting under clause 3 (v) of the Order is not applicable.
of the registered sale deed / title deed provided to us, we
report that, the title deeds of such immovable properties vi. The maintenance of cost records has not been
are held in the name of the Company as at the balance specified for the activities of the Company by the Central
sheet date Government under section 148(1) of the Companies Act,
2013.
(d) The Company has not revalued any of its Property,
Plant and Equipment and intangible assets during the vii. According to the information and explanations given
year. to us in respect of statutory dues:
(e) No proceedings have been initiated during the year (a) In our opinion, the Company has generally been
or are pending against the Company as at 31 March regular in depositing undisputed statutory dues, including
2022 for holding any benami property under the Benami Goods and Services tax, Provident Fund, Employees’
Transactions (Prohibition) Act, 1988 (as amended in State Insurance, Income Tax, Cess and other material
2016) and rules made thereunder. statutory dues applicable to it with the appropriate
authorities during the year.
ii. (a) According to the information and explanations

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT (Contd.)

There were no undisputed amounts payable in respect (b) The Company has not been declared wilful defaulter
of Goods and Service tax, Provident Fund, Employees’ by any bank or financial institution or government or any
State Insurance, Income Tax, Sales Tax, Service Tax, government authority.
duty of Custom, duty of Excise, Value Added Tax, Cess (c) According to the information and explanation given
and other statutory dues in arrears as at 31st March, to us and on the basis of our examination of the records
2022 for a period of more than six months from the date of the company, the Company has utilized the loan
they became payable. amount taken during the year for intended purpose and
(b) Details of statutory dues referred to in sub-clause there is no unutilized term loan at the beginning of the
(a) above which have not been deposited as on March year.
31, 2022 on account of disputes are given below: (d) On an overall examination of the financial statements
of the Company, funds raised on short- term basis have,
Amount . : prima facie, not been used during the year for long-term
under Financial
purposes by the Company.
dispute year to | Forum where
Particulars P which the | dispute is (e) Onanoverall examination of the financial statements
not yet : of the Company, the Company has not taken any funds
: amount pending
deposited relates from any entity or person on account of or to meet the
(Rs. in lakhs) obligations of its joint venture.
Central Sales 0.23 1987-88 | Appellate (f) According to the information and explanation given
tax, New Delhi Tribunal to us and procedure performed by us, we report that
Central Sales 74.58 2001-02 | Appellate the company has not raised loans during the year on
tax, New Tribunal the pledge of securities held in its Joint venture. The
Delhi Company does not hold any investment in any subsidiary
or associate(as defined under the act) during the year
Central Sales 2.16 2002-03 | Additional
ended 31st March 2022.
tax, New Delhi Commissioner
x. (a) The Company has not raised money by way of
Local Sales 43.75 2002-03 | Additional
initial public offer or further public offer (including debt
tax, New Delhi Commissioner
instruments) during the year and hence reporting under
Mandi Samity 2.18 1997-98 |Hon’ble clause (x)(a) of the Order is not applicable.
High Court,
(b) During the year, the Company has not made any
Allahabad
preferential allotment or private placement of shares or
UP Sales Tax 0.46 2010-11 | Appeal before convertible debentures (fully or partly or optionally) and
Additional hence reporting under clause (x)(b) of the Order is not
Commissioner applicable.
Custom Act 643.56 2017-18 | CESTAT, xi. (a) Based on examination of the books and records
Nhava Seva of the Company and according to the information and
explanations given to us, considering the principles of
vill. There were no transactions relating to previously
materiality as outlined in the Standards on Auditing, we
unrecorded income that have been surrendered
report that no fraud by the Company or on the Company
or disclosed as income during the year in the tax
has been noticed or reported during the course of the
assessments under the Income Tax Act, 1961 (43 of
audit.
1961).
(b) To the best of our knowledge, no report under sub-
ix. (a) The company has not defaulted in repayment
section (12) of section 143 of the Companies Act has
of loans or other borrowings or in the payment of interest
been filed in Form ADT-4 as prescribed under rule 13
thereon to any lender. Hence reporting under clause (ix)
of Companies (Audit and Auditors) Rules, 2014 with the
(a) of the Order is not applicable.
Central Government, during the year and upto the date
ssn ANNUAL REPORT 2021 - 22

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT (Contd.)

of this report. xvii. The Company has not incurred cash losses during
(c) To the best of our knowledge and according to the the financial year and the immediately preceding financial
information and explanations given to us there were no year.
whistle-blower complaints, received during the year by xviii. There has been no resignation of the statutory
the Company. auditors of the Company during the year.
xii. In our opinion and according to the information and xix. According to the information and explanation given
explanations given to us, the Company is not a Nidhi to us and on the basis of the financial ratios, ageing
company. Accordingly, clause (xii) of the Order is not and expected dates of realisation of financial assets
applicable. and payment of financial liabilities, other information
xiii. According to the information and explanations given accompanying the financial statements and = our
to us and based on our examination of the records of knowledge of the Board of Directors and Management
the Company, transactions with the related parties are in plans and based on our examination of the evidence
compliance with sections 177 and 188 of the Act where supporting the assumptions, nothing has come to our
applicable and details of such transactions have been attention, which causes us to believe that any material
disclosed in the financial statements as required by the uncertainty exists as on the date of the audit report
applicable Indian Accounting Standards. indicating that Company is not capable of meeting its
liabilities existing at the date of balance sheet as and
xiv. (a) In our opinion the Company has an adequate
when they fall due within a period of one year from the
internal audit system commensurate with the size and
balance sheet date. We, however, state that this is not
the nature of its business.
an assurance as to the future viability of the Company.
(b) We have considered, the internal audit reports for We further state that our reporting is based on the facts
the year under audit, issued to the Company during the up to the date of the audit report and we neither give any
year and till date, in determining the nature, timing and guarantee nor any assurance that all liabilities falling due
extent of our audit procedures. within a period of one year from the balance sheet date,
xv. According to the information and explanations given will get discharged by the Company as and when they
to us and based on our examination of the records of the fall due.
Company, the Company has not entered into any non- xx. The Company has fully spent the required amount
cash transactions with its directors or persons connected towards Corporate Social Responsibility (CSR) and
with its directors and hence provisions of section 192 there is no unspent CSR amount for the year requiring
of the Companies Act, 2013 are not applicable to the a transfer to a Fund specified in Schedule VII to the
company. Companies Act or special account in compliance with
xvi. According to the information and explanation given the provision of sub-section (6) of section 135 of the said
to us, the Company is not as required to be registered Act. Accordingly, reporting under clause (xx) (a), (b) of
under section 45-IA of the Reserve Bank of India Act, the Order is not applicable for the year.
1934 and hence, reporting under clause (xvi) (a)(b)of the
Order is not applicable to the Company.
(c) The Company is not a Core Investment Company
(CIC) as defined in the regulations made by the Reserve
For Agrawal Tondon & Co.
Bank of India. Accordingly, clause 3(xvi)(c) of the Order
Chartered Accountants
is not applicable to the Company.
FRN — 329088E
(d) In our opinion, according to the information and
explanations provided to us during the course of audit, Radhakrishan Tondon
the Group (as per the provisions of the Core Investment Place: Kolkata Partner
Companies (Reserve Bank) Directions, 2016) does not Dated: 30th May 2022 Membership No. 060534
have any CIC. UDIN No. 22060534AJXBJJ5493

Standalone Balance Sheet as at 31st March, 2022 ( in Lacs)

; As at As at
Se Note | 31 March, 2022 | 31 March, 2021
ASSETS
Non-Current Assets
Property, Plant and Equipment 3.1 38,281.32 38,493.66
Capital Work-in-Progress 3.2 26.25 33.68
Right to Use Assets 3.3 435.06 491.89
Financial Assets
- Investments 4 931.86 931.86
- Others 5 69.94 66.32
Other Non-Current Assets 6 228.05 229.16
39,972.48 40,246.57
Current Assets
Inventories 7 6,128.67 5,817.02
Financial Assets
- Trade Receivables 8 5,070.87 4,274.52
- Cash and Cash Equivalents 9 22.65 134.42
- Bank Balances other than above 10 29.20 27.02
- Loans 11 25.38 25.14
- Other Financial Assets 12 - 0.72
Current Tax Assets (Net) 13 39.54 -
Other Current Assets 14 2,494.23 2,375.07
13,810.54 12,653.91
TOTAL ASSETS §3,783.02 §2,900.48
EQUITY AND LIABILITIES
Equity Share Capital 15 1,279.75 1,279.75
Other Equity 16 34,028.25 34,156.58
35,308.00 35,436.33
LIABILITIES
Non-Current Liabilities
Financial Liabilities
- Borrowings 7 1,106.85 913.63
- Lease Liabilities 205.54 222.67
- Others 18 92.89 24.96
Deferred Tax Liabilities (Net) 19 7,415.81 7,417.10
Provisions 20 25.19 34.46
8,846.28 8,612.82
Current Liabilities
- Borrowings 21 6,350.50 5,755.30
- Trade Payables (Refer Note 39) 22
Total outstanding dues of micro enterprise and small enterprise - -
Total outstanding dues of creditors other than micro enterprises and small enterprises 1,919.37 1,737.00
- Others 23 206.15 264.15
Provisions 24 138.60 151.82
Current Tax Liabilities (Net) 25 - 34.35
Other Current Liabilities 26 963.16 796.13
9,628.74 8,851.33
TOTAL EQUITY AND LIABILITIES §3,783.02 §2,900.48
Significant Accounting Policies 1-2
The accompanying notes 1 - 53 are an integral part of the Financial Statements.
In terms of our Report attached For and on behalf of Board of Directors of
For Agrawal Tondon & Co. The Indian Wood Products Co. Ltd.
Firm Registration Number - 329088E Krishna Kumar Mohta Bharat Mohta
: Chairman & MD WTD & CEO
Radhakrishan Tondon DIN: 00702306 DIN: 00392090
Membership No.: 060534 R.K. Agarwal Anup Gupta
Place: Kolkata Chief Financial Officer Company Secretary
Date: May 30, 2022 M No. A36061
EE ANNUAL REPORT 2021 - 22

PICirec lama circ lita
Statement of Standalone Profit & Loss for the year ended 31st March 2022 (% in Lacs)
Particulars Note 2021-22 2020-21
Revenue From Operations

Revenue From Operations 27 17,760.83 15,742.83
Other Income 28 28.80 47.53

Total income 17,789.63 15,790.36
Expenses:
Cost of material consumed 29 10,998.05 9,585.51
Purchase of stock in trade 612.44 521.93

Change in inventories of finished goods, and work -in-progress 30 (246.68) (1,038.42)
Employee benefit expense 31 2,013.78 2,175.17
Finance costs 32 660.59 682.41
Depreciation and amortisation expense 3.1 385.40 396.75
Other expenses 33 3,484.24 3,416.24
Total expense 17,907.82 15,739.59

Profit/(loss) before tax (118.19) 50.77
Income Tax expense:
Current tax 34 - 30.00
Deferred tax 34 (14.46) (11.97)
Total Tax Expense (14.46) 18.03
Profit/(loss) for the period (103.73) 32.74
Other Comprehensive Income
Items that will not be reclassified to profit or loss
Remeausurement of net defined benefit liability 52.61 11.91
Income tax expense relating to the above (13.24) (3.00)
Other Comprehensive Income/(loss) for the period 39.37 8.91
Total Comprehensive Income for the period (64.36) 41.65
Earnings per equity share (for continuing operation): 35
- Basic (0.16) 0.05
- Diluted (0.16) 0.05
Significant accounting policies 4

Chairman & MD WTD & CEO
Radhakrishan Tondon
DIN: 00702306 DIN: 00392090
Partner
R.K. Agarwal Anup Gupta
Place: Kolkata
Date: May 30, 2022 Chief Financial Officer Company Secretary
M No. A36061
ANNUAL REPORT 2021 - 22 EE

Standalone Cash Flow Statement for the year ended 31st March 2022
(® in Lacs)
31st March 2022 31st March, 2021
A CASH FLOW FROM OPERATING ACTIVITIES
Net profit before tax (118.19) 50.77

Adjustment for
Depreciation 385.40 396.75

Finance Cost 660.59 682.41
Interest Received (0.27) (0.44)
Liabilities no longer required written back (4.90) (15.57)
Provision under expected credit loss 3.80 4.70
Loss / (Gain) on Sale of Property, Plant & Equipment (0.26) 1,044.36 1.44 1,069.29
Operating Profit/(Loss) before working capital changes 926.17 1,120.06
Adjustment for
Trade & Other Receivables (917.54) 228.97

Inventories (311.65) (496.56)
Trade Payables 599,37 (629.82) 724.77 457.18
Cash generated for operations 296.35 1,577.24
Direct Tax Paid (73.89) (20.85)
Cash Flow before Exceptional Items 222.46 1,598.09
Exceptional Items
NET CASH FLOW FROM OPERATING ACTIVITIES 222.46 1,598.09

CASH FLOW FROM INVESTING ACTIVITIES
Investment in shares
Purchase of Fixed Assets (287.95) (181.08)

Sale of Fixed Assets 0.75 1.50
NET CASH USED IN INVESTING ACTIVITIES (287.20) (179.58)

Standalone Cash Flow Statement for the year ended 31st March 2022 (Contd.) — @ in Lacs)
31st March 2022 31st March, 2021
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Borrowings 846.03 430.67
Repayment of Borrowings (57.61) (945.71)
Repayment of lease liabilities (78.74) (98.05)
Dividend paid (61.84) (61.99)
Interest paid (Net) (692.68) (645.06)
NET CASH USED IN FINANCING ACTIVITIES (44.84) (1,320.14)
NET (DECREASE)/INCREASE IN CASH AND
CASH EQUIVALENTS (At+B+C) (109.59) 98.37
CASH AND CASH EQUIVALENTS (Refer Note 9 & 10)
AT THE BEGINNING OF THE YEAR 161.44 63.07
AT THE END OF THE YEAR 51.85 161.44

Firm Registration Number- 329088E Krishna Kumar Mohta Bharat Mohta
; Chairman & MD WTD & CEO
Partner

Date: May 30, 2022 M No. A36061

Statement of Standalone Changes in Equity as at 31st March 2022

1) Equity Share Capital
(a) Current Reporting Period (= in Lakhs)
Balance at the Changes in Share Restated balance at Changes in equity Balance at the
beginning of the Current Capital due to the begnining of the share capital during end of the Current
Reporting Period Prior Period Errors current reporting period the current year Reporting Period
1,279.75 1,279.75 1,279.75
(b) Previous Reporting Period (= in Lakhs)
Balance at the Changes in Share Restated balance at Changes in equity Balance at the
beginning of the Current Capital due to the begnining of the share capital during end of the Current
Reporting Period Prior Period Errors current reporting period the current year Reporting Period
1,279.75 - 1,279.75 - 1,279.75
(2) Other Equity

Other Equity
Reeeive & surplus Other Comprehensive

Particulars income Total
Capital Retained Remeasurement of

Reserve Earnings defined benefit plans
Balance at the begnining of the Current Reporting Period 0.03) 34,248.59 (92.04) | 35,436.33
Changes in accounting policies or prior period errors - - - -
Restated balance at the begnining of the current reporting period 0.03] 34,248.59 (92.04) | 34,156.58
Total Comprehensive Income / (loss) - (103.73) 39.37 (64.36)
Dividend paid in 2020-21 - (63.97) - (63.97)
Balance at the end of the Current Reporting Period 0.03) 34,080.89 (52.67) | 34,028.25

Statement of Standalone Changes in Equity as at 31st March 2022 (Contd.)

Other Equity
Reserve & surplus Other Comprehensive

Capital Retained Remeasurement of

Reserve | Earnings | defined benefit plans
Balance at the begnining of the Previous Reporting Period 0.03 | 34,279.83 (100.95) | 34,178.90
Restated balance at the begnining of the current reporting period 0.03] 34,279.83 (100.95) | 34,178.91
Total Comprehensive Income / (loss) - 32.74 8.91 41.65
Dividend paid in 2019-20 - (63.97) - (63.97)
Balance at the end of the Previous Reporting Period 0.03 | 34,248.59 (92.04) | 34,156.58

Radhakrishan Tondon
DIN: 00702306 DIN: 00392090
Partner
Place: Kolkata
Chief Financial Officer Company Secretary
Date: May 30, 2022
M No. A36061

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2022
Note 1 - Background and Operations iii. Defined Benefit Plan Assets measured at fair value;
The Indian Wood Products Company Limited (the b) Property, Plant and Equipment
Company) is a public Company domiciled in India and was Freehold land is carried at the revalued figure as per
incorporated on 23rd December, 1919 under the provisions the Valuation done by the management based on circle
of the Companies Act, 1913. The Company was listed with rate of 1st April’16. All the other items of Property, Plant
The Calcutta Stock Exchange Ltd upto 11thAugust, 2018, as and Equipment are stated at cost of acquisition, less
voluntary delisting permission was granted by the exchange accumulated depreciation/amortisation and impairments,
and at present the Company is listed only with BSE Ltd. if any, cost of acquisition includes taxes, duties, freight
The registered office of the Company is at Bombay Mutual and other incidental expenses related to acquisition and
Building, 9, Brabourne Road, 7th Floor, Kolkata-700001
installation.
and has a head office and works at Izzatnagar, Bareily(U.P).
Indirect expenses during construction period, which are
The Company is primarily engaged in the manufacturing of
required to bring the asset in the condition for its intended
Katha in India. Registered Address of other places where
use by the Company and are directly attributable to bringing
manufacturing activities are carried on are disclosed
the asset to its position, are also capitalized.
suitably in this report elsewhere.
Subsequent costs are included in the asset's carrying
Note 2 - Significant Accounting Policies
amount or recognised as a separate asset, as appropriate,
This note provides a list of the significant accounting policies only when it is probable that future economic benefits
adopted in preparation of these Financial Statements. associated with the item will flow to the Company and the
These policies have been consistently applied to all the cost of the item can be measured reliably. The carrying
years presented unless otherwise stated. amount of any component accounted for as a separate
The financial statements were approved by Board of asset is derecognized upon disposal or when no future
Directors on 30th June, 2022. economic benefits are expected from its use or disposal.
a) Basis of Preparation: All other repairs & maintenance are charged to profit or loss
during the reporting period in which they are incurred.
|. Compliance with IND AS:
Capital work-in-progress comprises cost of fixed assets that
These Financial Statements comply in all material aspects
are not yet ready for their intended use at the year end.
with Indian Accounting Standards (IND AS) notified under
section 133 of the Companies Act, 2013 (the Act) read with Depreciation and amortization:
rule 4 of the Companies (Indian Accounting standards) Depreciation is calculated using the straight-line method
Rules, 2015 & Companies (Indian Accounting Standards) to allocate cost of Property, Plant and Equipment, net of
Amendment Rules 2016. The Company adopted Ind AS residual values, over their estimated useful lives as follows:
from 1st April, 2017.
Asset Class Useful Life (In years)
Il. Historical cost convention: Building 3 to 60
The Financial Statements have been prepared on a Plant & Machinery* 10 to 30
historical cost basis, except for the following: Electric Installations* 10 to 30
Laboratory Apparatus 10
i. Land which is revalued as on 1st April’'16
Motor Vehicles* 8 to 10
ii. Certain Financial Assets and Liabilities (including
Computers* 3 to 8
derivative instruments) and contingent consideration that
Office Equipment’s* 3 to 15
are measured at fair value; and
Furniture and Fixtures 10

NOTES TO THE STANDALONE FINANCIAL STATEMENTS (conta,

*Based on management evaluation, the useful lives as given asset at its fair value plus, in the case of a financial asset
above best represent the period over which the Management not at fair value through profit or loss, transaction costs that
expects to use these Assets. Hence, the useful lives of for are directly attributable to the acquisition of the financial
these Assets is different from the useful lives as prescribed asset.
under Part C of Schedule II of the Companies Act, 2013.
Transaction costs of financial assets carried at fair value
Depreciation on additions / deletions during the year is through profit or loss are expensed in profit or loss.
provided from the date on which the asset is capitalized up
iii. Impairment of financial assets:
to the month in which the asset is disposed off.
The Company assesses if there is any significant increase
An asset’s carrying amount is written down immediately
in credit risk pertaining to the assets and accordingly
to its recoverable amount if the asset’s carrying amount is
creates necessary provisions through Expected Credit Loss
greater than its estimated recoverable amount.
Method, wherever required.
Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are iv. Derecognition of financial assets:
included in Statement of Profit and Loss within other gains/ A financial asset is derecognised only when
(losses). ¥ the Company has transferred the rights to receive the
The Company reviews the residual values, useful lives and cash flows from the financial asset or
methods of depreciation of plant, property and equipment
¥ the Company retains the contractual rights to receive
at each financial year end and adjusts prospectively, if
the cash flows of the financial assets, but transfers
appropriate.
substantially all the risks and rewards of the Assets.
c) Operating Cycle
e) Foreign Currency Transactions and Translation:
All assets and liabilities have been classified as current and
|. Functional and presentation currencies:
noncurrent as per the Company’s normal operating cycle
and other criteria as set out in the Division II of Schedule III to Items included in the Financial Statements of the Company
the Companies Act, 2013. Based on the nature of products are measured using the currency of the primary economic
and time between acquisition of assets for processing and environment in which the entity operates (‘the —_ functional
their realization in cash and cash equivalents, the Company currency’). The Financial Statements are presented in INR
has ascertained its operating cycle as 12 months for the which is the functional and presentation currency for the
purpose of current or non-current classification of assets company.
and liabilities. ll. Transactions & Balances:
d) Financial assets:
Foreign Currency Transactions are translated into the
i. Classification: functional currency at the Exchange Rates on the date of
The Company classifies its financial assets in the following transaction. Foreign exchange Gains and Losses resulting
measurement categories: from settlement of such transactions and from translation
a. those to be measured subsequently at fair value (either of monetary assets and liabilities at the closing rates are
through other comprehensive income, or through profit or generally recognized in the Statement Profit and Loss.
loss), and Non-monetary foreign currency items are carried at cost
b. those measured at amortized cost. and accordingly the investments in shares of foreign
Joint Venture are expressed in Indian currency at the
ii. Measurement:
rate of exchange prevailing at the time when the original
At initial recognition, the Company measures a financial


investments are made or Fair Values determined. with customers for the year ended March 31, 2022 by
f) Revenue Recognition performance obligation. The Company believes that this
disaggregation best depicts how the nature, amount, timing
With effect from 1 April 2018, the Company has adopted
and uncertainty of our revenues and cash flows are affected
IND AS 115 ‘Revenue from Contracts with Customers’
by industry, market and other economic factors.
which introduces a new five-step approach to measuring
and recognising revenue from contracts with customers. g) Inventories:
Under IND AS 115, revenue is recognised on satisfaction a. Raw Material, Stores and Spares are valued at lower of
of performance obligation at an amount that reflects the cost and net realizable value.
consideration to which an entity expects to be entitled in
b. Work-in-progress, Finished Goods are valued at lower
exchange for transferring goods or services to a customer.
of cost and net realizable value.
The Company has elected to apply the Cumulative catch
up method in adopting IND AS 115. In accordance with the c. Cost of work-in progress and _ finished goods
cumulative catch-up transition method, the comparatives comprises direct materials, direct labour and an appropriate
have not been retrospectively adjusted. The effect on proportion of variable and fixed overhead expenditure,
adoption of Ind AS 115 was insignificant. Applying the the latter being allocated on the basis of normal operating
practical expedient as given in Ind AS 115, the Company capacity. Cost of inventories also includes all other costs
has not disclosed the remaining performance obligation incurred in bringing the inventories to their present location
related disclosures. Revenue is recognised to the extent and condition. Cost is assigned on the basis of weighted
that it is probable that the economic benefits will flow to the average method.
Company and can be reliably measured. The Company h) Trade Receivables:
bases its estimates on historical results, taking into
Trade Receivables are recognized initially at fair value and
consideration the type of customer, the type of transaction
subsequently measured at amortized cost using Effective
and the specifics of each arrangement.
Interest Method.
Sale of goods:
i) Trade and other payables:
Revenue is recognized on satisfaction of performance
These amounts represent liabilities for goods and services
obligation at an amount that reflects the consideration to
provided to the Company prior to the end of financial year
which the Company expects to be entitled in exchange for
which are unpaid. Trade and other payables are presented
transferring goods to a customer.
as current liabilities unless payment is not due within 12
Interest income: months after the reporting period.
Interest income is recognized on a time proportion basis j) Borrowings:
taking into account the amount outstanding and the
Borrowings are initially recognised at fair value, net of
applicable effective interest rate (EIR). EIR is the rate that
transaction costs incurred. Borrowings are subsequently
exactly discounts the estimated future cash payments or
measured at amortised cost Effective Interest Method. Any
receipts over the expected life of a financial liability or a
difference between the proceeds (net of transaction costs)
financial asset to their gross carrying amount. Interest
and the redemption amount is recognised in Statement of
Income are included under the head “Other Income” in the
Profit and Loss over the period of the borrowings.
Statement of Profit and Loss.
k) Income Taxes:
Disaggregation of revenue:
Income tax expense or credit for the period is the tax
Note 27 presents disaggregated revenues from contracts

NOTES TO THE STANDALONE FINANCIAL STATEMENTS (conta,)

payable on the current period’s taxable income based on m) Employee Benefits:
the applicable income tax rate for each jurisdiction adjusted i. Short term Employee benefit Expenses:
by the changes in deferred tax assets and liabilities
Liabilities for wages and salaries, including non- monetary
attributable to temporary differences and to unused tax
benefits that are expected to be settled wholly within 12
losses.
months after the end of the period in which the employees
The current income tax charge is calculated on the basis render the related service are recognized in respect of
of the tax laws enacted or substantively enacted at the end employees’ services upto the end of the reporting and are
of the reporting period in the countries where the company measured at the amounts expected to be paid when the
operate and generate taxable income. Management liabilities are settled. The liabilities are presented as current
periodically evaluates positions taken in tax returns with employee benefit obligations in the balance sheet.
respect to situations in which applicable tax regulation is
ii. Defined Contribution Plan - Provident fund:
subject to interpretation. It establishes provisions,
where appropriate, on the basis of amounts expected to be Contribution to Provident fund is made at a predetermined
paid to the tax authorities. rate and charged to revenue on accrual basis.
Deferred income tax is provided in full, using the Balance iii. Defined Benefit Plan - Gratuity:
Sheet method, on temporary differences arising between Liabilities with regard to the gratuity benefits payable in
the tax bases of assets and liabilities and their carrying future are determined by actuarial valuation at each Balance
amounts _ in the financial statements. Deferred income tax Sheet date using the Projected Unit Credit method and
is determined using tax rates (and laws) that have been contributed to Employees Gratuity Fund. Actuarial gains
enacted or substantially enacted by the end of the reporting and losses arising from changesin actuarial assumptions
period and are expected to apply when the related deferred are recognized in other comprehensive income and the
income tax asset is realized or the deferred income tax Statement of Profit and Loss in a subsequent period.
liability is settled.
The company contributes to a Group Insurance - cum -
Current and deferred tax is recognized in the Statement Gratuity Scheme with Life Insurance Corporation of India
of Profit and Loss, except to the extent that it relates to towards meeting its gratuity obligation.
items recognized in other comprehensive income or directly
iv. Bonus and Production Linked Incentive:
in equity. In this case, the tax is also recognized in other
comprehensive income or directly in equity, respectively. The Company recognizes a liability and expenses for
bonuses as per Bonus Act'1949. The Company also
|) Borrowing Cost:
recognizes a liability and expenses for Incentive Bonuses
Borrowing costs thatare directly attributable to the acquisition as per agreement entered into with the worker union. The
or construction of a qualifying asset are capitalised during Company recognizes a provision where there is a past
the period of time that is required to complete and prepare practice that has created constructive obligations and a
the asset for its intended use or sale. Qualifying assets are reliable estimate of such obligations.
assets that necessarily take a substantial period of time to
v. Leave encashment/ Compensated absences:
get ready for their intended use or sale.
The Company provides for the encashment of leave with
Other borrowing costs are expensed out in the Statement
pay subject to certain rules. The employees are entitled
of Profit & Loss Account in the period in which they are
to accumulate leave subject to certain limits, for future
incurred.
encashment / availment. The liability is provided at each


Balance Sheet date on the basis of an actuarial valuation term, highly liquid investments with original maturities of
using the Projected Unit Credit method. Actuarial gains and three months or less that are readily convertible to known
losses arising from changes in actuarial assumptions are amounts of cash and which are subject to an insignificant
recognised in the Statement of Profit and Loss. risk of changes in value.
The Company contributes to a Group Leave Encashment p) Impairment of Assets:
Plan with Life Insurance Corporation of India towards
Assets are assessed by the Company at each reporting
meeting its leave obligation.
period whether there is an indication of impairment that the
Re-measurements, comprising of actuarial gains and carrying amount may not be recoverable.
losses excluding amounts included in net interest on the
An impairment loss is recognised for the amount by which
net defined benefit liability and the return on plan assets
asset's carrying amount exceeds its recoverable amount.
(excluding amounts included in net interest on the net
The recoverable amount is higher of an asset's fair value
defined benefit liability), are recognised immediately in
less cost of disposal and value in use.
the balance sheet with a corresponding debit or credit to
retained earnings through Other Comprehensive Income in q) Earnings Per Share:
the period in which they occur. Re-measurements are not Basic earnings per share: A basic earnings per share is
reclassified to profit or loss in subsequent periods. calculated by dividing:
n) Provisions and Contingent Liabilities and Assets: i. the profit attributable to owners of the Company
Contingent Liabilities are disclosed in respect of possible ii. by the weighted average number of equity shares
obligations that arise from past events but their existence outstanding during the financial year, adjusted for bonus
will be confirmed by the occurrence or non-occurrence of elements in equity shares issued during the year.
one or more uncertain future events not wholly within the
Diluted earnings per share: Diluted earnings per share
control of the Company or where any present obligation
adjusts the figures used in the determination of basic
cannot be measured in terms of future outflow of resources
earnings per share to take into account:
or where a reliable estimate of the obligation cannot be
made. i. the afterincome tax effect of interest and other financing
costs associated with dilutive potential equity shares, and
Provisions are recognized when the Company has a
present legal or constructive obligation as a result of past ii. the weighted average number of additional equity
events, it is probable that an outflow of resources will be
shares that would have been outstanding assuming the
required to settle the obligation and the amount can be conversion of all dilutive potential equity shares.
reliably estimated. Provisions are not recognized for future r) Segment Reporting:
operating losses. The Company’s operating businesses are organized and
A contingent asset is disclosed, where an inflow of managed separately according to the nature of products
economic benefits is probable. An entity shall not and services provided, with each segment representing a
recognize a contingent asset unless the recovery is strategic business unit that offers different products and
virtually certain. serves different markets. The analysis of geographical
o) Cash and Cash Equivalents: segments is based on the areas in which the customers of
the Company are located.
For the purpose of presentation in the Statement of Cash
Flows, cash and cash equivalents includes cash on hand,
Segment Accounting Policies:
deposits held at call with financial institutions, other short- The Company prepares its segment information in


conformity with the accounting policies that are adopted u) Leases
for preparing and presenting the financial statements of the The Company assesses at contract inception whether
Company as a whole. a contract is, or contains, a lease. That is, if the contract
s) Rounding off: conveys the right to control the use of an identified asset for
a period of time in exchange for consideration.
All amounts disclosed in the financial statement and
notes have been rounded off to the nearest Lakhs, unless Company as a lessee
otherwise stated. The Company applies a single recognition and measurement
t) Critical Estimates and Judgements approach for all leases, except for short-term leases and
leases of low-value assets. The Company recognises lease
The preparation of financial statements requires the use
liabilities to make lease payments and right-of-use assets
of accounting estimates which, by definition, will seldom
representing the right to use the underlying assets.
equal the actual results. Management also needs to
exercise judgement in applying the Company’s accounting i) Right-of-use assets
policies. This note provides an overview of the areas that The Company recognises right-of-use assets at the
involved a higher degree of judgement or complexity, and of commencement date of the lease (i.e., the date the
items which are more likely to be materially adjusted due to underlying asset is available for use). Right-of-use assets
estimates and assumptions turning out to be different than are measured at cost, less any accumulated depreciation
those originally assessed. Detailed information about each andimpairment losses, and adjusted for any remeasurement
of these estimates and judgements is included in relevant of lease liabilities. The cost of right-of-use assets includes
notes together with information about the basis of calculation the amount of lease liabilities recognised,
for each affected line item in the financial statements. initial direct costs incurred, and lease payments made at or
The preparation of the financial statements in conformity before the commencement date less any lease incentives
with GAAP requires the Management to make estimates received. Right-of-use assets are depreciated on a straight-
and assumptions that affect the reported balances line basis over the lease term.
of assets and liabilities and disclosures relating to If ownership of the leased asset transfers to the Company
contingent assets and liabilities as at the date of the at the end of the lease term or the cost reflects the exercise
financial statements and reported amounts of income of a purchase option, depreciation is calculated using the
and expenses during the period. These estimates estimated useful life of the asset. The right-of-use assets
and associated assumptions are based on_ historical are also subject to impairment
experience and management's best knowledge of current ii) Lease liabilities
events and actions the Company may take in future.
At the commencement date of the lease, the Company
Information about critical estimates and assumptions that recognises lease liabilities measured at the present value of
have a significant risk of causing material adjustment to the lease payments to be made over the lease term. The lease
carrying amounts of assets and liabilities are: payments include fixed payments (including in substance
i. Impairment of financial assets (including trade receivable) fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a
ii. Estimation of defined benefit
rate, and amounts expected to be paid under residual
iii. Estimation of current tax expenses and payable value guarantees. The lease payments also include the
iv. Estimation of provisions and contingencies 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 iii) Short-term leases and leases of low-value assets
exercising the option to terminate. Variable lease payments The Company applies the short-term lease recognition
that do not depend on an index or a rate are recognised as exemption to its short-term leases of Land & building
expenses (unless they are incurred to produce inventories) (i.e., those leases that have a lease term of 12 months
in the period in which the event or condition that triggers the or less from the commencement date and do not contain
payment occurs. a purchase option). It also applies the lease of low-value
In calculating the present value of lease payments, the assets recognition exemption to leases of office equipment
Company uses its incremental borrowing rate at the lease that are considered to be low value. Lease payments
on short-term leases and leases of low value assets are
commencement date because the interest rate implicit in the
recognised as expense on a straight-line basis over the
lease is not readily determinable. After the commencement
lease term.
date, the amount of lease liabilities is increased to reflect
the accretion of interest and reduced for the lease payments Company as a lessor
made. In addition, the carrying amount of lease liabilities is Leases in which the Company does not transfer substantially
remeasured if there is a modification, a change in the lease all the risks and rewards incidental to ownership of an asset
term, a change in the lease payments (e.g., changes to are classified as operating leases. Rental income arising is
future payments resulting from a change in an index or rate accounted for on a straight-line basis over the lease terms
used to determine such lease payments) or a change in the and is included in revenue in the statement of profit or loss
assessment of an option to purchase the underlying asset. due to its operating nature. Initial direct costs incurred in
negotiating and arranging an operating lease are added
The Company’s lease liabilities are included in Interest-
to the carrying amount of the leased asset and recognised
bearing loans and borrowings.
over the lease term on the same.

Note 3.1 - Property, Plant and Equipment (= in Lacs)
Particulars Freehold] Building) Computer] Effluent] Electrical) Furni-] Laboratory) Motor Car Office} Plant &|Refrigeration] Trollies) Tube! Weighing Total
Land* Equipment] Treatment! Installa-| ture&| Apparatus] & Vehicle] Equipments|Machinery] & Cooling) & Trays] Well] Scale
Plant tions} Fixtures System
Gross Block
At April 01, 2020 35,737.74] 483.09 28.99) 97.73) 195.47} 101.37 6.05) 380.50 32.19] 907.63 848.04) 173.91] 5.00} 4.66) 39,002.38
Additions -| 206.45 1,98} 24.49) 34.41) 0.43 18.92 19.19 0.84] 265.34 158.24) 43.71] 0.20) 11.88] 786.06
Disposals / deductions =| (6.04)) (15.77) (4.49) (14.08}] (2.96}) (6.59) (2.70}) (26.17) (31.90) -|(1.75)] (3.22)) (115.67)
At March 31, 2021 35,737.74] 683.50 15.20) 122.22) 225.39] 87.71 22.01] 393.09 30.33) 1,146.80 974.38) 217.61) 3.45} 13.31) 39,672.77
Additions -| 1.47 411] 14.01) 10.35) = 1.02 0.07 0.40) 12.79 25.64] 3.75) 0.36} 0.07) 74.04
Disposals / deductions - (0.10) (0.45) (0.95)
At March 31, 2022 35,737.74] 684.97 19.31] 136.23} 235.74) 88.63 22.08) 392.64 30.73] 1,159.59} 1,000.02} 221.36] 3.81) 13.38) 39,746.26
Accumulated
Depreciation
At April 1, 2020 -| 46.70 17.67 5.26) 89.04) 23.00 115 95.94 15.11] 336.31 334.66) 34.10) 0.54) 1.48) 1,000.97
Charge for the year 30.89 4.90 5.61) 20.05) 9.81 2.13 54.79 5.81) 67.71 66.22} 13.79) 0.34) 1.24) 283.31
Disposals (4.96)) (14.99) (4.30}| (13.94}| (2.81}), (6.27) (2.58}) (22.00) (29.05) (1.66)) (3.01}} (105.16)
At March 31, 2021 -| 72.64 7.59) 10.87} 104.79} 19.27 0.47) 144.46 18.33) 382.02 371.84] 47.90) (0.78)} (0.29)) 1,179.12
Charge for the year 30.74 3.61 6.84) 17.70} 9.70 1.98) 52.76 5.44] 71.37 70.46] 13.77) 0.34) 1.17) 285.88
o
Disposals / deductions (0.07) (0.07) S
3
ey
At March 31, 2022 -| 103.38 11.20) = 17.71] 122.49) 28.90 2.45) 197.22 23.77| 453.39 442.30) 61.67} (0.44)) 0.88) 1,464.93 a
i}
3
Net Block o
a
At March 31, 2021 35,737.74] 610.86 7.62) 111.36} 120.59} 68.44 21.54) 248.63 12.00] 764.78 602.54) 169.72) 4.23} 13.60) 38,493.66 3
>
3
At March 31, 2022 35,737.74] 581.59 8.12) 118.53) 113.24) 59.73 19.63) 195.42 6.96] 706.20 557.72) 159.70) 4.25) 12.50) 38,281.32 @.
2
é¢ - L20e LHYOdSy IWNNNV
oio
Fyel
cy
3
3.2 Capital Work-in-Progress o
3Pa
a
Particulars Opening as on | Additions | Capitalised | Closing as at | Additions | Capitalised/ | Closing as at
01.04.2020 31.03.2021 Transferred 31.03.2022
Machine under erection 1032.28 31.93 1030.53 33.68 0.00 7.43 26.25
ee)

As at 31st March’ 2022
Amount in CWIP for the period of

CwIP Less than More than Total
1 year 1-2 years 2 -3 years 3 years
Projects in Progress 24.50 - 1.76 - 26.25

Projects temporarily suspended - - - - -
Total 24.50 - 1.76 - 26.25

CwIP Less than More than Total
4 year 1-2 years 2 -3 years 3 years
Projects in Progress 31.93 1.76 - - 33.68

Total 31.93 1.76 - - 33.68
3.3 Right to Use Asset (= in Lacs)
Particulars Leasehold Land Building

As at April 01, 2020 261.49 472.11
Recognition/ Reclassification on transition to Ind AS-116
Additions - -
Disposals / deductions -
At March 31, 2021 261.49 472.11
Additions - 42.68
Disposals / deductions - -
At March 31, 2022 261.49 514.79
Accumulated Depreciation
At April 1, 2020 6.72 121.55
Charge for the year 6.72 106.72
Disposals - -
At March 31, 2021 13.44 228.27
Disposals - -
At March 31, 2022 20.16 321.07
Net Block
At March 31, 2021 248.05 243.84
At March 31, 2022 241.33 193.73


Note 4 - Non Current - Financial Assets - Investments (= in Lacs)
Particulars As at As at
31 March, 2022 | 31 March, 2021
Investment in Equity Shares, Unquoted
Investment in Joint Venture (at Cost unless stated otherwise)
Mis. Agro and Spice Trading Pte Ltd, Singapore*

14,00,050 Equity Shares of USD 1 931.86 931.86
Total Aggregate amount of Unquoted Investment 931.86 931.86
*Note: M/s Agro and Spice Trading Pte Ltd, Singapore is 50% Joint Venture of the Company as at Balance Sheet Date.
Note 5 - Non Current Financial Assets - Others
31 March, 2022 | 31 March, 2021
Measured at Amortised Cost
Unsecured and Considered good
Security Deposits 58.72 60.50
Others
Against Sales Tax (Refer Note 50) 2.64 2.64
Against Others Compliances 8.58 3.17
Total 69.94 66.32
Note 6 - Other Non Current Assets
31 March, 2022 | 31 March, 2021
Capital Advances 130.37 130.37
Advance other than capital advance
Prepaid Expenses 5.17 8.78
Tax payment under Protest (Refer Note 50) 92.51 90.01
Total 228.05 229.16


(® in Lacs)
Note 7 - Inventories
As at As at
Particulars 31 March, 2022 31 March, 2021
(At lower of cost and net realisable value)
Raw Materials* 1,767.36 1,701.45
Work -in- Progress 2,497.24 1,830.08
Finished Goods 1,557.44 1,977.93
Stores and Spares 301.41 285.42
Consumables 3.49 20.40
Tools and Implements 1.73 1.74
Total 6,128.67 5,817.02
*Raw Material includes goods in transit 228.53 498.85
Note 8 - Current Financial Assets - Trade Receivables
31 March, 2022 | 31 March, 2021
Trade Receivable Considered good- unsecured (Refer Note No. 47) 5,076.47 4,277.04
Less: Provision for expected credit loss 5.60 2.52
Total 5,070.87 4,274.52
Note 9 - Current Financial Assets - Cash and Cash Equivalents
31 March, 2022 | 31 March, 2021
Balance with banks
In Current Account 12.11 126.12
Cash on hand 10.54 8.30
Total 22.65 134.42


Note 10 - Current Financial Assets - Bank Balances other than Cash and Cash Equivalents (in Lacs)
31 March, 2022 | 31 March, 2021
Balance with banks
In Restricted Bank Balance (Unclaimed Dividend) 27.79 25.66
In Deposit Account with Banks and Financial Institutions
Against Margin Money 1.41 1.36
Total 29.20 27.02
Note 11 - Current Financial Assets - Loans
As at As at
Particulars
31 March, 2022 31 March, 2021
Loan receivables considerd good- unsecured
Loan to employees 25.38 25.14
Total 25.14 16.68
Note 12 - Other Current Financial Assets
31 March, 2022 | 31 March, 2021
Others - 0.72
Total - 0.72.
Note 13 Current Tax Assests (Net)
31 March, 2022 | 31 March, 2021
Advance Tax (Net of provision ) 39.54 -
Total 39.54 -


Note 14 - Other Current Assets (® in Lacs)
Particulars As at Asat
31 March, 2022 | 31 March, 2021
Advance to Suppliers 1,858.20 1,600.27
Other Advances 67.28 44.86
Prepaid Charges 37.55 23.28
Balances with Government Authorities 531.20 706.66
Total 2,494.23 "2,375.07.
Note 15 - Equity Share Capital
Particulars ake fe
31 March, 2022 | 31 March, 2021
Authorised
Equity Shares 7,50,00,000 of Rs.2/- each 1,500.00 1,500.00
Issued, subscribed and fully paid up
Add: 5,682 Equity Shares Forfeited (amount originally paid up) 0.30 0.30
Total 1,279.75 1,279.75
(a) Reconciliation of Equity Shares Outstanding
As at 31.03.2022 As at 31.03.2021
Particulars
No. of shares | Amount | No. of shares Amount
Shares outstanding at the beginning of the year 6,39,72,720 1,279.45 6,39,72,720 1,279.45
Change during the year 2 = - -
Shares outstanding at the end of the year 6,39,72,720 1,279.45 6,39,72,720 1,279.45
ES ANNUAL REPORT 2021 - 22


(b) Terms and Rights attached to Equity Shares
The Company has only one class of Equity shares having a par value of % 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.
(c) Shareholders holding more than 5% shares in the Company
As at 31.03.2022 As at 31.03.2021
Particulars
No. of shares % No. of shares %
Security Company Limited 1,23,25,442 19.27 1,23,25,442 19.27
Savita Mohta 91 ,60,200 14.32 91,60,200 14.32
Bharat Mohta 76,37 ,530 11.94 76,37 ,530 11.94
Avanti Mohta 75,26,160 11.76 75,26,160 11.76
Bharat Mohta HUF 45,50,000 7.11 45,50,000 7.11
(d) Shares reserved for issue under options
As at 31st March 2022 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) In the FY 2016-17 the Company has alloted 47,97,654 equity shares of Rs. 10 each as fully paid up by
way of bonus shares in the ratio of 3 shares for every 1 share held.
In the FY 2018-19 the Company has alloted 3,19,86,360 equity shares of Rs. 2 each as fully paid up by
way of bonus shares in the ratio of 1:1.
iii) The Company has not undertaken any buy-back of shares.


(f) Shareholding of Promoters
Shares held by promoters at the end of the year % Change

Promoters Name No. of shares | % of total Shares | during the year
Krishna Kumar Mohta 19,79,802 3.09 -
Krishna Kumar Mohta (HUF) 2,80,000 0.44 -
Bharat Mohta 76,37,530 11.94 -
Bharat Mohta (HUF) 45,50,000 7.11 -
Savita Mohta 91,60,200 14.32 -
Avanti Mohta 75,26,160 11.76 -
Security Company Limited 1,23,25,442 19.27 -
Indian Glass & Electricals (P) Ltd 12,00,000 1.88 -
Arvind Engineering VVorks Ltd 6,08,400 0.95 -
Acma Industrial Projects (P) Ltd 2,30,124 0.36 -
Note 16 - Other Equity (® in Lacs)
31 March, 2022 | 31 March, 2021
Capital Reserve 0.03 0.03
Retained Earnings (Refer Note (i)) 34,080.88 34,248.58
Closing Balance 34,080.91 34,248.61
Other Comprehensive Income Reserve - Opening (92.03) (100.94)
Add: During the year 52.61 11.91
Less: Deferred tax (13.24) (3.00)
Closing Balance (52.66) (92.03)
Total 34,028.25 34,156.58
Nature and Purpose of Reserve
a) Retained Earnings: Retained earnings are the free reserves , less any transfers to general reserve, dividends
or other distributions paid to shareholders.
b) Remeasurements of Net Defined Benefit Plans: Differences between the interest income on plan assets
and the return actually achieved, and any changes in the liabilities over the year due to changes in actuarial
assumptions or experience adjustments within the plans, are recognised in other comprehensive income and are
adjusted to retained earnings.


Note (i) :- Movement in Retained Earnings (= in Lacs)
31 March, 2022 | 31 March, 2021
General Reserve - Opening 28,104.42 28,104.42
Profit & Loss Acount - Opening 6,144.16 6,175.39
Add: Profit During the year (103.73) 32.74
Less: Dividend Paid 63.97 63.97
Total 34,080.88 34,248.58
Note (ii) - The Board of Director has recommended a Dividend of Re. 0.05 per Equity Share of Rs. 2/- each subject
to the approval of Shareholders in the ensuing Annual General Meeting. Proposed Dividend as above amounting
to Rs. 31.99 lakhs for the Financial Year 2021-22 has not been recognised as liability as on 31-03-2022 in term
of Revised “IND AS 10 - Events after the Reporting Period”. Consequently the same has not be appropriated from
Surplus during the Year.
Note 17 - Non Current Financial Liabilities - Borrowings
31 March, 2022 | 31 March, 2021
Secured
Term Loan (Refer Note :- 37)
From Banks 1,321.11 965.34
Vehicle Loan 82.45 140.06

1,403.56 1,105.40
Less:- Current Maturities of Long term borrowings 432.61 289.67
970.95 815.73
Unsecured
From related parties 94.00 64.00
From Bodies Corporate 41.90 33.90
Total 1,106.85 913.63
ANNUAL REPORT 2021 - 22 (EE


Note 18 - Non Current Financial Liabilities - Others (< in Lacs)
Particulars acaae pada

31 March, 2022 | 31 March, 2021
Trade Deposits 92.89 24.96
Total 92.89 24.96
Note 19 - Deferred Tax Liabilities (Net)
As at As at
Particulars
31 March, 2022 31 March, 2021
Deferred tax liability
on difference in tax base of Property, plant and Equipment other than land 59.16 73.32
on Amortisation of upfront fees - 0.36
on revaluation of land 7,361.89 7,361.89
7,421.05 7,435.57
Deferred tax Assets
on remeasurement of defined benefit liability 2.39 15.63
on other taxable temporary difference 2.85 2.85
5.24 18.48
Total Net Liability 7,415.81 7,417.10
Note 20 - Non Current Provisions
As at As at
Particulars
31 March, 2022 31 March, 2021
Provision for employee benefits
Leave Encashment 25.19 34.46
Total 25.19 34.46
Note 21 - Current Financial Liabilities - Borrowings

As at As at
Particulars
31 March, 2022 31 March, 2021
Secured
Current Maturity of Long Term Borrowing (Refer Note :- 37)
Term Loans from Banks 388.96 232.40
Vehicle Loans 43.65 57.27
Loan repayable on demand
From banks (Refer note :- 37)
Cash Credit 2,417.89 3,365.63
Working Capital Demand Loan 3,500.00 2,100.00
Total 6,350.50 5,755.30
= ANNUAL REPORT 2021 - 22


Note 22 - Financial Liabilities - Trade Payable (® in Lacs)
As at As at
Particulars 31 March, 2022 31 March, 2021
Trade Payable
Total outstanding dues of micro enterprise and small enterprise -
Total outstanding dues of creditors other than micro enterprises and small 1,919.37 1,737.00
enterprises (Refer Note - 46)
Total 1,919.37 1,737.00
Note 23 - Current Financial Liabilities - Others
31 March, 2022 | 31 March, 2021
Payable to Employees 167.09 195.12
Unclaimed Dividend 27.79 25.66
Interest accrued but not due 11.27 43.36
Total 206.15 264.15
Note 24 - Provisions
31 March, 2022 | 31 March, 2021
Others
Rates & Taxes 115.36 125.36
Total 138.60 151.82
Note 25 - Current Tax Liabilities (Net)
Particulars eeaa iota

31 March, 2022 | 31 March, 2021
Provision for Income Tax (Net of Advance Tax) - 34.35
Total - 34.35
Note 26 - Other Current Liabilities
31 March, 2022 | 31 March, 2021
Contract Liability 384.32 103.37
Other statutory liabilities 578.84 692.75
Total 963.16 796.13


(® in Lacs)
Note 27 - Revenue from Operation
| Particulars | 2021-22 | = 2020-21 ‘|
Sale of Products
Katha 15,226.24 13,032.31
- Cutch 538.66 466.34
- Spices 1,090.85 1,143.00
Other Operating revenue 905.08 1,101.18
Total 17,760.83 15,742.83
Note 28 - Other Income
Particulars 2021-22 2020-21

Interest Income on Bank Deposits 0.27 0.44
Liabilities no longer required written back 4.90 15.57
Scrap Sales 16.63 27.50
Miscellaneous Income 7.00 4.02
Total 28.80 47.53
Note 29 - Cost of Material Consumed

Opening Stock 1,425.51 1,371.67
Purchases of Raw Materials 11,060.20 9,590.62
Add: Extraction Expenses 48.04 51.37
Foreign Exchange Fluctuations (Net) 3.12 (2.64)
12,536.87 11,011.02
Less : Closing Stock 1,538.82 1,425.51
Cost of Material Consumed “40,998.05. 9585.51.
Note 30 - Change in inventories of finished goods and work -in-progress
Opening stock (Finished Goods & Stock in Progress) 3,808.00 2,769.58
Closing stock (Finished Goods & Stock in Progress) 4,054.68 3,808.00
Total (246.68) (1,038.42)


(® in Lacs)
Note 31 - Employee Benefits Expenses
| Particulars | 2021-22 | 2020-21 |
Salaries and Wages 1,834.76 1,957.05
Contribution to Provident and Other Fund 95.15 90.86
Staff welfare expenses 83.87 127.26
Total 2,013.78 2,175.17
Note 32 - Finance Cost

Interest on Borrowings 579.91 600.95
Other Interest Expenses 57.49 60.97
Other Borrowing Cost 23.19 20.49
Total 660.59 682.41
Note 33 - Other Expenses

Power and Fuel 960.31 891.90
Stores and Spare parts consumed 746.68 716.54
Consultancy and Service Charges 361.75 345.82
Machine Katha Expenses 381.48 396.89
Factory Maintenance Charges 104.03 106.02
Frieght and Selling Expenses 307.40 272.42
Insurance 39.55 42.76
Other Consumable and Chemicals Consumed 126.30 65.42
Rates and Taxes 18.05 16.22
Rent 27.09 32.61
Repairs to Buildings 13.13 18.80
Repairs to Plant & Machinery 60.25 51.52
Repairs to Others 42.35 40.47
CSR Expenses 24.41 87.72
Traveling Expenses 92.55 123.62
Auditors Renumeration For Audit fees 3.00 3.00
Auditors Renumeration For Other Services 1.37 1.46
Directors sitting fees 2.00 1.55
Loss on sale of property, plant and equipment - 1.44
Miscellaneous Expenses 172.54 200.06
Total 3,484.24 3,416.24


Note 34 - Tax Expenses (® in Lacs)
(1) Current tax
Current Tax Expenses - 30.00
Total - 30.00
(2) Deferred tax
Income Tax Expenses (14.46) (11.97)
Total (14.46) (11.97)
Reconcillation of effective tax rate

The Income tax expenses for the year can be reconciled to the accounting profit as follows:-
Profit Before Tax - 50.77
Income Tax expenses calculated @ 25.17% - 12.78
Effect of Non deductible expenses - 17.53
Effect of additional Deduction under Income Tax Act,1961 - (9.81)
Other differences - 10.40
Deferred Tax (14.46) (11.97)
Tax Expenses recognised in Profit & Loss Account (14.46) 18.93
Effective Tax Rate 0.00% "37.29%
Note 35 - Earnings Per Share
Profit After Tax

(a) Net Profit for calculation of Basic and Diluted EPS (2 in lakhs) (103.73) 32.74
(b) Weighted Average Number of Equity Shares in calculation of Basic and 6,39,72,720 6,39,72,720
Diluted EPS
Basic and Diluted EPS (a) / (b) (0.16) 0.05


36. Related Party Transaction
(i) Name of related parties and nature of relationship:-
. . Country of As at As at
ae eae Operation | 31 March, 2022 | 31 March, 2021
Joint Ventures . ° 6
Agro and Spice Trading Pte Ltd Singapore 50% 90%
Subsidaries of Joint Venture
PT Sumatra Resources International .
Indonesia
PT Thea Universal Trade
Key Management Personnel (KMP)
Name Position Held
Mr. Krishna Kumar Mohta Chairman & Managing Director
Mr. Bharat Mohta CEO & Whole Time Director
Mr. Krishna Kumar Damani Executive Director (till 15th April 2021)
Mr. Raj Kumar Agarwal Chief Financial Officer
Mr. Anup Gupta Company Secretary
Other Directors
Name Position Held
Mr. Rajendra Prasad Chetani Non-Executive Non-Independent Director
Mrs. Drisha Poddar Independent Director
Mr. Surendra Bagri Independent Director
Relatives of Key Mangement Personnel
Name Position Held
Mrs. Savita Mohta Spouse of Mr. K. K. Mohta (Chairman & Managing Director)
Mrs. Avanti Mohta Spouse of Mr. Bharat Mohta (WTD & CEO)
M/s Krishna Kumar Mohta HUF Karta is Chairman & Managing Director
M/s Bharat Mohta HUF Karta is (WTD & CEO)
Enterprises having significant influence
Name Position Held

M/s ACMA Industrials Projects (P) Ltd Significant Control
M/s Arvind Engineering Works Ltd Common Director
M/s Security Company Limited Common Director
M/s Indian Glass & Electricals (P) Ltd Common Director
M/s IWP CSR Trust Significant Control


36. Related Party Transaction (Contd.)
(ii) The following transactions occurred with related parties:- (® in Lacs)
KMP/Other Directors & Parties with Control Enterprises having
Particulars Relatives of KMP Entities Significant Influence
2021-22 | 2020-21 2021-22 | 2020-21 2021-22 | 2020-21
Remuneration and Employee Benefits
Mr. Krishna Kumar Mohta 99.66 99.66 - - - -
Mr. Bharat Mohta 103.71 103.71 - - - -
Mr. Krishna Kumar Damani 3.51 61.42 - - - -
Mr. Raj Kumar Agarwal 20.33 16.86 - - - -
Mr. Anup Gupta 7.67 7.34 - - - -
Director Sitting Fees
Mr. Rajendra Prasad Chetani 0.47 0.39 - - - -
Mr. Sanjay Kumar Maheswary 0.47 0.39 - - - -
Mr. Vinod Kumar Maheshwary 0.47 0.39 - - - -
Late Mr. Vinod Mimani - 0.15 - - - -
Mrs. Drisha Poddar 0.23 0.15 - - - -
Mr. Surendra Bagri 0.38 0.08 - - - -
Purchase of Raw Material
PT Sumatra Resources International, Indonesia 425.41 1,585.62
CSR Expenses
IWP CSR TRUST 24.41 87.72
Unsecured Loan Taken
Mis. Indian Glass & Electricals (P) Ltd 30.00 -
Mis. Arvind Engineering Works Ltd 15.00 -
Repayment of Unsecured Loans
Mis. Security Co Ltd - 1.85
Interest on Unsecured Loans Taken
Mis. Indian Glass & Electricals (P) Ltd 5.46 5.28
Mis. Security Co Ltd 2.32 2.40
Dividend Paid
Mr. Krishna Kumar Mohta 1.98 1.98 : - : -
Mr. Bharat Mohta 7.64 7.64 - - - -
Mrs. Savita Mohta 9.16 9.16 : : - -
Mrs. Avanti Mohta 7.53 7.53 : - : -
M/s Krishna Kumar Mohta HUF 0.28 0.28 : : - :
M/s Bharat Mohta HUF 4.55 4.55 : - : -
Mis. Arvind Engineering Works Ltd - - - - 0.61 0.61
Mis. Security Company Limited - - - - 12.33 12.33
Mis. Indian Glass & Electricals (P) Ltd - - - - 1.20 1.20
M/s ACMA Industrials Projects (P) Ltd - - - - 0.23 0.23
Mr. R.P Chetani, Mr. R.K Agarwal, Mr. V.K. Maheswary and Mr. S. K. Maheshwary have also been paid Dividend but
the amount is below Rs. 1000/- hence not reported above.
ES ANNUAL REPORT 2021 - 22


36. Related Party Transaction (Contd.)
(iii) The following balances are outstanding at the end of the reporting period in relation to transactions with
related parties: (® in Lacs)
Enterprises having Significant Influence
31 March, 2022 31 March 2021
(i) Unsecured Loans Taken
Indian Glass & Electricals (P) Ltd. 74.00 44.00
Security Co Ltd 20.00 20.00
37. a) Working Capital facilities and Capital Expenditure Term Loan including LC & Buyers Credit Limit are from Union
Bank of India, DBS Bank India Ltd and Citi Bank on multiple banking system 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 two Promoter
Directors.
37. b) Term Loan facility availed from Citi Bank, Kolkata secured by charge of Stock of Raw Material Katha & Cutch
whether Raw or in process of manufacture and all articles manufactured there from, plant & machinery and
certain other assets and mortgaged by deposit of title deeds of Land at Jammu & Kashmir and have been
guaranted by one of the Promoter Director.
(® in lacs)
Banks Rate of Interest Non Current Current
DBS Bank India Ltd
Cash Credit Account MCLR + 1.15% - 266.93
7.10% - 1,400.00
Union Bank of India

Term Loan 8% - 3.89
Term Loan EBLR+1% 803.80 287.50

Cash Credit Account MCLR + 0.95% - 2,334.81
CITI Bank
Term Loan 9% 128.35 97.57
Cash Credit Account 8.25% (183.85)
Working Capital Demand Loan 7.10% - 2,100.00


37. c) Vehicle Loans sanctioned by Banks /NBFC against hypothication of the respective vehicle (@ in Lacs)
Non Current Current

Banks Rate of Interest (in lakhs) (in lakhs)
ICICI Bank Ltd. 10.24% - 0.88

Kotak Mahindra Prime Ltd 8.14% 7.87 1.85
Yes Bank Limited 8.50% 0.21 2.44
Axis Bank Limited 8.61% 11.12 21.71
Union Bank of India 9.15% 3.51 1.00
38. The Company operates in only one primary Business Segment,i.e, manufacturing and trading in Katha and in only one
Geographic Segment i.e., India.Accordingly there are no separate reportable segment as per IND AS 108.
39. As at March 31, 2022, there are no outstanding dues to Micro, Small and Medium Enterprises. There are no interest
due or outstanding on the same.
40. Corporate Social Responsibility (CSR)

As per the provisions of Section 135 of the Companies Act, 2013, CSR Committee has been formed by the Company.
The detils of expenditure being incurred during the year on CSR activities are
a) Amount of Rs. 24.41 (Rs. 41.83) lakhs required to be spend by the Company during the year.
b) Amount of Expenditure incurred- 24.41 lacs
c) Shortfall at the end of the year - Nil
d) Total of Previous year Shortfall - Nil
e) Reason for shortfall - NA
f) Nature of CSR Activities - Enviroment Sustainibility and livelihood enhancement
g) Details of Related Parties Transaction - IWP CSR Trust
h Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the
movements in the provision during the year should be shown sepretaly - NA
41. Leases:
The Company has lease contracts for guest house and office spaces used in its operations. The Company also hold
leasehold land having lease term of 40 years.
Company as a leasee
Impact on Balance Sheet (Increase/Decrease) (® in Lacs)
Particulars 31st March, 2022 31st March, 2021
Assets
Right of use Assets (Refer Note No. 3.3) 435.06 491.89
Liabilities
Lease liability 256.50 335.24

Impact on Statement of Profit and Loss (Decrease in Profit) (® in Lacs)

Particulars 31 March 2022 31 March 2021
Depreciation and Amortisation 99.52 113.44
Rental Expense (162.23) (144.83)
Net Impact as Profit (21.89) 15.40
Impact of Statement of Cash Flows (® in Lacs)

Total Cash outflow for leases 78.74 98.05
Set out below are the carrying amounts of right-to-use assets recognised an d the movement during the period:
(® in Lacs)
Initial recognition on adoption of Ind AS 116
As on begining of the year 491.89 605.33
Reclassified from PPE (leasehold land) to ROU asset on adoption of Ind - -
AS 116
Addition during the year 42.68 -
Depreciation Expense 99.52 113.44
As at End of the year 435.06 491.89
Set out below are the carrying amounts of lease liabilties and the movement during the period: (® in Lacs)
Addition during the year - -
Repayment during the year (78.74) (98.05)
Maturity Analysis of Lease Liability

Contractual maturities of lease liability (® in Lacs)
Particulars 31 March 2022 | 31 March 2021
Within one year 50.97 112.57
After one year but not more than five years 194.01 210.98
More than five years 11.53 11.69
Total Lease liability 256.50 335.24
ANNUAL REPORT 2021 - 22 (EE


(= in Lacs)
42. Employee Benefits
(a) Contribution to Defined Contribution Plans Recognised as Expense are as under
| Particulars 31st March 2022 31st March 2021 |

Provident and Other Funds 95.15 90.86
(b) Defined Benefit Plan
Gratuity: The Company has a defined Gratuity Plan for its employees. Every employee who has completed five
years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed
year of service.
The Scheme is funded with an insurance company in the form of qualifying incurance policy.
Disclosure for Defined Benefit Plans based on actuarial report
31st March, 2022 31st March, 2021
Particulars
Leave Gratuity Leave Gratuity
Changes in Defined Benefit Obligation :
Present Value of Defined Benefit Obligation at the Beginning | 202.60 560.89 | 201.80 539.63
of the Year
Current Service Cost 38.47 32.18 40.93 36.24
Interest Cost 10.52 32.36 11.12 32.12
Components of actuarial gain/losses on obligations:
Actuarial (Gains)/Losses Arising from Changes in Demographic - - - -
Assumptions
Actuarial (Gains)/Losses Arising from Changes in Financial (4.59) (24.84) 1.62 9.14
Assumptions
Actuarial (Gains)/Losses Arising from Changes in Experience (2.48) (29.97) (1.34) (20.98)
Adjustments
Past service cost - - - -
Benefits Paid (80.85) (103.69) | (51.53) (35.26)

Present Value of Defined Benefit Obligation at the end of the | 163.67 466.93 | 202.60 560.89
Year
Change in Plan Assets :
Fair Value of Plan Assets at the Beginning of the Year 141.68 571.41 128.74 538.81
Interest Income 7.49 34.18 7.36 33.31
Re Measurements Gains/(Losses) - - - -
Return on Plan Assets, (Excluding Amount Included in net] (2.23) (2.21) 1.07 0.07
Interest Expense)
Contribution by Employers 1.70 13.80 9.93 34.48
Benefits Paid (33.40) (103.69) (5.41) (35.26)
Fair Value of Plan Assets at the End of the Year 115.25 513.50 141.68 571.41
aise) ANNUAL REPORT 2021 - 22


(® in Lacs)
42. Employee Benefits (Contd.)
. 31st March, 2022 31st March, 2021

Particulars ; :
Leave | Gratuity Leave | Gratuity
Service cost:
Current service cost 38.47 32.18 40.93 36.24
Past service cost and loss/(gain)
on curtailments
and settlement 3.03 (1.83) 3.76 (1.19)
Net interest cost
Net Value of remeasurements on the obligation and planassets | (4.84) - (0.78) -
Expenses Recognized in the Statement of Profit and Loss 36.66 30.35 43.90 35.04
Expenses Recognised in other Comprehensive Income
Return on Plan Assets, (Excluding Amount Included in net - (2.21) - (0.07)
Interest Expense)
Actuarial (Gains)/LossesArising from Changes in Demographic - - - -
Assumptions
Actuarial (Gains)/Losses Arising from Changes in Financial - (24.84) - 9.14
Assumptions
Actuarial (Gains)/Losses Arising from Changes in Experience - (29.97) - (20.98)
Adjustments on Plan Liabilities
Total Actuarial (Gains)/Losses Recognized in_ other - (57.02) - (11.91)
Comprehensive Income
The Major Categories of Plan Assets as a % of Total Plan
Qualifying Insurance Policy 100% | 100%
The Principal Actuarial Assumption Used :
Discount Rate 7.0% 6.4%
Salary Growth Rate 5% 5%
Withdrawal Rate 5% at younger ages | 5% at younger ages
reducing to 1% at reducing to 1% at
older ages older ages
The estimates of future salary increases have been considered in actuarial valuation after taking into consideration
the impact of inflation, seniority, promotion and other relevant factors such as supply and demand situation in the
employment market.
Basis Used to Determine Expected Rate of Return on Assets :
The expected return on plan assets is based on market expectation, at the beginning of the period, which is
used for calculating returns over the entire life of the related obligation. The Gratuity Scheme is invested in group
Gratuity-Cum-Life assurance cash accumulation policy offered by Life Insurance Corporation of India.
ANNUAL REPORT 2021 - 22 iiehl


(= in Lacs)
42. Employee Benefits (Contd.)
Sensitivity Analysis for Significant Assumptions as on 31st March, 2022 are as Follows :

Particulars
Assumptions Discou nt Rate
Sensitivity Level 0.5% Increase 0.5% Decrease
Impact on Defined Benefit Plan (INR) 160.05 447.77 167.49 487.48
Assumptions Future Salary Increase
Assumptions Withdrawal Rate
Sensitivity Level W.R. * 110% W.R. * 90%

Particulars
Assumptions Discou nt Rate
Assumptions Future Salary Increase
*The Weighted Average Duration of the Defined Benefit Obligation as at 31st March 2022 is 58 years.
ey ANNUAL REPORT 2021 - 22


43. Fair Value (® in Lacs)
Financial Instruments with category:
Carrying Value Fair Value

Particulars 31st March, | 31st March, | 31st March, | 31st March,
2022 2021 2022 2021
Financial Assets
Trade receivables - at amortised cost 5070.87 4274.52 5070.87 4274.52
Security Deposits - at amortised cost 69.94 66.32 69.94 66.32
Cash and Cash equivalents at amortised cost 22.65 134.42 22.65 134.42
Balance with Bank other than Cash and Cash Equivalent 29.20 27.02 29.20 27.02
- amortised cost
Others 0.00 0.72 0.00 0.72
Loans - at amortised cost 25.38 25.14 25.38 25.14
Total 5,218.04 4,528.14 5,218.04 4,528.14
Loans from Bank and others-at amortised cost 7,457.35 6,668.93 7,457.35 6,668.93

Payable to Employees 167.09 195.12 167.09 196.12
Unclaimed Dividend 27.79 25.66 27.79 25.66
Trade Payables 1,919.37 1,737.00 1,919.37 1,737.00
Others 360.66 403.56 360.66 403.56
Total 10,025.15 9,055.23 10,025.15 9,055.23
44. 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.
ANNUAL REPORT 2021 - 22 HgIs]


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: (@ in Lacs)
Particulars Increase/ decrease | Effect on Profit Effect on Pre tax

in Basis points before tax Equity
+50 (25.47) (25.47)

31.03.2022
-60 25.47 25.47
+50 (21.19) (21.19)

31.03.2021
-60 21.19 21.19
The assumed movement in basis points for interest rate sensitivity is based on the currently observable market
environment.
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.
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.
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.
104 ANNUAL REPORT 2021 - 22


As at 31st March’ 2022 (% in Lacs)
Particulars On Demand ee 1 to 5 years en Total

year 5 years
Interest Bearing Loans (including 5,917.89 432.61 1,106.85 7,457.35

Current maturities)
Trade Payables - 1,904.35 15.02 - 1,919.37
Total 5,917.89 2,336.96 1,121.87 - 9,376.72

Particulars On Demand ee 1 to 5 years en Total

year 5 years
Interest Bearing Loans (Including |

Current maturities)
5 yes 63 289.67 913.63 - | 6,668.93
Trade Payables - 1,705.83 31.17 - 1,737.00
Total 5,465.63 1,995.50 944.80 - 8,405.93
45. 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. (® in Lacs)
Particulars 31st March 2022 | 31st March 2021

Borrowings 7,457.35 6,668.93
Trade Payables 1,919.37 1,737.00
Other financial liabilities 648.43 698.06
Net Debt 10,025.15 9,104.00
Equity 35,308.00 35,458.65
Total Capital 35,308.00 35,436.33
Gearing Ratio 28.39% 25.69%
There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current
period.
ANNUAL REPORT 2021 - 22 105


46. Trade Payable Ageing Schedule
As at 31st March’ 2022 (% in Lacs)
Outstanding for following period from due date of payment
fee Less than 1 More Than 3 ee

Years 1-2 Years 2-3 Years Years
(i) MSME - - - - -
(ii) Others 1,904.35 13.54 1.48 - 1,919.37
(iii) Disputed dues - MSME - - - - -
(iv) Disputed dues - Others - - - - -
Total Trade Payables 1,904.35 13.54 1.48 - 1,919.37
As at 31st March’ 2021 (® in Lacs)
Outstanding for following period from due date of payment
Particulars Less than 4 > Years 5-3 Years More Then 3 Total
(i) MSME - - - - -
(ii) Others 1,705.83 23.55 0.97 6.66 1,737.00
Total Trade Payables 1,705.83 23.55 0.97 6.66 1,737.00


47. Trade Receivables Ageing Schedule
Outstanding for following period from transaction date of payment

Particulars <6 6 Months - 1 1-2 More Than 3 Total
2-3 Years
Months year Years Years
(i) Undisputed Trade Receivables
- considered goods 4,982.34 49.78 33.46 7.27 3.62 5,076.47
(ii) Undisputed Trade Receivables - Which - - - - - .
have Significat increase in credit risk

(iii) Undisputed Trade Receivables - credit - - - - - .
impaired
(iv) Disputed Trade Receivables
- considered goods - - - - - -
(v) Disputed Trade Receivables

- which have significant increase in credit risk - - - - - -
(vi) Disputed Trade Receivables

- credit impaired - - - - - -
Outstanding for following period from transaction date of payment

Particulars <6 6 Months - 1 1-2 More Than 3 Total
2-3 Years
Months year Years Years
(i) Undisputed Trade Receivables
- considered goods 4,221.36 37.34 11.93 3.89 - 4,274.52
(ii) Undisputed Trade Receivables - Which - - - - - .
have Significat increase in credit risk

(iii) Undisputed Trade Receivables - credit - - - - - .
impaired
- considered goods - - - - - -

- which have significant increase in credit risk - - - - - -

- credit impaired - - - - - -
ANNUAL REPORT 2021 - 22 Bird


48. Other Regulatory Compliance
Financial Ratios
Ratio Numerator | Denominator | FY 2021-22 | FY 2020-21] Variance

Remarks for variance
more than 25%
Current Ratio (In times) CurrentAssets | Current Liabilities 1.43 1.43 0.33 NA
Debt Equity Ratio (In Times) Total Debt Shareholders 0.52 0.49 6.17 NA
Equity
Debt Service Coverage | Earning before Debt Service 1.93 2.36 (18.22) NA
Ratio (In Times) Interest and Tax
Return on Equity Ratio (%) | Net Profit After Equity (0.29) 0.09 (417.98) Decrease in the ratio
Tax is due to reduction in
EBITDA as compared to
previous year.
Inventory Turnover Ratio (In| CostofGoods | Average Inventory 2.01 1.79 12.24 NA
Times) Sold
Trade Receivable Turnover Sales Average Account 3.80 3.37 12.90 NA
Ratio (In Times) Receivables
Trade Payable Turnover Purchases/ Average Account 6.41 6.66 (3.75) NA
Ratio (In Times) Services Utilised Payables
Net Capital Trunover Ratio Net Sales Working Capital 4.25 4.14 2.59 NA
(In Times)
Net Profit Ratio (%) Net Profit After Net Sales (0.58) 0.21 (380.83) Decrease in the ratio
Tax is due to reduction in
previous year.
Return on capital employed | Earnings before | Capital Employed 1.08 1.47 (26.53) Decrease in the ratio
(%) Interest and Tax is due to reduction in
previous year.
Return On Investment (%) Income Average 0.00 0.00 0.00 NA
Generated from Investment
Investment
108 ANNUAL REPORT 2021 - 22


49 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.
Honourable 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 Honourable 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.
50 Contingent Liabilities and Commitments
a) Demand for sales tax amounting to Rs. 146.64 lacs (Rs. 146.64 lacs) which are not acknowledged as debts.
Against the same company has paid under protest a total of Rs. 26.53 lacs (Rs. 26.53 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 Honourable High Court, Allahabad.
c) During the FY 2017 - 18, Commissioner of Customs, Nhava Sheva had passed an Ex-Party 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 11.70% of duty demanded against the requirement of 7.50% 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 las 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.
51 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.
ANNUAL REPORT 2021 - 22 RIGS]


52 No transactions to report against the following disclosure requirements as notified by MCA pursuant to
amended Schedule Ill:
(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
53 For better presentation previous year’s figures have been regrouped / re-arranged wherever necessary.

Radhakrishan Tondon Chairman & MD WTD & CEO
DIN: 00702306 DIN: 00392090
Partner
Date: May 30, 2022 M No. A36061
sie ANNUAL REPORT 2021 - 22

Consolidated
Financial
Statements
INDEPENDENT AUDITOR’S REPORT

To The Members of 31, 2022, and their Consolidated loss, their Consolidated
The Indian Wood Products Company Limited total comprehensive income, their consolidated changes in
equity and their cash flows for the year ended on that date.
Report on the Audit of the Consolidated Financial
Statements Basis for Opinion
Opinion We conducted our audit in accordance with the Standards
We have audited the accompanying Consolidated Financial on Auditing (SAs) specified under section 143(10) of
Statements of The Indian Wood Products Co Ltd(the the Companies Act, 2013. Our responsibilities under
“Parent’), which includes its share of profit in its Joint those Standards are further described in the Auditor’s
Venture, which comprise the Consolidated Balance sheet Responsibilities for the Audit of the Consolidated Financial
as at 31st March 2022, and the consolidated statement Statements section of our report. We are independent of
of Profit and Loss, Consolidated Statement of Changes the Group in accordance with the Code of Ethics issued by
in Equity, Consolidated Statement of cash flows for the the Institute of Chartered Accountants of India together with
year then ended, and notes to the Consolidated financial the ethical requirements that are relevant to our audit of the
statements, including a summary of significant accounting Consolidated Financial Statements under the provisions of
policies and other explanatory information. the Companies Act, 2013 and the Rules thereunder, and we
have fulfilled our other ethical responsibilities in accordance
In our opinion and to the best of our information and with these requirements and the Code of Ethics. We believe
according to the explanations given to us, and based on that the audit evidence we have obtained is sufficient and
the consideration of reports of the other auditor on separate appropriate to provide a basis for our opinion.
financial statements of joint venture referred to in the Other
Matters section below, the aforesaid Consolidated Financial Key Audit Matters
Statements give the information required by the Act in the Key audit matters (‘KAM’) are those matters that, in our
manner so required and give a true and fair view in conformity professional judgment, were of most significance in our audit
with the Indian Accounting Standards prescribed under of the Consolidated Financial Statements of the current
section 133 of the Act read with the Companies (Indian period. These matters were addressed in the context of our
Accounting Standards) rules 2015, as amended (‘Ind AS’) audit of the Consolidated financial statements as a whole,
and other accounting principles generally accepted in India, and in forming our opinion thereon, and we do not provide a
of the consolidated state of affairs of the Group as at March separate opinion on these matters.
The Key Audit Matters | Auditors response

Revenue from Sale of Goods
The Holding Company recognizes revenue when control of Our audit procedure includes the following:
the goods is transferred to the customer at an amount that @ Considered the adequacy of the holding company’s
reflects the consideration to which the Company expects to revenue recognition policy and its compliance in terms
be entitled in exchange for those goods. As described in the of Ind AS 115 “Revenue from contracts with customers’
accounting policy in note 2(f) and as reflected in note 27 to
Assessed the design and tested the operating
the Ind AS Consolidated financial statements, revenue from
effectiveness of the internal financial controls related to
sale of goods is measured at fair value of the consideration
revenue recognition.
received or receivable, net of returns and allowances and
trade discounts. 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.
Consolidated Financial Statements
Considering the judgmentand estimates involved in revenue @ We discussed and obtained an understanding from
recognition, it is considered to be a key audit matter. 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 Venture in accordance with the accounting principles
matters to communicate in our report. generally accepted in India, including the Indian Accounting
Standards specified under section 133 of the Act. The
Other Information
respective Board of Directors of the companies included
The Parent's Board of Directors is responsible for the in the Group and of its Joint Venture are responsible
other information. The other information comprises the for maintenance of adequate accounting records in
information included in Parent Company’s Annual report but accordance with the provisions of the Act for safeguarding
does not include the financial statements and our auditor’s the assets of the Group and for preventing and detecting
report thereon. frauds and other irregularities; selection and application
Our opinion on the Consolidated Financial Statements does of appropriate accounting policies; making judgments
not cover the other information and we do not express any and estimates that are reasonable and prudent; and the
form of assurance conclusion thereon. design, implementation and maintenance of adequate
internal financial controls, that were operating effectively
In connection with our audit of the Consolidated Financial
for ensuring accuracy and completeness of the accounting
Statements, our responsibility is to read the other information
records, relevant to the preparation and presentation of the
and, in doing so, consider whether the other information
financial statements that give a true and fair view and are
is materially inconsistent with the Consolidated Financial
free from material misstatement, whether due to fraud or
Statements or our knowledge obtained in the audit, or
error, which have been used for the purpose of preparation
otherwise appears to be materially misstated.
of the consolidated financial statements by the Directors of
If, based on the work we have performed on the other the Parent Company, as aforesaid.
information obtained prior to the date of this auditor’s report,
In preparing the consolidated financial statements, the
we conclude that there is a material misstatement of this
respective Board of Directors of the companies included
other information, we are required to report that fact. We
in the Group and of its Joint Venture are responsible for
have nothing to report in this regard.
assessing the ability of the Group and of its Joint Venture
Responsibility of Management and Those Charged with to continue as a going concern, disclosing, as applicable,
Governance for Consolidated Financial Statements matters related to going concern and using the going
concern basis of accounting unless management either
The Parent's Board of Directors is responsible for the
intends to liquidate the Group or to cease operations, or
matters stated in section 134(5) of the Companies Act,
has no realistic alternative but to do so.
2013 (“the Act”) with respect to the preparation of these
consolidated financial statements that give a true and fair The respective Board of Directors of the companies included
view of the consolidated financial position, consolidated in the Group and of its Joint venture are responsible for
financial performance,consolidated changes in equity and overseeing the financial reporting process of the Group of
consolidated cash flows of the Group including its Joint its Joint venture.
ANNUAL REPORT 2021 - 22 ERE

Auditor’s Responsibilities for the Audit of the doubt on the Group ability to continue as a going concern.
Consolidated Financial Statements If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report
to the related
Our objectives are to obtain reasonable assurance about
disclosures in the Consolidated Financial Statements or, if
whether the consolidated financial statements as a whole
such disclosures are inadequate, to modify our opinion. Our
are free from material misstatement, whether due to fraud
conclusions are based on the audit evidence obtained up
or error, and to issue an auditor’s report that includes our to the date of our auditor’s report. However, future events
opinion. Reasonable assurance is a high level of assurance, or conditions may cause the Group and its Joint Venture to
but is not a guarantee that an audit conducted in accordance cease to continue as a going concern.
with SAs will always detect a material misstatement when it
@ Evaluate the overall presentation, structure and
exists. Misstatements can arise from fraud or error and are content of the Consolidated Financial Statements, including
considered material if, individually or in the aggregate, they the disclosures,and whether the Consolidated Financial
could reasonably be expected to influence the economic Statements represent the underlying transactions and
decisions of users taken on the basis of these Consolidated events in a manner that achieves fair presentation.
Financial Statements. @ Obtain sufficient appropriate audit evidence regarding
As part of an audit in accordance with SAs, we exercise the financial information of the entities or business activities
professional judgement and maintain professional within the Group and its Joint Venture to express an opinion
scepticism throughout the audit. We also: on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the audit
e@ Identify and assess the risks of material misstatement
of the financial statements of such entities included in the
of the consolidated financial statements,whether due consolidated financial statements of which we are the
to fraud or error, design and perform audit procedures independent auditors. For the other entities included in the
responsive to those risks, and obtain audit evidence that is consolidated financial statements, which have been audited
sufficient and appropriate to provide a basis for our opinion. by other auditors, such other auditors remain responsible
The risk of not detecting a material misstatement resulting for the direction, supervision and performance of the audits
from fraud is higher than for one resulting from error, as carried out by them. We remain solely responsible for our
fraud may involve collusion, forgery, intentional omissions, audit opinion.
misrepresentations, or the override of internal control. We communicate with those charged with governance
@ Obtain an understanding of internal financial controls regarding, among other matters, the planned scope and
relevant to the audit in order to design audit procedures that timing of the audit and significant audit findings including
any significant deficiencies in internal control that we identify
are appropriate in the circumstances. Under section 143(3)
during our audit.
(i) of the Companies Act,2013,we are also responsible
for expressing our opinion on whether the company has We also provide those charged with governance with a
adequate internal financial controls system in place and the statement that we have complied with relevant ethical
operating effectiveness of such controls. requirements regarding independence, and to communicate
with them all relationships and other matters that may
@ Evaluate the appropriateness of accounting policies reasonably be thought to bear on our independence, and
used and the reasonableness of accounting estimates and where applicable, related safeguards.
related disclosures made by management.
From the matters communicated with those charged with
@ Conclude on the appropriateness of management's governance, we determine those matters that were of most
use of the going concern basis of accounting and, based on significance in the audit of the financial statements of the
the audit evidence obtained, whether a material uncertainty current period and are therefore the key audit matters. We
exists related to events or conditions that may cast significant describe these matters in our auditor’s report unless law or

regulation precludes public disclosure about the matter or the joint venture referred to in the Other Matters section
when, in extremely rare circumstances, we determine that a above we report, to the extent applicable that:
matter should not be communicated in our report because
(a) We have sought and obtained all the information
the adverse consequences of doing so would reasonably
and explanations which to the best of our
be expected to outweigh the public interest benefits of such
knowledge and belief were necessary for the
communication.
purposes of our audit of the aforesaid consolidated
Other Matters financial statements.
We did not audit the financial statements of a foreign Joint (b) Inour opinion, proper books of account as required
Venture, whose financial statements reflect total assets of by law relating to preparation of the aforesaid
Rs. 3648.92 lakhs as at 31st March 2022 and total revenues consolidated financial statements have been kept
of Rs.6860.87 lakhs for the year ended on that date, as so far as it appears from our examination of those
considered in the consolidated financial statements. The books and the reports of the other auditor.
consolidated annual financial results include the Company’s (c) The Consolidated Balance Sheet, the Consolidated
share of net profit of Rs. 45.26 lakhs and Company’s share Statement of Profit and Loss including Other
of other comprehensive income of Rs. 4.55 lakhs and Comprehensive Income, the Consolidated Cash
company’s share of total comprehensive income of Rs. 49.81 Flow Statement and Consolidated Statement of
lakhs for the year ended March 31, 2022, as considered in Changes in Equity dealt with by this Report are
the consolidated financial statements, in respect of one joint in agreement with the relevant books of account
venture, whose financial statements have not been audited maintained for the purpose of preparation of the
by us. These financial statements have been audited by consolidated financial statements.
other auditors whose reports have been furnished to us
(d) In our opinion, the aforesaid Consolidated
by the Management and our opinion on the consolidated
Financial Statements comply with the Indian
financial statements, in so far as it relates to the amounts
Accounting Standards specified under Section
and disclosures included in respect of the joint venture and
133 of the Act read with relevant rules issued
our report in terms of subsection (3) of Section 143 of the
thereunder.
Act, in so far as it relates to the aforesaid joint venture is
based solely on the reports of the other auditors. (e) On the basis of the written representations
received from the directors as on 31st March,
Our opinion on the consolidated financial statements above
2022 taken on record by the Board of Directors
and our report on Other Legal and Regulatory Requirements
of the Parent, none of the directors is disqualified
below, is not modified in respect of the above matters with
as on 31st March 2022 from being appointed as a
respect to our reliance on the work done and the reports of
director in terms of Section 164 (2) of the Act.
the other auditor.
(f) With respect to the adequacy of the internal
Report on Other Legal and Regulatory Requirements
financial controls over financial reporting of the
1. Asrequired by the Companies (Auditor’s Report) Order, Parent Company and the operating effectiveness
2020 (“the Order’) issued by the Central Government of such controls and since the Parent Company
of India in terms of Section 143(11) of the Act, we has only one Joint Venture that has been
give in the “Annexure A” a statement on the matters incorporated outside India, no further reporting
specified in paragraphs 3 and 4 of the Order, to the needs to be done and the report on internal
extent applicable: financial controls over financial reporting under
2. As required by Section 143(3) of the Act, based on our clause (i) of sub-section 3 of Section 143 of the
audit and on the consideration of the reports of the Act of the standalone financial statements fulfils
other auditors on the separate financial statements of the requirement.
ANNUAL REPORT 2021 - 22 HRREs)

(9) With respect to the matter to be included in the guarantee, security or the like on behalf of the
Auditor’s Report under section 197(16) Ultimate Beneficiaries.
In our opinion and according to the information b) The management of parent company has
and explanation given to us, the remuneration paid represented, that, to the best of its knowledge
by the Parent Company to its directors during the and belief, other than as disclosed in the notes
current year is in accordance with the provisions to the accounts, no funds have been received by
of section 197 of the Act. The remuneration paid the parent company from any person or entity,
to any director is not in excess of the limit laid including foreign entities (“Funding Parties”), with
down under Section 197 of the Act. The Ministry of the understanding, whether recorded in writing
Corporate Affairs has not prescribed other details or otherwise, that the company shall, whether,
under section 197 (16) which are required to be directly or indirectly, lend or invest in other persons
commented upon by us. or entities identified in any manner whatsoever
by or on behalf of the Funding Party (“Ultimate
With respect to the other matters to be included in
Beneficiaries”) or provide any guarantee, security
the Auditor’s Report in accordance with Rule 11 of
or the like on behalf of the Ultimate Beneficiaries.
the Companies (Audit and Auditors) Rules, 2014,
in our opinion and to the best of our information c) Based on the audit procedures that have
and according to the explanations given to us: been considered reasonable and appropriate
in the circumstances, nothing has come to our
The Parent Company and its Joint Venture has
attention that has caused us to believe that the
disclosed the impact of pending litigations on its
representations under sub-clause (i) and (ii) of
financial position in its Consolidated Financial
Rule 11 (e) as provided under (a) and (b) above,
Statements — Refer Note No.- 53
contain any material misstatement
The Parent Company and its Joint Venture did not
The dividend proposed in the previous year,
have any long-term contracts including derivative
declared and paid by the Parent Company during
contracts for which there were any material
the year is in accordance with section 123 of the
foreseeable losses.
Act, as applicable.
There has been no delay in transferring the
As stated in Note 16 to the Consolidated financial
amounts required to be transferred to the Investor
statement, the Board of Directors of the Parent
Education and Protection Fund by the Parent
Company has proposed dividend for the year
Company.
which is subject to the approval of the members at
a) The management of parent company has the ensuing Annual General Meeting. The amount
represented that, to the best of its knowledge of dividend proposed is in accordance with section
and belief, other than as disclosed in the notes
123 of the Act, as applicable.
to the accounts, no funds have been advanced
or loaned or invested (either from borrowed
funds or share premium or any other sources For Agrawal Tondon & Co.
or kind of funds) by the Parent company to or Chartered Accountants
in any other person or entity, including foreign FRN — 329088E
entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the Radhakrishan Tondon
Intermediary shall, whether, directly or indirectly Place: Kolkata Partner
lend or invest in other persons or entities identified Dated: 30th May 2022 Membership No. 060534
in any manner whatsoever by or on behalf of the UDIN No. 22060534AJXBY 04783
company (“Ultimate Beneficiaries’) or provide any

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of
even date)
In terms of the information and explanations sought by us and given by the Parent Company and the books of account and
records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:
(xxi) There are no qualifications or adverse remarks in Companies (Auditors report) Order, 2020 of the Parent Company.
Joint Venture Company included in the Consolidated financial statement is not incorporated in India.
For Agrawal Tondon & Co.

FRN — 329088E
Radhakrishan Tondon
UDIN No. 22060534AJXBY 04783
ANNUAL REPORT 2021 - 22 ERR

Consolidated Balance Sheet as at 31st March, 2022 (% In Lacs)

. As at As at
eae Note | 31 march, 2022 | 31 March, 2021
ASSETS
Non-Current Assets
Property, Plant and Equipment 3.1 38,281.32 38,493.66
Capital Work-in-Progress 3.2 26.25 33.68
Righ to use assets 3.3 435.06 491.89
Financial Assets
- Investments 4 748.98 699.17
- Others 5 69.94 66.32
Other Non-Current Assets 6 228.05 229.16
39,789.60 40,013.88
Current Assets
Inventories 7 6,128.67 5,817.02
Financial Assets
- Trade Receivables 8 5,070.87 4,274.52
- Cash and Cash Equivalents 9 22.65 134.42
- Bank Balances other than above 10 29.20 27.02
- Loans 11 25.38 25.14
- Other Financial Assets 12 - 0.72
Current Tax Assets (Net) 13 39.54 -
Other Current Assets 14 2,494.23 2,375.07
13,810.54 12,653.91
TOTAL ASSETS 53,600.14 52,667.79
EQUITY AND LIABILITIES
Equity Share Capital 15 1,279.75 1,279.75
Other Equity 16 33,845.37 33,923.88
35,125.12 35,203.63
LIABILITIES
Non-Current Liabilities
- Borrowings 17 1,106.85 913.63
- Lease Liabities 205.54 222.67
- Others 18 92.89 24.96
Deferred Tax Liabilities (Net) 19 7,415.81 7,417.10
Provisions 20 25.19 34.46
8,846.28 8,612.82
Current Liabilities
- Borrowings 21 6,350.50 5,755.30
- Trade Payables (Refer Note 39) 22
Total outstanding dues of micro enterprise and small enterprise - -
Total outstanding dues of creditors other than micro enterprises and small enterprises 1,919.37 1,737.00
- Others 23 206.15 264.15
Provisions 24 138.60 151.82
Current Tax Liabilities (Net) 25 - 34.35
Other Current Liabilities 26 963.16 796.13
9,628.74 8,851.33
TOTAL EQUITY AND LIABILITIES 53,600.14 52,667.79
signiticant Accounting Policies 1-2
: Chairman & MD WTD & CEO
Date: May 30, 2022 M No. A36061

Consolidated Statement of Profit & Loss for the year ended March 31, 2022
(® in Lacs)
| Particulars | Note | 2021-22 | 2020-21 |
Revenue From Operations
Revenue From Operations 27 17,760.83 15,742.83
Other Income 28 28.80 47.53
Total income 17,789.63 15,790.36
Expenses:
Cost of material consumed 29 10,998.05 9,585.51
Purchase of stock in trade 612.44 521.93
Change in inventories of finished goods and work -in-progress 30 (246.68) (1,038.42)
Employee benefit expense 31 2,013.78 2,175.17
Finance costs 32 660.59 682.41
Depreciation and amortisation expense 3.1 385.40 396.75
Other expenses 33 3,484.24 3,416.24
Total expense 17,907.82 15,739.59
Profit (Loss) before share of consolidated Profit of Joint Venture (118.19) 50.77
Share of Consolidated Profit of Joint Venture 45.26 175.46
Profit/(loss) before tax (72.93) 226.23
Income Tax expense:
Current tax 34 - 30.00
Deferred tax 34 (14.46) (11.97)
Total Tax Expense (14.46) 18.03
Profit/(loss) for the period (58.47) 208.20
Other Comprehensive Income
Items that will not be reclassified to profit or loss
Remeausurement of net defined benefit liability 52.61 11.91
Share of Other Comprehensive (Income)/loss through Joint Venture 4.55 11.36
Income tax relating to the above 34 (13.24) (3.00)
Other Comprehensive Income/(loss) for the period 43.92 20.27
Total Comprehensive Income/(loss) for the period (14.55) 228.47
Earnings per equity share (for continuing operation): 35
- Basic (0.09) 0.33
- Diluted (0.09) 0.33
Significant accounting policies 1-2

Radhakrishan Tondon
Partner DIN: 00702306 DIN: 00392090
. R.K. Agarwal Anup Gupta
Date: May 30, 2022 M No. A36061
ANNUAL REPORT 2021 - 22 ERR]

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2022
(® in Lacs)
| | 31stMarch 2022, | ~~ 31stMarch, 2021 ‘|

A CASH FLOW FROM OPERATING ACTIVITIES
Net profit before tax (72.93) 226.23
Adjustment for
Depreciation 385.40 396.75
Interest Received (0.27) (0.44)
Liabilities no longer required written back (4.90) (15.57)
Provision under expected credit loss 3.80 4.70
Loss/ (Gain) on sale of Property, Plant & Equipment (0.26) 1,044.36 1.44 1,069.29
Operating Profit/(Loss) before working capital changes 971.43 1,295.52
Adjustment for
Trade & Other Receivables (917.54) 228.97
Inventories (311.65) (496.56)
Trade Payables 599.36 (629.83) 724.77 457.18
Cash generated from operations 341.60 1,752.70
Direct Tax Paid (73.89) (20.85)
Cash Flow before Exceptional Items 267.71 1,773.55
Exceptional Items - -
NET CASH FLOW FROM OPERATING ACTIVITIES 267.71 1,773.55
B CASH FLOW FROM INVESTING ACTIVITIES
Investment in shares (45.26) (175.46)
Purchase of Fixed Assets (287.95) (181.08)
Sale of Fixed Assets 0.75 1.50
NET CASH USED IN INVESTING ACTIVITIES (332.46) (355.04)

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2022 (conia.)
(® in Lacs)
| 31stMarch 2022 | —31stMarch, 2021 |

C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Borrowings 846.03 430.67
Repayment of Borrowings (57.61) (945.71)
Repayment of Lease Liability (78.74) (98.05)
Dividend paid (61.84) (61.99)

Interest paid (692.68) (645.06)
NET CASH USED IN FINANCING ACTIVITIES (44.84) (1,320.14)
NET (DECREASE)/INCREASE IN CASH AND CASH (109.59) 98.37

EQUIVALENTS (A+B+C)
CASH AND CASH EQUIVALENTS (Refer Note 9 & 10)
AT THE BEGINING OF THE YEAR 161.44 63.07
AT THE END OF THE YEAR 51.85 161.44

Radhakrishan Tondon Chairman & MD WTD & CEO
Partner DIN: 00702306 DIN: 00392090
Place: Kolkata R.K. Agarwal Anup Gupta
Date: May 30, 2022 Chief Financial Officer Company Secretary
M No. A36061
ANNUAL REPORT 2021 - 22 EP)

STATEMENT OF CONSOLIDATED CHANGES IN EQUITY AS AT 31ST MARCH, 2022

1) Equity Share Capital
Balance at the Changes in Share Restated balance | Changes in equity Balance at the
beginning of the | Capital due to Prior | atthe begnining share capital end of the Current
Current Reporting Period Errors of the current during the current Reporting Period
Period reporting period year
1,279.75 - 1,279.75 1,279.75
Balance at the Changes in Share Restated balance | Changes in equity Balance at the
beginning of the | Capital due to Prior | atthe begnining share capital end of the Current
Current Reporting Period Errors of the current during the current Reporting Period
Period reporting period year
1,279.75 - 1,279.75 1,279.75
(2) Other Equity

Other Equity
Other
Reserve & surplus | Comprehensive
Capital | Retained | Re measurement

Reserve | Earnings of defined
9 benefit plans
Balance at the begnining of the Current Reporting 0.03} 34,124.76 (200.90) 33,923.88
Period
Restated balance at the begnining of the current 0.03} 34,124.76 (200.90) 33,923.89
reporting period
Total Comprehensive Income / (loss) - (58.47) 43.92 (14.55)
Dividend paid in 2020-21 - (63.97) - (63.97)

Profit for the period - - -
Balance at the end of the Current Reporting Period 0.03} 34,002.32 (156.98) 33,845.37

STATEMENT OF CONSOLIDATED CHANGES IN EQUITY AS AT 31ST MARCH, 2022 (CONTD.)

(2) Other Equity
(b) Previous Reporting Period
(® in Lacs)
Other Equity
Other
Reserve & surplus Comprehensive
Capital Retained _ | Remeasurement

Reserve Earnings Se
9 benefit plans
Balance at the begnining of the Previous Reporting 0.03 33,980.54 (221.17) 33,759.40
Period
Restated balance at the begnining of the current 0.03 33,980.54 (221.17) 33,759.40
reporting period
Total Comprehensive Income / (loss) - 208.20 20.27 228.47
Dividend paid in 2019-20 - (63.97) - (63.97)
Balance at the end of the Previous Reporting Period 0.03 34,124.76 (200.90) 33,923.88

Radhakrishan Tondon
Partner DIN: 00702306 DIN: 00392090
Place: Kolkata
Chief Financial Offic er Company Secretary
Date: May 30, 2022
M No. A36061
ANNUAL REPORT 2021 - 22 is)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2022
1. Corporate Information or losses of the investee in consolidated profit and loss, and
The Consolidated financial statements comprise financial the group’s share of other comprehensive income of the
statements of The Indian Wood Products Company Limited investee in consolidated other comprehensive income.
(‘the Parent Company”) and its joint ventures (collectively c) Property, Plant and Equipment
referred to as “the Group’) for the year ended 31st March Freehold land is carried at the revalued figure as per
2022. The Group is primarily engaged in the manufacturing the Valuation done by the management based on circle
of Katha, processed Gambier and trading of spices. rate of 1st April’16. All the other items of Property, Plant
2. Significant Accounting Policies and Equipment are stated at cost of acquisition, less
This note provides a list of the significant accounting policies accumulated depreciation/amortisation and impairments,
if any, cost of acquisition includes taxes, duties, freight
adopted in preparation of these Consolidated Financial
and other incidental expenses related to acquisition and
Statements. These policies have been consistently applied
installation. Indirect expenses during construction period,
to all the years presented unless otherwise stated.
which are required to bring the asset in the condition for its
The Consolidated Financial Statements were approved by
intended use by the Company and are directly attributable
Board of Directors on May 30, 2022.
to bringing the asset to its position, are also capitalized.
a) Basis of Preparation:
Subsequent costs are included in the asset's carrying
|. Compliance with IND AS: amount or recognised as a separate asset, as appropriate,
These Consolidated Financial Statements comply in all only when it is probable that future economic benefits
material aspects with Indian Accounting Standards (IND AS) associated with the item will flow to the Company and the
notified under section 133 of the Companies Act, 2013 (the cost of the item can be measured reliably. The carrying
Act) read with rule 4 of the Companies (Indian Accounting amount of any component accounted for as a separate
standards) Rules, 2015 & Companies (Indian Accounting asset is de-recognized upon disposal or when no future
Standards) Amendment Rules 2016. The Company adopted economic benefits are expected from its use or disposal.
Ind AS from 1st April, 2017. All other repairs & maintenance are charged to profit or loss
during the reporting period in which they are incurred.
ll. Historical cost convention:
Capital work-in-progress comprises cost of fixed assets that
The Consolidated Financial Statements have been prepared
are not yet ready for their intended use at the year end.
on a historical cost basis, except for the following:
Depreciation and amortization:
i. Land which is revalued as on 1st April’'16
Depreciation is calculated using the straight-line method
ii. Certain Financial Assets and Liabilities (including
to allocate cost of Property, Plant and Equipment, net of
derivative instruments) and contingent consideration that
residual values, over their estimated useful lives as follows:
are measured at fair value; and
iii. Defined Benefit Plan Assets measured at fair value;
Asset Class Useful Life (In years) |
Building 3 to 60
b) Principal of Consolidation and Equity Accounting
Plant & Machinery* 10 to 30
Joint Venture
Electric Installations* 10 to 30
Interests in joint ventures are accounted for using the equity
method (see below), after initially being recognized at cost Laboratory Apparatus 10
in the consolidated balance sheet. Motor Vehicles* 8 to 10
Equity Method Computers* 3 to 8
Under the equity method of accounting, the investments Office Equipment’s* 3 to 15

are initially recognized at cost and adjusted thereafter to Furniture and Fixtures 10
recognize the group’s share of the post-acquisition profits *Based on management evaluation, the useful lives as given

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (conta)

above best represent the period over which the Management are directly attributable to the acquisition of the financial
expects to use these Assets. Hence, the useful lives of for asset.
these Assets is different from the useful lives as prescribed
Transaction costs of financial assets carried at fair value
under Part C of Schedule II of the Companies Act, 2013.
through profit or loss are expensed in profit or loss.
Depreciation on additions / deletions during the year is
iii. Impairment of financial assets:
provided from the date on which the asset is capitalized up
to the month in which the asset is disposed off. The Company assesses if there is any significant increase
in credit risk pertaining to the assets and accordingly
An asset’s carrying amount is written down immediately
creates necessary provisions through Expected Credit Loss
to its recoverable amount if the asset’s carrying amount is
Method, wherever required.
greater than its estimated recoverable amount.
iv. De-recognition of financial assets:
Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are A financial asset is de-recognised only when
included in Statement of Profit and Loss within other gains/ ¥ the Company has transferred the rights to receive the
(losses). cash flows from the financial asset or
The Company reviews the residual values, useful lives and
¥ the Company retains the contractual rights to receive
methods of depreciation of plant, property and equipment
the cash flows of the financial assets, but transfers
at each financial year end and adjusts prospectively, if substantially all the risks and rewards of the Assets.
appropriate.
f) Foreign Currency Transactions and Translation:
d) Operating Cycle
|. Functional and presentation currencies:
All assets and liabilities have been classified as current and
noncurrent as per the Company’s normal operating cycle Items included in the Financial Statements of the Company
and other criteria as set out in the Division II of Schedule III to are measured using the currency of the primary economic
the Companies Act, 2013. Based on the nature of products environment in which the entity operates (‘the —_ functional
and time between acquisition of assets for processing and currency’). The Financial Statements are presented in INR
their realization in cash and cash equivalents, the Company which is the functional and presentation currency for the
has ascertained its operating cycle as 12 months for the company.
purpose of current or non-current classification of assets ll. Transactions & Balances:
and liabilities.
Foreign Currency Transactions are translated into the
e) Financial assets: functional currency at the Exchange Rates on the date of
i. Classification: transaction. Foreign exchange Gains and Losses resulting
from settlement of such transactions and from translation
The Company classifies its financial assets in the following
of monetary assets and liabilities at the closing rates are
measurement categories:
generally recognized in the Statement Profit and Loss.
a. those to be measured subsequently at fair value (either
Non-monetary foreign currency items are carried at cost
through other comprehensive income, or through profit or
and accordingly the investments in shares of foreign
loss), and
Joint Venture are expressed in Indian currency at the
b. those measured at amortized cost. rate of exchange prevailing at the time when the original
ii. Measurement: investments are made or Fair Values determined.
At initial recognition, the Company measures a financial g) Revenue Recognition
asset at its fair value plus, in the case of a financial asset
With effect from 1 April 2018, the Company has adopted
not at fair value through profit or loss, transaction costs that
IND AS 115 ‘Revenue from Contracts with Customers’
ANNUAL REPORT 2021 - 22 Es)


which introduces a new five-step approach to measuring h) Inventories:
and recognising revenue from contracts with customers. a. Raw Material, Stores and Spares are valued at lower of
Under IND AS 115, revenue is recognised on satisfaction cost and net realizable value.
of performance obligation at an amount that reflects the b. Work-in-progress, Finished Goods are valued at lower
consideration to which an entity expects to be entitled in of cost and net realizable value.
exchange for transferring goods or services to a customer. c. Cost of work-in progress and _ finished goods
The Company has elected to apply the Cumulative catch comprises direct materials, direct labour and an appropriate
up method in adopting IND AS 115. In accordance with the proportion of variable and fixed overhead expenditure,
cumulative catch-up transition method, the comparatives the latter being allocated on the basis of normal operating
have not been retrospectively adjusted. The effect on capacity. Cost of inventories also includes all other costs
adoption of Ind AS 115 was insignificant. Applying the incurred in bringing the inventories to their present location
practical expedient as given in Ind AS 115, the Company and condition. Cost is assigned on the basis of weighted
has not disclosed the remaining performance obligation average method.
related disclosures. Revenue is recognised to the extent i) Trade Receivables:
that it is probable that the economic benefits will flow to the Trade Receivables are recognized initially at fair value and
Company and can be reliably measured. The Company subsequently measured at amortized cost using Effective
bases its estimates on historical results, taking into Interest Method.
consideration the type of customer, the type of transaction j) Trade and other payables:
and the specifics of each arrangement. These amounts represent liabilities for goods and services
Sale of goods: provided to the Company prior to the end of financial year
which are unpaid. Trade and other payables are presented
Revenue is recognized on satisfaction of performance
as current liabilities unless payment is not due within 12
obligation at an amount that reflects the consideration to
months after the reporting period.
which the Company expects to be entitled in exchange for
k) Borrowings:
transferring goods to a customer.
Borrowings are initially recognised at fair value, net of
Interest income:
transaction costs incurred. Borrowings are subsequently
Interest income is recognized on a time proportion basis measured at amortised cost Effective Interest Method. Any
taking into account the amount outstanding and the difference between the proceeds (net of transaction costs)
applicable effective interest rate (EIR). EIR is the rate that and the redemption amount is recognised in Statement of
exactly discounts the estimated future cash payments or Profit and Loss over the period of the borrowings.
receipts over the expected life of a financial liability or a I} Income Taxes:
financial asset to their gross carrying amount. Interest Income tax expense or credit for the period is the tax
Income are included under the head “Other Income” in the payable on the current period’s taxable income based on
Statement of Profit and Loss. the applicable income tax rate for each jurisdiction adjusted
Disaggregation of revenue: by the changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax
Note 27 presents disaggregated revenues from contracts
losses.
with customers for the year ended March 31, 2022 by
The current income tax charge is calculated on the basis
performance obligation. The Company believes that this
of the tax laws enacted or substantively enacted at the end
disaggregation best depicts how the nature, amount, timing of the reporting period in the countries where the company
and uncertainty of our revenues and cash flows are affected operate and generate taxable income. Management
by industry, market and other economic factors. periodically evaluates positions taken in tax returns with

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (conta.

respect to situations in which applicable tax regulation is Liabilities with regard to the gratuity benefits payable in
subject to interpretation. It establishes provisions, future are determined by actuarial valuation at each Balance
where appropriate, on the basis of amounts expected to be Sheet date using the Projected Unit Credit method and
paid to the tax authorities. contributed to Employees Gratuity Fund. Actuarial gains
Deferred income tax is provided in full, using the Balance and losses arising from changesin actuarial assumptions
Sheet method, on temporary differences arising between are recognized in other comprehensive income and the
the tax bases of assets and liabilities and their carrying Statement of Profit and Loss in a subsequent period.
amounts _ in the financial statements. Deferred income tax The company contributes to a Group Insurance - cum -
is determined using tax rates (and laws) that have been Gratuity Scheme with Life Insurance Corporation of India
enacted or substantially enacted by the end of the reporting towards meeting its gratuity obligation.
period and are expected to apply when the related deferred iv. Bonus and Production Linked Incentive:
income tax asset is realized or the deferred income tax
The Company recognizes a liability and expenses for
liability is settled.
bonuses as per Bonus Act'1949. The Company also
Current and deferred tax is recognized in the Statement recognizes a liability and expenses for Incentive Bonuses
of Profit and Loss, except to the extent that it relates to as per agreement entered into with the worker union. The
items recognized in other comprehensive income or directly Company recognizes a provision where there is a past
in equity. In this case, the tax is also recognized in other practice that has created constructive obligations and a
comprehensive income or directly in equity, respectively reliable estimate of such obligations.
m) Borrowing Cost: v. Leave encashment/ Compensated absences:
Borrowing costs thatare directly attributable to the acquisition The Company provides for the encashment of leave with
or construction of a qualifying asset are capitalised during pay subject to certain rules. The employees are entitled
the period of time that is required to complete and prepare to accumulate leave subject to certain limits, for future
the asset for its intended use or sale. Qualifying assets are encashment / availment. The liability is provided at each
assets that necessarily take a substantial period of time to Balance Sheet date on the basis of an actuarial valuation
get ready for their intended use or sale. using the Projected Unit Credit method. Actuarial gains and
Other borrowing costs are expensed out in the Statement losses arising from changes in actuarial assumptions are
of Profit & Loss Account in the period in which they are recognised in the Statement of Profit and Loss.
incurred. The Company contributes to a New Group Leave
n) Employee Benefits: Encashment Plan with Life Insurance Corporation of India
i. Short term Employee benefit Expenses: towards meeting its leave obligation.
Liabilities for wages and salaries, including non- monetary Re-measurements, comprising of actuarial gains and
benefits that are expected to be settled wholly within 12 losses excluding amounts included in net interest on the
months after the end of the period in which the employees net defined benefit liability and the return on plan assets
render the related service are recognized in respect of (excluding amounts included in net interest on the net
employees’ services upto the end of the reporting and are defined benefit liability), are recognised immediately in
measured at the amounts expected to be paid when the the balance sheet with a corresponding debit or credit to
liabilities are settled. The liabilities are presented as current retained earnings through Other Comprehensive Income in
employee benefit obligations in the balance sheet. the period in which they occur. Re-measurements are not
reclassified to profit or loss in subsequent periods.
ii. Defined Contribution Plan - Provident fund:
0) Provisions and Contingent Liabilities and Assets:
Contribution to Provident fund is made at a predetermined
rate and charged to revenue on accrual basis. Contingent Liabilities are disclosed in respect of possible
obligations that arise from past events but their existence will
iii. Defined Benefit Plan - Gratuity:
be confirmed by the occurrence or non-occurrence of one or
ANNUAL REPORT 2021 - 22 Epa

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (conta,

more uncertain future events not wholly within the control conversion of all dilutive potential equity shares.
of the Company or where any present obligation cannot be s) Segment Reporting:
measured in terms of future outflow of resources or where a
The Company’s operating businesses are organized and
reliable estimate of the obligation cannot be made.
managed separately according to the nature of products
Provisions are recognized when the Company has a and services provided, with each segment representing a
present legal or constructive obligation as a result of past strategic business unit that offers different products and
events, it is probable that an outflow of resources will be serves different markets. The analysis of geographical
required to settle the obligation and the amount can be segments is based on the areas in which the customers of
reliably estimated. Provisions are not recognized for future the Company are located.
operating losses.
Segment Accounting Policies:
A contingent asset is disclosed, where an inflow of
The Company prepares its segment information in
economic benefits is probable. An entity shall not recognize
conformity with the accounting policies that are adopted
a contingent asset unless the recovery is virtually certain.
for preparing and presenting the financial statements of the
p) Cash and Cash Equivalents: Company as a whole.
For the purpose of presentation in the Statement of Cash t) Rounding off:
Flows, cash and cash equivalents includes cash on hand,
All amounts disclosed in the financial statement and
deposits held at call with financial institutions, other short-
notes have been rounded off to the nearest Lakhs, unless
term, highly liquid investments with original maturities of
otherwise stated
three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant u) Critical Estimates and Judgements
risk of changes in value. The preparation of financial statements requires the use
q) Impairment of Assets: of accounting estimates which, by definition, will seldom
Assets are assessed by the Company at each reporting equal the actual results. Management also needs to
period whether there is an indication of impairment that the exercise judgement in applying the Company’s accounting
carrying amount may not be recoverable. policies. This note provides an overview of the areas that
An impairment loss is recognised for the amount by which involved a higher degree of judgement or complexity, and of
asset's carrying amount exceeds its recoverable amount. items which are more likely to be materially adjusted due to
The recoverable amount is higher of assets fair value less estimates and assumptions turning out to be different than
cost of disposal and value in use. those originally assessed. Detailed information about each
of these estimates and judgements is included in relevant
r) Earnings Per Share:
notes together with information about the basis of calculation
Basic earnings per share: A basic earnings per share is
for each affected line item in the financial statements.
calculated by dividing:
The preparation of the financial statements in conformity
i. the profit attributable to owners of the Company.
with GAAP requires the Management to make estimates
ii. by the weighted average number of equity shares and assumptions that affect the reported balances
outstanding during the financial year, adjusted for bonus of assets and liabilities and disclosures relating to
elements in equity shares issued during the year. contingent assets and liabilities as at the date of the
Diluted earnings per share: : Diluted earnings per financial statements and reported amounts of income
share adjusts the figures used in the determination of basic and expenses during the period. These estimates
earnings per share to take into account: and associated assumptions are based on_ historical
i. the after income tax effect of interest and other financing experience and management's best knowledge of current
costs associated with dilutive potential equity shares, and events and actions the Company may take in future.
ii. the weighted average number of additional equity Information about critical estimates and assumptions that
shares that would have been outstanding assuming the have a significant risk of causing material adjustment to the


carrying amounts of assets and liabilities are: value guarantees. The lease payments also include the
exercise price of a purchase option reasonably certain to be
i. Impairment of financial assets (including trade
exercised by the Company and payments of penalties for
receivable)
terminating the lease, if the lease term reflects the Company
ii. | Estimation of defined benefit exercising the option to terminate. Variable lease payments
iii. Estimation of current tax expenses and payable that do not depend on an index or a rate are recognised as
iv. Estimation of provisions and contingencies expenses (unless they are incurred to produce inventories)
in the period in which the event or condition that triggers the
v) Leases
payment occurs.
The Company assesses at contract inception whether
In calculating the present value of lease payments, the
a contract is, or contains, a lease. That is, if the contract
Company uses its incremental borrowing rate at the lease
conveys the right to control the use of an identified asset for
commencement date because the interest rate implicit in the
a period of time in exchange for consideration.
lease is not readily determinable. After the commencement
Company as a lessee
date, the amount of lease liabilities is increased to reflect
The Company applies a single recognition and measurement the accretion of interest and reduced for the lease payments
approach for all leases, except for short-term leases and made. In addition, the carrying amount of lease liabilities is
leases of low-value assets. The Company recognises lease remeasured if there is a modification, a change in the lease
liabilities to make lease payments and right-of-use assets term, a change in the lease payments (e.g., changes to
representing the right to use the underlying assets. future payments resulting from a change in an index or rate
i) Right-of-use assets used to determine such lease payments) or a change in the
The Company recognises right-of-use assets at the assessment of an option to purchase the underlying asset.
commencement date of the lease (i.e, the date the The Company’s lease liabilities are included in Interest-
underlying asset is available for use). Right-of-use assets bearing loans and borrowings
are measured at cost, less any accumulated depreciation iii) Short-term leases and leases of low-value assets
and impairment losses, and adjusted for any remeasurement
The Company applies the short-term lease recognition
of lease liabilities. The cost of right-of-use assets includes
exemption to its short-term leases of Land & building
the amount of lease liabilities recognised, initial direct
(i.e., those leases that have a lease term of 12 months
costs incurred, and lease payments made at or before the
or less from the commencement date and do not contain
commencement date less any lease incentives received.
a purchase option). It also applies the lease of low-value
Right-of-use assets are depreciated on a straight-line basis
assets recognition exemption to leases of office equipment
over the lease term.
that are considered to be low value. Lease payments
If ownership of the leased asset transfers to the Company on short-term leases and leases of low value assets are
at the end of the lease term or the cost reflects the exercise recognised as expense on a straight-line basis over the
of a purchase option, depreciation is calculated using the lease term.
estimated useful life of the asset. The right-of-use assets
Company as a lessor
are also subject to impairment.
Leases in which the Company does not transfer substantially
ii) Lease liabilities
all the risks and rewards incidental to ownership of an asset
At the commencement date of the lease, the Company are classified as operating leases. Rental income arising is
recognises lease liabilities measured at the present value of accounted for on a straight-line basis over the lease terms
lease payments to be made over the lease term. The lease and is included in revenue in the statement of profit or loss
payments include fixed payments (including in substance due to its operating nature. Initial direct costs incurred in
fixed payments) less any lease incentives receivable, negotiating and arranging an operating lease are added
variable lease payments that depend on an index or a to the carrying amount of the leased asset and recognized
rate, and amounts expected to be paid under residual over the lease term on the same.
ANNUAL REPORT 2021 - 22 EP]

eros
Note 3.1 - Property, Plant and Equipment (= in Lacs)
G¢ - 120% LHOdSY IWNNNV
Particulars Freehold] Building] Computer| Effluent] Electrical] Furni-| Laboratory) Motor Car Office} Plant &|Refrigeration} Trollies) Tube] Weighing Total
Land* Equipment} Treatment] Installa-) ture&! Apparatus} & Vehicle] Equipments|Machinery| & Cooling] & Trays] Well] Scale
Plant tions} Fixtures System =
a
Gross Block mm
Fd
AtApril 1, 2020 35,737.74] 483.09} 28.99} 97.73] 195.47] 101.37 6.05} 380.50 32.19] 907.63 848.04) 173.91] 5.00} 4.66)/39,002.38 g
>
Fa
Additions 206.45 1.98) 2449) 3441) 0.43) 18.92} 19.19 0.84) 265.34 158.24) 43.71] 0.20) 11.88) 786.06 PS
o
(e)
Disposals / deductions (6.04) (15.77) (4.49}) (14.08}} (2.96)|_ (6.59) (2.70}) (28.17) (31.90) -| (1.75)} (3.22)) (115.67) is)
a
z
At March 31, 2021 35,737.74] 683.50} 15.20} 122.22) 225.39] 87.71 22.01] 393.09 30.33) 1,146.80 974.38) 217.61] 3.45} 13.31)39,672.77 (e)
S
a
Additions -| 1.47 411] 14.01) 10.35) 1.02 0.07 0.40} = 12.79 25.64) 3.75] 0.36) 0.07} 74.04 iSS
o
Disposals / deductions - (0.10) (0.45) (0.55) 2
ie)
At March 31, 2022 35,737.74] 684.97) 19.31} 136.23) 235.74] 88.63) 22.08) 392.64 30.73) 1,159.59} 1,000.02) 221.36) 3.81] 13.38)39,746.26 ca2
Fd
Accumulated Depreciation <
C
AtApril 1, 2020 -| 46.70) 17.67 5.26) 89.04] 23.00 1.15} 95.94 15.11} 336.31 334.66) 34.10] 0.54) 1.48) 1,000.97 ES=
iu
Charge for the year 30.89 4.90 5.61] 20.05] 9.81 213) 54.79 5.81] 67.71 66.22) 13.79] 0.34) 1.24] 283.31 o
Disposals (4.96}) (14.99) (4.30}) (13.54)} (2.81)} (6.27) (2.58}) (22.00) (29.05) (1.66)) (3.01)} (105.16)
At March 31, 2021 -| 72.64 7.59) 10.87) 104.79) 19.27 0.47) 144.46 18.33) 382.02 371.84) 47.90] (0.78)} (0.29)) 1,179.12
Charge for the year 30.74 3.61 6.84 17.70} = 9.70 1.98} 52.76 5.44 71.37 70.46) 13.77] 0.34) 1.17) 285.88
Disposals / deductions - - - || -| (0.07) - || || || || | | -| (0.07)
At March 31, 2022 -| 103.38) 11.20) 17.71) 122.49) 28.90 2.45} 197.22 23.77) 453.39 442.30] 61.67] (0.44)} 0.88] 1,464.93
Net Block
At March 31, 2021 35,737.74] 610.86 7.62} 111.36] 120.59] 68.44) = 21.54) 248.63 12.00) 764.78 602.54) 169.72) 4.23} 13.60) 38,493.66
At March 31, 2022 35,737.74] 581.59 8.12} 118.53] 113.24] 59.73) 19.63] 195.42 6.96) 706.20 557.72) 159.70) 4.25} 12.50) 38,281.32
3.2 - Capital Work-in-Progress
Particulars Opening as on Additions Capitalised Closing as at Additions Capitalised/ Closing as at

01.04.2020 31.03.2021 Transfered 31.03.2022
Capital Work-in-Progress 1032.28 31.93 1030.53 33.68 0.00 7.43 26.25

CwIP Less than 1 More than 3 Total
year 1-2 years 2 -3 years years
Projects in Progress 24.50 - 1.76 - 26.25

Total 24.50 - 1.76 - 26.25

CcWwIP Less than 1 More than 3 Total
year 1-2 years 2 -3 years years
Projects in Progress 31.93 1.76 - - 33.68

Total 31.93 1.76 - - 33.68
3.3 Right of Use Asset (= in Lacs)

Particulars Leasehold Land Building
As at 1st April, 2020 261.49 472.11
Recognition/ Reclassification on transition to Ind AS-116
Additions - -
Disposals / deductions -
At March 31, 2021 261.49 472.11
Additions - 42.68
Disposals / deductions - -
At March 31, 2022 261.49 514.79
Accumulated Depreciation
As at April 01, 2020 6.72 121.55
Disposals - -
At March 31, 2021 13.44 228.27
Disposals - -
At March 31, 2022 20.16 321.07
Net Block
At March 31, 2021 248.05 243.84
At March 31, 2022 241.33 193.73
ANNUAL REPORT 2021 - 22 FE


Note 4 - Non Current - Financial Assets - Investments (= in Lacs)
Particulars ae aa
31 March, 2022 | 31 March, 2021
Investment in Equity Shares, Unquoted
Investment in Joint Venture (at Cost unless stated otherwise)
M/s. Agro and Spice Trading Pte Ltd, Singapore* (Refer Note No. 49) 748.98 699.17
14,00,050 Equity Shares of USD 1
Total Aggregate amount of Unquated Investment 748.98 699.17
*Note: M/s Agro and Spice Trading Pte Ltd, Singapore is 50% Joint Venture of the Company as at Balance Sheet
Date.
Note 5 - Non Current Financial Assets - Others

As at As at
aa 31 March, 2022 | 31 March, 2021
Unsecured and considered good

Security Deposits 58.72 60.50
Others
Against Sales Tax (Refer Note 52) 2.64 2.64
Against Others Compliances 8.58 3.17
Total 69.94 66.32
Note 6 - Other Non Current Assets
Particulars eeaa ee
31 March, 2022 | 31 March, 2021
Capital Advances 130.37 130.37
Prepaid Expenses 5.17 8.78
Tax payment under Protest (Refer Note 52) 92.51 90.01
Total 228.05 229.16


(® in Lacs)
Note 7 - Inventories
As at As at
Particulars
31 March, 2022 31 March, 2021
(At lower of cost and net realisable value)
Raw Materials* 1,767.36 1,701.45
Work -in- progress 2,497.24 1,830.08
Finished Goods 1,557.44 1,977.93
Stores and Spares 301.41 285.42
Consumables 3.49 20.40
Tools and Implements 1.73 1.74
Total 6,128.67 5,817.02

*Raw Material includes goods in transit 228.53 498.85
Note 8 - Current Financial Assets - Trade Receivables
31 March, 2022 | 31 March, 2021
Trade Receivable Considered good- unsecured (Refer Note No. 47) 5,076.47 4,277.04
Less: Provision for expected credit loss 5.60 2.52
Total 5,070.87 4,274.52
Note 9 - Current Financial Assets - Cash and Cash Equivalents
31 March, 2022 | 31 March, 2021
Balance with banks
In Current Account 12.11 126.12
Cash on hand 10.54 8.30
Total 22.65 134.42
ANNUAL REPORT 2021 - 22 FEE)


Note 10 - Current Financial Assets - Bank Balances other than Cash and Cash Equivalents (® in Lacs)
As at As at
Particulars
31 March, 2022 31 March, 2021
Balance with banks
In Restricted Bank Balance (Unclaimed Dividend) 27.79 25.66
In Deposit Account with Banks and Financial Institutions
Against Margin Money 1.41 1.36
Total 29.20 27.02
Note 11 - Current Financial Assets - Loans
As at As at
Particulars
31 March, 2022 31 March, 2021
Loan receivables considerd good- unsecured
Loan to employees 25.38 25.14
Total 25.38 25.14
Note 12 - Other Current Financial Assets
Particulars | aon ee |
31 March, 2022 | 31 March, 2021
Others - 0.72
Total - 072,
Note 13 - Current Tax Assets (Net)
31 March, 2022 | 31 March, 2021
Advance Tax (Net of provision) 39.54 -
Total 39.54 -


(® in Lacs)
Note 14 - Other Current Assets
As at As at
Particulars
31 March, 2022 31 March, 2021
Advance to Suppliers 1,858.20 1,600.27
Other Advances 67.28 44.86
Prepaid Charges 37.55 23.28
Balances with Government Authorities 531.20 706.66
Total 2,494.23 2,375.07
Note 15 - Equity Share Capital
Particulars acaae pada

31 March, 2022 | 31 March, 2021
Authorised
Issued, subscribed and fully paid up
Add: 5,682 Equity Shares Forfeited (amount originally paid up) 0.30 0.30
Total 1,279.75 1,279.75
(a) Reconciliation of Equity Shares Outstanding
As at 31.03.2022 As at 31.03.2021
Particulars
No. of shares | in Lakhs No. of shares | 2 in Lakhs
Shares outstanding at the beginning of the year 6,39,72,720 1,279.45 6,39,72,720 1,279.45
Change during the year
Shares outstanding at the end of the year 6,39,72,720 1,279.45 6,39,72,720 1,279.45
(b) Terms and Rights attached to Equity Shares

The Company has only one class of Equity shares having a par value of = 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.
ANNUAL REPORT 2021 - 22 EES)


(® in Lacs)
(c) Shareholders holding more than 5% shares in the Company
As at 31.03.2022 As at 31.03.2021
Name of Shareholders
No. ofshares| % No. ofshares | %
Security Company Limited 1,23,25,442 19.27 1,23,25,442 19.27
Savita Mohta 91,60,200 14.32 91,60,200 14.32
Bharat Mohta 76,37,530 11.94 76,37 ,530 11.94
Avanti Mohta 75,26,160 11.76 75,26,160 11.76
Bharat Mohta HUF 45,50,000 7.11 45,50,000 7.11
(d) Shares reserved for issue under options

As at 31st March 2022 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) In the FY 2016-17 the Company has alloted 47,97,654 equity shares of Rs. 10 each as fully paid up by way of
bonus shares in the ratio of 3 shares for every 1 share held.
In the FY 2018-19 the Company has alloted 3,19,86,360 equity shares of Rs. 2 each as fully paid up by way of
bonus shares in the ratio of 1:1.
iii) The Company has not undertaken any buy-back of shares.
(f) Shareholding of Promoters of the Parent Company
Shares held by promoters at the end of the year % Change during the
Promoters Name No. of shares % of total Shares veal

Krishna Kumar Mohta 19,79,802 3.09 -
Krishna Kumar Mohta (HUF) 2,80,000 0.44 -
Bharat Mohta 76,37 ,530 11.94 -

Bharat Mohta (HUF) 45,50,000 7.11 -
Savita Mohta 91,60,200 14.32 -
Avanti Mohta 75,26,160 11.76 -
Security Company Limited 1,23,25,442 19.27 -
Indian Glass & Electricals (P) Ltd 12,00,000 1.88 -
Arvind Engineering Works Ltd 6,08,400 0.95 -
Acma Industrial projects (P) Ltd 2,30,124 0.36 -


Note 16 - Other Equity
31 March, 2022 | 31 March, 2021
Capital Reserve 0.03 0.03
Retained Earnings (Refer Note (i)) 34,002.32 34,124.76
Closing Balance ~ 34,002.35. "34,124.79
Other Comprehensive Income Reserve - Opening (200.90) (221.17)
Add: During the year 52.61 11.91
Add: Share of Joint Venture 4.55 11.36
Less: Deferred tax (13.24) (3.00)
Closing Balance (156.98). ~ (200.90)
Total 33,845.37 33,923.88
Nature and Purpose of Reserve

a) Retained Earnings: Retained earnings are the free reserves , less any transfers to general reserve, dividends
or other distributions paid to shareholders.
b) Remeasurements of Net Defined Benefit Plans: Differences between the interest income on plan assets
and the return actually achieved, and any changes in the liabilities over the year due to changes in actuarial
assumptions or experience adjustments within the plans, are recognised in other comprehensive income and
are adjusted to retained earnings.
Note (i) - Movement in Retained Earnings
31 March, 2022 | 31 March, 2021
General Reserve - Opening 28,104.42 28,104.42
Profit & Loss Acount - Opening 6,020.34 5,876.11
Add: Profit During the year (58.47) 208.20
Less: Dividend Paid 63.97 63.97
Total 34,002.32 34,124.76
ANNUAL REPORT 2021 - 22 BE¢


Note (ii) - The Board of Director has recommended a Dividend of Re. 0.05 per Equity Share of Rs. 2/- each subject
to the approval of Shareholders in the ensuing Annual General Meeting. Proposed Dividend as above amounting
to Rs. 31.99 lakhs for the Financial Year 2021-22 has not been recognised as liability as on 31-03-2022 in term
of Revised “IND AS 10 - Events after the Reporting Period”. Consequently the same has not be appropriated from
Surplus during the Year.
Note 17 :- Non Current Financial Liabilities - Borrowings (® in Lacs)
Particulars eke AS ah
31 March, 2022 | 31 March, 2021
Secured
Term Loan (Refer Note :- 37)
From Banks 1,321.11 965.34
Vehicle Loan 82.45 140.06
1,403.56 1,105.40
Less:- Current Maturities of Long term borrowings 432.61 289.67
97095 8 8=——815.73
Unsecured
From related parties 94.00 64.00
From Bodies Corporate 41.90 33.90
Total 1,106.85 913.63
Note 18 - Non Current Financial Liabilities - Others
31 March, 2022 | 31 March, 2021
Trade Deposits 92.89 24.96
Total 92.89 24.96


Note 19 - Deferred Tax Liabilities (Net) (® in Lacs)
As at As at
Particulars
31 March, 2022 31 March, 2021
Deferred tax liability
on difference in tax base of Property, plant and Equipment other than land 59.16 73.32
on Amortisation of upfront fees - 0.36
on revaluation of land 7,361.89 7,361.89
7,421.05 7,435.57
Deferred tax Assets
on remeasurement of defined benefit liability 2.39 15.63
on other taxable temporary difference 2.85 2.85
5.24 18.48
Total Net Liability 7,415.81 7,417.10
Note 20 - Non Current Provisions
As at As at
Particulars
31 March, 2022 31 March, 2021
Total 25.19 34.46
Note 21 - Current Financial Liabilities - Borrowings
As at As at
Particulars
31 March, 2022 31 March, 2021
Secured
Current Maturity of Long Term Borrowing (Refer Note :- 37)
Term Loans from Banks 388.96 232.40
Vehicle Loans 43.65 57.27
Loan repayable on demand
From banks (Refer note :- 37)
Cash Credit 2,417.89 3,365.63
Working Capital Demand Loan 3,500.00 2,100.00
Total 6,350.50 5,755.30
ANNUAL REPORT 2021 - 22 FEE)

Note 22 - Financial Liabilities - Trade Payable (® in Lacs)
As at As at
Particulars
31 March, 2022 31 March, 2021
Trade Payable
Total outstanding dues of micro enterprise and small enterprise
Total outstanding dues of creditors other than micro enterprises and small 1,919.37 1,737.00
enterprises (Refer Note - 46)
Total 1,919.37 1,737.00
Note 23 - Current Financial Liabilities - Others
31 March, 2022 | 31 March, 2021
Payable to Employees 167.09 195.12

Unclaimed Dividend 27.79 25.66
Interest accrued but not due 11.27 43.36
Total 206.15 264.15
Note 24 - Provisions
31 March, 2022 | 31 March, 2021
Rates & Taxes 115.36 125.36
Total 138.60 151.82


Note 25 - Current Tax Liabilities (Net) (® in Lacs)
31 March, 2022 | 31 March, 2021
Provision for Income Tax (Net of Advance Tax) - 34.35
Total - 34.35
Note 26 - Other Current Liabilities
31 March, 2022 | 31 March, 2021
Contract Liability 384.32 103.37
Other statutory liabilities 578.84 692.75
Total 963.16 796.13
Note 27 - Revenue from Operations

Sale of Products
- Katha 15,226.24 13,032.31
- Cutch 538.66 466.34
- Spices 1,090.85 1,143.00
Other Operating revenue 905.08 1,101.18
Total 17,760.83 15,742.83
Note 28 - Other Income

Interest Income on Bank Deposits 0.27 0.44
Liabilities no longer required written back 4.90 15.57
Scrap Sales 16.63 27.50
Miscellaneous Income 7.00 4.02
Total 28.80 47.53
ANNUAL REPORT 2021 - 22 FE


Note 29 - Cost of Material Consumed (% in Lacs)
Opening Stock 1,425.51 1,371.67
Purchases of Raw Materials 11,060.20 9,590.62
Add: Extraction Expenses 48.04 51.37
Foreign Exchange Fluctuations (Net) 3.12 (2.64)
12,536.87 11,011.02
Less : Closing Stock 1,538.82 1,425.51
Cost of Material Consumed ~ 10,998.05 ” 9,585.51_
Note 30 - Change in inventories of finished goods and work-in-progress

Opening stock (Finished Goods & Stock in Progress) 3,808.00 2,769.58
Closing stock (Finished Goods & Stock in Progress) 4,054.68 3,808.00
Total (246.68) (1,038.42)_
Note 31 - Employees Benefit Expenses

Salaries and Wages 1,834.76 1,957.05
Contribution to Provident and Other Fund 95.15 90.86
Staff welfare expenses 83.87 127.26
Total 2,013.78 2,175.17
Note 32 - Finance Cost

Interest on Borrowings 579.91 600.95
Other Interest Expenses 57.49 60.97
Other Borrowing Cost 23.19 20.49
Total 660.59 = 682.41

Note 33 - Other Expenses

(® in Lacs)

Power and Fuel 960.31 891.90
Stores and Spare parts consumed 746.68 716.54
Consultancy and Service Charges 361.75 345.82
Machine Katha Expenses 381.48 396.89
Factory Maintenance Charges 104.03 106.02
Frieght and Selling Expenses 307.40 272.42
Insurance 39.55 42.76
Other Consumable and Chemicals Consumed 126.30 65.42
Rates and Taxes 18.05 16.22
Rent 27.09 32.61
Repairs to Buildings 13.13 18.80
Repairs to Plant & Machinery 60.25 51.62
Repairs to Others 42.35 40.47
CSR Expenses 24.41 87.72
Traveling Expenses 92.55 123.62
Auditors Renumeration For Audit fees 3.00 3.00
Auditors Renumeration For Other Services 1.37 1.46
Directors sitting fees 2.00 1.55
Loss on sale of property, plant and equipment - 1.44
Miscellaneous Expenses 172.54 200.06
Total 3,484.24 = 3,416.24
ANNUAL REPORT 2021 - 22 EEX)

Note 34 - Tax Expenses (= in Lacs)
(1) Current tax

Current Tax Expenses - 30.00
Total - 30.00
(2) Deferred tax
Income Tax Expenses (14.46) (11.97)
Total (14.46) (11.97)
Reconcillation of effective tax rate

The Income tax expenses for the year can be reconciled to the accounting profit as follows:-
Profit Before Tax - 50.77
Income Tax expenses calculated @ 25.17% - 12.78
Effect of Non deductible expenses - 17.53
Effect of additional Deduction under Income Tax Act,1961 - (9.81)
Other differences - 10.40
Deferred Tax (14.46) (11.97)
Tax Expenses recognised in Profit & Loss Account (14.46) 18.93
Effective Tax Rate 0.00% 37.29%
Note 35 -Earnings Per Share

Profit After Tax
(a) Net Profit for calculation of Basic and Diluted EPS (2 in lakhs) (58.47) 208.20
(b) Weighted Average Number of Equity Shares in calculation of Basic and 6,39,72,720 6,39,72,720
Diluted EPS
Basic and Diluted EPS (a) / (b) (0.09) 0.33

Note 36 - Related Party Transaction
(i) Name of related parties and nature of relationship:-
Key Management Personnel (KMP)
Name Position Held

Mr. Krishna Kumar Mohta Chairman & Managing Director
Mr. Bharat Mohta CEO & Whole Time Director
Mr. Krishna Kumar Damani Executive Director (till 15th April 2021)
Mr. Raj Kumar Agarwal Chief Financial Officer
Mr. Anup Gupta Company Secretary
Other Directors
Name Position Held

Mr. Rajendra Prasad Chetani Non-Executive Non-Independent Director
Mrs. Drisha Poddar Independent Director
Mr. Surendra Bagri Independent Director
Relatives of Key Mangement Personnel
Name Position Held

Mrs. Savita Mohta Spouse of Mr. K. K. Mohta (Chairman & Managing Director)
Mrs. Avanti Mohta Spouse of Mr. Bharat Mohta (WTD & CEO)
M/s Krishna Kumar Mohta HUF Karta is Chairman & Managing Director
M/s Bharat Mohta HUF Karta is WTD & CEO
Enterprises having significant influence
Name Position Held

M/s ACMA Industrials Projects (P) Ltd Significant Control
M/s Arvind Engineering Works Ltd Common Director
M/s Security Company Limited Common Director
Mis Indian Glass & Electricals (P) Ltd Common Director
M/s IWP CSR Trust Significant Control
ANNUAL REPORT 2021 - 22 RES)


Note 36 - Related Party Transaction (Contd.) (® in Lacs)
(ii) The following transactions occurred with related parties:-
KMP/Other Directors & Parties with Control Enterprises having
Particulars Relatives of KMP Entities Significant Influence
2021-22 | 2020-21 2021-22 | 2020-21 2021-22 | 2020-21
Remuneration and Employee Benefits
Mr. Bharat Mohta 103.71 103.71 - - - -
Mr. Krishna Kumar Damani 3.51 61.42 - - - -
Mr. Raj Kumar Agarwal 20.33 16.86 - - - -
Mr. Anup Gupta 7.67 7.34 - - - -
Director Sitting Fees
Mr. Rajendra Prasad Chetani 0.47 0.39 - - - -
Mr. Sanjay Kumar Maheswary 0.47 0.39 - - - -
Mr. Vinod Kumar Maheshwary 0.47 0.39 - - - -
Late Vinod Mimani - 0.15 - - - -
Mrs. Drisha Poddar 0.23 0.15 - - - -
Mr. Surendra Bagri 0.38 0.08
CSR Expenses
WP CSR TRUST | | | 2441 | 87,72 | |
Unsecured Loan Taken
Mis Indian Glass & Electricals (P) Ltd 30.00 -
Mis Arvind Engineering Works Ltd 15.00 -
Repayment of Unsecured Loans
Mis Security Co Ltd - 1.85
Interest on Unsecured Loans Taken
Mis Indian Glass & Electricals (P) Ltd 5.46 5.28
Mis Security Co Ltd 2.32 2.40
Dividend Paid
Mr. Bharat Mohta 7.64 7.64 - - - -
Mrs. Savita Mohta 9.16 9.16 - - - -
Mrs. Avanti Mohta 7.53 7.53 - - - -
Mis Krishna Kumar Mohta HUF 0.28 0.28 - - - -
Mis Bharat Mohta HUF 4.55 4.55 - - - -
Mis Arvind Engineering Works Ltd - - - - 0.61 0.61
M/s Security Company Limited - - - - 12.33 12.33
Mis Indian Glass & Electricals (P) Ltd - - - - 1.20 1.20
M/s ACMA Industrials Projects (P) Ltd - - - - 0.23 0.23
Mr. R.P Chetani, Mr. R.K Agarwal Mr. V. K. Maheshwary and Mr. S.K. Maheswary have also been paid Dividend but
the amount is below Rs. 1000/- hence not reported above.


Note 36 - Related Party Transaction (Contd.)
(iii) The following balances are outstanding at the end of the reporting period in relation to transactions
with related parties: (% in Lacs)
Enterprises having Significant

Influence
Particulars
As at As at
31 March, 2022 31 March 2021
(i) Unsecured Loans Taken
Indian Glass & Electricals (P) Ltd 74.00 44.00

Security Co Ltd 20.00 20.00
37 a) Working Capital facilities and Capital Expenditure Term Loan including LC & Buyers Credit Limit are from
Union Bank of India, DBS Bank India Limited and Citi Bank on multiple banking system 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 two Promoter
Directors.
37 b) TermLoan facility availed from Citi Bank, Kolkata secured by charge of Stock of Raw Material Katha & Cutch
whether Raw or in process of manufacture and all articles manufactured there from, plant & machinery and certain
other assets and mortgaged by deposit of title deeds of Land at Jammu & Kashmir and have been guaranted by one
of the Promoter Director. (Zin Lacs)
DBS Bank India Ltd.

Cash Credit Account MCLR + 1.15% - 266.93
Working Capital Demand Loan 7.10% 1,400.00
Union Bank of India
Term Loan 8% - 3.89
Term Loan EBLR+1% 803.80 287.50

Cash Credit Account MCLR + 0.95% - 2,334.81
CITI Bank
Term Loan 9% 128.35 97.57
Cash Credit Account 8.25% -183.85
Working Capital Demand Loan 7.10% - 2,100.00
ANNUAL REPORT 2021 - 22 ys


37 c) Vehicle Loans sanctioned by Banks/NBFC against hypothication of the respective vehicle (= in Lacs)
ICICI Bank Ltd. 10.24% - 0.88
Kotak Mahindra Prime Ltd 8.14% 7.87 1.85
Axis Bank Limited 8.61% 11.12 21.71
Union Bank of India 9.15% 3.51 1.00
38 The Group has only one reportable operation sgment i.e. manufacturing and trading of Katha as per Ind AS -
108. The group has considered following for the disclosure of geographical information:
Geographical Information (® in Lacs)
As at As at
Particulars
31 March 2022 31 March 2021
Revenue from external customers
- within India 17,760.83 15,742.83

- Outside India 3,430.43 4,165.07
21,191.26 19,907.90
Non-Current Assets
- within India 39789.60 40013.88

- Outside India 656.48 583.39
40,446.08 40,597.27


39. As at March 31, 2022, there are no outstanding dues to Micro, Small and Medium Enterprises. There are no
interest due or outstanding on the same.
40. Corporate Social Responsibility (CSR)

A per the provision of Section 135 of the Companies Act, 2013, CSR Committee has been formed by the Company.
The details of expenditure being incurred during the year on CSR activities are
a) Amount of Rs. 24.41 (Rs. 41.83) lakhs required to be spend by the Company during the year.
b) Amount Expenditure incurred - Rs. 24.41 Lacs
c) Shortfall at the end of the year - Nil
d) Total of Previous year Shortfall - Nil
e) Reason for shortfall - NA
f) Nature of CSR Activities - Enviroment Sustainibility and livelihood enhancement
g) Details of Related Parties Transaction - IWP CSR Trust
h) Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the
movements in the provision during the year should be shown sepretaly - NA
41. Leases:
The Parent Company has lease contracts for guest house and office spaces used in its operations. The Parent
Company also hold leasehold land having lease term of 40 years.
Leases
Group as a leasee
Impact on Balance sheet (Increase/Decrease) (< in Lacs)

Particulars 31 March, 2022 | 31 March, 2021 |
Assets
Right of use Assets (Refer Note No. 3.3) 435.06 491.89
Liabilities
Lease liability 256.50 335.24
Impact on Statement of Profit and Loss (Decrease in Profit)
Particulars | 31 March, 2022 | 31 March, 2021 |

Depreciation and Amortisation 99.52 113.44
Rental Expense (162.23) (144.83)
Net Impact on Profit (21.89) 15.40
ANNUAL REPORT 2021 - 22 BREA)


Impact on Statement of cash flows (< in Lacs)
| Particulars [31 March, 2022 | 31 March, 2021 |
Total Cash outflow for leases 78.74 98.05
Set out below are the carrying amounts of right-of-use assets recognised and the movement during the period:
| Particulars | 31 March, 2022 | 31 March, 2021 |

Initial recognition on adoption of Ind AS 116
Reclassified from PPE (leasehold land) to ROU asset on - -
adoption of Ind AS 116
Addition during the year 42.68 -
Depreciation Expense 99.52 113.44
Set out below are the carrying amounts of lease liabilties and the movement during the period:
Particulars | 34 March, 2022 | 31 March, 2021 |

Addition during the year - -
Repayment during the year (78.74) (98.05)
Maturity Analysis of Lease Liability
Contractual maturities of lease liability
| Particulars 31 March, 2022 | 31 March, 2021

Within one year 50.97 112.57
After one year but not more than five years 194.01 210.98
More than five years 11.53 11.69
Total Lease liability 256.50 335.24
42. Employee Benefits

(a) Contribution to Defined Contribution Plans Recognised as Expense are as under
| Particulars 31 March, 2022 | 31 March, 2021

Provident and Other Funds 95.15 90.86
(b) Defined Benefit Plan
Gratuity: The Company has a defined Gratuity Plan for its employees. Every employee who has completed five
years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year
of service.
The Scheme is funded with an insurance company in the form of qualifying incurance policy.


42 Employee Benefits (Contd.)
Disclosure for Defined Benefit Plans based on actuarial report (% in Lacs)

Particulars
Changes in Defined Benefit Obligation :
Present Value of Defined Benefit Obligation at the Beginning | 202.60 560.89 201.80 539.63
of the Year
Current Service Cost 38.47 32.18 40.93 36.24
Interest Cost 10.52 32.36 11.12 32.12
Components of actuarial gain/losses on obligations:
Actuarial (Gains)/Losses Arising from Changes in Financial Assumptions (4.59) (24.84) 1.62 9.14
Actuarial (Gains)/Losses Arising from Changes in Experience Adjustments (2.48) (29.97) (1.34) (20.98)
Past service cost - - - -
Benefits Paid (80.85) | (103.69) | (51.53) | (35.26)

Present Value of Defined Benefit Obligation at the end of the Year 163.67 466.93 202.60 560.89
Change in Plan Assets :
Fair Value of Plan Assets at the Beginning of the Year 141.68 571.41 128.74 538.81
Interest Income 7.49 34.18 7.36 33.31

Re Measurements Gains/(Losses) - - - -
Return on Plan Assets, (Excluding Amount Included in net Interest Expense) | (2.23) (2.21) 1.07 0.07
Contribution by Employers 1.70 13.80 9.93 34.48
Benefits Paid (33.40) | (103.69) (5.41) | (35.26)

Fair Value of Plan Assets at the End of the Year 115.25 513.50 141.68 571.41
Service cost:
Current service cost 38.47 32.18 40.93 36.24
Past service cost and loss/(gain) on curtailments and settlement - -
Net interest cost 3.03 (1.83) 3.76 (1.19)
Net Value of remeasurements on the obligation and plan assets (4.84) - (0.78) -
Expenses Recognized in the Statement of Profit and Loss 36.66 30.35 43.90 35.04
ANNUAL REPORT 2021 - 22 Ey


42 Employee Benefits (Contd.) (® in Lacs)

Particulars
Expenses Recognised in other Comprehensive Income
Return on Plan Assets, (Excluding Amount Included in net - (2.21) - (0.07)

Interest Expense)

Assumptions
Actuarial (Gains)/Losses Arising from Changes in Financial - (24.84) - 9.14

Assumptions
Actuarial (Gains)/Losses Arising from Changes in Experience - (29.97) - (20.98)

Adjustments on Plan Liabilities
Total Actuarial (Gains)/Losses Recognized in other Comprehensive - (57.02) - (11.91)

Income
The Major Categories of Plan Assets as a % of Total Plan
Qualifying Insurance Policy 100% 100%
The Principal Actuarial Assumption Used :
Discount Rate 7.0% 6.4%
Salary Growth Rate 5% 5%
Withdrawal Rate 5% at younger 5% at younger ages

ages reducing to reducing to 1% at
1% at older ages older ages
The estimates of future salary increases have been considered in actuarial valuation after taking into consideration
the impact of inflation, seniority, promotion and other relevant factors such as supply and demand situation in the
employment market.
Basis Used to Determine Expected Rate of Return on Assets :
The expected return on plan assets is based on market expectation, at the beginning of the period, which is used for
calculating returns over the entire life of the related obligation. The Gratuity Scheme is invested in group Gratuity-
Cum-Life assurance cash accumulation policy offered by Life Insurance Corporation of India.


42 Employee Benefits (Contd.)
Sensitivity Analysis for Significant Assumptions as on 31st March, 2022 are as Follows : (= in Lacs)

Particulars
Assumptions Discount Rate

Assumptions Future Sala ry Increase



Particulars
Assumptions Discount Rate

Assumptions Future Sala ry Increase


The Weighted Average Duration of the Defined Benefit Obligation as at 31st March 2022 is 58 years.
ANNUAL REPORT 2021 - 22 FESS!


43 Fair Values
Financial Instruments with category: @® in Lacs)
Carrying Value Fair Value

Particulars 31st March, | 31st March, | 31st March, | 31st March,
2022 2021 2022 2021
Financial Assets
Trade receivables - at amortised cost 5070.87 4274.52 5070.87 4274.52
Cash and Cash equivalents at amortised cost 22.65 134.42 22.65 134.42
Balance with Bank other than Cash and Cash Equivalent
- amortised cost 29.20 27.02 29.20 27.02
Others 0.00 0.72 0.00 0.72
Loans - at amortised cost 25.38 25.14 25.38 25.14
Total 5,218.04 4,528.14 5,218.04 4,528.14
Loans from Bank and others-at amortised cost 7,457.35 6668.93 7,457.35 6,668.93
Payable to Employees 167.09 195.12 167.09 195.12
Unclaimed Dividend 27.79 25.66 27.79 25.66
Trade Payables 1,919.37 1,737.00 1,919.37 1,737.00
Others 360.66 403.56 360.66 403.56
Total 10,025.15 9,055.23 10,025.15 9,055.23
44 Financial Risk Management Objectives and Policies

The Group’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 Group’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: (? in lakhs)
. Increase/ decrease |_ Effect on Profit Effect on Pre tax

Particulars . . . .
in Basis points before tax Equity
+50 (25.47) (25.47)

31.03.2022
-50 25.47 25.47
+50 (21.19) (21.19)
31.03.2021
-50 21.19 21.19
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 group is exposed to credit risk from its operating activities (primarily trade
receivables).
The Group extends credit to customers in normal course of business. The Group 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 meetits present and future cash and collateral obligations
without incurring unacceptable losses.
The Group’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.
ANNUAL REPORT 2021 - 22 Fie}


As at 31st March’ 2022 (= in lakhs)
Particulars On Demand een 1 to 5 years en Total

year 5 years
Interest Bearing Loans (including Current 5,917.89 432.61 1,106.85 - 7,457.35

maturities)
Trade Payables - 1,904.35 15.02 - 1,919.37

Total 5,917.89 2,336.96 1,121.87 - 9,376.72
Particulars On Demand eeu aon 1 to 5 years De en Total

year 5 years
Interest Bearing Loans (including Current 5,465.63 289.67 913.63 - 6,668.93

maturities)
Trade Payables - 1,737.00 - - 1,737.00
Total 5,465.63 2,026.67 913.63 - 8,405.93
45 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. (& in Lacs)
31 March, 2022 | 31 March, 2021
Borrowings 7,457.35 6,668.93
Trade Payables 1,919.37 1,737.00
Other financial liabilities 648.43 671.61
Net Debt 10,025.15 9,077.54

Equity 35,125.12 35,203.63
Total Capital 35,125.12 35,203.63
Gearing Ratio 28.54% 25.79%
There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current
period.


46. Trade Payable Ageing Schedule
As at 31st March’ 2022 (® in lakhs)
. Outstanding for following period from due date of payment
Particulars Total
Less than 1 Years | 1-2 Years | 2-3 Years | More Than 3 Years
(i) MSME - - - - -
(ii) Others 1,904.35 13.54 1.48 - 1,919.37
Total Trade Payables 1,904.35 13.54 1.48 - 1,919.37
As at 31st March’ 2021 (® in lakhs)

. Outstanding for following period from due date of payment
Particulars Total
Less than 1 Years | 1-2 Years | 2-3 Years | More Than 3 Years
(i) MSME - - - - -
(ii) Others 1,705.83 23.55 0.97 6.66 1,737.00
Total Trade Payables 1,705.83 23.55 0.97 6.66 1,737.00
47 Trade Receivables Ageing Schedule

Outstanding for following periods from transaction date
. of payments
Particulars <6 |[6Months] 1-2 |, ,\.. |MoreThan| ‘°™
Months | -1 year Years 3 Years
(i) Undisputed Trade Receivables 4,982.34 49.78 33.46 7.27 3.62| 5,076.47
- considered goods
(ii) Undisputed Trade Receivables
- Which have Significat increase in
credit risk
(iii) Undisputed Trade Receivables -
credit impaired
- considered goods
- which have significant increase in
credit risk
- credit impaired
ANNUAL REPORT 2021 - 22 157


47 Trade Receivables Ageing Schedule (Contd.)
Outstanding for following periods from transaction date
of payments
Particulars <6 [6Months| 1-2 |, 5)... | More Than Total
Months | -1 year Years 3 Years
(i) Undisputed Trade Receivables 4,221.36 37.34 11.93 3.89 -| 4,274.52
- considered goods
(ii) Undisputed Trade Receivables
- Which have Significat increase in
credit risk
(ili) Undisputed Trade Receivables -
credit impaired
- considered goods
- which have significant increase in
credit risk
- credit impaired
48 Interest in Other Entities

The Consolidated Financial Statements present the Consolidated Accounts of The Indian Wood Products Company
Limited with its following Joint Venture
Country of Activities Proportion of owner- Proportion of owner-

Name of Company Incorporation ship of interest as at ship of interest as at
31.03.2022 31.03.2021
Agro and Spice Trading Pte Ltd Singapore Trading in 50% 50%
Spices


49 Movement of Investment in Joint Venture and Associates using equity method (= in Lakhs)
AGRO AND SPICE TRADING PTE. LTD

Particulars
2021-22 2020-21
Investment as at beginning of the Period 699.17 512.35
Add: Share of Consolidated profit 45.26 175.46
Add: Share of Consolidated OCI 4.55 11.36
Investment as at end of the Period 748.98 699.17
50 Additional Information pertaining to the Parent Company and Joint Venture as per Schedule Ill of
Companies Act 2013
Net Assets Share in Profit & Loss Share in Other Share in Total
(Total assets minus total comprehensive comprehensive income
liabilities) income (OCI) (TCI)
Name of the entity
As % of As % of As % of As % of
consolidated net} NetAssets | consolidated Amount | consolidated | Amount consolidated Amount
assets profit or loss profit or loss profit or loss
Parent
The Indian Wood Product) 100.52% | 35,308.00) 177.40% -103.73 | 89.64% 39.37 442.23% 64.36
Company limited
Joint Ventures
Foreign
Agro and Spice Trading Pte Ltd -0.52% | (182.88)| -77.40% 45.26 | 10.36% 4.55 | -342.23% | 49.81
TOTAL 100% 35,125.12 100% (58.47) 100% 43.92 100% (14.55)
51 The main Products of the Parent 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.
ANNUAL REPORT 2021 - 22 EES)


Honourable 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 Honourable 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 parent company has made necessary applications which
is under process and will be accounted for as and when the parent company will get the refund.
52 Contingent Liabilities and Commitments
a) Demand for sales tax amounting to Rs. 146.64 lacs (Rs. 146.64 lacs) which are not acknowledged as debts.
Against the same company has paid under protest a total of Rs. 26.53 lacs (Rs. 26.53 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 Honourable High Court, Allahabad.
c) During the FY 2017 - 18, Commissioner of Customs, Nnhava Sheva had passed an Ex-Party Judgement and
raised a demand of Rs. 341.78 Lacs and imposed a penalty of Rs 3,41.78 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 las 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.
53 Disclosure of Transactions with Struck Off Companies
The Group 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 No transactions to report against the following disclosure requirements as notified by MCA pursuant to
amended Schedule Ill:
(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
55 For better presentation previous year’s figures have been regrouped / re-arranged wherever necessary.

; Chairman & MD WTD & CEO
Partner

Date: May 30, 2022 M No. A36061
ANNUAL REPORT 2021 - 22 iS

Since 1919
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SG CM - 9830042594

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Telephone No.

: 82320 23820, Fax : 033 2242 6799

Date: - 27 August 2022

Script Code - 540954

Sub: - Submission of Annual Report for the Financial Year 2021-22

This is for your information and dissemination.

Chairman & Managing Director Gndependent Director

Chick Financial Officon (C70) Company Secretary (CS)

Yon Executive Non Independent Director

Audit Committee Nomination and Remuneration Committee

Stakeholders Relationship Committec CSR Committee

Statutony Cuditon Registered Office Rogistrar

ANNUAL REPORT 2021 - 22

SE ANNUAL REPORT 2021 - 22

THE INDIAN WOOD PRODUCTS COMPANY LIMITED

2017-18} 2018-19] 2019-20} 2020-21 2021-22

1 Turnover/Revenue 21956.18) 20159.40) 19491.15] 15790.36| 17789.63

3 | Interest 549.85 494.26 653.48 682.41 660.59

4 | Depreciation 278.01 329.83 378.97 396.75 385.40

5 | Profit Before Tax 2663.16] 2563.28 1047.64 50.77 (118.19)

6 | Tax 931.63 778.88 288.66 18.03 (14.46)

7 | Net Profit 1731.53 1784.40 758.98 32.74 (103.73)

8 | Rate of Dividend (%) 12.50 10.00 5.00 5.00 *2.50

9 | Equity 640.03 1279.75 1279.75 1279.75 1279.75

10 | Reserve & Surplus 32608.32| 33651.07) 34178.90) 34156.58) 34028.25

11 Earning Per Share In Rs. 2.71 2.79 1.19 0.05 (0.16)

Note: Figure has been recasted or regrouped

ANNUAL REPORT 2021 - 22

Certificate of Non-Disqualification of Directors 20

Management Discussion & Analysis 26

Corporate Governance Report 34

Certificate of Compliance with respect to Corporate Governance 47

CEO and CFO Compliance Certificate 48

Additional Shareholder’s Information 49

Standalone Financial Report

Independent Auditor’s Report 58

Statement of Profit & Loss 69

Cash Flow Statement 70

Statement of Changes in Equity 72

Notes to the Financial Statement 74

Consolidated Financial Report

Independent Auditor’s Report 112

Balance Sheet 118

Statement of Profit & Loss 119

Cash Flow Statement 120

Statement of Changes in Equity 122

Notes to the Financial Statement 124

SE ANNUAL REPORT 2021 - 22

From the desk of Chairman

ANNUAL REPORT 2021 - 22

ANNUAL REPORT 2021 - 22

1. FINANCIAL HIGHLIGHTS/PERFORMANCE OF THE COMPANY

FY2022 came with a wave of incidents including the

ANNUAL REPORT 2021 - 22

ANNUAL REPORT 2021 - 22

11. INDIAN ACCOUNTING STANDARD 15. MANAGEMENT DISCUSSION & ANALYSIS

ANNUAL REPORT 2021 - 22

EE-B ANNUAL REPORT 2021 - 22

evaluation of its own performance, as well as the 24. AUDIT COMMITTEE

ANNUAL REPORT 2021 - 22