You do not mention whether you wooden wall will be painted or stained wood. Either way, there paint products you can use to properly seal and protect the wood either way. You should visit your local paint store and tell them what you are trying to do and see what products they recommend.

OK... but the wire wont be lower as it is fixed now. The wire in the pics below is the wall facing each other. They were leveled on equal height but the beam on one wall makes it seem a little above. But i think you guys are absolutely right that up and down lights wont look good there. I think you are right about down lights lessismoore. Would it look good if i go with two different lights on opposite walls??? it would look odd right.

Sir you can use Wooden textured ACP as it will be cost effective solution to cover Soil pipes and provide a modern look to facade .

this is not a plan Rohit ji it is just a drawing. whom so ever have proposed you this plan he just have drafted some line none of architecture rules followed none of the scientific architecture vastu is been applied. it's just placement of squares and rectangles here and there.