A woman standing with smile on her face and she is holding a wood in her hand
A woman with wood in her hand is standing with a smile on her face.
A woman with wood is standing with smile on her face in both sentences.
"A woman with wood in her hand is standing with a smile" is a rephrasing of "A woman standing with a smile on her face and she is holding a wood."
The woman has both wood in her hand and a smile on her face.