Hi Sriram,
I checked this note and the help.sap.com link as well.
Yes this component IW_FND will be obsolete for 740. and new components will be IW_FNDGC and SAP_GWFND. But this should have been handled by MOPZ as it does for other components which gets obsolete. not sure what is causing the issue here. i have raised a message to SAP as well to see if it is a known bug.
I upgraded our Sandbox as well. but this error didn't come. the only difference in Sandbox was that it was already upgraded to HR Renewal 1.0. which consists of a couple of NW Gateway components. but IW_FND was also at 250 sp 7.
and while upgrading sandbox I did it only till ehp7 without HR Renewal 2.0.
but this one consists of HR Renewal 2.0 as well.
Thanks
Devender Goyal