Shanti Gold Changes Inventory Valuation Policy to Weighted Average Cost
Shanti Gold International Limited changed its inventory valuation policy from FIFO to Weighted Average Cost (WAC) retrospectively from April 01, 2024. This change aims to provide more reliable financial data. The company restated its Profit Before Tax for FY25 and FY26, showing significant adjustments. For example, Q4 FY25 PBT changed from ₹1,179.14 Lakhs to ₹2,465.15 Lakhs.
The change in accounting policy for inventory valuation and its retrospective application will impact historical financial statements. This could affect comparability and require investors to re-evaluate past performance metrics, making it a medium-impact event.
The change in accounting policy is a procedural adjustment aimed at improving financial reporting. While it involves retrospective restatement of figures, it does not inherently represent a positive or negative development in the company's core business operations.
Shanti Gold International Limited announced a significant change in its accounting policy for inventory valuation. The Board of Directors, upon recommendation from the Audit Committee, has approved a voluntary shift from the First-In-First-Out (FIFO) method to the Weighted Average Cost (WAC) method.
This change, made in accordance with Ind AS 8, aims to provide more reliable and relevant financial information. The WAC method is expected to better reflect the blended cost of inventories, improve cost and revenue matching, and align the company's practices with industry norms. The change will be applied retrospectively from April 01, 2024, and will be effective for financial reporting from FY 2025-26 onwards.
The company provided a detailed analysis of the financial impact of this change, showing restated figures for Profit Before Tax for various quarters and periods in FY 2024-25 and FY 2025-26. For instance, Profit Before Tax for the Quarter Ended June FY 2024-25 was restated from ₹1,179.14 Lakhs (FIFO) to ₹2,465.15 Lakhs (WAC). Similarly, for the Quarter Ended December FY 2024-25, it was restated from ₹2,266.03 Lakhs (FIFO) to ₹1,976.16 Lakhs (WAC). The opening inventory as of April 01, 2024, was restated from ₹12,860.25 Lakhs (FIFO) to ₹11,569.68 Lakhs (WAC).
The Board meeting where this decision was made commenced at 04:00 p.m. IST and concluded at 04:45 p.m. IST on May 11, 2026. The company will make the requisite submissions and filings regarding this change in due course and has also uploaded this intimation on its website.
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Shanti Gold International Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Shanti Gold International Limited. Read the original for the full detail.