Shanti Gold Changes Inventory Valuation to WAC, Effective April 1, 2024
Shanti Gold International Limited is changing its inventory valuation method from FIFO to Weighted Average Cost (WAC), effective retrospectively from April 1, 2024. This change aims to provide more reliable financial information and align with industry practices. The Board Meeting approving this change concluded on May 11, 2026.
The change in accounting policy is primarily an internal procedural adjustment to improve financial reporting standards. It does not directly represent a new business initiative, a significant financial transaction, or a change in the company's core operations that would have an immediate high or medium impact on its market valuation or business prospects.
The change in accounting policy is a procedural and compliance-related update. While it aims to improve financial reporting, it does not immediately indicate a positive or negative shift in the company's operational performance or outlook. The financial impact figures are presented as estimates subject to audit.
Shanti Gold International Limited announced a significant change in its accounting policy for inventory valuation during its Board Meeting held on May 11, 2026. The company has decided to transition from the First-In-First-Out (FIFO) method to the Weighted Average Cost (WAC) method.
This change, approved upon the recommendation of the Audit Committee, is in accordance with Ind AS 8 and is intended to provide more reliable and relevant financial information. The WAC method is expected to better reflect the blended cost of inventories, improve cost-revenue matching, and align the company's practices with industry norms. The change will be applied retrospectively from April 1, 2024, and will be effective for financial reporting from FY 2025-26 onwards.
The financial impact of this change has been analyzed, with restated figures for FY 2024-25 and FY 2025-26 showing a notable increase in Profit Before Tax. For instance, the Profit Before Tax for the period ended December 31, FY 2024-25, is restated to ₹7,109.33 lakhs under WAC, compared to ₹7,283.09 lakhs under FIFO. Opening inventory as of April 1, 2024, is restated to ₹11,569.68 lakhs under WAC from ₹12,860.25 lakhs under FIFO, and closing inventory is ₹13,394.10 lakhs under WAC from ₹14,858.43 lakhs under FIFO. The Board Meeting commenced at 04:00 p.m. IST and concluded at 04:45 p.m. IST.
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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 low impact, the band that almost never moves a portfolio on its own.
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