Change in Accounting Policy - Disclosure under Regulation 30 read with Schedule III of SEBI (LODR) Regulations, 2015
SHANTIGOLD · price
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Shanti Gold International Ltd's board approved a voluntary change in accounting policy for inventory valuation, switching from First-In-First-Out (FIFO) to Weighted Average Cost (WAC) method. The change, effective retrospectively from April 1, 2024, aligns with Ind AS 8 and aims to provide more reliable financial statements by better reflecting blended inventory costs amid raw material price volatility. The financial impact shows material differences: opening inventory reduced from ₹12,860.25 lakh to ₹11,569.68 lakh, closing inventory from ₹14,858.43 lakh to ₹13,394.10 lakh, and retained earnings adjusted from ₹8,766.95 lakh to ₹7,801.19 lakh. Profit figures varied across quarters, with the change applied retrospectively across FY 2024-25 and FY 2025-26 reported periods. The company states this aligns with industry norms and improves cost-revenue matching.
This purely accounting change reduces reported inventory values and retained earnings but may affect profit comparisons across periods. It does not directly impact business operations or cash flows but improves comparability with industry peers using WAC. Retrospective application means historical financials will be restated, which investors should note when comparing historical performance.