Shanti Gold International Limited has informed the Exchange regarding '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 Limited's Board has approved a voluntary change in inventory valuation method from FIFO to Weighted Average Cost (WAC), effective retrospectively from April 01, 2024. The company states this change, aligned with Ind AS 8, will better reflect blended inventory costs amid raw material price volatility and improve cost-revenue matching. Financial impact shows WAC method results in lower inventory valuations (closing inventory reduced by INR 1,464.33 lakhs to INR 13,394.10 lakhs) and slightly lower Profit Before Tax (reduced by INR 173.76 lakhs to INR 7,109.33 lakhs for the full year). Retained earnings as of April 01, 2024 decreased by INR 965.76 lakhs. The change is subject to audit review.
This is an accounting policy change with no direct impact on business operations or revenue. However, it reduces reported inventory values and profitability metrics, which could slightly affect financial ratios and investor perception of margins.