Business Update11 May 2026, 09:31 pm
Shanti Gold Int'l Changes Inventory Valuation to WAC Method
AI Summary
Shanti Gold International Ltd's board approved a change in accounting policy for inventory valuation from FIFO to the Weighted Average Cost (WAC) method, effective April 1, 2024, with retrospective application. This change, recommended by the Audit Committee and compliant with Ind AS 8, aims to provide more reliable and relevant financial information. The WAC method is expected to better reflect blended costs, improve cost-revenue matching, and align with industry norms. The estimated impact on profit before tax for the quarter ended June 2026 is ₹4,589.65 Lakhs under WAC versus ₹3,291.65 Lakhs under FIFO.
Key Highlights
- Shanti Gold shifts from FIFO to Weighted Average Cost (WAC) for inventory valuation.
- Change is effective retrospectively from April 1, 2024, impacting FY 2025-26 reporting.
- WAC method aims for better cost-revenue matching and alignment with industry practices.
- Estimated impact on profit before tax for June 2026 quarter: ₹4,589.65 Lakhs (WAC) vs ₹3,291.65 Lakhs (FIFO).
- Board meeting on May 11, 2026, approved the change based on Audit Committee recommendation.
Price Impact
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