The Board of Directors of Shanti Gold International Limited met on May 11, 2026, and approved a significant voluntary change in the company’s accounting policy. Following a recommendation from the Audit Committee, the company is transitioning its inventory valuation method from First-In-First-Out (FIFO) to the Weighted Average Cost (WAC) method. This change, governed by Ind AS 8, will be applied retrospectively starting from April 01, 2024, and will be effective for financial reporting from FY 2025-26 onwards.

The company determined that the WAC method is better suited to its operating environment, particularly given the price volatility inherent in raw material procurement. By adopting this method, Shanti Gold aims to better reflect the blended cost of inventories, improve the matching of costs with revenues, and align its accounting practices with prevalent industry norms and peer entities. The Board believes this shift will result in financial statements that provide more reliable and relevant information to stakeholders.

Shanti Gold International Limited is an India-based company involved in the gold and jewellery sector, with its registered office located in Mumbai. While the company focuses on maintaining a robust supply chain and manufacturing process, its 2025 activities have been characterized by navigating the fluctuations in global gold prices. During the 2025 calendar year, the company remained focused on strengthening its industrial presence within the MIDC, Marol Industrial Estate.

The company’s financial impact analysis reveals that under the new WAC method, Profit Before Tax (PBT) for the quarter ended December 2025 is estimated at ₹40.41 Crores, compared to ₹56.80 Crores under the previous FIFO method. For the full FY 2024-25, the PBT under the WAC method is estimated at ₹71.09 Crores, slightly lower than the ₹72.83 Crores reported under FIFO. Closing inventory for FY 2024-25 is valued at ₹133.94 Crores under the revised WAC method. Currently, no specific “famous investors” are highlighted in the company’s regulatory disclosures for this period.

(Note: All INR Lakhs figures from the notice have been converted to Crores for consistency.)