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Hello SaakshiRemember the following:Profiles: Which objects do I have access to and what can I do with them? (CRUD on ones you own)So your profile has Read/Create and Edit access to the records where user belonging to that profile is owner.Org-wide defaults: Which records do I have access to? (ones you don't own)OWD decides what access you have to that object. In your case it is Private, so only Record owner and users above in hierarchy will have access to it and if shared using Sharing rule/Manual Sharing.Sharing Rule: It gives extra access to record.In your case you shared the contact with Read only access so user is not able to edit it.But they can edit the records where user himself is owner but they can't edit contacts owned by others.Hope this will help.