We have been investing in Heera Gold an Islamic company which aims to remove interest in society by allowing investment in their mainly gold export import business with an apparently profit sharing scheme. The founder of this organization herself is an Islamic Scholar who runs Islamic schools , Madrassahs and many other business from the investment amount.It allows investments from only Muslims and a large number of Muslims are investing here, But in the share holders meetings they never disclose how they make the profit nor the balance sheet giving the reason that its a trade secret. The problem is that we are receiving the profits in almost fixed amounts with a very small standard deviation(of a few hundred rupees).
our case: In monthly scheme for an investment of 50000 INR we could get 1500-1600 INR as profit every month. The profit value is publicly declared every month.
I contacted their assistants and they say that they decide the buy \ sale price of Gold which they import one year ahead and hence the prices are insulated against volatility in the market.
So am I safe to assume that it is not Interest?
These video links are recording of their Annual General Meetings where they explain the Islamic investment schemes and their working. They have a huge following in Mumbai and southern India. Also they have offices in Dubai, it would be great if someone can verify their offices in Dubai.