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.

  • @islam please make disclosure , do u have any vested interest in company? – Zia Aug 29 '13 at 6:41
  • @Zia I am just an investor here like many of my close friends , the only thing which attracted me is that all its members are hardcore fundamental Muslims. If you want to commit a fraud then Its very easy in spite of following all legal procedures you can fool people. But those who have the faith and Imaan clearly visible in their lifestyles can't cheat. – Islam Aug 29 '13 at 6:46
  • @islam ok then , can you please explain their business model? can you please show me balance sheet, profit and loss account or shareholding pattern or any other legal information which can prove the authenticity of the company.? – Zia Aug 29 '13 at 6:53
  • @Zia I already wrote in the question that they don't declare the balance sheet etc to the investors. This is a valid long standing complaint against them. – Islam Aug 29 '13 at 6:58
  • @Zia Do see the videos they explain it in details:youtube.com/user/heeragold1234?feature=watch – Islam Aug 29 '13 at 6:59

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