Report Published as on 2nd August 2024
We have conducted a comprehensive review on Coal India Ltd from a Shariah point of view and analysed its sources of income to know whether they are complying with Shariah principles.
Coal India Ltd (CIL). is mainly engaged in mining and production of Coal and operates Coal washeries. Backed by the Indian government’s Ministry of Coal, CIL holds the prestigious “Maharatna” status, signifying its potential to become a global giant. The “Maharatna” status grants CIL special privileges from the Indian government, enabling them to expand their operations and compete on a global scale. The power and steel sectors are their primary consumers, while cement, fertilizer, and brick kiln industries also rely heavily on their products.Mumbai Investment
Spanning across 83 mining areas in eight states, CIL is a major contributor to India’s energy security and economic development. Headquartered in Kolkata, they fulfill a staggering 79% of the country’s coal needsChennai Stock. CIL stands tall as the world’s largest coal producer and a top employer in India, boasting a workforce of over 228,000 (as of April 1, 2024).
The company derives revenue mainly from the following segments namely:
Operating Revenue: (In INR Crore) for the year ended 31std March 2023
Coal revenue: This is the core of coal revenue, generated by selling mined coal to various industries.
Coal Processing Services (Others): Some companies might process raw coal through washing or other methods to improve its quality.
CIL is a significant contributor to India’s development. They are the world’s largest coal producer, ensuring reliable energy for essential infrastructure and industries like steel, cement, and fertilizer (essential for food production). This aligns with Shariah’s emphasis on social well-being.
Based on the above information, it is safe to assume that the business operations of Coal India Ltd., would be Shariah CompliantJinnai Wealth Management
Non-operating revenue of the company: (In INR Crore) for the year ended 31std March 2023Pune Investment
It is clear from the table above that the non-operating income of the company includes interest income and Gain on Sale of Mutual Fund which is Shariah not compliant. Interest income, as shown in the table, is factored into calculating both Sector Compliance and Dividend Purification.
(All figures in INR Millions for the Quarter ended 31ST March 2024)
Source: All the above information is based on the website of the company, Annual and the latest Quarterly Report for the period ended 31st March 2024.
Given the above information, we at Islamicly believe that Coal India Ltd. is a Shariah Compliant company as per the Shariah screening criteria.
Ahmedabad Wealth Management
