Karachi December 24 2022: Hub Power Company Limited (HUBC) loses sharia compliant status as it breaches Non-compliant Income to Total Revenue criteria during the review period from January 01, 2022 to June 30, 2022.
Hub Power Company’s non-compliant income to total revenue witnessed at 5.94 percent which is more than the 5 percent set by the sharia board.
The law states that the Non-Compliant Income to Total Revenue ratio should be less than 5%. Total Revenue includes Gross Revenue plus any other income earned by the company. Non-Compliant Income includes income from gambling, income from interest-based transactions, income from Gharar-based transactions i.e. derivatives, insurance claim reimbursement from an established insurance company, any penalty charged on late payment in a credit sale, income from casinos, addictive drugs, alcohol, dividend income from above-mentioned businesses or companies which have been declared Shariah Non-Compliant due to non-compliance to any of the mentioned criteria for Shariah Compliance, etc.
