Assalamu-Alaikum Ref to your Fatwa Id: 5926 – English (Fatwa: 735/693=L/1429) dated: 23rd July 2008 regarding Valuation of the companies asking for more information / detail, kindly note the followings. 1 ? Company profile: I am a chartered accountant (CA) and running my own business (CA firm). Our company is completely engaged in internal audit and management audit. We also undertake accounting outsource. This defines the entire profile of our company as it includes every thing. 2 ? Valuation: Valuation means when a company is to be sold or needs to go for expansion we need to find out the actual value of that company. Value of that company may be undertaken by the company itself or by the person who is interested in buying it or by any other organization specially dealing with valuation. Valuation takes place in case of merger, acquisition, and take-over and when companies become sick or bankrupts. 3 ? Mediator: Some international authorized organizations (like ARSIL, E&Y, KPMG and DELLOITS) and Banks (like Standard Chartered & HDFC) are specially dealing with valuations. These are working as a mediator only (like Real Estate Agents). 4 ? Role of bank: Role of Bank comes when either the company has become sick and is under the control of Bank. Now Bank cannot run the company so Bank sells the same. For selling, it needs to remove (find out) the value of the company for which Bank appoints us. Secondly Bank gets a proposal for investment then it needs to remove (find out) the value of the company for which Bank appoints us. We get only a fixed fees, no percentage fees is given to us in these valuations. Note: There is no interest involvement anywhere in the whole valuation procedure. Recently I have received an offer from standard Chartered Bank to conduct business valuation for the sick companies which they will sell to some other companies who are interested to buy them. Kindly advise can I accept this offer as per shariah laws. Allah Hafiz
Answer:
(Fatwa: 1148=L/132=TL/1429)
As per the detail of your work mentioned above, there seems nothing prohibited. So, you can accept the offer from the Standard Chartered Bank.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband