Net worth includes or not non- convertible preference shares

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Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2012 should we include non- convertible preference shares in net worth computation.?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 November 2012 No. Preference Share Capital do not form part of Net Worth.

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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06 November 2012 i think they should not be included if they are redeemable.., i mean, net worth excludes the debt of the company., so redeemable non-convertible preference shares should not be added in computation of net worth...

still some other experienced expert comment on this..

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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06 November 2012 Moreover., generally, convertible preference shares do form part of net worth... I am not sure of non-redeemable as well as non-convertible preference shares, whether they are considered for net worth or not..., but redeemable are surely not added..

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