Net worth formula for caro

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Dear All,
 

Please let me know the final formula for calculate net worth to know the applicablity of Internal Audit as per CARO, 2003.

Regards,

 

Replies (3)
Paid up capital + reserves

My question about reva. Reserve and prelim expense.

some one said;

paid up + reserve including pre exp.- pre exp. - amount not written off

Originally posted by : CS Amit Kumar

Revaluation Reserve and Preliminary Expenditure will be excluded while calculating Net Worth.

Reason:

1. Priliminary Exp. is a Ficticious Asset and these type of assets are excluded while calculating Net Worth.

2. Revaluation Reserve is just a Reserve due to Upward Valuation of Assets.

Olny those Reserve should be included which is earned by Company.

Revalutaion reserve is not a reserve earned by Company

   

 


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