Net worth shall have the same meaning as defined under section 2(57) of the Companies Act, 2013.
Net worth = (Total paid-up share capital + reserves out of profit + securities premium account) – (accumulated losses + expenditure + miscellaneous expenditures which are written off).
Net worth shall be calculated from the first audited financial statement.
As per the Companies Act, 2013, Section 2(57), Net Worth is calculated by adding paid-up share capital, reserves (out of profits), and the securities premium account, then subtracting accumulated losses and unamortized miscellaneous expenditures.
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