Reserves on account of amalgamation by merger

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Whether reserves earned on account of Amalgamation by merger forms part of net worth.
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No.  Refer Sec.2(57) of Companies Act 2013:

"net worth" means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation;

 


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