Urgent please

530 views 5 replies

 

Dear all

Please let me know the difference between net current assets and net worth if any company want to takeover another co. what should we should another co.’s net worth or net current assets?

Replies (5)

still not reply.......

Hi Pankaj,

Net current assets refers to the difference between current assets and current liabilities it refers to the amount required for day to day activities of Company while net worth refers to the shareholders equity, owners equity and net current assets. The net worth is to be taken into account in any form of Corporate restructuring.

Also refer to the attached file for meaning of net worth. Feel free to ask for further clarification.

Thanks & Regards

Amit Mishra

net worth= total assets- external liabilities

or

equity share capital+prefrence sh capital+reserves n surplus(including profit) - miscellaneous expenditure not written off (prelim exp, deferred rev exp, etc.) - p & l account Debit balance

but at the time of takeover we should see net worth or net current assets of another co. for purchase consideration amount?

net worth is a better measure to judge the market value of any business. it is a much broader concept than net current assets. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details