Urgent please

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.