Urgent please

Others 520 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. 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details