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of <h1>Understanding Net Worth: Section 2(57) of Companies Act 2013 Explained in Simple Terms</h1> Net Worth, as defined in section 2(57) of the Companies Act, 2013, refers to the total value of paid-up share capital and all reserves generated from profits, the securities premium account, and the profit and loss account balance. This total is adjusted by deducting accumulated losses, deferred expenditure, and miscellaneous expenditure not written off, according to the audited balance sheet. It excludes reserves from asset revaluation, depreciation write-back, and amalgamation.
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