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<h1>Companies: No Need to Manually Calculate Net Worth, Automated in FLA Form Section-II per FEMA Guidelines</h1> The net worth of a company is calculated using the formula: Total Equity and Participating Preference Share Capital plus Reserves and Surplus. This calculation is automated in the FLA form section-II, so companies do not need to compute it separately. The guidelines, general instructions, and definitions are provided as per the FEMA regulations as of July 21, 2021.