Every business has requirement to value their business at the end of financial year to know about the financial position of the company. So net worth value is the difference between the liabilities and assets.Net worth is calculated on the historic value not on the market value of assets or liabilities.

Net worth is also calculated when a company is short of finances and they want to apply for the loans and it is very important for the company to value their asset and liabilities properly so that they will get the loan easily or within legal terms and condition.

Most of the clients come for valuation because their net worth goes negative so they need help of valuer to value the assets and liabilities.