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ICAI Memeber-191493
It is possible to have a negative amount in the equity. Equity of a company comprise of the share capital and reserves and surplus. In case the reserves are negative and higher in negative number than the share capital, the company will have negative equity. Reserves will be negative when the company is suffering losses or loss of one or more years is higher than the total profit of one or more years.
All info as provided by consultant.