Equity and reserves

The "owner's claim" on the company - what's left for shareholders after every liability is paid. On the balance sheet this sits under Shareholders' Funds with two components:

Components

1. Share capital = face value × number of shares issued. If a company has 10 cr shares at ₹2 face value, share capital = ₹20 cr. This barely changes year-to-year (only changes when new shares are issued or bought back).

2. Reserves and Surplus - accumulates all the retained profit from inception:

• Securities premium - money paid by investors above face value (in IPO, QIP, rights issue)
• General reserve - old-style retained earnings (largely deprecated under IND-AS)
• Retained earnings - accumulated profits minus dividends paid out
• Capital reserves - specific items like buyback reserve, debenture redemption reserve
• Revaluation reserve - gains from revaluing assets (rare in IND-AS)
• Other comprehensive income - translation gains, hedge gains, etc.