Shareholders Funds

Shareholders funds refer to the amount of money that belongs to the shareholders of a company. It includes the following:

Share Capital
This refers to the money raised by a company by issuing shares to the public. It is the portion of the company's capital that has been raised by the sale of equity. Share capital is the amount of money that shareholders have invested in the company.

Surpluses and Retained Earnings
Surpluses refer to the excess of revenues over expenses. Retained earnings, on the other hand, refer to the portion of a company's profits that it has not distributed as dividends but has kept for reinvestment in the business. These funds are used to finance the growth and expansion of the company.

Reserves
Reserves refer to the portion of the company's profits that have been set aside for a specific purpose. It can be used for contingencies, such as future expansion, or for meeting unexpected expenses. Reserves can also be created to comply with legal and regulatory requirements.

All of these
Shareholders funds include all of the above-mentioned components, i.e., share capital, surpluses and retained earnings, and reserves. Shareholders funds are an important source of financing for a company and indicate the amount of money that the company's owners have invested in the business. It is important for investors to understand the composition of shareholders funds to make informed investment decisions.