Balance sheet gives us information pertaining to the assets, liabilities, and the shareholders equity.
It has financial information pertaining to the company right from the time it was incorporated.
P&L talks about how the company performed in a particular financial year; the balance sheet discusses how the company has evolved financially over the years.
Asset - A resource controlled by the company, and is expected to have an economic value in the future.
Liability - The loan that the company has taken and it is therefore obligated to repay back.

Balance Sheet Equation - Assets = Liabilities + Shareholder Equity

Shareholder funds are part of liability because the company is in an obligation to pay it to the shareholders.
Balance Sheet Full Image

Liabilities

Shareholder Funds

Face Value (FV) - The price of 1 share at the first ever public offering
Share Capital = Face Value X Total no. of outstanding shares
Reserves & Surplus - Reserves are the money earmarked by the company for specific purposes. Surplus is where all the profits of the company reside.
- Note 3 (Details about Reserves & Surplus)

Company’s obligations which are expected to be settled after 365 days (more than 1 year)
- Long term borrowings
- Deferred Tax Liabilities
- Long term provisions
we looked at ‘Finance Cost’ as a line item when we looked at the P&L statement. If the debt of the company is high, then the finance cost will also be high.

Company’s obligations which are expected to be settled within 365 days (less than 1 year)
Short term borrowings
Trade Payables