Cash Flow Analysis of Vodafone Idea Limited (B)
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Case Code: CLFIN040 Case Length: 3 Pages Period: 2018-21 Pub Date: 2023 Teaching Note: Available |
Price: Rs.150 Organization : Vodafone Idea Limited Industry :Technology & Communications Countries : India Themes: Accounting and Control ,Financial Analysis |
Abstract
Vodafone India Limited (VIL) is a leading telecom operator in India. The total income of VIL for the financial year 2019-20 was Rs. 459,968 million, and the company incurred a loss of Rs. 234,413 million before taking tax and the exceptional items into consideration. After incurring operating expenses of Rs. 300,450 million, the company incurred an operating lossof Rs.159,518 million. However, after making adjustments for the operating cash flows, the net cash flows generated from operations resulted in positive operating cash flows of Rs.60,129 million. Taking into consideration the changes in investing and financing activities, determine the amount of cash and cash equivalents generated during the financial year 2019-20.
Issues
- The nature and classification of investing cash flows and financing cash flows.
- The process of determining investing cash flows and financing cash flows of a company as per Ind AS 7
Introduction
Net cash flows from the operating activities of Vodafone Idea Limited (VIL), India-based telecom company, for the financial year 2019-20 amounted to Rs.60,129 million. During the year, the company management sold the mutual funds units held as part of current investments for Rs.65,423 million with a gain of Rs.2,883 million. The gain was included as part of other incomes in the profit and loss account of the company. The opening value of the mutual funds units as on March 31, 2019, was Rs.67,088 million, and after the sale of the units, the balance held in the form of current investments stood at Rs.4,548 million..
Keywords
Vodafone-Idea; Cash flow; Cash equivalents; Operating Cash flows; Investing Cash flows; Financing Cash flows; Indian Accounting Standard (Ind AS) 7;
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