Abstract

Vodafone India Limited (VIL) is a leading telecom operator in India. The total revenue 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 considering tax and the exceptional items. The company’s operating expenses were Rs. 300,450 million and it incurred an operating loss before considering tax and exceptional items. The present case study can help in understanding the concept of cash flows and the importance of operating cash flows in determining the operating efficiency of a firm. The nature and classification of operating cash flows of VIL can also be discussed.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the concept of cash flows and Cash Equivalents
• Examine the nature and classification of operating cash flows
• Detail the process of determining operating cash flows of a company as per Ind AS 7

Keywords

Vodafone-Idea; Cash flow; Cash equivalents; Operating Cash flows; Investing Cash flows; Financing Cash flows; Indian Accounting Standard (Ind AS) 7