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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 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

Keywords

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