1.

ANALYSIS OF FINANCIAL STATEMENT:

It contains analysis of balance sheet and income statement of the company to know the financial position and profit or loss during the year. BALANCE SHEET: (All numbers in millions)

Particulars Non-current assets Goodwill Other intangible assets Property, plant and equipment Investments in associates Other investments Deferred tax assets Post employment benefits Trade and other receivables Current assets Inventory Taxation recoverable Trade and other receivables Other investments Cash and cash equivalents Total assets Equity Called up share capital Additional paid-in capital Treasury shares Retained losses Accumulated other comprehensive income Total equity shareholders funds Minority interests Put options over minority interests

31 Mar, 2011 45,236 23,322 20,181 38,105 1,381 2,018 97 3,877 134,217 537 281 9,259 674 6,252 17,003 151,220 4,082 153,760 (8,171) (77,661) 15,545 87,555 2,880 (2,874)

31 Mar, 2010 51,838 22,420 20,642 36,377 7,591 1,033 34 2,831 142,766 433 191 8,784 388 4,423 14,219 156,985 4,153 153,509 (7,810) (79,655) 20,184 90,381 3,379 (2,950)

Total minority interests Total equity Non-current liabilities Long-term borrowings Taxation liabilities Deferred tax liabilities Post employment benefits Provisions Trade and other payables Current liabilities Short-term borrowings Taxation liabilities Provisions Trade and other payables Total equity and liabilities

6 87,561 28,375 350 6,486 87 482 804 36,584 9,906 1,912 559 14,698 27,075 151,220

429 90,810 28,632 7,377 237 497 816 37,559 11,163 2,874 497 14,082 28,616 156,985

PROFIT AND LOSS ACCOUNT OR INCOME STATEMENT: (All numbers in millions) Particulars Revenue Cost of sales Gross profit Selling and distribution expenses Administrative expenses Share of result in associates Impairment losses Other income and expense Operating profit/(loss) Non-operating income and expense Investment income Financing costs Profit/(loss) before taxation Income tax expense Profit/(loss) for the financial year from continuing operations 31 Mar, 2011 45,884 (30,814) 15,070 (3,067) (5,300) 5,059 (6,150) (16) 5,596 3,022 1,309 (429) 9,498 (1,628) 7,870 31 Mar, 2010 44,472 (29,439) 15,033 (2,981) (5,328) 4,742 (2,100) 114 9,480 (10) 716 (1,512) 8,674 (56) 8,618

Loss from discontinued operations Profit/(loss) for the financial year

7,870

8,618

ANALYSIS AND INTERPRETATION. CURRENT RATIO: It is the relationship between the current assets and current liabilities of a concern. The standard current ratio is 2:1. Current Ratio = Current assets Current assets Current liabilities

Year 2011-2010 2010-2009

Current assets 17,003 14,219

Current liabilities 27,075 28,616

Current ratio 0.627 0.496

Interpretation: Vodafone current ratio is less than the standard one in both the years i.e. 2:1. Company has a very poor capacity of repayment of funds. But 2011-10 is better compared to 2010-09. DEBT EQUITY RATIO: It is the relationship between borrowers fund (Debt) and owners capital (equity). Long term debts Debt Equity ratio = Owners fund

Year 2011-2010 2010-2009

Long term debts 36,584 37,559

Owners fund 87,555 90,381

Debt equity ratio 0.417 0.415

Interpretation: It means company is using less debt than its equity. In both the year ratio is almost similar.

RETURN ON ASSET RATIO: It is the relationship between asset and investment in business with the net profit of the business. Return on asset = Net profit after tax Total asset

Year 2011-2010 2010-2009

Net profit after tax 7,870 8,618

Total assets 151,220 156,985

Return on asset ratio 0.052% 0.054%

Interpretation: Return on asset of Vodafone is 0.052% in the year 2011-10 and in 2010-09 0.054%. Both the years ratio is almost similar. EARNINGS PER SHARE: It is the amount of income earned during a period per share of common stock. Net profit after tax Earnings per share = Number of shares Year 2011-2010 2010-2009 Net profit after tax 7,870 8,618 Number of shares 260 263 Earning per share Rs.30.26 Rs.32,76

Interpretation: The earnings per share for the year 2011-10 are less than 2010-09.