A

PROJECT REPORT
ON
WORKING CAPITAL MANAGEMENT AT
VODAFONE

Under the guidance of SUBMITTED BY

Mr.CH. SRINIVAS MR. B. RAJESH
H.T.NO: 7407-16-672-012
 INTRODUCTION

 Working capital management

forms the inching of every business.
As Gilberth Harold puts the
problems. Unfortunately, there is
so much disagreement among
financiers, accountants, business
men and economists as to the exact
meaning of the term Working
Capital
 NEED FOR THE STUDY

 The need for working capital to run the day-

to-day business activities cannot be
overemphasized. We will hardly find a
business firm, which does not require any
amount of working capital. We know that a
firm should aim at maximizing the wealth of
its shareholders. In its endeavor to do so, a
firm should earn sufficient return from its
operations.
 OBJECTIVES OF THE STUDY

 To suggest the steps to be taken to increase the

efficiency in management of working capital.
 To understand the conceptual framework relating
to management of working capital.
 To know how the company is maintaining its
liquidity position.
 To evaluate the working capital requirements of
the organization over the late six years.
 RESEARCH METHODOLOGY

 The present study will reveal the financial

performance of the company covering purely
financial data supplied by the company’s
financial statements through working capital
management
 LIMITATIONS OF THE STUDY

 The study is based mainly on secondary data.

 The accuracy of the results is subjected to the
accuracy of the data furnished by the annual
reports.
 Since the study is confined to only few aspects like
loans and advances, so the overall performance of
the company cannot be measured accurately.
 COMPANY PROFILE

 Vodafone India is a member of the Vodafone

Group and commenced operations in 1994
when its predecessor Hutchison Telecom
acquired the cellular license for Mumbai. The
company now has operations across the
country with over 150 million customers.
Vodafone India has firmly established a
strong position within the Vodafone Group
too, making it the largest subscriber base
globally. This journey is a strong testimony of
Vodafone’s success in a highly competitive
and price sensitive market
Schedule of changes in working capital statement for the year 2016-2017
Changes in Working capital
2016 2017
Particulars Increase Decrease
Rs In cr Rs. In cr
Rs. In cr Rs. In cr
CURRENT ASSETS
Inventories 441 482 41 -
Taxation recoverable 808 575 - -233
Trade & other receivables 8886 8053 - -833
Other investments 4419 3855 - -564
Cash and bank balances 10134 6882 - -3252
Assets held for sale 34 0 - -34
A. Total Current Assets: 24722 19847 - -4875
CURRENT
LIABILITIES
Short term borrowings 7747 12623 - 4876
Taxation liabilities 873 599 -274 -
Provisions 963 767 -196 -
Trade & other payables 15456 14908 -548 -
B. Total Current
25039 28897 - 3858
Liabilities
Net working Capital (A-
-317 -9050 - -
B)
Decrease in Working
-8733 - - -8733
Capital
Schedule of changes in working capital statement for the year 2015-2016
Changes in Working capital
2015 2016
Particulars Increase Decrease
Rs In cr Rs. In cr
Rs. In cr Rs. In cr
CURRENT ASSETS
Inventories 450 441 - -9
Taxation recoverable 452 808 356 -
Trade & other receivables 9412 8886 - -526
Other investments 5350 4419 - -931
Cash and bank balances 7623 10134 2511 -
Assets held for sale 0 34 34 -
A. Total Current Assets: 23287 24722 1435 -
CURRENT
LIABILITIES
Short term borrowings 12289 7747 -4542 -
Taxation liabilities 1919 873 -1046 -
Provisions 818 963 - 145
Trade & other payables 16918 15456 -1462 -
B. Total Current
31224 25039 -6185 -
Liabilities
Net working Capital (A-
-7937 -317 7620 -
B)
Increase in Working
- 7620 7620 -
Capital
Schedule of changes in working capital statement for the year 2014-2015
Changes in Working capital
2014 2015
Particulars Increase Decrease
Rs In cr Rs. In cr
Rs. In cr Rs. In cr
CURRENT ASSETS
Inventories 486 450 - -36
Taxation recoverable 334 452 118 -
Trade & other receivables 10744 9412 - -1332
Other investments 1323 5350 4027 -
Cash and bank balances 7138 7623 485 -
Assets held for sale 20025 23287 3262 -
A. Total Current Assets:
CURRENT
6258 12289 - 6031
LIABILITIES
Short term borrowings 1898 1919 - 21
Taxation liabilities 633 818 - 185
Provisions 15236 16918 - 1682
Trade & other payables 24025 31224 - 7199
B. Total Current
-4000 -7937 -
Liabilities
Net working Capital (A-
-3937 - -3937
B)
Decrease in Working
486 450 - -36
Capital
 FINDINGS

 Taxation recoverable is decreased from `.808 Crs in the year

2016 to `. 575 Crs in the year 2017.
 Cash and bank balances is decreased from `. 10134 crs in the
year 2016 to `.6882 Crs in the year 2017.
 Other investments is decreased from `. 5350 Crs in the year
2015 to `. 4419 Crs in the year 2016.
 Short term borrowings is increased from `. 6258 crs in the
year 2014 to `.12289 Crs in the year 2015.
 There is a increase net working Capital in the year 2014 `.
6072 Crs.
 Taxation liabilities is decreased from `. 2874 crs in the year
2012 to `. 1912 Crs in the year 2013.
Thank You