Vodafone 2016 Annual Report Download - page 127

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Overview Strategy review Performance Governance Financials Additional information
Vodafone Group Plc
Annual Report 2016
125
19. Reconciliation of net cash ow from operating activities
The table below shows how our prot for the year from continuing operations translates into cash ows generated
from our operating activities.
2016 20152014
Notes £m£m £m
(Loss)/prot for the nancial year (3,818) 5,917 59,420
Prot for the nancial year from discontinued operations 7–(57) (48,108)
(Loss)/prot for the nancial year from continuing operations (3,818) 5,860 11, 312
Non-operating income and expense 219 149
Investment income (300) (883) (346)
Financing costs 2,124 1,736 1,554
Income tax expense /(credit) 63,369 (4,765) (16,582)
Operating prot/(loss) 1,377 1,967 (3,913)
Adjustments for:
Share-based payments 27 117 88 92
Depreciation and amortisation 10, 11 9,498 9,565 7,560
Loss on disposal of property, plant and equipment and intangible assets 320 49 85
Share of result of equity accounted associates and joint ventures 12 (44) 63 (278)
Impairment losses 4450 –6,600
Other income and expense 75 114 620
(Increase)/decrease in inventory 14 (98) (73) 4
(Increase)/decrease in trade and other receivables 15 (547) (230) 526
Increase/(decrease) in trade and other payables 16 372 (1,146) 851
Cash generated by operations 11,220 10,397 12,147
Net tax paid (739) (682) (5,920)
Net cash ow from operating activities 10,481 9,715 6,227
20. Cash and cash equivalents
The majority of the Group’s cash is held in bank deposits, money market funds or in repurchase agreements which
have a maturity of three months or less to enable us to meet our short-term liquidity requirements.
Accounting policies
Cash and cash equivalents comprise cash in hand and call deposits, and other short-term highly liquid investments that are readily convertible
to a known amount of cash and are subject to an insignicant risk of changes in value.
2016 2015
£m £m
Cash at bank and in hand 1,737 2,379
Money market funds 5,781 2,402
Repurchase agreements 2,700 2,000
Commercial paper – 101
Cash and cash equivalents as presented in the statement of nancial position 10,218 6,882
Bank overdrafts (9) (21)
Cash and cash equivalents as presented in the statement of cash ows 10,209 6,861
Cash and cash equivalents are held by the Group on a short-term basis with all having an original maturity of three months or less. The carrying
amount approximates their fair value.
Cash and cash equivalents of £1,284 million (2015: £1,722 million) are held in countries with restrictions on remittances but where the balances
could be used to repay subsidiaries’ third party liabilities. Of the balance at 31 March 2015, INR 57,863 million (£623 million) was used to settle India
spectrum licence obligations on 8 April 2015.