Consolidated Income Statement for the year ended $31$ March

Rm Notes $20202019$

Revenue $19074686627$

Direct Expenses $-32877-31427$

Staff expenses $-6421-6026$

Publicity expenses $-1907-1920$

Other operating expenses $-12024-13462$

Broad$-$based black economic empowerment charge $--1404$

Depreciation and amortisation $9,1-13955-10642$

Impairment losses $2--30$

Net profit from associate and joint ventures $1241492774$

Operating Profit $32771124490$

Net loss on disposal of subsidiaries $-819-$

finance income $4884630$

finance costs $5-4702-3008$

Net loss on remeasurement and disposal of financial instruments $6-16-23$

Profit before Tax $2305822089$

Taxation $7-6414-6557$

Net Profit $1664415532$

Attributable to:

Equity shareholders $1594414822$

Non$-$controlling interests $700710$

$1664415532$

Consolidated Statement of Financial Position as of $31$ March

Rm Notes $20202019$

Assets

Non$-$current assets $142395113897$

Property, plant and equipment $95927743989$

Intangible assets $101336310845$

Financial assets $11741632$

Investment in associate and joint ventures $126442954299$

Trade and other receivables $1424472137$

Finance receivables $1518671699$

Tax receivable $260183$

Deferred tax $711113$

Current assets $4782839746$

Financial assets $1177636391$

Inventory $1313821413$

Trade and other receivables $141919717649$

Non$-$current assets held for sale $2286619$

Finance receivables $1522882251$

Tax receivable $55357$

Bank and cash balances $241705711066$

Total assets $190223153643$

Equity and Liabilities

Fully paid share capital $165707357073$

Treasury shares $16-16620-16387$

Retained earnings $3429432670$

Other reserves $169094636$

Equity attributable to owners of the parent $9165677992$

Non$-$controlling interests $84148396$

Total equity $10007086388$

Non$-$current liablilities $5340329084$

Borrowings $184798823641$

Trade and other payables $19359820$

Provisions $201055329$

Deferred tax $740014294$

Current liabilities $3675038171$

Borrowings $18370710603$

Trade and other payables $193143726607$

Liabilities directly associated with non$-$current assets held for sale $2230286$

Provisions $20228218$

Tax payable $468340$

Dividends payable $14117$

Bank overdrafts $24866-$

Total equity and liabilities $190223153643$

Required

Analyze these financial statements by answering the following questions.

a$)$

Compute the compound growth rate in revenue and in net profit between $2019$ and $2020$ and comment. $[6]$

b$)$

Compute common size income statement and balance sheet for $2019$ and $2020.$ Comment on salient issues observed. $[10]$

c$)$

Compute liquidity ratios, activity ratios, profitability ratios and debt ratios of Vodacom for $2019$ and $2019$ and comment on each category of ratios. $[45]$

d$)$

Calculate and determine the operating cash cycle of Vodacom for both years and comment. $[5]$

e$)$

The employees of Vodacom would like to negotiate an increase of $10\%$ on salaries. Do you think Vodacom should agree to the increase? Use your answer in $($b$)($e$)$ above to support your answer. $[8]$