Based on the provided balance sheet data, here are ten insights into the health of Vodafone

Idea Limited (VIL):

1. High Debt Levels:

o Data Point: Long-term borrowings (Mar 24): ₹2,02,896.20 crore.
o Reason: The significant increase in long-term borrowings indicates a heavy
reliance on debt financing, leading to high interest obligations and financial
risk.
2. Negative Net Worth:
o Data Point: Total shareholders' funds (Mar 24): ₹(-1,04,166.80) crore.
o Reason: A negative net worth implies that liabilities exceed assets, indicating
financial distress and potential solvency issues.
3. Negative Reserves and Surplus:
o Data Point: Reserves and surplus (Mar 24): ₹(-1,54,286.60) crore.
o Reason: Continuous losses over the years have eroded reserves, reflecting
poor financial performance and inability to generate profits.
4. Low Current Ratio:
o Data Point: Current assets (Mar 24): ₹12,909.80 crore; Current liabilities
(Mar 24): ₹54,141.30 crore.
o Reason: A current ratio of less than 1 (12,909.80 / 54,141.30 ≈ 0.24) indicates
liquidity issues and potential difficulties in meeting short-term obligations.
5. Decrease in Total Assets:
o Data Point: Total assets (Mar 24): ₹1,84,997.70 crore; Total assets (Mar 20):
₹2,26,919.60 crore.
o Reason: A decline in total assets over the years suggests asset sales or
impairment, potentially to cover losses or reduce debt.
6. Decline in Tangible Assets:
o Data Point: Tangible assets (Mar 24): ₹1,58,313.90 crore; Tangible assets
(Mar 20): ₹66,377.30 crore.
o Reason: A significant increase in tangible assets over the years might be due
to capital expenditures, but the increase needs to be evaluated against the
return on these investments.
7. Intangible Assets Write-off:
o Data Point: Intangible assets (Mar 24): ₹0; Intangible assets (Mar 20):
₹1,19,459.20 crore.
o Reason: The write-off of intangible assets suggests impairment or revaluation,
impacting the company's asset base.
8. High Contingent Liabilities:
o Data Point: Contingent liabilities (Mar 23): ₹27,457.00 crore.
o Reason: High contingent liabilities pose potential future financial risks,
impacting the company's financial stability.
9. Stock Options Reduction:
o Data Point: Employees stock options (Mar 24): ₹0; Employees stock options
(Mar 20): ₹65.6 crore.
o Reason: The reduction or elimination of stock options might affect employee
motivation and retention, impacting operational performance.
10. Decreasing Non-Current Investments:
o Data Point: Non-current investments (Mar 24): ₹0.3 crore; Non-current
investments (Mar 20): ₹1,524.40 crore.
 o Reason: A significant decline in non-current investments could indicate
divestment of assets to cover losses or reduce debt.

Analysis of Bharti Airtel's Consolidated Balance Sheet

Based on the provided balance sheet data, here are ten insights into the health of Bharti
Airtel:

1. Positive Net Worth:

o Data Point: Total shareholders' funds (Mar 24): ₹82,018.80 crore.
o Reason: A positive net worth indicates that the company's assets exceed its
liabilities, reflecting a stronger financial position compared to Vodafone Idea
Limited.
2. Strong Reserves and Surplus:
o Data Point: Reserves and surplus (Mar 24): ₹79,142.20 crore.
o Reason: Consistently high reserves and surplus over the years show that the
company has been profitable and retained earnings, which can be used for
future growth or to withstand financial shocks.
3. High Debt Levels:
o Data Point: Long-term borrowings (Mar 24): ₹1,30,962.60 crore.
o Reason: While the company has a high level of long-term borrowings, it has
managed to maintain positive shareholders' funds, indicating an ability to
service its debt.
4. Increasing Total Assets:
o Data Point: Total assets (Mar 24): ₹4,44,531.00 crore; Total assets (Mar 20):
₹3,60,779.00 crore.
o Reason: The increase in total assets over the years suggests growth and
investment in the business, which can enhance future revenue generation.
5. High Current Ratio:
o Data Point: Current assets (Mar 24): ₹58,276.10 crore; Current liabilities
(Mar 24): ₹1,38,667.80 crore.
o Reason: The current ratio (58,276.10 / 1,38,667.80 ≈ 0.42) is less than 1,
indicating liquidity issues, but still better managed compared to Vodafone Idea
Limited.
6. Substantial Fixed Assets:
o Data Point: Fixed assets (Mar 24): ₹2,93,705.50 crore.
o Reason: The significant investment in fixed assets reflects the company's
ongoing commitment to maintaining and expanding its operational capacity.
7. Healthy Intangible Assets:
o Data Point: Intangible assets (Mar 24): ₹0; Intangible assets (Mar 20):
₹80,974.10 crore.
o Reason: A reduction in intangible assets suggests write-offs or revaluation,
which could be a strategic move to better reflect asset values.
8. Growing Non-Current Investments:
o Data Point: Non-current investments (Mar 24): ₹31,332.80 crore; Non-
current investments (Mar 20): ₹11,708.60 crore.
 o Reason: An increase in non-current investments indicates diversification and
potential future revenue streams from these investments.
9. Stable Deferred Tax Assets:
o Data Point: Deferred tax assets (Mar 24): ₹19,242.80 crore.
o Reason: Consistent deferred tax assets over the years suggest stable tax
planning and recognition of future tax benefits.
10. Managing Contingent Liabilities:
o Data Point: Contingent liabilities (Mar 23): ₹41,262.40 crore.
o Reason: While contingent liabilities are substantial, the company appears to
be managing them without significant impact on its financial health.

Conclusion:

The balance sheet of Bharti Airtel reflects a relatively healthy financial position, with positive
net worth, strong reserves and surplus, and a growing asset base. Despite high debt levels, the
company maintains substantial fixed and non-current assets, indicating a solid foundation for
future growth. The liquidity ratio is a concern but is better managed compared to Vodafone
Idea Limited. Overall, Bharti Airtel's balance sheet appears healthier, demonstrating
resilience and capacity for sustained operations.

Vodafone
Bharti Airtel
Factor Idea (INR Comments
(INR Cr.)
Cr.)
Equity Share Mar-24: Mar-24: Vodafone Idea's equity share capital is
Capital 50,119.80 2,876.60 significantly higher than Bharti Airtel.
Vodafone Idea has negative reserves and
Reserves and Mar-24: - Mar-24: surplus, indicating accumulated losses.
Surplus 1,54,286.60 79,142.20 Bharti Airtel's reserves and surplus show a
positive and stable financial position.
Vodafone Idea's total shareholders' funds
Total
Mar-24: - Mar-24: are negative, indicating financial distress.
Shareholders
1,04,166.80 82,018.80 Bharti Airtel has consistently positive total
Funds
shareholders' funds.
Non-Current
Liabilities
Both companies have substantial long-term
Long Term Mar-24: Mar-24:
borrowings, with Vodafone Idea having
Borrowings 2,02,896.20 1,30,962.60
higher debt.
Bharti Airtel has a notable amount in
Deferred Tax Mar-24:
Mar-24: 0.4 deferred tax liabilities compared to
Liabilities (Net) 2,511.80
Vodafone Idea.
Other Long Term Mar-24: Mar-24: Bharti Airtel has higher other long-term
Liabilities 32,105.70 66,280.60 liabilities compared to Vodafone Idea.
 Vodafone
Bharti Airtel
Factor Idea (INR Comments
(INR Cr.)
Cr.)
Long Term Both companies have similar long-term
Mar-24: 20.9 Mar-24: 544.3
Provisions provisions.
Both companies have significant non-
Total Non-Current Mar-24: Mar-24:
current liabilities, with Vodafone Idea
Liabilities 2,35,023.20 2,00,299.30
slightly higher.
Current
Liabilities
Short Term Mar-24: Mar-24: Bharti Airtel has higher short-term
Borrowings 4,733.60 20,953.90 borrowings compared to Vodafone Idea.
Mar-24: Mar-24: Bharti Airtel has higher trade payables,
Trade Payables
13,731.20 35,132.50 indicating more obligations to suppliers.
Other Current Mar-24: Mar-24: Bharti Airtel has more other current
Liabilities 35,640.00 54,253.20 liabilities compared to Vodafone Idea.
Bharti Airtel's short-term provisions are
Short Term Mar-24:
Mar-24: 36.5 significantly higher, indicating larger
Provisions 28,328.20
obligations.
Bharti Airtel has higher total current
Total Current Mar-24: Mar-24:
liabilities, reflecting more short-term
Liabilities 54,141.30 1,38,667.80
financial commitments.
Bharti Airtel's total capital and liabilities
Total Capital Mar-24: Mar-24:
are significantly higher, indicating a larger
And Liabilities 1,84,997.70 4,44,531.00
company size.
ASSETS
Non-Current
Assets
Mar-24: Mar-24: Bharti Airtel has more tangible assets,
Tangible Assets
1,58,313.90 2,93,705.50 indicating a larger physical infrastructure.
Both companies have no intangible assets
Intangible Assets Mar-24: 0 Mar-24: 0
listed for March 2024.
Capital Work-In- Both companies have no capital work-in-
Mar-24: 0 Mar-24: 0
Progress progress listed for March 2024.
Intangible Assets
Both companies have no intangible assets
Under Mar-24: 0 Mar-24: 0
under development listed for March 2024.
Development
Non-Current Mar-24: Bharti Airtel has substantial non-current
Mar-24: 0.3
Investments 31,332.80 investments compared to Vodafone Idea.
Deferred Tax Mar-24: Bharti Airtel has more deferred tax assets
Mar-24: 13.8
Assets (Net) 19,242.80 compared to Vodafone Idea.
Other Non- Mar-24: Mar-24: Both companies have similar levels of
Current Assets 13,759.90 15,472.10 other non-current assets.
Total Non-Current Mar-24: Mar-24: Bharti Airtel's total non-current assets are
Assets 1,72,087.90 3,86,254.90 more than double those of Vodafone Idea.
Current Assets
Current Mar-24: 0.2 Mar-24: 269.5 Both companies have minimal current
 Vodafone
Bharti Airtel
Factor Idea (INR Comments
(INR Cr.)
Cr.)
Investments investments listed for March 2024.
Inventories Mar-24: 1.2 Mar-24: 363.9 Bharti