A Study on Financial Planning and Cash Flow Forecasting for Armoured Vehicles Nigam Limited (AVNL): A Government-Owned Defence Sector Enterprise
Koushe GB (MBA)1*, Dr. Nafeza1
Abstract
This paper presents a comprehensive empirical study on financial planning and cash flow forecasting for Armoured Vehicles Nigam Limited (AVNL), a Defence Public Sector Undertaking (DPSU) incorporated under the Ministry of Defence, Government of India. Using actual Standalone Balance Sheet data spanning four financial years (FY2021-22 to FY2024-25), the study analyses AVNL’s liquidity position, working capital dynamics, asset structure, and financial stability through a set of computed financial ratios. Total assets grew from Rs. 17,017.33 crore in FY2022 to Rs. 23,903.36 crore in FY2025, reflecting a compound annual growth rate (CAGR) of approximately 12.0%. The study identifies persistent working capital pressures, improving equity strength, and the structural cash flow challenges inherent in long-cycle defence manufacturing contracts. The paper further proposes a strategic cash flow forecasting framework tailored to the unique contractual and regulatory environment of Indian DPSUs. The findings have implications for financial managers, policy makers, and researchers engaged with defence sector financial governance.
Keywords:
Financial Planning, Cash Flow Forecasting, AVNL, Defence DPSU, Working Capital, Liquidity Ratios, Balance Sheet Analysis, Aatmanirbhar Bharat
