Limitation of Analysis:

The first limitation that I farce in horizontal analysis we just have five year data thats why I dont able to calculate the horizontal analysis of year 2008 because for this calculation I have no previous data. During financial year both companies introduce some new assets and liabilities and write off old one that why I face very difficulty. Attock and national oil refinery both use the different depreciation method and that why I face some problem during the analysis. The profit and loss accounts of both companies are different Attock refinery use the traditional method but the national refinery use the new method in which they separately showed the portion of comprehensive income. There are some other internal issues that why both companies ratios are match with each other first is the Attock refinery purchase the 51% share of national refinery that why in their internal issuer Attock refinery is very dominant on national refinery. During the comparison of financial statement its very difficult to compare the one company ratios to the second one that is why their market share are different and national refinery totally rely on debts so that its debt ratio is very high as compare to the Attock refinery because Attock refinery having major operation on equity. I cannot perform the calculation of Fixed Payment Coverage Ratio the main reason the both companies are not provide the regarding to the lease payment that why I dint perform this action. The 2nd calculating the I also not able to perform that is dividend yield, for calculation of this I need to market value of per share but in both companys financial statement market value is not provided. And the difficulty that I face during the analysis and comparison of both companies is that the nature of assets in Attock refinery is different to National refinery the main reason is that Attock refinery producing the different goo

Recommendations:
There are some recommendations that I want to mention here: First is that during the comparison of different year the inflation factor should be considered because some time the change in two differ year just due to inflation factor and we know very well companies mention the price of assets and liabilities on the historical value and not update on current value so we should considered. The second recommendation the comparison must be according the nature operations and product differentiation factor should be in mind. And last recommendation that I want to recommend here that is not just on the comparison of one ration not take any decision about the first like if we compare the debt ratio of the national refinery then their debt portion is very high to the benchmark but their profit margin is also greater than other companies. So for making any decision the whole comparison is very important in which all factors should be considered that can be affect on the situation of on company.