Evaluation of capital budgeting & Financial Management along with Competitor analysis of Attock Refinery Limited

Abstract

Attock Refinery limited (ARL) in Pakistan is an oldest refinery which is situated in Morgah Rawalpindi. It’s a very wealthy experience more than eighty years of flourishing operation which obtains crudes country southern areas. Its growth rate 100% according to his operation, capability producing 43000, 44000 barrels per day (bpd). Uncertain prices of oil in international market have an issue and also Motor Gasoline & furnace fuel oil declining demand. Government policies also play a key role for reducing demand and refinery industry go down profit and profit margin which is also affected by international oil market. Attock refinery performance analyzed from the short term creditors viewpoint. Liquidity or current position of ARL is considered by the interest of short term creditors. However the reason behind reduced working capital is a costly payment. Here is also discussed a financial management and funds management of ARL. The Criteria for selection of financial institutions for the purpose of making any investment of funds shall in the order of priority bases. Sound financial performance, evaluated by using industry-accepted independent ratings, approved by the State Bank of Pakistan, and annual /periodic financial statements. Financial management is concerned with the acquisition, financing, and management of assets with some overall goal in mind”. Financial management can b divided three major areas. Investments Decision, Financing Decision and Asset Management Decision. ARL Source of Finance is two types which is Debt and Equity. Capital budgeting along with competitor analysis of ARL is showing Purpose of budget is a work program and a long – term, short term objective of the company. Budget data should be comprehensive, suitable, correct and reliable. Issues and findings of ARL which s in an Investment projects issues, Oil Prices Issues, Government not providing ubsidies and Low Capacity (43000 to 44000) barrels as compare to ARL competitors.