Description
PROJECT ON ESSAR OIL
Prepared by
•Rasadiya
mehul.
Sub: Cost Mgt.Account
Company history Essar Oil Ltd.
- Essar Oil Limited was incorporated as a
Public Limited Company under the Companies Act, 1956 on 12th September, with the main objective to provide Development, Exploration, Production and related Services in the oil&gassector.
? The main promoters of Essar Oil Limited are Essar
Investments Limited, Essar Shipping Limited, South India Shipping Company Limited, Essar Gujarat Limited and a foreign co-promoter, Prime Finance Company Limited, and other NRI's associates and friends. ? EOL was engaged in preliminary activities relating to bidding for oil & gas fields as well as advising the Energy and Offshore divisions of Essar Gujarat Limited on technical matters relating to their operations. - The Company is a member of Essar group
COMPANY PROFILE
Essar Oil Type Traded as Industry Headquarters Key people Products Public company BSE: 500134 NSE: ESSAROIL Oil and gas Mumbai, India Ravi Ruia, Chairman Lalit Gupta, MD,CEO Petroleum, fuels, natural gas and other petrochemicals
Revenue
481.65 billion (US$8.8 billion) (2011) 21.55 billion (US$390 million) (2011) 210.84 billion (US$3.9 billion) (2011) Essar Group Essar Energy plc www.essar.com
Net income
Total assets
Owner(s) Parent Website
Essar Oil Plant
Essar Oil Store..
Cost Accounting
? cost
accounting is that part of management accounting which establishes budget and actual cost of operations, processes, departments or product and the analysis of variances, profitability or social use of funds.
Cost Sheet
? It serves as a means of accumulating
the manufacturing costs-direct materials, direct labor, and overhead costs-chargeable to the job or department and as a means of determining unit costs.
Methods Of Costing
? Job Costing - This is done, as the name suggests, on
job works which may differ from case to case basis.
? Batch Costing - This is done for large contracts. Such
businesses need not maintain costs separately as financial accounting will indicate the costs and expenses.
? Process Costing - This is useful when a product passes
through various processes, yielding different by products of commercial value.
Methods of Costing
? Standard Costing: Standard costing means assigning the
expected, budgeted costs to the goods manufactured, the goods in inventory, and the goods sold
? Marginal Costing: It is a costing technique where only
variable cost or direct cost will be charged to the cost unit produced.
? Activity Based Costing :Activity based costing (ABC)
assigns manufacturing overhead costs to products in a more logical manner than the traditional approach of simply allocating costs on the basis of machine hours
Cost sheet Of Essar Oil
Cost sheet
(Rs crore)
Mar ' 12 Material consumed Prime cost FACTORY OVERHEA DS Manufacturi ng expenses WORK COST 21.05 21.05
Mar ' 11 53863.87 53863.87
Mar ' 10 43000.39 43000.39
Mar ' 09 34322 34322
Mar ' 08 34257.315 34257.315
40.41
-
679.40
376.48
342.10
61.45
53863.87
43679.4
34699.35
34,599.41
OFFICE & ADMINISTR ATIVE OVERHEAD S
Administrativ e expenses
COST OF PRODUCTI ON
53.55
2662.2
341.23
270.02
210.52
115
56526.07
44020.63
34969.27
34809.93
SELLING &DISTRIBU TION OVERHEAD S Selling expenses TOTAL COST
.11
1387.36
1311.37
1182.75
879.58
115.11
57913.43
45332
36152.02
35689.51
PROFIT
94.91
134.56
120.06
97.5
96.88
sales
210.02
58047.99
45452.06
36224.95
35786.39
Cost sheet analysis
? The company producing 200000 litter oil. Which
total cost incurred is Rs. 50,961,992 ? and total sales is Rs. 72,94,36,64 ? which implies that the profit being made is Rs. 47,437,738
?
Conclusion
? As we all known this Essar Oil will provide services
better and also its related production also done by this company.
? This cost sheet base analyses are contribute which
types of services will provide as well as how to produce its known as this analyses.
doc_993627423.ppt
PROJECT ON ESSAR OIL
Prepared by
•Rasadiya
mehul.
Sub: Cost Mgt.Account
Company history Essar Oil Ltd.
- Essar Oil Limited was incorporated as a
Public Limited Company under the Companies Act, 1956 on 12th September, with the main objective to provide Development, Exploration, Production and related Services in the oil&gassector.
? The main promoters of Essar Oil Limited are Essar
Investments Limited, Essar Shipping Limited, South India Shipping Company Limited, Essar Gujarat Limited and a foreign co-promoter, Prime Finance Company Limited, and other NRI's associates and friends. ? EOL was engaged in preliminary activities relating to bidding for oil & gas fields as well as advising the Energy and Offshore divisions of Essar Gujarat Limited on technical matters relating to their operations. - The Company is a member of Essar group
COMPANY PROFILE
Essar Oil Type Traded as Industry Headquarters Key people Products Public company BSE: 500134 NSE: ESSAROIL Oil and gas Mumbai, India Ravi Ruia, Chairman Lalit Gupta, MD,CEO Petroleum, fuels, natural gas and other petrochemicals
Revenue
481.65 billion (US$8.8 billion) (2011) 21.55 billion (US$390 million) (2011) 210.84 billion (US$3.9 billion) (2011) Essar Group Essar Energy plc www.essar.com
Net income
Total assets
Owner(s) Parent Website
Essar Oil Plant
Essar Oil Store..
Cost Accounting
? cost
accounting is that part of management accounting which establishes budget and actual cost of operations, processes, departments or product and the analysis of variances, profitability or social use of funds.
Cost Sheet
? It serves as a means of accumulating
the manufacturing costs-direct materials, direct labor, and overhead costs-chargeable to the job or department and as a means of determining unit costs.
Methods Of Costing
? Job Costing - This is done, as the name suggests, on
job works which may differ from case to case basis.
? Batch Costing - This is done for large contracts. Such
businesses need not maintain costs separately as financial accounting will indicate the costs and expenses.
? Process Costing - This is useful when a product passes
through various processes, yielding different by products of commercial value.
Methods of Costing
? Standard Costing: Standard costing means assigning the
expected, budgeted costs to the goods manufactured, the goods in inventory, and the goods sold
? Marginal Costing: It is a costing technique where only
variable cost or direct cost will be charged to the cost unit produced.
? Activity Based Costing :Activity based costing (ABC)
assigns manufacturing overhead costs to products in a more logical manner than the traditional approach of simply allocating costs on the basis of machine hours
Cost sheet Of Essar Oil
Cost sheet
(Rs crore)
Mar ' 12 Material consumed Prime cost FACTORY OVERHEA DS Manufacturi ng expenses WORK COST 21.05 21.05
Mar ' 11 53863.87 53863.87
Mar ' 10 43000.39 43000.39
Mar ' 09 34322 34322
Mar ' 08 34257.315 34257.315
40.41
-
679.40
376.48
342.10
61.45
53863.87
43679.4
34699.35
34,599.41
OFFICE & ADMINISTR ATIVE OVERHEAD S
Administrativ e expenses
COST OF PRODUCTI ON
53.55
2662.2
341.23
270.02
210.52
115
56526.07
44020.63
34969.27
34809.93
SELLING &DISTRIBU TION OVERHEAD S Selling expenses TOTAL COST
.11
1387.36
1311.37
1182.75
879.58
115.11
57913.43
45332
36152.02
35689.51
PROFIT
94.91
134.56
120.06
97.5
96.88
sales
210.02
58047.99
45452.06
36224.95
35786.39
Cost sheet analysis
? The company producing 200000 litter oil. Which
total cost incurred is Rs. 50,961,992 ? and total sales is Rs. 72,94,36,64 ? which implies that the profit being made is Rs. 47,437,738
?
Conclusion
? As we all known this Essar Oil will provide services
better and also its related production also done by this company.
? This cost sheet base analyses are contribute which
types of services will provide as well as how to produce its known as this analyses.
doc_993627423.ppt