Prepared by

Damani vivek. Khambholiya

manan.

Rasadiya

mehul.

Nakrani

mayur .

Submited to: Dr.Vishal Patidar.

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.