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 Public company

Traded as BSE: 500134NSE: ESSAROIL

Industry Oil and gas

Headquarters Mumbai, India

Key people Ravi Ruia, ChairmanLalit Gupta, MD,CEO

Products Petroleum, fuels, natural gas and other petrochemicals

Revenue 481.65 billion (US$8.8 billion) (2011)

Net income 21.55 billion (US$390 million) (2011)

Total assets 210.84 billion (US$3.9 billion) (2011)

Owner(s) Essar Group

Parent Essar Energy plc

Website www.essar.com

Essar Oil Plant

Essar Oil Store..

Cost Accountingcost 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 SheetIt 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 CostingJob 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 sheetOf

Essar Oil

Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08

Material consumed 21.05 53863.87 43000.39 34322 34257.315

Prime cost 21.05 53863.87 43000.39 34322 34257.315

FACTORY OVERHEADS

Manufacturing expenses 40.41 - 679.40 376.48 342.10

WORK COST 61.45 53863.87 43679.4 34699.35 34,599.41

Cost sheet(Rs crore)

OFFICE & ADMINISTRATIVE OVERHEADS

Administrative expenses 53.55 2662.2 341.23 270.02 210.52

COST OF PRODUCTION 115 56526.07 44020.63 34969.27 34809.93

SELLING &DISTRIBUTION OVERHEADS

Selling expenses .11 1387.36 1311.37 1182.75 879.58

TOTAL COST 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

ConclusionAs 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.