Essay about ioc india

Submitted By yasi_sby
Words: 2139
Pages: 9

Cost Accounting Assignment:
Company Analyzed: Indian Oil Corporation Ltd.
IndianOil is the country's largest commercial enterprise, with a sales turnover of Rs. 1,30,203 crore (US$ 29.8 billion) and profits of Rs. 7,005 crore (US$ 1,603 million) for fiscal 2003.
IndianOil is India’s No.1 Company in Fortune's prestigious listing of the world's 500 largest corporations, ranked 189 for the year 2004 based on fiscal 2003 performance. It is also the 19th largest petroleum company in the world. IndianOil has also been adjudged No.1 in petroleum trading among the national oil companies in the Asia-Pacific region, and is ranked 325th in the current Forbes' "Global 500" listing of the largest public companies .

Q.1 Four themes that are important to managers for attaining success and in which management accounting can play major role in decision support in Voltas Ltd.:
Following are the main themes :
We will here talk about the “Unitary products division of voltas”which includes Room air conditioners and water coolers.
1. Customer focus:
Customer focus is all about adding value for customer and in the process retain our existing customers as well as attract new one. For decades, the household and retail segment had perceived the products of IOCL as a solid, dependable and well-engineered in the field of say LPG, lubricants and other petroleum products.
2. Value chain and supply chain analysis : management accountant provide the information and many times be part of the decision in each of these functions in business.
a) Reasearch and development :
Its all about generating and experimenting ideas related to new product, services or processes or advancing existing parameters of the product.
In IOCL there is continuous R and D on improving the products to meet the increasing customer satisfaction. They have made research in lubricants and petroleum products. The new premium high mileage petrol have been the most successful one. b) Design of products :
It includes the products say SERVO, premium fuels - XtraPremium and XtraMile, Autogas (LPG
c) Production:
It’s all about acquiring, coordinating and assembling resources to produce product or deliver a service .In IOCL it is about production of the petrol at various refineries, Hydrocracker,etc
d)Marketing: Marketing Network is spread throughout the country with over 22,000 sales points (the largest in the country). These include petrol / diesel stations, consumer outlets, lube distributors, SERVO SHOPS, SKO/LDO dealers,
LPG distributors, etc
e) Distribution: "INDANE LPG" is being distributed in as many as 2064 towns with a customer population of 349 lakh served by a network of 4120 distributors - one of the largest networks in the world.
f) Customer service: IndianOil first anticipated customer needs in urban areas for better, cleaner and well-designed petrol stations almost a decade ago. IndianOil was also the first to develop a comprehensive Retail Visual Identity programme to re-orient the design and standards of our petrol and diesel stations. IndianOil developed its strategy, marking the entry of colour-coded canopies, multi-product dispensing pumps, concrete driveways, digital air towers, cyber cafes, automated teller machines, auto-car washes, etc., all of which later became industry norms. The addition of world class infrastructure facilities in IndianOil's marketing network has had a significant impact on its market share in the petroleum retail sales category.

The cost object and cost drivers and type of costs for Value chain are as follows:
Cost object: Various products say lubricants, LPG, other petroleum products


Business function Cost drivers

Type of cost


R and D

No. of new projects undertaken

Indirect and fixed



Continuous upgradation Indirect and fixed



No. of various types of units manufactured Indirect and variable 4


No. of