Table of Content

SR No. Particulars Page No.

Executive Summary
1. Introduction 1-23

1.1) Introduction To The Topic 1

1.2 ) Need and Relevance of the Study 2-4

1.3) Related Concept 5-19

1.4) Literature Review 20-22
1.5) Objective of Summer Internship 23

2. Introduction to Organization 24-40

2.1) Profile of Company 24-33

2.2) Brief History of Organization 34-35

2.3) Organizational Structure 36

2.4) Key Highlights of Organization 37-40

3. Research Methodology 41-45

4. Objectives to be studied 46-60

5. Major Findings 61-62

6. Recommendations 63
SWOT 64-66
8. Limitations 67-68

9. Bibliography 69-70

10. Glossary 71
 EXECUTIVE SUMMAR

The Indian economy is passing through a dynamic phase of major

restructuring and hence significant changes are taking place within the
petroleum sector. A strategically significant consequence of reforms in the
petroleum sector is the dismantling of ADMINISTERED PRICING
MECHANISM (APM) in 2002 (under which the petroleum companies were
assured of a reasonable return through controlled pricing).

Ever since the APM has dismantled, the PSU companies are given
authority to negotiate the prices at which they will be providing goods and
services to each other. They operate under name of OIL MARKETING
COMPANIES (OMC). Currently, under OMC three major oil PSUs i.e.
INDIAN OIL CORP. LIMITED, BHARAT PETROLEUM CORP. LIMITED
and HINDUSTAN PETROLEUM CORP. LIMITED work. It is basically a
consortium between the above said companies to provide goods and
services to the other company in case the assisted company is not having
refinery or other facilities at a particular place. This is being done to avoid
the transit cost which may be involved when that company gets the product
from it’s far of refinery and thus to help the economy as a whole. That is
because the PSUs operate with the purpose of social welfare also.In this
project, an in depth study of the accounting procedures under which the
OMC transactions are done, is being made. It also consists of the impact of
OMC transactions on IOCL in the last quarter of 2008-2009.

Also, an in depth analysis of the profitability of various products is being

conducted. It is being studied that which product is more profitable when it
has been sold through OMC than through the retail route.