Engine Management Light on 2002 Audi A4 2.0L petrol
 

really seeking some good advice/help here on a problem with my audi. If you have any expertise or experience please let me know.
I recently bought the car second with 80k miles on the clock. seemed to be in perfect condition.

Engine management system light appeared on the car roughly a week ago.
The car has been chugging slightly (increasing over time) since the EMS light appeared. There is limited power when i rev also. It does not sound too healthy. There seems to be oil burning from the top of the engine also

Can anyone shed light on what this may be associated with.

Really appreciate any response as money is tight, and cannot afford to be ripped off by half-sure mechanics