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Financial management and reporting 1.

General ledger
1.1 Journal Voucher booking 1.1.1 Journal entries Entries for Month end closing and their reversals Accruals and provisions Rectification entries

1.1.2 JV must Include Following details in: Approval by an authorized person. Narration/description Adequate supporting documentation must be presented for the JV approval

1.1.3 Post journal entries accurately: Restricting access rights to staff by using password Check mathematical accuracy Verify monthly journal entries and ensure that none are omitted/ duplicated Get approval for unusual transactions

1.1.4 Check omitted journal entries and timely record it Maintain detailed closing schedule- date, person responsible, etc. Establish cutoff dates for posting of omitted journal entries(4th of each month) Make all necessary accruals and deferrals at right time. Maintain Serial control of the journal vouchers, to prevent or detect missing JVs.

1.2 Inter Unit Reconciliation 1.2.1 Identify Inter unit accounts separately both general ledger and ARCL 1.2.2 Identify inter unit transaction Monitor and review unidentified entries on regular basis Monthly reconcile inter unit balance

1.2.3 Inter unit reconciliation should be effective and must not be forced match Prepare inter unit worksheet separately for each unit at end of every quarter. Approve work sheet by authorized person Send copy of work sheet to all relevant units.
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Reconcile worksheets with statements received from the other units and match each transaction. Reconciliations are to be reviewed by the finance controller for resolution of differences/outstanding issues with the other units. Resolve and communicate differences on a quarterly basis

1.2.4 Reconcile and report inter unit transaction on time Raise debit notes/ credit notes immediately with the originating transaction. Approve vouchers related to inter unit transactions with the debit/credit notes. Perform timely resolution of unrecognized transactions after appropriate approvals

1.2.5 Review cutoffs to ensure adherence to annual closing and reporting schedules statements for consolidation 1.2.6 Receive Inter unit statements/confirmations. 1.2.7 Convert Foreign currency balances at least at year-end rates also ensure that correct foreign currency conversion rates are used 1.3 Subsidiary Ledger Reconciliation 1.3.1 Regular reconciliation of Tally Fidelio income trial balance with general ledger on a daily/monthly basis. Tally ARCL and general ledger balance on a monthly basis. Tally the store ledger balances to the inventory accounts on a monthly basis Tally fixed asset ledger balances to the general ledger on a monthly basis.

1.3.2 Reconcile and resolve all items in the subsequent month 1.4 Depreciation 1.4.1 Categorize capital assets that are in the balance sheet and depreciate in line with applicable accounting standards and group finance policy. 1.4.2 Take measures to prevent change in useful life of a product Depreciation the useful life of each asset / classes of assets according to the local statutes with generally accepted accounting policies. Where the useful life is shorter than the physical life, get the depreciation rates reviewed by the finance controller. If change is made in the useful life, revise outstanding depreciation on date of change and it is to be allocated over the remaining useful life.
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Depreciate Leasehold assets over the lease period. In case of additional expenditure on the original asset depreciate it over the remaining useful life of the original asset.

1.4.3 Use correct method for deprecation Charge depreciation either on straight-line basis (SLM) or on written down value (WDV). Selected method is applied consistently from period to period. If any changes in the method of computing the depreciation, the finance controller has to authorize changes and will make the necessary adjustments. 1.4.4 Charge deprecation correctly on Written off Assets, Disposed Assets, and Transferred Assets After the asset is transferred or sold update fixed asset register with the sale/disposal or write off entry and stop the computation of depreciation. Historical cost of a depreciable asset may undergone a change due to increase or decrease in long term liability on account of foreign exchange fluctuations, price adjustments, changes in duties or similar factors. 1.4.5 Historical cost of a depreciable asset may undergone a change due to increase or decrease in long term liability on account of foreign exchange fluctuations, price adjustments, changes in duties or similar factors. 1.5 Book Closing Procedures 1.5.1 Stick to the accounting period closure. 1.5.2 All data entry to be completed before the closure, and all book closure entries appropriately approved and reviewed before (4th of the subsequent each month.) 1.5.3 Close all expenses and income accounting before the book closure. 1.5.4 Complete reconciliations of all sub-ledger to general ledger 1.5.5 Every unit has to follow the closure of checklist and include following Bank reconciliation statements Reconcile debtors and creditors Cut-off procedures Cash count and Cash in transit reconciliation Provision and prepaid entries Out of book adjustments
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Inter-Unit reconciliation General ledger review

1.5.6 Generate trial balance by reviewing the overall closure procedures. The finance controller and the general manager will review and analyze the results for the month end. 1.5.7 Avoid closing the books at month ends. 1.5.8 List and review accounting entries made subsequent to the period closure. 1.5.9 Prohibit back date entries using System-control 1.6 Ledger security 1.6.1 Enable ageing analysis 1.6.2 Get Confirmations from third parties. 1.6.3 Take timely action on issues arising from review. 1.6.4 Analyze the creditors balance bill wise on monthly basis

2. Monthly information system(MIS)


2.1 MIS Compilation 2.1.1 Closing procedure: The accounting period closure should be prior to preparation of MIS Get approval of all book closure entries must appropriately Provide list of any accounting entries outside made subsequent to the period closure but included in the MIS. Reconcile all sub-ledgers to General ledger. Checklist followed by every unit. Must include o BRS o Cut-off procedures (Purchase, Material Receipts, Sales) o Cash count o Provision statement (Inventory, Debtors, advances, Others) o Out of book adjustments o Reconciliation-(Debtors, Creditor, Payroll) o Physical Inventory Reports (Liquor, MFP, Engg Stores, Other stores) o Inter-Unit reconciliation o Provisions and accruals (Adequate provision/ accrual exist for all key expenses)
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2.1.2 MIS report generation Compile and circulate daily reports which must include raw material cost report (MMS) and energy tracking (Engineering department). On a monthly basis Flash report is compiled which includes: o Profit and Loss account o City competition scenario o Room segment analysis o F&B Income analysis o Other income analysis o Power and Fuel variance report o Administrative expenses o Manpower o Debtors o Creditors o Inventory o Project/ Renovation status o GSTS/ RSTS Scores o EVA o Performance reports on special initiatives (TOP, Oracle implementation) o Various ratios In this report include figures for current and previous period, variance with budget, and next month forecasting. The budget figure included in the MIS should be the budget sanctioned to the unit by the board 2.1.3 Information flowing into MIS: The reports must be duly reviewed and signed by head of department and then forwarded for compilation as per the process. If any External adjustments/ estimates are present support it with approved document and explanation Identify if any intrinsic errors do Variance analysis of all expenditure heads.

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Financial controller of the Lodge should review the reports prepared and signoff before they are forwarded to management.

2.1.4 Do not delay compilation of MIS Establish frequency and reporting deadlines for submission of data to Accounts department. Compiling the MIS and forwarding the same to management before the deadline (8th of every month). 2.1.5 Corporate has defined standard formats for collation of information and unit must adhere to the same. 2.2 Reconciliation of MIS with Finance 2.2.1 If any External adjustments/ estimates are present support it with approved document and explanation 2.2.2 Prepare reconciliation statement. 2.3 Receivables MIS 2.3.1 Reports on key ratios, trends and variances prepared for management review. Reports must include Receivables turnover, Ageing analysis, Provisions, Bad debts write off, Collection percentages, Accounts receivable balances.

2.3.2 Maintain accuracy of receivable reports in MIS Credit Manager should ensure that MIS carries correct figures and they tally with ARCL. FC should review MIS reports Reconcile, identify and provide document in case of differences between ARCL and books. 2.4 Income apportionment for plans 2.4.1 Rate apportionment plans

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Financial Controller must work out rates for apportionment of income, including revisions. All plans must clearly specify the Lodge to be credited, tax % etc.

2.4.2 The FC must send plans/ revisions to Systems manager for updation of rate plus other details such as tax rates, department to be credited etc. 2.4.3 All rate plans and changes to rate plans are forwarded by the Systems manager to CRO for uploading.

3. CASH:
3.1 Receipts 3.1.1 Maintain safety and timely recording of manual cash receipt book if receipt books are manual maintain a proper record Receipts are to be pre-numbered and use it in sequence and keep unused receipt books in safe custody. Alteration if any it must be duly authorized and canceled Void receipts must be defaced and authorized with a narration of reasons for cancellation Account all receipts in cash register

3.1.2 All cheque received must contain adequate details, such as: Name of the party, Amount Payment against

3.2 Front office cash 3.2.1 The Front office Cash should be used only for the following purposes as given in the ICM: Offering change to guests Foreign Exchange encashment Bonafide guest Paid-Outs Refund of guest advances For any emergency purpose specifically authorized by the Lodge Financial Controller
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3.2.2 Reconciliation of cash floats A cash handover report to be prepared by front office staff at the end of each shift At the end of each shift, the front office cashier should remits all funds received. Cashiers will print at end of the day totals from Fidelio and reconcile their receipts. 3.2.3 policy and giving IOU IOUs from the Front Office are prohibited (in accordance with the ICM). Pick up all deviations at night audit and bring to the attention of the General Manager

3.2.4 FO cashier and general cashier must acknowledge payment and receipt. 3.2.5 FO cashier before disbursement should check eligibility. Obtained acknowledgement for all paid out in respect of all crew allowance Accounting in correct folio should be checked by night / income audit

3.2.6 Only authorized paid outs can be made from the front office Paid outs are allowed only for residential guests. The guest signs a paid out voucher which has the following details o Name and room number o Amount in rupees o Reason for paid out o Duty managers signature o Recipients signature The guest folio must be immediately updated with the paid out amount by the front office staff. A duty manager can authorize only Rs 5,000. For paid outs above Rs 5,000 the front office managers must authorization it (for crew allowances no such approval required from LM). 3.2.7 Proper maintenance of cash receipts A guest folio for all advances collected at the time of reservation. The system automatically generates a cash receipt once an entry for cash is made in the Fidelio. The cash receipt printed will have the name of the front office staff that has received and closed the folio for tracking. The cash receipt needs to be signed by the front office staff.
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Incase guest pays cash beyond Rs 25,000 their PAN number is asked for and noted or else name and address is taken and noted Receipts issued for all advances collected at the time of reservation.

3.2.8 For credit cards/debit cards Card validity is checked and settlement is done by swiping the card and the charge slip is signed and attached with the bill. A guest folio closed with credit card payment settlement is clearly indicated by an entry in Fidelio system. Cheques are not accepted at front office for settlement. In case of settlement by inner circle point redemption the IC voucher signed by the guest is attached along with the bill and sent to TIC cell. 3.2.9 At banquets Policy exists for cash collection and is strictly adhered to. As per policy memo dated 25 June 2003, for cash receipts exceeding Rs 25,000, obtain any of the following PAN or General Index number Declaration in Form no. 60 / 61. Details of guest viz. name and address.

3.2.10 Effective control over cashier wise transactions Cashier wise cash books are maintained in Fidelio Physical cash floats must be maintained individually cashier wise

3.2.11 Physical security of the cash at front office. Restrict access to the front office cash. Store cash in a safe locker. The safe keys should be kept with the front office cashier and the second one in custody of general cashier and general manager in a sealed envelope. The sealed envelope will be opened and resealed when there is a change in cashier.

3.3 Lodge Cash turn in procedure 3.3.1 Safety of Lodge cash Tally all collections with the cash summary report of POS and deposit in the drop box or front office on a daily basis

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Prepared manually Lodge sales bills and verified it with the summary for accuracy and postings

3.3.2 Do adequate documentation and witness of cash drops from Lodges. When an employee drops his envelope in the drop box, an employee in the vicinity must witness the drop. Detail of the drop will be witnessed by cashier and located in a logbook beside the drop box. Where drop box facility is not available the cash from Lodges is deposited at the front office that turns in the total cash to the general cashier. Front office tallies all cash collected and acknowledges 3.4 General Cash 3.4.1 Reconciliation, physical verification and security of cash Physical verification of cash to carried out by the cashier and agreed and reconciled in totality to the book balances. o Independent verification of all cash and impress funds is carried out at least twice a month o Once at month-end, and o Once a month on a surprise basis Detailed written record of physical verification of cash is maintained. Access restriction to the general cashier cabin and storage of cash in safe locker. The safe keys are with the general cashier and the second one in custody of general cashier and front office in a sealed envelope. The sealed envelope is opened is resealed when there is a change in cashier.

3.4.2 Witness along with the general cashier The general cashier, and the security guard, should open the cash drop box and remove the remitted envelopes and check the amounts stated on the envelope with the amounts in the logbook. The general cashier and the security guard should signs the logbook for the number of envelopes found and removed. 3.4.3 Verification and documentation of cash and cash envelopes

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The general cashier will count the content of the envelope in the presence of a witness and record in the general cashiers daily summary Where drop box facility is not available the cash from Lodges is deposited at the front office who turns in the total cash to the general cashier

3.4.4 Duties of the cashier are segregated from Performing the billing function performing work on creditors, debtors Following up on collections and ageing of debtors

3.4.5 High control over cash payment Cash payment vouchers are to be adequately supported, serially numbered, signed and all supporting are defaced. Accounting has to be done for all cash payments.

3.4.6 Proper accounting of IOUs Approve all IOUs Mention the purpose, date and the amount of payment. Settle these within two days Record all IOUs in the cash scroll Record open IOUs as a part of daily cash verification

3.5 Petty Cash 3.5.1 Use of float maintained by the accounts Respective head of department and financial controller should authorize all payment. Surprise check of float to be done by income auditor once a month.

3.5.2 Adequate control over petty cash vouchers Prepare petty cash vouchers for all expenses incurred; vouchers should pre-numbered and approved before they are fed into the system. Maintain a register for petty cash float. Post petty cash expenses the ledger. Petty cash payments are restricted to a maximum of Rs 5,000.

3.5.3 Replenishing the float amount Deface all reimbursed petty cash vouchers. Do replenishment of float timely also when the limit is reached.
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4. Bank
4.1 Daily banking process 4.1.1 Cheque/ cash to be deposited on receipt or on a daily basis Deposit all cash/cheque received daily or by the next working day. Use armored car service, or two persons must take the deposit to the bank If delay in banking due to exceptional circumstances, then record it with reasons in writing and to be authorize by the unit Financial Controller. 4.1.2 Cash/bank receipts must be recorded accurately and timely Record Cash/bank receipts in the correct account and in the correct accounting period on a timely basis and to be reviewed by an authorized person Accounting of Receipts of cheque/demand drafts through bank receipt vouchers and cash receipts through cash receipt vouchers has to be done and all vouchers are to be serially numbered. 4.1.3 Keep Cheque and drafts in a secure place and deposit it in the bank daily. 4.1.4 Document and securely store all the post-dated cheque until they are due for payment. 4.1.5 Cross all uncrossed cheque/demand drafts received from outside parties as account payee only. 4.1.6 An independent person from credit along with cashier will open cheque received through the mail. Cheque received is fed into the system and is listed, detailing the date when it received, cheque number, amount and name of the party. 4.1.7 Reconciliation of daily banking transactions to be done regularly. Reconciliation of pay in slips is with the bank receipt voucher has to be done to ensure that all receipts have been banked and deposited. Total amount of daily deposits as shown in the bank statements reconcile it with the totals of the daily cash receipts in the cash account in the system 4.1.8 In case of high value cheque send for high value clearing. 4.2 Cheque payment 4.2.1 Unauthorized payment made with Inadequate supporting and Unauthorized signature: Book bank payment using bank payment voucher only. Two authorized signatories are required to sign the cheque

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Review that cheque payment amounts are not subdivided to circumvent cheque signatory limits. Stamp all supporting documents as PAID to prevent future misuse. And one signatory must be done on the voucher and supporting. Obtain a proper receipt from the person to whom the payment is made.

Deface the voucher as CANCELLED and filed when a voucher is cancelled Payments to 3rd party name must be backed by authorization from the concerned creditor.

4.2.2 Blank Cheque Cheque must be stored in a safe place with restricted access Pre-number all cheque and accounted periodically If any break in sequence of cheque stock check why so. Cheque books obtained from the Bank with individual cheque crossed A/c payee, or so done immediately on receipt. Keep Record of all cheque books right at the stage they are requisitioned from the bank 4.2.3 Written Cheque Record cheque number in the cheque book in the system Signing of post dated and blank cheque is prohibited. Use cashiers cheque only for withdrawal of cash for office use only. When letters of instructions are issued for payment/purchase of demand drafts etc these are to be backed with a cheque favoring the bank. All cheque favoring the bank must indicate the purpose on the face of the cheque. Stamp cancelled immediately on any mutilated/spoiled or cancelled cheque Maintain all cancelled cheque in the files with the record retention policy Updated the records to include replacement of cheque. Make stop payment for cheque reported lost before reissued,

4.2.4 Cheque cancellations has to be documented

4.2.5 Following security safeguard to be used while preparing the cheque: Use of reverse carbon
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Super scribing not over Rs Security sticker on the amount figure. Use of cheque writers

4.2.6 Payments on behalf of other units Obtain proper approvals from the respective units for payment made. Do not make Payments to the black listed parties.

4.3 Bank reconciliation statement 4.3.1 Not preparing bank reconciliations on a periodic basis Review bank high value transactions on a daily basis Prepare bank reconciliation statement and sign off on a monthly basis.

4.3.2 Non segregation of functions Person independent of those performing receipt, cheque issue or any other banking functions, performs bank reconciliations. If for reasons of lean manning it is not possible, then the BRS must be reviewed by the unit Financial Controller / accounts manager. 4.3.3 Identifying stale cheque. Transfer cheque not presented to the bank for 6 months from the date of issue to a stale cheque a/c. Ensure that appropriate supporting i.e. a copy of the stale cheque or an indemnity by the payee backs up any payment against an amount in the stale cheque a/c. 4.3.4 Errors in the bank statement, Bank charges and other debits, Other reconciliation/ unidentified items Check and agree with unit records interest calculations and all charges debited by the bank. Follow up in writing with the bank for all unlinked transactions appearing in the bank statement to be done, by accounting management. Investigate unusual reconciling items, amounts reported by the bank that have not been recorded by the unit, deposits in transit, and cheque that have been outstanding for long periods. Promptly followed up differences thrown up on account of reconciliation. It is the responsibility of the accountant
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Follow up on cheque clearance Follow up on cheque dishonored and account for the same.

4.3.5 Obtain bank conformation on periodic basis. 4.3.6 Cheque dishonored Bank communicates immediately to the respective units and sends all dishonored cheque by post or courier addressed to the Financial Controller or hands them over personally only to person(s) authorized in writing to collect the same. Keeps a record of all dishonored cheque including details of follow-up action and eventual recovery. All cases of dishonored cheque and their eventual recovery are reflected as entries in the defaulting partys account. 4.3.7 Adequate cut-off procedures for cash receipts and disbursements Cheque received prior to period end and deposited on the next working day only are considered as cheque-in-hand Cheque issued and prepared up to the last working day of the period to be booked. No blank cheque are to be left for the previous period, and the cheque are to be serially continued in the next period 4.4 Bank a/c opening & maintained 4.4.1 Appropriate bank opening procedures Bank accounts are to be opened with the authority of the Board of Directors by passing an appropriate Board resolution. All requests for opening of bank accounts are routed through the respective units financial controller, with information to the respective divisional General Manager. Each unit maintains a list of Bank Accounts under its control, together with appropriate Board Resolutions and list of signatories. 4.4.2 Authorized signatories. Cheque signatories are authorized by the Board through a special power of attorney or specific resolution. All requests for additions/deletions to the list of authorized cheque signatories are initiated by the unit Financial Controller

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Each Unit lays down internal guidelines specifying levels of authority for cheque signatories, and these are approved by the General Manager and Chief Operating Officer of the respective division.

Banks are intimated to add/ delete cheque signatories by the finance controller of the unit, immediately on transfer of the manager/signatory, including specifically for non operative accounts Finance controller initiates the process of approaching the Board for updating the signatory lists.

4.4.3 Action are taken to close the non operative accounts by the FC 4.4.4 Common pool of funds Deposits and payments are managed in a manner to have a common pool of funds for treasury management Surplus funds are identified and appropriately invested/transferred to corporate office as the case maybe. 4.4.5 On a regular basis access fund requirements and communicated to corporate office for funds being made available. 4.4.6 Transferring funds in case of IHCL properties All collections are deposited into the sweep bank account daily by the IHCL units. Any exceptions to the above are to be approved by corporate treasury.

5. Advances
5.1 Advances 5.1.1 Advances given to suppliers/contractors Advances to supplier/contractors are to be kept to the bare minimum. Advances are cleared by the GM of the Lodge and, if in excess of Rs.1lakh, needs to be signed off by respective SBU FC. 5.1.2 All advances have clear terms predetermined with respect to recoverability, tenure of loan, pattern of recovery like monthly or one time recovery and interest payable. 5.1.3 Advances are reviewed in a timely manner by the FC 5.2 Deposits others 5.2.1 Deposits given to parties to be recorded and accounted properly Deposits given for electricity, housing etc are as per the norms and are accounted properly under loans and advances.
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New deposits given for telephone are expensed off.

5.2.2 Recoverability of deposits On cancellation of services the deposit has been refunded by the authorities and is properly accounted for. Housing deposits for Lodge employees are refunded at the time of lease termination /service termination. 5.2.3 Accounting of interest properly Deposits given, which are interest generating, are accounted for properly and are shown as other income. Accruals are accounted for on a quarterly basis.

5.2.4 Documents for deposits are maintained separately in a manner to facilitate easy access at the time of recovery.

6. Receivables
6.1 City Ledger Transfers 6.1.1 Posting and transfer of Receivables from Fidelio to financial accounting package (ARCL) Fidelio directly interfaced with Financial accounting system whereby Debtors balances is transferred directly to accounts receivable control ledger in Financial Accounting package. Every morning credit department uploads the invoices into Financial Accounting package. Credit department generates Balance check report from Fidelio and verifies whether the same has been posted correctly. Credit department ensures that City ledger settlements have been duly posted to ARCL and the control totals matched. 6.1.2 Account transferred to city ledger must have the necessary credit approvals Credit Managers ensures that all transfers to City Ledger are checked daily for appropriate documentation of credit extension approvals in case of adhoc credit and by appropriate billing letters issued by respective companies in case of guests in credit list. Any exceptions is followed up with the concerned managers so that the laid down documentation is complete; all exceptions is reported to the Lodge General Manager
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6.1.3 Credit Manager shall ensure that: All supporting documents/correspondence such as the reservation request from a company, request for extension of credit and its approval are attached to the registration card. A copy of the used registration card along with all other supporting is attached to the accounts copy of each bill sent to credit department. Transfers bills with documentation, which will facilitate follow up 6.1.4 Debtor balances must be complete, accurate and reviewed by senior management: Bill copy along with billing letter is forwarded by the front office to credit department for verification. Credit department verifies the balance transferred to ARCL. Debtors balances are reviewed by the FC and forms part of MIS forwarded to SBU head. 6.1.5 Restricted Access to accounts receivable records. 6.1.6 Access to accounts receivable files and data used in processing receivables is restricted to credit department and FC. 6.1.7 Access rights are reviewed on a periodic basis and accordingly updated. 6.2 Follow up & Collection procedures 6.2.1 periodic and systematic method for the review and monitoring of Accounts Receivable: The Credit department reviews the accounts receivable balances regularly to initiate collection efforts on all accounts outstanding beyond standard credit period of 30 days for Travel Agents and 15 days for all other categories. Collection efforts are adequately documented in credit files for future evaluation.

6.2.2 Collection efforts or outstanding accounts should be followed up in a time. On a monthly basis the receivables status is reviewed in the credit committee meeting. Prime responsibility for debt collection rests with each Lodge Credit Manager who ensures that reminder letters are sent at appropriate intervals to each party who has outstanding accounts receivable balances.

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Collection responsibility is allocated among the credit department staff. Once an unpaid bill reaches a trigger point the responsibility of collection will also devolve on the Sales & Marketing Office which handles those particular account.In cases of adhoc credit/one-time credit, responsibility of the manager authorizing the credit to collect the amount due, within the due date which shall not be more than 15 days.

Data about outstanding is sent to Central Collections Cell on a monthly basis. Additionally o/s more than Rs 25000 and more than 60 days is sent to Corporate credit at Mumbai for scrutiny.

Outstanding statement is scrutinized and reviewed by the Credit Committees.

6.3 ARCL maintenance 6.3.1 Customer accounts opened in ARCL with after credit evaluation is done. For all new customer accounts created in the ARCL, the credit Manager should sign off the form as envisaged in the credit policy. Approval of FC and GM for all new accounts created in the ARCL is taken. For all temporary accounts or onetime credit accounts like banquet credits, adhoc credit authorization form is available for all additions. 6.3.2 Maintain customer master on a regular basis which would include - Making the customer active when the client is blacklisted.- Customers not active to be deleted from the master Controls are in place to ensure customer information entered into the master file data is accurate and valid. Annual review of the Customer Master File in detail and removal of all in inactive customers accounts that have not had any activity by credit department. Based on the Credit committee decision the client is made inactive in the customer master in the ARCL by credit department. Regular maintenance also includes deleting two or more codes created for the same customer. One time ARCL credit customer codes to be maintained under a separate group.

6.3.3 Updating/modification of customer accounts for any changes in profiles: Process in place for updation of customer accounts for changes in profiles by documenting and maintaining the changes for data.
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All changes to approved by the credit manager.

6.3.4 Receipts are to be matched against Invoices raised Receipts are matched against Invoices raised Periodic review of unadjusted credits and action to be accordingly taken.

6.4 Allowances, provisions & write off 6.4.1 Write-offs must be approved and reviewed Write-offs are centralized and units do not have any authority to write off overdue accounts. All writeoff entries can be passed by the unit only on the approval of the Sr VP Finance. 6.4.2 Unauthorized allowances at the back office All back office allowances are done only for invoice corrections and are done with in six months from the date of invoice. All back office allowances to be documented and approved in writing by respective LMs and GM. 6.4.3 The bad debt provision should be correctly calculated As per the Taj policy all Debts exceeding 1 Year are to be provided for and in case of government customer provisions would be made for Debts exceeding 3 year. Bad Debts provision is created based on Taj policy by the FC of the unit based on the directives of corporate finance. Corporate finance department reviews the valuation reserves for adequacy and reasonableness on a periodic basis, and makes adjustments as required. Bad Debts provisions to be debited in the monthly Financial MIS.

6.4.4 Customer account write-offs should be adequately documented and approved. 6.5 Credit committee review procedures 6.5.1 Standard procedures to be followed by the credit committee. All the units have a credit committee. Lodge credit committee compromises of GM, RM, FC and Lodge Sales Manager, Credit Manager and Invitees would include Front office Manager, F&B Manager and Banquet Manager, Person from Central Collection.

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Formal, written policies and procedures for granting credit and establishing credit for new and existing customers are documented in the credit manual Formal, written policies and procedures for granting credit and establishing credit for new and existing customers are documented in the credit manual.

6.5.2 Periodic review to be done by the unit credit committee Each Credit Committee meets fortnightly for the first 6 months and thereafter at least once a month, serving as a clearing house for interpretation and enforcement of the Taj Group Credit Policy, and a source of new ideas. All committee decisions are minute A copy of all Lodge Credit Committee minutes is marked to the (respective) Divisional Chief Operating Officer for information and record

7. Inventory
7.1 Receiving, QC & rejection 7.1.1 Segregation of duty or Task of receiving goods into the Lodge has to be independent from the task of purchasing goods and maintaining inventory. Purchase orders are raised by Purchase Department. The goods are first received in the receiving department and Receiving Report prepared. In case of perishables and other direct issue items, receiving is acknowledged by user department. Goods are then transferred into stock ledger by Stores.

7.1.2 Receipt of goods should be by Purchase Order. System would not allow any goods to be received if there is no P.O created in the system. All P.Os raised subsequent to materials being received need to be authorized by the FC. A report giving P.Os being raised subsequent to receipt of material is generated on a monthly basis and forwarded to GM/ Head Materials/ FC. 7.1.3 Acceptance only after checking the quality.

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Specifications and standards of items are mentioned in the P.O placed with the vendor. Standard specification parameters laid down by corporate is adhered at the time of receiving and deviations/ rejections are recorded are reported periodically. Receiving personnel as well as User department representative carries out inspection of all goods, by means of appropriate statistical sampling or a 100% check prior to final clear acceptance of the goods.

Receiving bay is equipped with a weighing scale to check the weight of material received and weight is tallied against order placed. Receiving checks the expiry date of items before receipt and less than 3 months to expiry are rejected. The individual receiving goods and then the inventory clerk (or their equivalent) stamps the RR to evidence the checks performed

7.1.4 Goods received must be as per the order placed or Quantity received in must be as per order placed. Goods are accepted as per the terms of the P.O. In case of items where it is difficult to receive the quantity as ordered e.g. chicken, fish etc a 5% variation is allowed. However all excessive quantity need to be approved. Variance in quantity and weight is to be documented. Goods not in accordance with the terms of P.O need to be approved by the appropriate authority before final acceptance. 7.1.5 Receiving Report should be prepared on timely basis: Check the dates on delivery challans with Receiving Report delays to be signed and reviewed periodically. Invoices would not be recorded without RR.

7.1.6 Maintain a track of rejections or Returns and report to accounts for reducing the liability and costs If material is rejected after receipt of goods, the supplier is informed of the same and instructed to replace the goods immediately. A gate pass is issued to the supplier for the rejected materials.

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In case of excisable goods, which are few, replacement is called for all and challan accompanying this is marked as goods rejected. Rejections are recorded in the new Orion system through reason code which would help in quality and supplier performance analysis.

In case RR had been prepared and the goods sent back to the supplier on account of quality rejection, an advice is sent to accounts department by stores through an inter office memo for raising a debit note on the party.

In case due to material rejects, items are procured from the open market at a higher cost, the loss suffered to be recovered from the vendor Reports detailing returns to suppliers be generated and reviewed by management

7.1.7 Correct accruals: At month end entry for total purchase is done on the basis of goods received note from store module by account. Accruals are verified by the FC and signed off before posting.

7.2 Issues & consumption Booking 7.2.1 approved requisition has to be prepared for all items leaving the stores Issues from the stores are made based on approved requisition from the concerned department head in case of stock items. The requisition is received online. In case of perishable items, such as fruits, vegetables etc the chef orders perishable items through the daily market list in the system. Perishable items are given directly to the kitchen. The stores keeper prints out a copy of the requisition and receives acknowledgement of person receiving the items from him. The issues are entered in the system to update the stores ledger. 7.2.2 Material has to be physically issued on FIFO basis Stores in-charge ensures that items are issued on a FIFO basis. On receipt of items in the stores, it is ensured that last received items are stored behind to ensure issue through FIFO basis. 7.2.3 Avoid Issue of expired materials which are to be used in the kitchen The Store Keeper keeps a track of the expiry dates of each item in the stores and that the Items are used before their expiry period.
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Store keeper issues items based on expiry dates. The Store Keeper ensures that items are not kept beyond their expiry date. The expired items are being disposed immediately and records are maintained.

7.2.4 Stores in charge checks the issues entered in the system with the requisition raised by the user.Also any discrepancy would be highlighted in the monthly stock check. 7.2.5 Inventory records are to be updated for issues. All issues are updated in the stock register at the end of the day by the stores in charge. Even in existing system the process is same in MMS.

7.2.6 Accounting for consumptions should be accurate Consumption is based on issue summary for the month. Purchase/ Closing stock is reconciled with Stores ledger on a monthly basis. CGS items to be charged to consumption on being put to use.

7.3 Slow moving & Obsolescence monitoring 7.3.1 Avoid Purchases of non Moving Items There may a need to stock all the items even if they are non-moving, however the stock levels for the same to be prescribed and the same needs to be monitored. Stock levels for non-moving to be kept at minimum. Fresh orders to be placed after consulting the existing inventory levels and with due justification. In case of Non-moving and slow moving the ageing to be regularly reviewed.

7.3.2 Identification and review of slow moving/non-moving and obsolete stocks to be done on a periodic basis. The inventory system to be configured to flag slow moving item.(Orion control) Slow moving item lists to be prepared at least quarterly for each storeroom; the report is reviewed by the controller and circulated to the General Manager and department heads. There must be evidence to support the efforts taken to move the items. If the item has not moved for twelve months it will be force issued to the department initiating the purchase, or written off if obsolete. Stores in-charge sends the list of non moving items in case of food stuff to the executive chef for action. Items are then liquidated based on his directives.
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Obsolete stock is identified during physical verification and auctioned off. Provisions/Write off made with the necessary approvals.

7.4 Physical verification & adjustments 7.4.1 Physical verification of Food stores, General stores and engineering stores is done monthly. Physical verification of Liquor inventory in the Lodges is done on a daily basis while at the liquor store it is done on a monthly. 7.4.2 Physical verification of Food stores and General stores is done in the presence of F&B Cost controller. Liquor inventory stock count is done in the presence of F&B cost controller. Physical verification of items in the engineering stores is done in the presence of finance personnel. 7.4.3 Stock counts are performed blind; the inventory statement is generated and handed over to the F&B cost controller. The stores in-charge counts the items and they are then reconciled by the F&B cost controller with the stock records. 7.4.4 Material differences between the physical and book stock must be investigated and actions to be documented. Physical stock against book stock is verified and variation either positive or negative is recorded. Variances between the physical stock and book stock are analyzed. Variances can be on account of breakage/ spoilage/ spillage or excess or short receipt or issue. All large variances are investigated and reasons recorded. The Cost controller is required to document the action taken to redress the stock imbalance. 7.4.5 Adjustments to the inventory made must be with approvals The list of variances is sent to the FC of the unit. All adjustments to the stock are approved by the F&B Cost Controller, FC of the unit.

7.5 MFP storage 7.5.1 Proper storage facilities for Meat, Fish and poultry helping in minimum wastage of MFP items and adulteration of items and consequently contravention to the PFA act. Meat, Fish and Poultry are stored in a separate cold storage at appropriate temperatures as indicated by Microbiological standards. All walk ins, reach ins and deep freezers are maintained for ensuring temperature standards.

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The temperature of the storage is less than -18 C for meat and fish and less than 5 C for poultry. The temperature of the deep freezer is checked daily by engineering department and periodically calibrated. The deep freezer is cleaned on a daily basis. All the cuts stored are labelled with date of receipt to ensure FIFO issue and disposal of expired items.

7.5.2 Deep freezer stores should be adequately secured by lock and key and access to the stores must be restricted Deep freezer is adequately secured with lock and key Access to Deep freezer will be restricted to assigned inventory clerks.

7.5.3 Requisitions approved by the relevant department head are being prepared for all items leaving the deep freezer. Butchery Kitchen chef will make a requisition for wholes against stores by predicting future requirement from kitchen. Issues from the stores are made based on approved requisition from the Butchery chef. The requisition is received online. The stores keeper prints out a copy of the requisition and receives acknowledgement of person receiving the items from him. The issues are entered in the system to update the stores ledger. Meat and Fish is then forwarded to the butchery department for cutting and cleaning. Lodge kitchen would order the processed items from the butchery store. 7.5.4 Movements of perishable items in the deep freezer are monitored closely. A list of items lying in the freezer is drawn up and forwarded to executive chef for liquidating the stock. 7.5.5 Fix butcher yield and high review of yield Butcher standard yield has been fixed for all MFP items. Actual yield is compared to the standard yield on a monthly basis. Report for same generated and forwarded to Purchase head and GM.

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Yield variance being taken up by purchase to supplier when the variance is between what has been assumed at the time of purchase price determination and action taken accordingly.

7.6 Monitoring of inventory controls 7.6.1 Inventory levels and reorder levels determined Minimum, Maximum, and Re-order levels have been fixed for all the items of stock based on consumption pattern, requirement and lead time. These have been defined in the system. Minimum, Maximum and Re-order levels are reviewed periodically and changed accordingly. Minimum, Maximum and Re-order levels have been defined in the system. Purchase requisition is automatically raised in the system when re-order levels are reached. Stores in-charge on a weekly basis runs the min-max report which given the list of items that have reached the re-order levels. 7.6.2 Avoid Keeping too much inventory on hand or Situations of Stock out Stocks are to be maintained as per the levels fixed for each item. Purchase Requisition is raised by stores, based on the min-max report and verification in the stores ledger. In case items to be procured are in excess of the maximum stock levels these need to be appropriately authorized by the GM/FC of the unit. 7.6.3 List of all critical items is available with engineering department. It is ensured at all time that there is a sufficient stock of these critical items by engineering stores. 7.6.4 Inventory stores should be adequately secured by lock and key and access to the stores must be restricted to assigned inventory clerk Inventory stores is adequately secured with lock and key Access to stores is restricted to assigned inventory clerks.

7.6.5 Inventory is valued on the basis of moving weighted average or Net realizable value whichever is lower as per the Taj policy. Inventory valuation is reviewed by the FC and signed off. 7.7 Liquor inventory 7.7.1 Proper purchases of non Moving Liquor brands
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There may a need to stock all the brands even if they are non-moving however the stock levels for the same to be prescribed and the same needs to be monitored. Reorder levels to be fixed at minimum for non moving brands.

Fresh orders to be placed after consulting the existing inventory levels. In case of Non-moving and slow moving the ageing to be regularly reviewed.

7.7.2 Purchase of imported liquor by paying duty and under the EXIM policy and as per the Taj policy Procedure for import of liquor is communicated by corporate purchase to all the units. Foreign liquor for all the units under the luxury division is imported under a single license. Corporate purchase forwards the license copy to unit purchase. P.O is authorized by the FC and GM of the unit. In case due to certain emergencies imported liquor has to be purchased by payment of duty, approval of GM and Materials head Corporate to be taken before placing the order. 7.7.3 Issue of liquor from the main store to the Lodge must be valid approvals leading to Contravention of excise laws and misappropriation of liquor. Lodges raise requisition duly authorized by Lodge managers to FL-1 store room for their imported liquor requirement. All issues from the FL-1 store room are supported with FL 9 form duly authorised by the excise inspector. 7.7.4 Independent, appropriately conducted inventory counts being carried out Physical verification of Liquor inventory in the liquor store is done on a monthly basis with the stock as per excise register. Liquor inventory stock count is done in the presence of F&B cost controller Variance between excise records and physical stock is adjusted after approval.

7.7.5 Liquor stores must be adequately secured by lock and key and access to the stores must be restricted to assigned inventory clerk Liquor stores is adequately secured with lock and key Access to Liquor stores is restricted to assigned inventory clerks.

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Expenditure 1. Procurement Materials


1.1 Annual rate contracting process

1.1.1 Coverage of regional purchase Data submitted to Regional purchase/central purchase committee should be comprehensive and include perishables, provisions and other raw material for food production giving consumption of immediately preceding calendar year and average cost. Process of compiling and verification by Regional purchase/central purchase. Identification of regional and national purchase items by Committee 1.1.2 To obtain copies of trade prices and compare the same with the contracted rates and downward revision to be done wherever possible. 1.1.3 Stick to method of purchases suggested by the corporate. The method employed for purchases could be Cost Plus, Auction, Negotiations based on Quotes. The method followed for purchases to be defined for instance: Services should be bought based on Cost Plus Mechanism, Commodity purchases based on Auctions and negotiations List of all the items and the method of purchases to be followed to be available to the units Exception report for deviations to be generated.

1.1.4 For regional contracts - invite quotations and more than 3 vendor has to be identified for each contract 1.1.5 Recommended purchase strategy must be followed for regional purchase 1.1.6 Negotiation process should be effective and Comparison statement prepared should not contains errors / commissions / omissions 1.1.7 Review market trends vis--vis Contracted rate during the contract period 1.1.8 Have predefined time lines and strictly follow this. 1.1.9 Adherence to brand stands in procurements. 1.1.10 Proper system for identifying alternate vendors and continuous vendor development

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1.1.11 Vendor evaluation on different criteria like Quality, Price, satisfaction of the user, adherence to delivery schedule, rejections, quality specifications etc to be done on an annual basis for all major suppliers.
1.2 Adherence to RPC / CPC

1.2.1 Regional/national contract which will include party, Quality, Rate, Volume discounts Comprehensive list of contracts (regional/national) are available with the unit. Deviation individually justified with financial implication and approved by unit Purchase committee and documented with logic note. Process to compile deviations and Communicating the same to the central purchases

1.2.2 Unit to send a list of purchases which are eligible for free stocks or discounts to Central Purchase on a quarterly basis.
1.3 Purchase Process-Others

1.3.1 Identify alternate vendors and have continuous vendor development 1.3.2 Vendor evaluation on different criteria like Quality, Price, satisfaction of the user, adherence to delivery schedule, rejections, quality specifications etc to be done on an annual basis for all major suppliers. Request for quotations not sent out to vendors i.e. not more than one vendor has been identified for each contract As many quotations to be invited from vendors but not less than three quotes.

1.3.3 If minimum three quotes are not available purchase committee to authorize and prepare a logic note to this effect. 1.3.4 Documentation of the negotiation process Purchase documentation must include comparative analysis. If competitive quote is precluded due to a sole or limited number of Contractors, this fact should be reflected by logic note. 1.3.5 Method of Purchases suggested by the corporate. The method employed for purchases could be Cost Plus, Auction, Negotiations based on Quotes. The method followed for purchases to be defined for instance: Services should be bought based on Cost Plus Mechanism, Commodity purchases based on Auctions and negotiations

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List of all the items and the method of purchases to be followed to be available to the units

1.4 Order placing

1.4.1 Reorder levels are fixed based on lead time, minimum stock and future requirement for the all the stock items. Indents are raised by stores when stock reaches Reorder level in case of Stock items. In case of daily bazaar items are procured daily based on indent raised by chef. In case of Non stock items when requisition duly authorized is received from the user 1.4.2 Approval of Indents at the appropriate level prior to the order is placed. Indents are to be approved by the concerned department head. P.O to be raised only if there is an approved Indent. System control whereby only on receiving an approved indent, purchase department will be able to generate a P.O. (Orion) 1.4.3 Purchase orders are to be approved at the appropriate level 1.4.4 Standing orders in MMS must be in line with RPC contracts All standing orders are reviewed in the system by Chief Accountant to ensure that only items contracted has been entered in MMS and rates are also as per contract. Specifically check that non-contracted items are not included in standing orders.

1.4.5 Purchase orders must not be duplicated 1.4.6 Purchase Order- Purchase Order should be comprehensive and must contain clauses for Taxes, Transportation and delivery schedule 1.4.7 Avoid Pending Purchase orders- Purchase commitments made should be effectively tracked. 1.4.8 Have budgeted purchases of stock/perishable items 1.4.9 Have Standard spelt out SBU wise for procurements. Adhere to this Standardization with respect to procurements. 1.4.10 Access to Vendor Master is must be controlled or Changes to the master file are adequately 1.4.11 Access given to the employees should be in line with the job function. Access rights must be evaluated on an ongoing basis.
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1.5.1 Control over Cash Purchases A monthly report of all the cash purchases giving the following details is generated: o Items purchased o Quantity o Market Price o Actual Price paid o Contracted Price if any o Value Review of such purchase on a monthly basis to ensure that such purchases are within specified norms and where necessary corrective action to be taken. This report is forwarded to the FC and Head of Materials (CPC)

2. Procurement Services
2.1 Annual Rate Contract for Services

2.1.1 Evaluate need for AMC leading lack of preventive maintenance. 2.1.2 All Services should get covered under annual maintenance contract. 2.1.3 Adhere to CPC service contracts 2.1.4 Paying a price different then what has been agreed upon by the CP 2.1.5 Contract to be drawn based on the format given by CP. General Contract conditions be prepared by User and Purchase Department and pre vetted by Legal Department. It includes - The provisions for taxes and statutory liabilities (ESIC, PF, TDS etc) -A clause protecting the Lodge from any liability on account of any accident, injury etc to the Vendor's personnel at the companys premises. -Vendor shall ensure to keep the companys premises free from waste, rubbish etc. 2.1.6 Purchase Orders for Rate agreements are approved by GM and FC and forwarded to CP for final approval. 2.1.7 Request for quotations to be sent out to vendors 2.1.8 Quotations received from the Vendors must be complete 2.1.9 Competitive prices should be determination 2.1.10 Proper renewal of contract or discontinuity of an old contract after expiry of the contract period after assessing the need for the services needed

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2.1.11 Jobs are done as per the contract terms. Leading to satisfaction due to high standard delivery.
2.2 Work Order Engineering

2.2.1 All the repairs and maintenance expenditure to be incurred need be budgeted. If it exceeds budget it needs to be approved by Financial Controller and GM of the Lodge. 2.2.2 The scope of work for contractor has to be complete. 2.2.3 Quotations received from the Vendors are must be complete 2.2.4 Adequate documentation of the decision of selection of Contractor 2.2.5 All Work orders to be appropriately authorized as per the authority schedule before the job is awarded to the Contractor. 2.2.6 Work done by the Contractor should be good and does meet Lodges quality standards 2.2.7 The Work order should define the time period for completion of the job. Penalty clause for non completion within the time period should be defined in the contract. 2.2.8 In case materials for job work are supplied by the Lodge, Contractor must use only required quantity of material and minimize wastage. 2.2.9 Payment to be made only for jobs completed by the Contractor.

3. Expenditure Control
3.1 Bill Passing Materials:

3.1.1 Control access to Vendor Master. Changes to the master file should be adequately monitored 3.1.2 Do not create duplicate Vendors. 3.1.3 Vendor changes or additions should be complete or accurately made. 3.1.4 Access given to the employees should be in line with the job function. Access rights to be evaluated on a ongoing basis 3.1.5 Recive all necessary billed for goods 3.1.6 Consider advance that has been already made at time of final payment of suppliers bills 3.1.7 Avail all the eligible Discounts 3.1.8 Strictly avoid duplicate payments 3.1.9 Payments must be authorized
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3.1.10 Payments to be made only with proper support documents. 3.1.11 Payments are to be made in a timely manner
3.2 Travel agency commissions paid:

3.2.1 For Bookings received directly at the Lodge, written communication to be obtained from the travel Agent, in the form of a letter / fax / e-mail. The Reservation staff must ensure that the Agents Profile is attached to each booking. It is forwarded to Credit Department. For reservations to the Lodges through the CRS or otherwise, complete details of the Agent making the booking must to be transmitted to enable the Lodge Reservations to attach the relevant profile. 3.2.2 Commission being paid only to travel agents who are eligible to receive 3.2.3 Claims made by the travel agent for commission for bookings should materialized 3.2.4 Commission paid to the agent must be as per the company defined rates structure 3.2.5 Only authorized commission be paid 3.2.6 Non - Erroneous calculation to be made at the time of commission payment

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Fixed Assets 1. Budgeting and sanctioning process


1.1 Capital Budget Logic and approval
1.1.1

Adequate budgeting process, investment analysis and prioritization process For capital expenditure budgeting payback period analysis is done. Investment analysis and a prioritization process followed. Justification is given for assets purchases at the time of budgeting and whether it enhances the product image or product quality.

1.1.2

Adequate detail specification and accurate item wise estimates submitted by the units

for the budget Unit to submit detailed item wise budget proposals to the Chief operating officer of luxury Lodges for the next financial year. An acceptance document will evidence the review for the same Budget contains number of assets within the asset category proposed for purchase and its budgeted values.
1.1.3

Monitoring of variances i.e. Availability of budget and actual spent has to be verified,

or Balance budget availability checked, also obtained approvals for commitments in excess of the budget Monitoring of capital expenditure is within the original authorized capital expenditure budget. Variance analysis to be prepared and reasons for the same enumerated. Inaccurate estimation/ budgeting - Change in specifications - Any additions - Any others (please specify)
1.1.4

Any variance/cost overruns should be reported to central purchase and appropriately authorized Finance department shall not make payments in excess of approved budgets.

Adherence of central purchase rates for budget preparation. CPC rates are taken for budget preparation. Where CPC rates are not available there should be justifiable basis for the rates adopted.
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Where CPC rates are available and different rates are used proper justification is given

2. Fixed Asset Procurement


2.1 Tendering (Quotations)
2.1.1

Stick to policy for inviting quotations for capital expenditure purchases Frame a policy for inviting quotations which would include whether to I invite single or multiple quotations. -Who is the authority to sign off single or multiple quotes and logic notes. method of preparation of comparative analysis. Performance parameters on which quotes will be invited and vendors will be graded

2.1.2

Proper invitation of quotations and request for quotations to be sent out to vendors As many quotations to be invited from vendors but not less than three quotes. If minimum three quotes are not available purchase committee to authorize and prepare a logic note to this effect. For every purchase a purchase request has to be raised. The purchase request must clearly state the three quotes received. In case a competitive bid is precluded due to sole or limited supplier, this fact should be reflected on the purchase request .In house purchasing policy will detail situations where competitive bidding is not required. Vendors are to be graded on past performance parameters for related work at Taj.

2.1.3

For large value/critical purchase Along with the quotes vendors business details are to details Manufacturing capacity Customer

be provided which include Turnover list

2.2 Bid Evaluation and Order Processing (evaluation of quotes & award of contract)
2.2.1

Negotiation process Must be effective to optimize contract value on account of

Comparative statement to be used effectively Internal estimate must be reliable Market information must be adequate Orders are to be placed at optimum rates. Effective use of comparative statement negotiations. Quote estimates are revalidated where necessary and appropriately changed. Final logic note includes the outcome of the negotiation process
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analysis is

made available prior to

2.2.2

Adequate documentation of the negotiation process. All changes and revisions in prices or terms & conditions to be minuted. Finance representative shall also participate in the final negotiation process. Logic note prepared in detail giving the process and decision

2.2.3

No delays in evaluation of quote and order placement. Request for quotations will state the last date of submission of quotes. Time period for evaluation of quotes is defined. Monitoring reports should also record the reasons for delay.

2.2.4

Selection of parties especially other than L1, logic notes to be prepared for

justification and appropriately authorized.


2.2.5

Accuracy in compiling the comparative statements Comparison of quotes on an all inclusive price basis. Comparisons with the previous purchase price if any. Item level comparison of low prices to be done. Comparison of commercial terms and conditions. Comparison with the budgets available.

2.3 Procurement by CPC (procurement of assets by units locally)


2.3.1

Adherence

to

the

purchase

request

system

attach Adequate

supporting

documents and proper approvals For every purchase the user department raises a purchase indent. The purchasing department makes purchase orders with details like quantity specification, asset coding, rates and delivery period. Purchase orders and purchase requisitions are approved and are documented.

2.3.2

Purchase orders to have the following details Quantity Rates Specifications

Modes of payments including advances Modes of dispatch /delivery periods Warranty period and liquidated damages and penalties
2.3.3

Issue of purchase orders Without an authorized purchase requisition a purchase order cannot be opened. On authorization of the purchase order in the system, a hard copy of the same is generated from the system and reauthorized.

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Printing of the purchase orders should be possible only after electronic authorization in case of oracle financials.

2.4 Receipt, verification & installation


2.4.1

Reject assets which are: Not ordered Not as per the specification Invoices are not

matched with the purchase orders


2.4.2

Purchase department is responsible to raise purchase orders, the receiving is

acknowledged by the receiving


2.4.3

Avoid errors in receiving report on account of Quality Specifications Item

Description specifications Item classifications


2.4.4 2.4.5

Receiving report on timely basis Track vendor returns and reported to account. In case of assets sent back to the

vendor for replacement a returnable gate pass is issued by the receiving/ dispatch department and is signed by the purchase department
2.4.6

Fixed assets installation to be done in a timely manner Installation report is to be

prepared 2.5 Bill verification


2.5.1 2.5.2

Errorless payments to be made to suppliers. Book the invoices/Recording of goods with the original invoices Receiving reports and delivery challans are reviewed periodically to ensure timely and efficient payment of liabilities.

2.5.3 2.5.4

Bill processing and payments to be done on a timely basis. Monitoring of accounts payable system for acceptance of any deviation in quantity

and rates from receiving reports and purchase orders


2.5.5 2.5.6

Payments to be made with proper support documents/invoices At month end, entry for total purchase is done on the basis of goods received note

accrual from store module, to be matched with provisions created.

3. Fixed Asset Records


3.1 Warranty and technical records maintenance
3.1.1 3.1.2

The user department maintains a log of fixed asset purchase warranties. Explicit reasons to be documented for payments made and approved by General

Manager.
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3.1.3

Destruction/damage of technical records. Storage and retrieval of record Technical documents like blue prints are locked and held with restricted access in a fire proof safe. Process in place to store and retrieve the technical records.

3.2 Accounting and fixed asset updating


3.2.1 3.2.2 3.2.3

Adequate details in the fixed asset register. Receiving report/installation report gives the date for capitalization of the asset. Avoid manual updating in the asset register. Periodic reconciliation of fixed asset records with General ledger. Policy for periodic physical verification of assets and discrepancy follow-ups

4. Asset Maintenance
4.1 Asset transfer controls.
4.1.1 4.1.2 4.1.3

Adequate transfer documentation Appropriate accounting and recording in the books for transfer of assets Tax implications on transfer of assets to other company unit For income tax purpose, the transfer of assets is to be shown as sale and the block of asset needs to be reduced, in case of transfer to other company units The sale document is approved by the financial controller who reviews and ensures that the accounting entries are appropriately entered.

4.2 Land & other immovable assets verification process


4.2.1

Title deeds for land is registered with the appropriate authorities and must be kept in a

safe place by the finance controller at the unit and a copy of the same are maintained by the corporate.
4.2.2

Adequate verification of land and buildings Periodic verification/confirmation of safe custody of title deeds Physical security for land and protection against encroachment.

4.3 Fixed Assets records and verification process


4.3.1

Physical verification of assets to be adequate Fixed asset count is to be properly The accounts department periodically in coordination with engineering department carries out physical verification. The list of assets generated contains
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planned.

the following: Asset description Asset identification number Quantity and the modality number Assets location.
4.3.2

Proper follow up for discrepancy reports Report on discrepancies found during the physical verification The discrepancy report is closed in a timely manner.

4.4 Paintings and artifacts


4.4.1 4.4.2

Proper distinguishing valuable paintings and artifacts against furniture. Periodic physical verification of paintings and artifacts. Unit reviews on a periodic basis verifies the paintings and art works. The Financial controller reviews the discrepancy report, and the follow up action is taken.

4.4.3

Identification of paintings and artifacts adequate of coding and tagging.

4.5 Idle Fixed assets


4.5.1

Identification of idle assets A periodic review and verification for identifying idle assets is carried out along with the periodic verification of assets. Identification of assets for transfers to be discussed with other units.

4.5.2

Productive or Operative asset do not lay idle in the Lodge Regular cost benefit analysis to arrive at the economic benefits derived. Comparison of the cost benefits analysis at the time of purchase.

4.5.3 4.5.4

Proper accounting and valuing of idle assets List of idle assets maintained and is kept under security.

4.6 Write off and disposal of Fixed Asset


4.6.1

Proper Identification of idle/non usable assets Assets may be sold, transferred or

retired without management knowledge


4.6.2

Approval for sale of assets is documented giving reasons for not considering for

transfers.
4.6.3 4.6.4 4.6.5

Assets must be disposed of at appropriate prices Multiple quotations invited by CPC / engineering department for disposal of assets. Update the Fixed asset register (FAR)

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4.6.6

Fixed asset and general ledger need to be reconciled to take into account the disposal

/write offs -Inspect authorizations and other data supporting 4.7 Preventive maintenance.
4.7.1

Adequate periodic preventive maintenance of assets The engineering department keeps a list of all assets that need maintenance. The engineering department does maintenance tracking and tracking sheets are prepared to record maintenance. Servicing of machinery at regular intervals to be planned and carried out. A checklist to be maintained and followed for replacement of spares.

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Statutory Compliance
1. Revenue related statutory compliance 1.1.Luxury tax charge and remittance 1.1.1. Levy correct tax rates as specified under section 3 of the Act. Corporate policy be framed identifying all items to which luxury tax is applicable under the Act based on respective state laws. Finance Controller ensures that all items chargeable are covered in the system. FC shall keep tab on the amendments to LT rate and charge accordingly to comply with LT laws. LT rates are updated in FIDELIO/POS by Systems department, which is informed by Finance Controller as per tax circulars in force. 1.1.2. Charge LT and do not quantify remittance due to LT on rack rates. In case of LT on rack rates, unit ensures that in case of upgrades, LT is paid based on rack rate for upgraded room. In case of complimentary rooms, LT shall be computed as per legal requirements and remitted. 1.1.3. Remittance of LT on time and must not be short or excess remittance. Tax is deposited in appropriate return-cum-challan at time of filing of return on or before the prescribed due dates for submission of returns (depending on the amount of the tax payable as prescribed under section 12) FC reports to GM on a monthly basis the details of LT charged / remitted along with date of remittance as a compliance report. 1.2.Luxury tax return and assessment 1.2.1. Filing of periodical returns as per prescribed due dates A checklist of due dates and prescribed form for filing of return available with accounts department. This checklist is updated on regular basis. Monitoring is done based on this checklist. 1.2.2. Comply with notice issued by Commissioner under section 13 he must be satisfied with return furnished

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Finance Controller ensures compliance with the terms of any notice issued under section 13(2) by the commissioner. Finance Controller reports to COO on a quarterly basis detailing the Luxury tax charged, collected, remitted and date of remittance. MIS on pending issues and assessments, investigations etc. are sent by Finance Controller to GM.

1.3.Service tax charge and remittance 1.3.1. Service tax to be charged for services rendered as covered in taxable services under Service Tax Act and levy Tax correctly. FC shall keep tab on the amendments to ST rate and charge accordingly to comply with ST laws. Service tax rates are updated in FIDELIO / POS by Systems department, which is informed by Finance Controller as per Service tax circulars in force. Maker checker controls are in place and are performed by Accounts department to ensure that correct rates are updated on FIDELIO / POS. These are signed off by Accounts department. In order to ensure comprehensiveness all services being covered Corporate policy be framed identifying all items to which luxury tax is applicable under the Act. Finance Controller ensures that all items chargeable are covered in the system. 1.3.2. Timely payment of service tax liability within the prescribed due dates Checklist of due dates of payment of Tax prepared by Accounts department and updated ongoing basis. Monitoring is based on this checklist. Finance Controller ensures that service tax is paid on the value of services received during a particular month, within prescribed due date i.e. 25th of the month immediately following the calendar month. Finance Controller sends a monthly report to the GM detailing the service tax charged, collected, remitted and date of remittance. 1.4.Service tax returns and assessment 1.4.1. Timely submission of return Without failure within the prescribed due dates

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Finance Controller ensures filing of returns in Form ST-3 by 25th of the month following the particular half-year. (Half year means 1st April to 30th September and 1st October to 31st March of financial year).

Report is sent by Finance Controller to the GM detailing the payment made towards service tax liabilities and returns furnished.

1.4.2. Completion of assessment to comply with notice issued by Central Excise officer in course of proceedings under section 71(1) Finance Controller ensures strict adherence to Service Tax Act requirements under section 79 to comply with notices issued by Central Excise officer under section 71(1). FC shall report to COO on a quarterly basis the details of ST assessment status as a compliance report. 1.5.Arrival Departure register 1.5.1. After the night audit, system reports for check-ins and check-outs for previous day is generated and posted to Arrival / Departure (A/D) register by Front Office. 1.5.2. The A/D report is signed by the Duty manager prior to sending to the Registration office 1.5.3. The A/D Register is based on all arrivals and departures for the day, instead of endof-day position. 1.6.C Forms compliance 1.6.1. C Forms must be submitted timely and in the required format to the police authorities C Form for the day, report is reviewed by the Front Desk supervisor prior to income audit for reasonableness and completeness. This report is sent to CID office and acknowledgement obtained on one copy is filed by the Front Office. 1.6.2. The department should ensure that particulars sent to the FRRO are correctly recorded and reconciled with Arrival / Departure (A/D) Register. 1.6.3. The A/D register is based on all arrivals and departures for the day, instead of end-ofday position. 2. Human Resources related statutory compliance 2.1.Employees Provident Fund Act, 1952 Compliance
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2.1.1. Checklist of various statutory compliance for forms, records returns to be filed is available with HR. Monitoring is done based on this checklist. 2.1.2. HR gives nomination forms as part of the joining formalities to be completed by a new joiner. 2.1.3. HR department to files Form 5, (w.r.t new joiners) listing all new employees joining the Fund within 15 days of each month end. 2.1.4. HR department submits particulars of all branches and departments, owners, occupiers, directors, managers etc. and any changes in such particulars as required under section 36A are submitted to Regional Commissioner in Form 5A within 15 days of such change. 2.1.5. Correct calculation of PF contribution 2.1.6. Payment of contribution and other charges in respect of employee and employer must be deposited in time in time 2.1.7. HR department files the return in Form 9 giving particulars of employees who are covered under PF entitled to become members of the fund. Return to be submitted within 15 days of joining. 2.1.8. Monthly statement of PF deduction from employees and contribution made by employer is filed by HR within 25 days of close of the previous month in Form 12A. 2.1.9. Consolidated Annual contribution statement in Form 6A is filed with the PF Commissioner within one month of end of financial year by the HR department. 2.1.10. HR department submits duly filed Form 19 to PF office for withdrawal of PF dues after two months of resignation of the employee 2.1.11. Applications for transfer forms of EPF account for employees transferred to other establishments are submitted by HR in Form 13. 2.1.12. HR to ensure at the time of revision in salary that there is no change in salary structure, which results in reduction of PF contribution. 2.2.ESIC Compliance 2.2.1. ESI is to be deducted at the rate as specified in the first schedule of the Act. HR dept keeps tab on the amendments to ESIC laws and accordingly informs the unit. HR department ensures that ESI is paid at the rate as specified in the first schedule as required under section 39.
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ESIC deductions are done through the system in the payroll software.

2.2.2. ESI contributions are to be deposited within the due date 2.2.3. Proper monitoring and reporting of compliances 2.2.4. Returns are to be filed within due date Checklist of due dates is available with HR department. Monitoring is done based on this checklist. HR department ensures the return of contributions (Form 6) is filed on half yearly basis in October and April as required under section 44 of the Act. 2.2.5. Records to be maintained as prescribed under the Act Checklist of various records to be maintained is available with HR department. Monitoring is done based on this checklist. HR department ensures records prescribed under the Act

2.2.6. Declaration form to be collected from new employee leading to compliance with ESI Act under section 85. Checklist of various forms to be submitted is available with HR department. Monitoring is done based on this checklist. HR ensures that declaration form (Form 1) filled up by each new employee are collected and submitted to ESIC immediately. Compliance status of statutory forms is submitted by HR to corporate on a monthly basis. 2.3.Income Tax Act 1951 compliance 2.3.1. Tax deducted at source (TDS) to be deducted on payments made wherever applicable under the Act. Checklist for tax rates applicable is available with Accounts department. This checklist is updated ongoing basis. Monitoring of payments is done on basis of the above checklist. Tax master is updated by IT based on inputs given by Finance. Accounts Executive deducts TDS while booking payment in system. FC to review list of all bank payments made during the month to ensure that no payments are approved are without proper deduction of tax. 2.3.2. TDS deduction is to be made as per the rates prescribed
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FC shall keep tab on the amendments to Income Tax rate and charge accordingly to comply with laws. TDS deduction for salary is made in the system through the payroll software while for the other TDS deductions it is deducted either manually or through the system in orion.

Changes to the Tax master in the system are done by IT department based on inputs given by FC.

2.3.3. Reconcile books for TDS deducted and paid Finance to carry out reconciliation between GL balances for TDS payable and payments made on a monthly basis before deposition of tax to ensure that TDS deducted and payable during the month is paid and deposited before the prescribed due date. Reconciliation is reviewed and signed off by the FC on a monthly basis.

2.3.4. TDS to be deposited within due date prescribed under the Income tax Act Checklist of due dates for deposit of Tax available with Accounts department. This checklist is updated ongoing basis. Monitoring of payments is done on basis of the above checklist. TDS deducted on salary (s. 192), interest other than securities (s.194A), payment to contractors (s. 194C), rent (s. 194I), professional services (s. 194J) payments to nonresidents (s. 195) are deposited within 7 days of deduction or within 2 months if credit is made on last day of financial year. TDS on interest on securities (s. 193) is deposited within 2 months of payment. A compliance report of Tax deducted/ deposited with the date of deposit is forwarded to GM on a monthly basis. 2.3.5. Issue the certificate for tax deduction within prescribed due date under section 192 Finance to ensure that TAN number is obtained from all parties at the time of payment. Certificate of tax deduction salary (s. 192), on interest on securities (s. 193), interest other than securities (s.194A), payment to contractors (s. 194C), rent (s. 194I), professional services (s. 194J) payments to non-residents (s. 195) in Form 16 or Form 16A are issued within one month from the close of financial year.
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A compliance report of status is forwarded to GM on a monthly basis.

2.3.6. Annual returns for TDS are to be filed promptly within the prescribed due date Checklist of due dates for filing of returns is available with Accounts department. This checklist is updated ongoing basis. Monitoring of payments is done on basis of the above checklist. Annual returns for TDS deducted and paid are filed in electronic form (eTDS) on or before 30 June of each year. Status report of annual submission of form is sent to GM and SBU CFO.

2.4.Income Tax Act 1951 compliance 2.4.1. Tax deducted at source (TDS) to be deducted on payments made wherever applicable under the Act. Tax master is updated by IT based on inputs given by Finance. Accounts Executive deducts TDS while booking payment in system. FC to review list of all bank payments made during the month to ensure that no payments are approved are without proper deduction of tax. 2.4.2. TDS deduction must be made as per the rates prescribed TDS deduction for salary is made in the system through the payroll software while for the other TDS deductions it is deducted either manually or through the system in Orion. Changes to the Tax master in the system are done by IT department based on inputs given by FC. 2.4.3. Reconcile books for TDS deducted and paid 2.4.4. TDS must be deposited within due date prescribed under the Income tax Act TDS deducted on salary, interest other than securities, payment to contractors, rent, professional services, payments to non-residents, are deposited within 7 days of deduction or within 2 months if credit is made on last day of financial year. TDS on interest on securities is deposited within 2 months of payment. A compliance report of Tax deducted/ deposited with the date of deposit is forwarded to GM on a monthly basis. 2.4.5. Issue of certificate for tax deduction within prescribed due date under section 192

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Finance to ensure that TAN number is obtained from all parties at the time of payment. A compliance report of status is forwarded to GM on a monthly basis.

2.4.6. Annual returns for TDS are to be filed promptly within the prescribed due date Annual returns for TDS deducted and paid are filed in electronic form (eTDS) on or before 30 June of each year. Status report of annual submission of form is sent to GM and SBU CFO.

3. Licensing and State Excise compliance


3.1.1. Finance controller ensures that - For imported liquor -Licenses as required for main store has been procured. -License as required for Lodge (for restaurant and room service) - Licenses are renewed annually and details reviewed for accuracy. -The unit has registered brand and brand registration fees. -There is a Police licence for serving liquor for each Lodge / club. 3.1.2. Liquor must be procured under valid license. Finance Controller ensures that -Imported liquor is procured under the EXIM license. Purchase are made from a FL I license holder and have registered concerned brands Availability of valid FL I licence and brand registration is adequately proved by a valid transport pass. In case of kitchen liquor is bought only from an FL I or FL II licence holder. Consumption of liquor at kitchen is done only under temporary licence FL 4. 3.1.3. Batch number on the liquor stored should tally with the excise records At the time of receipt of liquor it is ensured by Purchase department that -Liquor is received with a valid transport pass issued by the seller. -The bottles received are properly banderolled. Daily inventory is carried out by the F&B Cost Controller to ensure that stocks tally with records maintained and the batch numbers tally. 3.1.4. Compliance issues on Sale of Liquor: -Sale of liquor must not be beyond permitted hours -Sale of liquor on dry days to permit holders and non-foreigners -Sale of liquor to person below 25 years / non permit holders Sale must be made only during the permitted hours

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Steps to be taken to amend service times in the Lodge licenses to avoid noncompliance with the license terms. Unit circulates the list of dry days to all Lodges serving liquors. An email is sent to all Lodges on the earlier day. Adequate sign is dispecialayed at all Lodges serving liquor mentioning that liquor is not served to person below age 21 years. Liquor is sold only to a valid permit holder in Lodge.

3.1.5. Minimize service Related Risks Employees are tested periodically for absence of contagious diseases Declaration from employees that they are not convicted for any criminal charges is obtained by HR Department before signing application by F&B Manger. 3.1.6. Liquor is billed as consumption of liquor from unit Main bar. The liquor for the banquet must have been bought from a FL I or FL II licence holder only and not from an Lodge with FL III licence. 3.1.7. Proper control over excess liquor stored in separate store room Balance remaining at the end of the banquet can be returned to the FL I or FL II licence holder under valid endorsement to that effect or must be surrendered to the collector along with the transport pass. Movement over excess liquor is controlled by memorandum books. Access to excess liquor is restricted.

3.1.8. Liquor purchase / transfer is supported by Transport licence or licence is must be retained Liquor supplied for the event is mandatorily supported by a transport licence. Transport licence is retained by the banquet department and is filed along with the event bill. F&B Controller checks licence for every function held in the Lodge. Exceptions are reported to GM detailing number of exceptions in that month and value of liquor sold. 3.1.9. Transport licence is complete in all aspects viz., transferee Lodge, quantity of liquor etc. 3.1.10. In case of purchase from outside vendor, it is duly supported by bill.

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3.1.11. A cash memo must be prepared for each sale giving details of -Name of the buyer Quantity of sales Sale price -Signature of the seller -Signature of the buyer 3.1.12. Stock Related Records must be maintained Excise register (in the nature of stock register) is maintained on a day to day basis Name of the supplier, Quantity Procured, Opening/Closing Stock, Quantity Sold. The sales for each day and stock details are recorded in FLR 3 and FLR 6 Any shortage is recorded by way of a cash memo at nil value Excise visit book is maintained. In case of clubs, a register of members with their permit details is maintained. Register is maintained for sale of liquor to members. A register is maintained (TFL-4) for recording the movement of liquor for banquets

3.1.13. Nokarnama must be available for serving liquor The unit follows a practice of obtaining nokarnama for all employees. The nokarnama is renewed for its existing employees on half / yearly basis by F&B Controls department For all employees in Lodge, list of nokarnama filed is maintained. The Lodge Manager ensures that all employees have a valid nokarnama. The Lodge Manager ensures that the employees have not had their nokarnama revoked. Declarations are sought in that regard Amendments are filed for persons employed in Lodges midyear.

3.1.14. Stock Related Leftover liquor (procured by guest) must be tagged accordingly where the customer has left in the custody of unit to be taken later. Inter Department Transfer(IDT) notes to be prepared/retained for liquor transfer (Lodge transfers) The unit does not act as custodian for the guest. In exceptional cases, where the liquor is stored and returned -On same day, the gate pass is authorized by the Banquet Manager. -After 1 day but before 7 days, the gate pass is signed by F&B Manager -After 7 days, gate pass is signed by GM of unit. Repeated follow-up is conducted. Liquor is not transferred from Lodge to Lodge without IDT. IDT are retained for reference.

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Revenue 1. Revenue Management rooms


1.1. Local Contracted rates - territory accounts, long stayers, crew) 1.1.1. The sales contracts are entered into using the appropriate rate bands given by CRO for each unit to the sales teams. - Rate letters based on negotiations by Sales team are issued in the standard format as advised by corporate sales and are signed by concerned sales executive and sales manager (sales team, not unit team). - Client acknowledgement is obtained on the rate letters. - The sales team sends soft copies of the rate letters to CRO for uploading on CRS. The CRO updates all the rates and intimates sales, concerned unit Revenue Manager and Reservation Manager. 1.1.2. Appropriate contracts to entered with crew The marketing strategy of the unit clearly outlines its strategy for airline crew. Contracts with airline crew are entered into by the Director of Sales of the property. Copies of such contracts given to reservations office for entering the rates in PMS and also to the front office. Timely renewal of the crew contracts

1.1.3. Annual sales and marketing plan prepared by the Director of Sales of the unit which deals with all aspects of the units revenues such as - Comprehensiveness of the strategy visa via segments - Segments have been converted into room targets based on occupancy, room revenue and ARRs - Room wise strategy - Analysis of competition - Rooms (including upgradation, yields, occupancies, REVPAR, market segmentation, crews, long stayers) - F&B (including specific plans for each Lodge) - Banquets/conferences etc. 1.1.4. Rates entered must be correct at CRO. Charge correct rates to guests.
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The reservation manager at unit cross-checks rates for territory accounts as entered in PMS with the rates received by email from CRO. The Reservations Manager checks on daily basis that reservations for next day are at appropriate rate codes.

1.1.5. Monitoring of actual room nights not to be materialized against the basis of contracted rates The Revenue Manager reviews the M10 reports (commercial accounts

materialization) on a monthly basis, which shows materialization of NAT + Commercial (locally contracted) customers; and sends it to the sales teams for their comments. Comments, if any, from sales are then discussed. Rate revisions are pursued only in cases where the variation between potential and actual is abnormal, as decided mutually by sales and the Revenue Manager. 1.1.6. A periodical check is carried out of all profiles to ensure that rate code is being attached.

1.2. Global Distribution System (GDS) 1.2.1. Packages for the Lodge are not created by a unit without routing through the GDS cell at corporate. 1.2.2. Only the Revenue and Reservations manager have access to NETREZ, which is the web interface for uploading rates on to the web server. 1.2.3. Revenue manager reviews occupancies and updates the room availability / rates on GDS on a weekly basis. 1.3. Credit evaluation for local contracted clients 1.3.1. Authorized extension of credit. Extension of adhoc credit should be documented Credit is extended in the following manner to National accounts: Extension of credit to these customers is looked into by Corporate: Commercial accounts (Territory accounts): These accounts may either be placed on credit list or ad-hoc credit is extended. In case customer is to be put on credit list, the sales team at the unit co-ordinates between corporate credit and the client, gives the

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requisite forms to the client, obtains the completed form and attachments required such as financial statements etc and forwards these to corporate. (a) Credit is approved only after due diligence done at corporate, after which the CRO is intimated so that the systems are updated. (b) For ad-hoc credit extension, unit sales team prepares the form. This form has a monetary limit (depending on the event/request from client), which is signed by the sales manager and is then sent to the unit credit manager for record. - Unit credit list: Customers which have had credit extended prior to the issuance of the manual by the unit may continue to be on the credit list of the unit Table 1: Approval limits for extension of credit are laid down in the manual
Limit Up `25,000 At Lodge to DM AM SE BM `25,000 `50,000 to LM F&B M CM `50,000 `1,00,000 to RM EAM SM FC Above `1,00,000 GM RSM SM AD COO CM SM TM RM At Area/region/corp. -

1.3.2. Adhoc credit is not allowed to locally contracted parties who have any unpaid dues.

2. Room Revenue
2.1. Reservations process

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2.1.1. At every reservation stage (TRN/HRO) following details are obtained and entered in the PMS - Date of arrival and departure - Flight details - Enquire whether or not airport pick up is required. - Enquire of any special requests. - Rate codes (for existing customers) - Plan codes, if applicable - Airport pickup, VIP Codes, Booker ID 2.1.2. Maintenance of bookings received by mail / fax until updating to ensure that these are not missed. - A system to monitor entry of such bookings received by fax / email within a reasonable time frame. - Service standard to respond to email / fax are adhered to and monitored. 2.1.3. Adequate billing instructions to be taken at the time of booking For bill to company instructions, the reservations requests for fax from the company are sent to the unit. For bookings through travel agent, the copy of the travel agent voucher is faxed to the unit. In case of bookings from unknown sources or bookings on sold out dates, Reservation collects advance from client or copies of credit card with authorization thereon. 2.1.4. At the end of each day, the reservation manager reviews all bookings made during the day on the screen and ensures that they appear in the PMS. 2.1.5. In case of changes in reservations which can be seen by looking at amendments, the reservations staff reviews the TRACE and ensures that all other information is keyed in again in the reservation. 2.1.6. Maintain adequate details for group bookings In case of reservations for groups, a group folder is prepared which contains all correspondence related to the group viz., name, FIT details, rate, meal plan, pay master number, billing instructions, facilities for tour leaders etc. A Paymaster account is opened for all groups to centralize all instructions relating to that group.
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2.1.7. Obtain

advances

from

customers

other

than

those

on

the

credit

list

(NAT/TAT/Lodge) In case of travel agents not on credit list, advance payment is insisted upon at reservation stage. In case of payment by credit cards, pre-approval is obtained by swiping the card on the EDC, Amount being room rate * no. of nights expected stay + 10%. Card number, name (VISA, etc), validity and the approval code are entered in the PMS. Cheque payments are not accepted unless prior credit arrangements have been made. For FITs not paying by card, advance payment is requested, being number of room nights stay expected + 10%. 2.1.8. For block bookings (groups, conferences etc) where the unit has pressure on occupancy, the advance deposit, as decided by the DOS is taken. 2.1.9. The FO Manager, F&B Manager and Controller receive an updated list of advance deposits received and the expected arrival date of the guest. 2.2. Complimentary and House Use 2.2.1. The authority to provide rooms on a complimentary basis (other than to group / conference tour leaders) is vested at three levels: Lodge: Unit General Manager Division: Respective Chief Operating Officer/General Manager - Finance/Area Director Corporate Office: Any senior manager of designation Vice President and above. In case of approval not obtained from corporate for complimentaries/house use follow up is conducted by the revenue manager. 2.2.2. Reasons for authorization are indicated on the complimentary / house use forms. Written authorizations are attached to the registration card.

2.2.3. Authorizations specify exact facilities to be provided complimentary and billing instructions for extras. Front office staff to ensure billing is done for services The Income auditor verifies

other than those specified as complimentary

check with instructions to ensure that services are billed in accordance with the instructions.
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2.2.4. Adequate control over complimentary billing, Partial complimentary/House use Guest registration cards are filled and signature of guests obtained on bills to confirm that the room was given complimentary/house use. In the absence of guest signatures the front office manager or duty manager signs as complimentary/house use. 2.3. Levy of no-show, retention charges 2.3.1. Levy of retention charges for no-shows in case of guaranteed reservations. Guaranteed no-shows billed consistently. FOR BLOCK BOOKINGS - The retention money is charged as per contract. At least a one-night room retention charge is enforced for all cancellations made less than 7 days before the day of arrival. The executive coordinating the block is responsible for ensuring adherence. (refer policy no 17) Manual bills are raised for retention and are accounted only on cash basis.

2.3.2. Adequate monitoring of no-shows No-shows are identified and tracked Revenue Manager reviews cases where no show charges are waived and the pattern and amounts / number of room nights charged / waived. All no-shows are reviewed by the Reservations Manager and followed-up by him through an email to the concerned sales executive for reasons for the no-show 2.3.3. The night auditor reconciles on a daily basis the total number of no-shows with the cases in which retention charges are levied/ waived off; exceptions are highlighted to management. 2.3.4. Exceptions to retention charges are recommended by the GM / RM of the Lodge to the COO / Sr. VP Sales and Marketing / VP Sales who are the only authority for exceptions. 2.4. Late checkout process 2.4.1. The policy for late check-outs must be complied with Late checkout/early check in charges are charged as specified in the policy above The waiver of any stipulated half day or full day charge is authorized by the Duty Manager on the Folio.
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2.4.2. Late checkout charges waived / charged not monitored Late checkouts are tracked along with waivers and amounts charged Late checkouts are analysed periodically by the Revenue Manager and action planned to reduce such waiver cases 2.5. Check out process 2.5.1. Departure follow up is done by the Front Office on the expected date of departure. 2.5.2. PMS must be properly updated with all charges for guest departures All systems have an on line interface with Fidelio, which is the PMS, the only exception being the mini bar. Cashier calls the In room dining / Butlers to check for any mini bar consumption, which is confirmed back and billed accordingly. Disputed mini bar consumption is allowanced off. (limit of INR1000)

2.5.3. Increase in check out time Bills are sent to guest room the night prior to check out, with a standard letter. Express check-out facilities are available.

2.5.4. Proper settlement For cash in excess of INR 25,000 the PAN number of the guest is obtained. In case an amount was blocked (against credit card) at the time of check-in, settlement is done offline so that the guest is actually billed only final amount and amount previously blocked is released immediately. In case of bills settled by the company, cashier ensures that instruction from company is on record and guest signs the bill For bill to company, in case the request letter confirming billing instructions is not received even at the time of check-out, the duty manager approves the check-out without payment. For payment through travel agents voucher, the guest signature is obtained on the travel agent voucher. Cashier hands over the GSTS cards for feedback on a random basis.

2.5.5. In case of group check-outs - Processed according to the billing instructions mentioned. - The pay master is processed - Signature of the group leader is taken

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2.5.6. Delete option to be disabled. In case the option is available, system of review of delete transactions comprehensively to be in place 2.5.7. Report of transfer to be generated on a daily basis and reviewed by the duty Manager / LM 2.5.8. All cash settled bills are to be signed by the guest on the post settled invoice and such copies are to be sent to credit department. 2.5.9. Review of allowances and adjustments to postings in reinstated and zero settled bills, specifically 2.5.10. Settling bills only when checkout being done Constant review of the folios by the DM on a test basis, for guests who have checkout to see whether folios have been closed in the Fidelio system through a checkout. Review of allowances and adjustments to postings in settled folios post settlement until actual check out 2.5.11. Cashiering option is given only to those who have cashiering duty at the front office 2.5.12. Proper review of access controls leading to appropriate access PMS user IDs should be reviewed periodically, all unwanted Ids should be deactivated Whenever there is a change (resignation / transfers) in employees, HR should intimate the same to systems for deactivating all rights in that employees name LM should review Fidelio access rights periodically to ensure that the access to perform a particular activity is rest with right persons by taking print out of the access rights and sign off the same 2.5.13. To ensure that guest signature is obtained on settled bills only. Exceptions will have to be with invoice copy being attached. 2.6. Front office bills in hold 2.6.1. Appropriate authorization and monitoring of bills in hold The Bills on hold report is generated by the Finance dept and reviewed daily by Duty Manager - Front Office Manager - Resident Manager Bills on hold after 7 days are transferred to the city ledger in the name of the person extending credit

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Collection of bills on hold transferred to the City Ledger are still the responsibility of the LM GM/RM reviews the collection status of all Bills on Hold (PM) transferred to the City Ledger at least once a month.

2.6.2. Adequate system to approve and follow up of bills on hold All guest ledger balances in excess of INR 50,000 (including PM/PX) are reviewed on a daily basis by the RM, LM and the FC. Actions for interim recoveries for all long stayers (over 15 days) are taken by the LM.

2.6.3. Pay masters to be reviewed and closed on a timely basis All pay masters are opened only by Finance based on instructions from Banqueting / Reservations. Guest bills are not kept on PM for any reason. If bills are to be kept on hold, it is done using bills on hold (PX).

3. Food and Beverage


3.1. Menu management 3.1.1. Menu copies are to be circulated with suitable approval from management Lodge Manager, F&B Manager, GM and COO approve all F&B menu prices, inclusive of banquet menus. Pricing is reviewed by F&B Manager quarterly in accordance with the MDs circular.

3.1.2. The access to the menu master is restricted to the F&B Cost Controls / Systems / Night Audit (as the case maybe) who updates the menu prices. 3.1.3. The master rates and printed menu should b similar. Only copies of approved menu are circulated. Changes in rates on POS are adequately supported by revised printed menu cards. Rates are not changed on POS till printed menu cards are available. Rates are updated in time in the POS by Systems / Night Audit / F&B Cost Controls Reviews by Lodge Manager / Systems / Night Audit / F&B Cost Controls are carried out after every price change in menu to ensure that prices on POS and printed menu card tally before launch of menu.

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3.1.4. Pricing strategy is framed by the unit GM and Chef in consultation with the COO. Rates are decided for the services (as mentioned in the menu engineering process)

3.2. POS controls 3.2.1. POS access should be controlled Access rights are assigned only on written requisition from the Lodge manager. User log is maintained for a defined period.

3.2.2. No common login / sharing of passwords. Adequate control over POS access / Proper individual passwords/ access cards 3.2.3. Timely settlement of check to Fidelio 3.2.4. Food and beverage prices on bill. Revised prices are updated on POS. Open food items are authorized by the Lodge manager. Allowances provided are monitored by Lodge manager & F&B Controls on monthly basis to verify the trends and reasons. 3.3. Complimentary (Guest entertainment) / Discount controls 3.3.1. Monitor guest entertainment Advance entertainment slips duly authorized by the GM / LM is sent to particular Lodge for reservation. In case advance slip is not received by Lodge, blank entertainment slips available at Lodge are signed by the executive and Lodge along with KOT sends it to Accounts. Accounts then follows up with the respective GM / LM for authorization. Compliance with Company policy dated 29 October, 2001 which states that in case an employee is entertaining and wishes for the bill should not be presented at the table, the bill is sent to him and signed for within the next 24 hours. 3.4. Lodge liquor controls 3.4.1. Reconciliation of liquor stock as per FLR register with physical verification and sales as per FLR register with POS F&B Cost controls takes inventory at all liquor Lodges on daily basis. The liquor opening balance plus liquor requisitioned less closing stock during the day equals total sales as per POS. Any discrepancy is informed to the Lodge Manager and F&B manager.
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3.4.2. Frequent usage of Special beverage codes / Authorization of Special beverages codes All items are included in the menu master in POS. No sales are made as Special Liquor as far as possible. Steps are taken by Lodge manager to identify reasons for Special liquor item and reduce incidence of same by incorporating it in menu during menu engineering. F&B controller verifies the bills of Special Liquor for modifier details in the BOT and match the price with similar item. Any discrepancies are reported to F&B Manager / Lodge Chef. Requests for liquor packages where rates are not available on POS, party contract are attached to the bill by the Lodge and it is reviewed by F&B Cost Controls. Liquor rate is approved by the F&B Manager. 3.4.3. Liquor consumed by the guests must be billed. Bar tender does not provide liquor in absence of BOT. Random checks are carried on bar by Lodge Manager / F&B Cost controls to ensure that liquor consumed is being billed. 3.4.4. Liquor peg quantity to be adequately controlled The measures as certified by the excise authorities are documented and employees are trained accordingly. Standard recipes of cocktails are available and mention the portion sizes. Portion control is utilized (posi-pour or jigger)

3.5. F&B Cost Controls and MIS 3.5.1. Verification of liquor stock on daily basis Item to item reconciliation is conducted by the F&B Cost controller on daily basis for entire liquor inventory of Lodge and minibar. F&B Cost controls reconciles sales as per POS with the consumption arrived at from the liquor inventory (Opening stock plus requests less closing stock) for all Lodges and minibar. Discrepancies are reported to the Lodge Manager. Excess liquor found is booked in the Liquor inventory by the F&B Controls For shortage in liquor, reasons for the same are obtained from the Lodge Manager.

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In case of shortage of liquor from spoilage or breakage, spoilage / breakage report duly signed by the Lodge Manager and F&B Manager is obtained. In case of breakage, the broken bottle neck is obtained from the Lodge.

3.5.2. Monthly physical verification of stores inventory to be conducted. Month end verification done by F&B Controls for entire food and liquor inventory in stores and is compared with the MMS. Discrepancies are reconciled with the Store keeper. If discrepancy cannot be reconciled, the report is sent to the Finance Controller. Expired stocks and non/slow moving stocks are also identified in such monthly verifications. Stores initiates action on such expired / slow moving / non moving stocks

3.5.3. Proper system of reporting on costs Following reports are generated on monthly basis by Cost Controls for MIS and review by GM / F&B Manager / FC: - Cost to F&B Sales (%) (Excl complimentary) - Food Cost % to Food Sales (Excl Complimentary) - Soft Drink Cost % to Soft Drink Sales (Excl Complimentary) - Liquor Cost % to Liquor Sales (Excl Complimentary) - Smoke Cost % to Smoke Sales (Excl Complimentary) - Complimentary Cost (Guest+ Staff) % to F&B sale - Complimentary Cost (Guest) % to F&B sale - Complimentary Cost (Staff) % to F&B sale - Average Cover per day - Average Check per cover - Lodge wise - Income 4. Other Revenue 4.1. Health club and beauty parlor. 4.1.1. Authorized use of health club and swimming pool

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Non-resident guests are required to fill in a membership application form and are given a pre numbered membership card with their name and photographs embossed on it.

For residential guests the health club associates confirm the kutia number and names of the guests from the Fidelio.

4.1.2. Recording of cash sales For cash the staff raises receipts bills and daily cash is deposited in the cash deposit box. The Guest service associates prepare daily and monthly revenue statements. All cash receipts can be crosschecked with the daily revenue statement. 4.1.3. Ensure that bills are raised in a timely manner. 4.1.4. The bill is settled on a timely basis 4.1.5. There exist brand standards for the lodges and actual are to be monitored against these brand standards. 4.2. House keeping 4.2.1. Appropriate billing guests for housekeeping items. Housekeeping maintains a register / other record to track billable services rendered by them to guests. Bills for housekeeping are charged to the guest account and the housekeeping manager allowances off any waiver after proper authorization. 5. Night / Income audit 5.1. FO audit procedures 5.1.1. Room let out only with charge/rooms let out special cases without charge The income auditor checks the following on daily basis: - Room revenue has been charged for all rooms occupied during the day. This check is carried out by checking the spool report Journal for the day from Fidelio. The check specifically covers the following: - All the Guest In House at the time of night audit - All the guests who have checked out during the day If room revenue has not been charged for occupied rooms, they fall in the following category i.e. Complimentary, House Guest, Late Check-out, Early Check-In

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In the case of complimentary, necessary approvals in accordance with Corporate circular exist and they appear in the Complimentary report printed and circulated to GM / LM.

In the case of House Guests, communications from corporate LM, Unit Head along with purpose of travel is received. In the case of Late checkouts / early check-ins (after the night audit and before noon) -Half day / full day charge levied is in accordance with the policy of the unit -Waiver of half day / full day charges is in accordance with the policy of the Lodge - If it is not in accordance with the policy, the same has been duly documented and approved in accordance with ICM / corporate Circular (levers of Revenue Management)

In the case of Day use guest - Room revenue has been charged for all day use guests Waiver of half day / full day charges has been duly documented and approved.

5.1.2. Cash Settlement to be accounted in cash book and paid outs to be charged On a daily basis, the income auditor: Tallies the cash settlements with the cash summary and cash book/scroll. Checks all Paid Outs as per Fidelio report with the Paid out slips and check for guest acknowledgement and Duty Manager Approval. All paid outs for extraneous reasons are brought to the attention of the FC / GM.

5.1.3. Checkouts only after settlement of bills 5.1.4. Adequate control over front office allowances In case of Diplomats where taxes are not charged, relevant supporting documents applicable to the respective state laws are available. Correctness of Manual Postings in FIDELIO. Lost postings account and take corrective action to identify the correct guest name.

5.1.5. Discrepancies in income are reported to GM / FC and respective LM on daily basis. 5.1.6. Critical reports are to be treated separately not as a part of the night audit spool User logs must be part of night audit spools Allowance / adjustments report is part of night audit verification list Corrections / Negative postings / deletions report is also part of the night audit verification list Journal by department code is part of the night audit spool
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5.2. F&B audit procedures 5.2.1. Income auditor tallies the F&B revenue as per POS chance sheets with settlements and FIDELIO debits to room. 5.2.2. In case of any discrepancy, the line items as posted in FIDELIO are compared with POS details. 5.3. Other revenue 5.3.1. Charging/Billing services provided by the laundry 5.3.2. Physical cash must be verified Income auditor physically verifies cash and tallies it with book balance and documents denominations and facts of verification done. He also physically verifies the Foreign Exchange with Forex encashment certificates with FIDELIO.

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