PROJECT REPORT

ON
Financial Processes in Hotel Industry
FOR
ITC Gardenia, Bangalore
IN PARTIAL FULFILLMENT OF THE AWARD FOR THE
DEGREE OF INTEGRATED BBA-MBA
UNDER THE GUIDANCE OF
Mr. Joy Raj
Training Coordinator, ITC Gardenia
Submitted by:
Vedantam Gupta (20152095)
BBA- MBA 2015
JINDAL GLOBAL BUSINESS SCHOOL
O.P.JINDAL GLOBAL UNIVERSITY
SONIPAT
 EXECUTIVE SUMMARY
ITC Gardenia, a hotel that is conveniently located in the commercial heart of
Bengaluru - equipped with 292 Luxury rooms and suites ITC Gardenia offers the
discerning business and leisure traveller the best in Hospitality and Hotel
services. Overlooking the century old Bangalore Club, the hotel is situated in the
midst of Bengaluru's most elite neighbourhood. An abode for the indulgent and
the aspirational, a sublime confluence of the city's unhurried past and it's dynamic
present - ITC Gardenia embodies the splendours of nature. Inspired from the
magnificent gardens of the city, this luxury hotel was built as a tribute to the
beautiful city of Bengaluru and is in close proximity to key business districts and
IT hubs of Bengaluru.
 Acknowledgement

I would like to express my indebtedness appreciation to my mentor Mr. Joy Raj.

His constant guidance and advice played a vital role in making the execution of
the report. He always gave me his suggestions that were crucial in making this
report as flawless as possible.

Vedantam Gupta
Place: MCA Management Consultants Pvt Limited
Date: 27th July 2019
 Declaration

I, Vedantam Gupta, hereby declare that the presented report of internship titled
“Financial Processes in Hotel Industry” of ITC Gardenia, Bangalore is uniquely
prepared by me after the completion of 40 days’ internship at ITC Gardenia,
Bangalore.
I also confirm that, the report is only prepared for my academic requirement. It
must not be used for any other purpose.
…………………………………..
Vedantam Gupta
20152095
BBA MBA
OP JINDAL GLOBAL UNIVERSITY
SONIPAT HARYANA
 TABLE OF CONTENTS
SL No. TOPIC PAGE
NO.
1 Cover Page 1

2 Executive Summary 2

3 Disclaimer 2

4 Acknowledgement 3

5 Declaration 4

6 Introduction 6

7 What is the project, Scope, Outline 7

9 Company Profile and Products 8

10 Objectives of the Project 9

11 Methodology of Analysis 9

12 Detailed Analysis 10

13 Conclusion 19
 INTRODUCTION

ITC Gardenia, a hotel that is conveniently located in the commercial heart of

Bengaluru - equipped with 292 Luxury rooms and suites ITC Gardenia offers the
discerning business and leisure traveller the best in Hospitality and Hotel
services. Overlooking the century old Bangalore Club, the hotel is situated in the
midst of Bengaluru's most elite neighbourhood. An abode for the indulgent and
the aspirational, a sublime confluence of the city's unhurried past and it's dynamic
present - ITC Gardenia embodies the splendours of nature. Inspired from the
magnificent gardens of the city, this luxury hotel was built as a tribute to the
beautiful city of Bengaluru and is in close proximity to key business districts and
IT hubs of Bengaluru.
 What is the project, Scope, Outline?

While I was training in the Finance department of ITC Gardenia, I was observing
and assisting in the day to day processes that happen in a hotel.

In ITC Gardenia the Finance department consisted of following sub departments

1. Income
2. Credit
3. Payables
4. F&B Controls
5. Purchases
6. Store
7. IT Department

The department is managed by a Unit Financial Controller (UFC), Assistant UFC,

Credit Manager, F&B Controller, Purchase Manager, IT Manager and Store
Manager

In ITC Gardenia, the Purchase Manager handles the purchases of the entire
cluster. Also Payables and Receivables are done on a shared basis in ITC
Gardenia between ITC Gardenia, ITC Windsor, WelcomHotel Bangalore.

During the 40 days of training we worked in all the department in a cycle

understanding the working of Finance department in the hotel.

COMPANY PROFILE AND PRODUCTS

ITC HOTELS - THE LUXURY COLLECTION
Exceptional properties of ITC Hotels welcome you to experience the architectural
grandeur of ancient dynasties and the culture of the different regions of India. A
true amalgamation of history, tradition and ethos, these hotels are a part of the
world renowned "The Luxury Collection" brand of Marriott International, Inc.
Distinguished by the magnificent decor and impeccable service, the ITC Luxury
Collection Hotels embrace the credo of Responsible Luxury by offering planet
positive luxury experiences to its guests; an endeavour which has manifested in
the coveted platinum rating. Meeting internationally benchmarked standards of
hospitality, these hotels offer the most opulent residences with state-of-the-art
business facilities, renowned signature cuisines and award winning wellness
experiences, using contemporary business practices that harness the elements of
nature. Explore a bouquet of enriching experiences and celebrate the tradition of
luxury in each destination with ITC Hotels.
Apart from this, ITC has other classes of hotels such as
 WelcomHotel
 Fortune
 WelcomHeritage

OBJECTIVES OF THE PROJECT

The primary objective of project was to understand the process that is involved
in finance department of a hotel.

METHODOLOGY OF ANALYSIS
The methodology of analysis for the above project was that I had to spend
certain time period with each department and understand the process involved
in that area and how it assists the other sub departments.

DETAILED ANALYSIS
Before understanding the financial processes in the hotel, we were given a 5 day
induction on all the processes in the hotel.
In that we were told about the history and details of the hotel.
About ITC
ITC was first constituted as Imperial tobacco company, dealing in paper boards
and tobacco. Later in 1970 Imperial was changed to Indian and later on in 2001
ITC changed its name and has no full form now. Also ITC is one of the highest
tax payers in the country.
ITC Hotels- Luxury Collection has been LEED Certified (Leadership in Energy
and Environment Design). Under this ITC Hotels has been
Water +Ve for 16 Years in a row
Carbon +ve for 13 Years in a row
Solid Waste +ve for 11 Years in a row.
ITC Hotels follows a Triple Bottom Concept
 Financial
 Environmental
 Social
ITC Hotels also have received certain awards
 Peacock Suite- Largest Suite in Asia
 Bukhara, ITC Maurya- Top 50 Restaurants
 ITC Grand Bharat- Favourite New Leisure Hotel
 Club ITC – Loyalty Program
The core Value of ITC Group are as follows
1. Trusteeship
2. Customer Focus
3. Respect for People
4. Exellence
5. Innovation
 6. Nation Orientation
ITC Hotels has 3 parameters for Triple Bottom Line
1. Economic Prosperity
2. Environment Stewardship
3. Social Responsibility
After this I learnt the various Etiquette, such as Telephone, E-Mail and
Cellphone. Then I learnt about platinum standard that are followed in the hotels,
In total there are 14 Platinum Standards.
After this I learnt about Food Safety Certification, that is acquired by ITC
Hotels
1. BSA
2. FSSAI
3. ISO 22000:2005
I also learnt that there are different Chopping boards for different categories of
food products.
FINANCE DEPARTMENT
Initially I was in the Income and Credit department.
In that I learnt the following
 Credit Policy of ITC Hotels ( Details cannot be shared, because of
Confidentiality)
 Front Office Allowance Reports
In this report we generate the discounts that have been given to the
customers, and re verify if the allowance given was authorized or not.
 Loyalty Programmes and their operating procedure
ITC Hotels has different Loyalty programmes, such as Marriott Bon Voy,
Club ITC, ITC Culinaire, WelcomClub
 How are the Loyalty Points Calculated?
 Revenue and Tax Liabilities, Major Revenue Sources in a Hotel
 We also learnt that Finance Department in service industry also acts as
an Statutory norms fulfilling such as
o Verifying the details of the guest
o Updating the details of foreign Guest (Form C)
 Opera Rate Loading Process
o Rate Communication to Revenue Manager – Fixed Corporate
Rates
o Rate Communication to Revenue Manger- LANYON and
MARRFP
 Best Available Rates
This is based on the demand for the rooms. If the demand is high then the
price drops and vice versa
 GST Amendments for charging tax on rooms
Previously this was done on basis of rack rates, but after and amendment the
GST rate changes based on room rates slabs.
 ICE- Inter Cost Efficiency Reports
 Night Audit Reports
o No show reports
o Front Office Allowance Reports
o Early Departure Reports
o Late Check out Reports
o Reservation Cancellation Reports
o Complimentary Room Reports
o High Balance Reports
o Bills on Hold Reports
 I also learnt about different types of SAP ledger
o CFGD- Cash Paid (Reimbursement)
o REGD- Receipts of Cash
o CKGD- Cheques/DD
 Retention Charges are also taxed (for late checkout, No Show, Early
Check In and Early departure reports)
 We also provide travel packages ( ITC and ITH Agreement)- It also has
2 types- Paid Out and Part of the Package)
 SPA Management System- Detailed record of each service provided in
KAYA KALP- The Spa
 In Night Audit the Night Auditor does the 3 way Balance
o Cashier Report
o Detailed Report
o Checkout Folio
 Cashier Audit- Done for Checkout folio to match 3 way balance, Mode
of Settlement.
 Modes of Settlement done in Checkouts
o Cash
o AMEX
o VISA
o Diners Club
o Master Card
 Also we do the credit card reconciliation, this is done to match the
payment that have been made and also match with the cashier Audit, so
that we get all the payments and no transaction is missed.
 The cashier audit is mainly done to do rate check.
 Components of Night Audit
o MICROS- Done for Outlets
o SPA
o Opera- Date Roll Over
o Opera Income Audit
o Open Check Report- If the Bill has not been Settled
 Sales Reconciliation- MICROS  OPERA
 Night Audit Discrepancies are verified and rectified the next morning by
the day auditor.
 Day Auditor Checklist
o Foreign Exchange Display Board
o Registration Cards Audit
o Front office Cash Book- Tally FO Cash Book from Opera with
Cash Collection, paid out and Foreign Encashment.
o Credit Card Settlement
o Encashment Certificate
o Complimentary Rooms
o Paid Out
o Scanty Baggage
o Advance received in case of Cash Settlement
o Pre Auth in case of Credit Card
o Wash and Change rooms
o Spot Check of FO Cash and outlet Cash
o Business Center
o Duplicate Room Key Card/Guest Locker
o Front Office Checklist
o City Ledger- Check all supporting vouchers for all check out
folios and ensure no bill is missing
o Foreign Regional Registration office
o Telephone Report
o Travel House Audit
o Income Audit
o F&B Audit
 Banquets Checks
 Discount in Restaurants
 Pending Checks
 Imprest Spot Checks
 Void Checks
 Mini Bar checking
o Club ITC Update
o Extra bed Request
o WelcomBreak Package
o Outlet Menu
o Pre Auth Against Guaranteed Booking
o Allowance passed as per WelcomProcedure 32
CREDIT DEPARTMENT
The credit department of the hotel looks into credit extension, credit payments
and follow ups.
There are 3 types of tax invoice that is generated at a hotel
1. Bill to Company (BTC)
In this the bill is generated as per rates mentioned in the agreement with the
company.
2. Banquets
On conclusion of the event, the bill is raised in the name of the company and
sent to the company for payment within the period specified in the agreement
3. Travel Agents
Every month the bill is generated for travel partner and the payments are made
according to the agreement.
GST Input
So if a individual is staying at the hotel then hotel pays the GST on behalf of the
customer.
And if stay is booked under the company’s name then the company will get a
GST input credit.
Guest Ledger- People who have checked in at the end of the month/ quarter
and Checking out in the next month. In this GST is paid by the hotel in any of
the above cases.
We also learnt the Tax filling process
1. Compile the data as mentioned
2. Verify the data for errors
3. Then we send this data to Divisional Headquarters and Tax Coordinator
4. Tax Coordinator will send it HQ at Kolkata
5. HQ will remit to the Government
Also I raised invoices for payments from travel agents such as Expedia,
MakeMyTrip.

Annexure 9- Debtors Ageing Analysis

Comparison of last year same quarter who were the debtors and what amount
with this quarter’s report on who are the debtors and what amount.
This is done to check what amount has been recovered and who all the parties
A9Part1- Receivables
A9Part2- Unpaid credit/Unpaid Advances
The receivables have been categorised in 2 parts
>6 Months
<6 Months
 Whenever there is a group arrival there is a coordination meeting for
deciding the credit limit to the group based on the booking.
There are 2 types of Travel agents
1. On CCD List
2. Non CCD List- We don’t allow credit payments. If a booking is done the
advance payment must be made.
Deduct and Pay System- In this the travel agent partner deducts the commission
and then raises the invoice, which is later booked as commission expense by the
hotel.
The credit department also looks into the refunds.
There are refunds in 4 cases
1. Error
2. Wrong Rate
3. Double Swipe
4. Wrong Swipe
 5. Retention Charged- This is done when there is either No Show or Early
Check Out.
The mode of refund should be the same as the payment mode.
MONTH END REPORTS
Debtors Ageing Analysis- with classification as per outstanding days

F&B Controls Department

I spent around 2 weeks in this department.
Initially we were supposed to Serial Control. Serial Control is registering all the
bills swiped at outlets to the system. So that we can reconcile the revenue with
daily revenue reports.
Then we did the void reports. Void reports are just the bills which have been
cancelled by the outlet. We require a supporting document as in why this bill
was cancelled.
Inter Bar Transfer- This is a process of transferring of Liquor by one outlet to
another outlet. This is done in case the liquor requirement is urgent and the
outlet cannot follow the original procedure.
Perpetual Inventory- This is a daily process of verifying the actual stock in the
store with system. If any mismatch the store manager will have to provide a
supporting logic note.
Stores Issuing- Everyday each outlet generate a list of requirements, which is
processed and issued by the store manager.
Purchase Department
In this department I learnt the process of how the materials are procured by the
hotel. Also they manage the CAPEX and OPEX transactions.
While procurement of certain items there are 7 types of PR
1. CAPEX PR
2. Normal PR
 3. Emergency PR- Only used in case of emergency.
4. Liquor PR
5. Perishable PR
6. Stock Transport PR
7. Store PR
The store follows a Economic Order Quantity, this means that the system will
automatically generate a PR if the item has reached the threshold limit.
Each Vendor has to provide a Quotation and this Quotation is managed by the
IT department to maintain transparency.
Also if the procurement amount is >10,000 then we require a 3 party quotation.
And if the PR amount is >1,00,000 then we required the approval from VP
Finance along with a logic note.
Confirmatory PO- This is raised when the PO is raised on the basis of an
invoice. This generally happens with Eggs, which is supplied by NECC.
Payables Department
This department looks into the payments to vendors, Salary, Statutory Payments
such as TDS, TDS returns.
Invoicing Voucher- After the cross check of all data at ITC Windsor. After
approval of AFC, RTGS Batch is created.
Once RTGS Batch is created, then UFC approves then we require a second
approval, after this then it goes to DHQ for Payment. Once DHQ approved this
then Bank Encrypted file by DHQ is generated. It takes T+1 days for the
payment to be made to the vendor.
 CONCLUSION
To conclude I would say that it was great and unique experience, as it was a
great opportunity presented by my industry mentor Mr Joy Raj. He had been a
great mentor and also provided many new learnings which is very valuable to
me. He gave me an opportunity to put the theoretical knowledge into the
corporate world.
In this project I understood how a company operates and how the company
deals in daily financial process, we also had the privilege to observe the Quarter
End Closing. The project enhanced my theoretical skills into the practical
knowledge.