AVANT GARD HOSPITALITY PVT LTD

Standard Operating Procedure - SOP

Accounts & Finance.

1. ROLE OF FINANCE FUNCTION

To ensure effective application of specialist expertise to aid the achievement o f organisational objectives, especially through formulation and implementation of financial strategies that w ould appropriately support business strategies. To therefore,

. be in constant awareness of organisational objectives and strategy . shift focus from tasks to strategies . continually enhance specialist skills.

2. ROLE OF THE ACCOUNTS MANAGER.

As head of the restaurant finance / accounts and material functions specific res ponsibilities would include

. Proper maintenance of books of accounts including statutory compliance with rega rd to companies act

. Timely completion of external / internal audits with personal accountability for the implementation of agreed audit points.

. Responsible for capital expenditure including fixed asset accounting/insurance. To ensure that laid down systems are followed for acquisition of assets, write-offs / disposals and appropriate approval obtained.

. Remittance of all statutory payments and submission of returns in time.

. Continuous monitoring / review of various cost control measures and revamping th em wherever necessary

. Overall management of working capital including management of receivables, inven tories and ensuring a. Quick collection process by strict follow up as per systems laid down. b. action is taken for reduction of non moving and slow moving items.

. Submission of accurate MIS reports to Management in time

. Training and development of supervisory cadre in multiple functions within finan ce including identification of supervisors for growth.

Provide adequate and timely guidance to functional heads in the restaurant on al l aspects of

a. Revenue b. Movement of cost / cost control c. Analysis of variances including profit reviews. d. Bring to focus areas of cost control / revenue leakages to the attention of D irector. e. Areas where basic policies of the restaurant are in violation of laid down po licies to be brought to the attention of the Director. 3. REVENUE ACCOUNTING AND DAILY MIS

1. The primary responsibility of the Accounts manger is to ensure the revenue is accounted accurately and the all the statutory levies is been collected from the customer. He need to cross check the Daily Sales Report as per IDS is accurate. 2. Cash Collection as well as the Credit card collection should match with the D aily Sales Summary. The cash collection of the previous day should be handed over to the Accounts Ma nager in the Prescribed cash hand over envelop writing the denominations. The credit card set tlement should tally with the batch close of the EDS machines. F&B Service team should give rea sons in case of any discrepancy. 3. No cash transaction is allowed in the cash collection unless the written inst ruction from the Director. The Cash collection amount should deposit to the bank in the prescribe d dates and the counter foil should verify and Certify by the Restaurant Operational Manager fre quently. 4. The Accounts manger need to run the programe in IDS to create the Sales Journ al on daily basis. 5. It s the duty of the Accounts Manager to prepare a report of Daily MIS to the M anagement in the prescribed format based on the Daily Sales Report before 11 am every day. 6. The credit card settlement should be tagged every day based on the transactio n summary from Axis and Amex. Ensure the Bank charge is accurate.

4. RECEIPT VOUCHER

1. A receipt voucher is by F&B Service staff/Accounts personal prepared as and w hen cash or cheque or DD is received from a customer/ Staff. There should be separate book available i n F&B Service and the Finance & Accounts. 2. There should be one printed serial number running for the complete financial year. 3. The name of the guest / company from whom the money is collected should be cl early indicated. 4. Where the payment is through a DD / cheque its reference number and date shou ld be given. 5. Where the payment is for a group of individuals a list should be enclosed giv ing individual guest name and amount. 6. The F&B Manager is to ensure the cash along with the voucher is handed over t o the Accounts & Finance Manager as soon as the receipt of the cash. Once received the details th e Accounts Manager has to account the same in IDS and one copy of the receipt voucher to hand over

to the F&B Manager.

7. In case the cash receipt for the advance booking, once the billing is settled in Advance in the POS , a copy of the receipt voucher to be attached for the immediate reference of the Ac counts.

5. BANK PAYMENTS

1. A Bank payment voucher must be prepared for all payments effected. It should be in numeric serial order with one serial number running for the full financial year. NO PAYM ENT SHOULD BE MADE WITHOUT BANK PAYMENT VOUCHER.

2. Original bills / GRN / supporting documents should be attached to the voucher . The bills should be stamped by security to confirm receipt of goods at the restaurant. In extreme cases where bills are not practicable an inter office memo/ Mail from the concerned HOD should be enclosed.

3. No payments should be made on duplicate / photocopy of bills. In case the ori ginal bills are lost a NON PAYMENT CERTIFICATE must be obtained from the payee before releasing the pay ment and the individual creditor account sub ledger should be checked for sufficient cred it balance before releasing the payment.

4.

Paid

seal to be affixed on all bills / supporting.

5. Bank payment voucher will be checked by the Accounts Manager and approved by

Director.

6. For all material related payments, original bills, GRN and security seal is a must. Before releasing payment the purchase order terms also needs to be checked. For all service relat ed payments original bill is mandatory.

7. Where part payments are made for the same bills separate paid stamps to be af fixed on the bill giving individual payment details of cheque number / date / amount.

6. PASSING SUPPLIER BILLS

1. Check the P.O. terms for the following . Quantity . Rate . Taxes . Delivery schedule . Advance payments . Payment in parts . GRN to be checked for actual quantity received

2. Where the quantity received is in excess of 5% of the quantity ordered paymen t should be made only after the excess receipt is explained by purchase / stores and duly approved by the user department.

3. Where the P.O does not provide for part deliveries, payment should not be mad e until the delivery schedule is completed.

4. Where the payment is for a service rendered, the bill should be verified with the job/work order. A work completion certificate must be taken from the user department HOD. TDS appl icability should be checked before payment is made.

5. For the regular suppliers/Vendors before making the PJV ensure that valid agr eement is in place. In that case ensure the payment terms are strictly followed.

6. The bills must be checked for arithmetical accuracy.

7. Payment should not be made on duplicate /photocopies/ proforma invoices.

8. Where the payment is in respect of a material taken out of the restaurant for repairs/ servicing etc., the gate pass should be checked for exit and security seal for entry into the re staurant.

9. All payments should be made by Account Payee e affixed on all bills / supporting.

crossed cheques only.

Paid seal to b

10. The individual creditor account sub ledger should be checked for adequate cr edit balance before payment.

11. In case of Payment of advance , check the PO terms and approval.

12. Before passing entry in the system it should be insure that advances if any is settled/adjusted.

7. BANK RECONCILIATION STATEMENT

1. Bank Reconciliation statement should be drawn up by the 4th of every month an d sent to Board along with Monthly MIS.

2. The statement of account from the Bank should be obtained by 2nd of every mon th.

3. The BRS as on 30th September and 31st March (Half yearly closing and Annual c losing) should contain only Cheques issued but not presented and Cheques deposited but not credite d . In other words it should not contain, . Bank charges

. Unexplained debits /credits by Bank . Totaling mistake in Bank statement . Stale cheques

4. Discrepancies in Bank statement should be taken up with Bankers within 48 hou rs of completing BRS.

5. Once the BRS is completed all outstation cheques deposited but not credited t o our account for more than 21 days should be taken up with Bankers for follow up action. Where the cre dit is given to our account beyond 21 days we should get interest for the delayed period as applicab le to SB account. (local cheques should be credited within 48 hours of deposit)

6. Certificate of balance must be obtained from Bankers on 30th September and 31 st March of every year.

7. In case of dishonor of cheques it has to be brought to the notice of Director people within 24 hours of receipt of the advice from Bankers.

8. Cheques which are more than six months old (stale cheques) should be reversed by a journal entry.

FORMAT OF BRS

BALANCE AS PER BANK STATEMENT

Add Cheques deposited but not credited

Name Cheque No. Date Amount

Less Cheques issued but not presented

Name Cheque No. Date Amount

Balance as per our Bank book (General ledger)

9. SUNDRY DEBTORS

1. All the credit sales should be approved by the director. Before the ODC party the Accounts manager to be intimated about the ODC sheets and terms of understanding of payme nts. 2. Vendor master to be created with all the relevant details in the IDS and it i s to be ensuring that the bill is settled in the correct vendor code. 3. The F&B Team has to handover the credit bills in original duly signed by the Customer with the ODC sheet. The accounts manager has to cross check ODC sheet with the bill for t he no of pax and the rate agreed for is tallying and all the relevant statutory levies are ch arged. 4. The credit bill along with the ODC sheet and covering letter should be forwar ded to the Customer on the same day. 5. A statement of Pending debtors to be made in every 15 days and should be circ ulated to concerned. It is the Accounts Manager s duty to follow up with the concerned team

member for the settlement of amount and ensure no credit is lying more than one month. If so it to be noticed immediately to the Director.

11. SECURITY AND CONTROL OF CHEQUE BOOKS

CHEQUE BOOKS

1. All fresh cheque books will be received by the Accounts Manager (or his desig nated assistant) and checked to ensure that all cheque leaves are in serial order.

2. Cheques to be issued by the cashier in serial order only.

3. Cheque once prepared and cancelled should be retained in the cheque book. The signature should be cancelled and the cheque defaced.

4. All cheque books should be kept in the cash box under lock and key at the end of each working day.

5. Only one cheque book shall be in use at a time.

6. Accounts department will be responsible for safe custody of cheque books

12. TIME BARRED CHEQUES

As per negotiable instruments act a cheque is normally valid for 6 months from t he date of issue and after this period the instrument becomes invalid.

. Once the cheque has become stale (invalid) intimation must be given to the party asking them to

return the stale cheque for re issue of a fresh cheque.

. Before issuing a fresh cheque the Bank should be advised to stop payment of the stale cheque as per proforma below.

Bank Name Address

Dear sirs,

Account Number Time barred cheque.

We have issued cheque no

. dated . For Rs

. In favour of

..

This cheque has not yet been presented to you as per your statement of account. As this cheque has now become time barred, please note to stop payment of this cheque and confi rm.

Yours faithfully, For Avant Garde Hospitality Pvt Ltd

Authorised Signatory.

. On receipt of the stale cheque and on receipt of confirmation from the Bank of h aving stopped payment, this cheque is cancelled and the entry reversed.

. A fresh cheque in lieu thereof is issued for the same amount. A new bank payment voucher is made for this payment. This voucher should be cross-referenced to the previous o ne.

. If the party has misplaced the cheque and it has become time barred, a fresh che que is issued only after getting a letter from the party and bankers on the confirmation of st opping payment.

13. CHEQUES LOST IN TRANSIT / MISPLACED

1. Where cheques issued by us are lost in transit by the party a letter from the party must be obtained in the following format :

We regret to inform you that cheque no dated for Rs . Issued by you in settlement of our bills has / have been lost in transit / misplaced

In case this cheque is later traced, we guarantee that it will be returned to yo u for cancellation.

We therefore request you to issue a fresh cheque in lieu thereof.

2. Further a stop payment letter should be issued to the bankers and confirmatio n from the bank taken for having noted the stop payment instructions.

3. A fresh cheque can be issued after fulfilling both these conditions.

14. JOURNAL VOUCHER

1. A Journal voucher is used to account provision entries, make rectification en tries and for accounting revenue related and expense related (capital and revenue) entries.

2. The journal voucher should be system generated and must be in serial order wi th one serial for the full financial year.

3. No Journal entry should be passed affecting cash or bank book.

4. Complete narration explaining the nature of transaction must be given in Jour nal voucher.

5. All Journal entries passed for accounting expenses should be approved by Dire ctor and remaining journals approved by the accounts in charge.

6. Proper supporting documents should be attached to the journal vouchers.

7. Printouts of journal vouchers should be taken on a monthly basis and filed in serial order.

15. PURCHASE JOURNAL VOUCHERS (PJV S)

1. PJVs are prepared on receipt of invoices for goods / services and GRN from st ores department.

2. PJVs should be used in numeric serial order with one serial for the full year .

3. PJVs should also be made for utilities by government agencies such as electri city, water, telephone etc.,

4. While accounting PJVs care should be taken to debit the correct inventory / a sset / expenditure head of account and credit supplier account. In case of new items in the invento ry item care should taken to ensure it is accounted in the same inventory head.

5. PJVs should be prepared within 24 hours of receipt of bills / invoices / GRN.

6. Once the data entry of PJVs are done the same should be filed along with the bills / GRN in the UNPAID CREDITORS FILE. When the payment is taken up the same should be removed f rom unpaid file and filed along with the Bank payment vouchers.

7. All PJVs should be checked by the accountant and approved by Director.

16. SALARY ADVANCE PROCEDURE

1. An application should be made in the following format

. Name of the applicant (whether confirmed staff) . Date . Reasons . Amount . Name of surety (whether confirmed staff) . Previous balance if any . Gross salary

Signature of the Signature of the Approved by Applicant surety Personnel /R. Manager. Dept.

2. HR department to maintain a salary advance register in the following format

Name Date of advance Amount sanctioned Gross salary Name of surety Recovery

details Previous balance if any Approval

3. Salary advance can be given only to the extent of 70% of one month s gross sala ry to a confirmed staff.

4. Salary advance request cannot be entertained after 20th of the month till the end of the month.

5. There has to be one surety who should be a confirmed staff. One person cannot be a surety for more than 2 applications.

6. No salary advance is permitted if any previous balance is remaining outstandi ng.

7. All salary advance should be recovered in one installment from the salary of the month in which the payment is made, for e.g. Salary advance paid on 1st October, 19th October etc., should be recovered in October salary itself.

8. All salary advance applications should be routed through accounts before appr oval for checking previous unsettled balances if any.

9. Where the employee leaves the organisation and if any salary advance is outst anding the same should be recovered in the final settlement. Under extreme circumstances where i t is not possible to recover the advance from the employee the resort should recover the same from hi s surety.

10. Restaurant HR department will be responsible for administering this policy. Where HR is not there it will be the responsibility of Accounts.

11. Accounts department to open individual subledger for each employee for easy monitoring.

17. STATUTORY MATTERS

The following are the statutory matters for the restaurant. A consolidated statement to be prepared for the restaurants together for the sta tutory payments every month and ensure the accuracy of the calculation. 1. Remittance of VAT and submission of monthly returns in time. Monthly return s hould be submitted before 20th of every month. Separate sheet and a consolidated statement to be pr epared for the Input

and out put vat and accounting correctly. If the payment is made in the HO ensur e the corresponding entries passed in the related books. 2. Remittance of PF and ESI and submission of monthly returns in time. Employer contribution to PF and ESI to be accounted in the books separately and a consolidated payment to be made. 3. Remittance of TDS and submission of annual/Quarter returns and the TDS Certif icate in time. 4. Calculation of Advance Tax payable and remittance in time. 5. Submission of Excise returns to the authorities monthly on liquor consumption and stock balances. Coordinate with the F&B team and the F&B Controller to ensure the accuracy of th e stock in both Physical and in Excise Books. 6. Renewal of all licenses of the restaurant (refer to the list of licenses) 7. Payment of Vehicle tax / Insurance in time.

It will be the responsibility of Accounts Manager to ensure that all the above s tatutory matters are fully complied with.

Accounts Manager should give monthly statutory matters compliance report along w ith the Monthly MIS and hence there is absolutely no scope for any delays in the payments / submissi on of returns/ renewal of licenses.

18. CASH PAYMENTS 1. Cash payments must be restricted to disbursements of minor nature for which i ssue of cheque is not practicable

2. A cash payment voucher ought to be made which should have a serial number run ning for the full financial year.

3. Original bills / GRN / supporting documents should be attached to the voucher . The bills have to be stamped by security to confirm receipt of goods at the resort. In extreme cases where bills are not practicable there must be an inter office memo from the HOD.

4. No payments can be made on duplicate / photocopies of bills. In case the orig inal bills are lost a NON PAYMENT CERTIFICATE must be obtained from the payee before releasing the pay ment.

5. Cash paid seal should be affixed on all bills / supporting documents

6. Receiver s signature should be obtained in all cases.

7. All employee payments such as conveyance, medical, travel advance / travel ex penses etc., should be as per management policies governing the same.

8. The amount in figures and words (cash voucher) should match.

9. Where settlement of an IOU is made the IOU reference should be given in the c ash voucher.

10. Correct code should be used for debiting the expenses

11. Cash should be handed over to the payee ONLY AFTER all these points are adhe red to.

12. No cash payment exceeding Rs. 20000/- be made in one voucher. However this r ule does not apply to central / state government payments such as sales tax, luxury tax, PF/ESI, Li cense fees and TDS.

13. All cash payment vouchers should be checked by the accountant and approved b y the Director.

19. IOUS

1. IOU is a temporary advance given to an employee to meet certain urgent expens es for the day to day operations.

2. IOU should be given to an employee ONLY and not to outsider s (supplier, contra ctor etc.,)

3. All IOU should be settled within 48 hours of receipt failing which a written communication sent to the employee to settle the same within 24 hours of receipt of this communication .

4. All IOUs pending beyond 72 hours should be brought to the notice of Director for corrective action. In any case IOUs cannot remain outstanding beyond 7 days.

5. All IOU should be settled in cash only and in extreme cases could be recovere d from salary.

6. No part settlement of IOU is permitted and it should be settled in full.

7. No fresh IOU should be given if the earlier one is pending.

8. IOU voucher should be serially numbered with one serial number running for th e full financial year.

9. As and when the IOU is settled it should be defaced with a SETTLED stamp givi ng the cash payment voucher reference, amount and date.

10. All pending IOU should be recorded in the daily petty cash checklist and che cked by the Accounts Manager while closing the cash everyday. FORMAT OF IOU VOUCHER

Voucher No. Date :

Please pay a sum of Rs .

(Rupees in words

to the undersigned towards

I undertake to settle the same within 48 hours as per rules of the company

Receiver name Receiver signature Checked by Approved By

Manager Accountant Resort

20. GATEPASS 1. Separate set of gatepass for returnable and non returnable with distinct seri al no. should be maintained.

2. Gatepass should be made in 3 copies. Original for the person taking the mater ials, 1st copy for the user department and the last copy to be retained with the book by security. In c ase of void gatepass all three copies should be available in the book along with reasons for voiding.

3. All Non returnable gatepass should be approved by Director (in his absence by whosoever officiates) and all returnable gatepass should be approved by Accounts Manager except return able gatepass relating to laundry which is approved by Restaurant operational Manager for the linen movement.

4. Returnable gatepass to clearly mention the date of return

5. Security to maintain a register separately for returnable and non returnable in the following format.

Sl. No. GP No. / date Item description Quantity Returnable date Date of actual return Remarks

6. Security will clear the materials to move only after the gatepass is found in order and properly approved. All gatepass should be clearly stamped by the security.

7. Security to make a fortnightly report (15th and 30th of every month) called P ENDING GATEPASS REPORT, which should highlight all materials due for return and not actually ret urned to the resort. This report should be given to the resort HR department for their follow up with copy to Resort manager. Where HR is not there this report will be given to Accounts for follow up with copy to Director.

8. Accounts department will pass the monthly security payment only after checkin g all gatepasses and pending gatepass report.

9. All Non returnable gatepass should clearly indicate the reasons for classifyi ng the materials as nonreturnable. For eg., material belongs to contractor, scrap being sold etc.,

21. FIXED ASSETS

1. It is essential here to distinguish and understand capital and revenue expens es. Any expenses which results in enhancing the value of asset or an expense which increases the earning capacity, useful life or an expense which is expected to have an enduring benefit may be d efined as Capital expenses.

Any expenditure, which is incurred to keep the asset in working condition or an expenditure, which is recurring in nature, may be defined as Revenue expenditure.

In distinguishing expenditure between capital and revenue value and time element s are of importance.

2. As a policy all purchases of assets (capital expenditure) will have to be ref erred to Director only. In other words there is no delegation of powers to the HODs on this matter.

3. The Concerned HODs will have to submit all capital expenditure requirements t o Director in the prescribed Capex form along with quotations and justifications for the purchase.

4. All such capex proposals should have been budgeted for at the time of Annual Budget exercise.

5. It is mandatory to maintain a fixed asset register in the following format.

. Name of the supplier . Bill / Invoice No. . No. of items. . Total cost ( includes cost of addition and improvements) . Date of purchase . Identification number . Location . Bank payment voucher reference & date

6. This register must be updated as and when a purchase is made. It will be a pr udent practice to ensure that payment to the supplier is released only after updating the asset re gister.

7. Write offs and disposal of all fixed assets need specific sanction from the D irector. Upon receiving the sanction the Accounts Manager may effect write off entry in the books of acc ount and proceed with disposal in the manner sanctioned.

8. Once the sanction is obtained from the Director competitive bids in sealed co vers have to be obtained. It is also advisable to get the asset valued by an independent valuer in order to ascertain the true market value.

9. The most competitive bid (highest) should be accepted.

10. Verification of fixed assets should be done once a year (before close of the financial year).

11. A team consisting of the following people should be constituted for the veri fication One person from accounts Concerned head of the department One person from purchase

12. The verification sheets must be prepared in duplicate and one copy should be submitted to the Director. The physical balance is compared with the fixed asset register.

13. No variances are allowed in fixed assets and in case of any variation the sa me should be investigated for appropriate action.

14. The verification sheets should provide for obsolete / damaged items.

22. PHYSICAL VERIFICATION OF STOCKS GENERAL

1. All stocks have to be physically verified on the last day of the month. Purch ase / store in charge to issue an IOM to all HODs informing stock taking and no receipts / issues are per mitted on that day.

2. Physical verification must be done in the presence of one representative from accounts and stores. For food, beverage and housekeeping inventory in addition to the two representat

ives, another person from the concerned department should be present.

3. As a standard procedure, the physical count should be taken first and then cr osschecked with the book stock.

4. The inventory sheets should contain . Date of inventory . List of all items . Physical balance . Book balance . Variance . Remarks . Names and signature of the persons involved in the stock taking process

5. Stocks should be easily identifiable and properly arranged for easy verificat ion.

6. Where the variation in stocks is more than Rs. 250/- in value it should be in vestigated.

FOOD INVENTORY

1. The inventory should start after all food deliveries for the day have been co mpleted or reached minimal levels.

2. Counting should be a continuous process without stopping midway.

3. Once the inventory count is over the book stock should be written against eac h item and variance computed. The variance in terms of quantity and value should be recorded.

4. Food inventory in the kitchen should be done on a weekly basis for the purpos e of calculating weekly food cost reports.

5. The inventory of Meat, Fish and Poultry in the deep freezer should also be in cluded.

6. The food inventory sheets should contain the following :

Items Stock at Stock at Stocks in Total Main stores kitchen deep freezer

BEVERAGE INVENTORY

1. It is an accepted procedure to take inventory of Bar during the morning befor e opening hours for business.

2. The physical inventory should be compared with the Excise records and no vari ations are permitted between book stock and physical stocks.

3. The combined total of the storeroom and bar inventories represents the invent ory value for the month for accounting and reporting purposes.

4. Tobacco stocks should be verified the same way as Beverage stocks.

HOUSEKEEPING & ENGINEERING

1. All items issued to HK and Engg, from main stores are taken to consumption ac count irrespective of whether they are stocked at their respective areas.

2. However for control purpose the departments should keep track of all items re ceived from stores and issued to guest areas in their internal register with closing balance at any poi nt of time.

3. This register should be maintained date wise, item wise and should be availab le for inspection by

the accounts department.

4. Inventory should be carried out on the last day of the month along with a rep resentative from accounts and variations recorded.

OTHERS

1. All personal telephone charges of Staff are to be debited in their ledger and deducted from Salary.

23. INTER BRANCH ACCOUNTING.

1. The Accounts Manager should ensure all the liabilities and expenses is paid b y HO on behalf of the branches is accounted in the concerned books correctly. The entry should happen simultaneously in all the books using logemein. For Eg : Payment of salary >

In Caperberry Books

Salary Account ( only of CB) xxxx Directors Salary (Apportion) xxxx Service Chage (Actual of CB) xxxx Fava Control Account(incl salry,Ser,Dir Salary) xxxx Melting point Control Account xxxx

To ESI Payable (Employee Contri of all the Restu) xxxx

To PF Payable account xxxx To Salary Advance xxxx Salary Advance xxxx Cafeteria Deduction xxxx Salary payable Account xxxx

In FAVA Books.

Salary Account ( only of Fava)) xxxx Directors Salary (Apportion) xxxx Service Chage (Actual of Fava) xxxx ESI Payable account xxxx PF Control account xxxx

To Cafeteria Deduction xxxx To Salary Advance xxxx To ESI Payable To PF Pable account Head office control account

2. The Control Accounts should be reconciled before 2nd of every month and all t he entries to be passed and the control accounts ensure is tallied.

24. CLOSING OF ACCOUNTS

20.1 FIXED ASSETS 1. Schedule to be made giving the opening balance as of 1stApril and details of all additions during the year. Photo copies of all invoices of additions to assets during the year to be attached to the schedule.

2. Fixed asset register to be updated for all the additions during the year. (Pa yment of fixed asset bills to be taken up only after the asset register is updated)

3. Capex pending allocation account should not have any balance and entries in t his account should be taken to the respective fixed asset accounts.

4. Fixed assets verification should be carried out by the restaurant by 25th Feb every year.

20.2 INVENTORIES

1. The balance under the various inventory accounts such as guest supplies, clea ning supplies, operating supplies, Kitchen fuel, engineering supplies, Uniforms, linen, china a nd glassware minerals, soft-drinks, beer, wines & spirits and cutleries should match with the actual inventory available in the MAIN STORES.

2. There should be no balance under inventory printed stationery and general sta tionery as of 31st march. Any stocks of the above as at 31st march should be charged off to consump tion account.

3. Materials issued to house keeping, engineering, F&B departments from main sto res should be charged off to consumption accounts irrespective of whether the concerned depart ments carry these items as stocks.

4. Physical inventory to be taken on 31st march at main stores, housekeeping & F &B departments.

5. Please keep affecting the operations and e last week of

the inventory levels as at 31st march as low as possible (without day to day stock out situations). Do not go in for major purchases during th March.

1. staff as at 31st march. 3 SUNDRY DEBTORS

2. The balance in this account as of 31st march should match 20.5 PAID OUTS

There should be no balance under this head as of 31st march. If there are any pa yments made on behalf of the guest, the same has to be recovered at the time of check out.

20.6 CREDIT CARDS

1. The schedule as of 31st march should give , date wise amounts outstanding and details of charge backs if any.

20.7 SALARY ADVANCE, LOANS AND TRAVEL ADVANCE

1. Detailed schedule giving employee wise, date wise, amounts outstanding as of 31st march should be drawn up.

2. Steps to be taken to recover salary advances and settlement of travel advance s. There should be no balance under travel advance account for journeys completed on or before 31st march.

20.8 PRE PAID INSURANCE, TAXES, LICENSES, PERMITS AND EXPENSES

1. The balance in this account as of 31st march should be the un-apportioned amo unt of the next financial year.

2. Schedule to be drawn up giving item wise details and specifying the period to which it relates to in the next financial year.

20.9 CASH AND FLOAT ACCOUNTS

A certificate to be given by the and Accounts Manager giving denomination-wise d etails of closing cash and float balance as of 31st march.

20.10 BANK ACCOUNT

1. Bank reconciliation statement as of 31st march to be enclosed. The reconcilia tion should contain only cheques issued but not presented and cheques deposited but not credited. Pl ease follow up with the bank for all cheques deposited but not credited exceeding 21 days.

2. The reconciliation should not contain Bank charges, unexplained debits /credi ts and totaling mistake.

3. Please take a certificate of balance in duplicate from your Bankers for audit purpose.

20.11 PRE-OPENING EXPENSES (NOT WRITTEN OFF)

1. The treatment of this account will be on the same lines as prepaid expense ac counts.

2. Pre-opening expenses are to be written off over a three-year period and hence the balance under this account should represent the unapportioned amount for the next two financial yea rs. One third of the amounts under this account should be charged off to pre-opening expenses (wr itten off) account during the financial year.

20.12 SALES TAX, SALARIES, SERVICE TAX, P.F, E.S.I PAYABLE ACCOUNTS OF T.D.S

1. The balance under this account as of 31st march should relate to the month of March only

2. All statutory payments upto February should be paid to the department before the due dates along with the necessary returns. The march figure alone shall appear in the schedule to be paid in April.

20.13. OUTSTANDING EXPENSES

This head of account should contain provisions for items such as electricity, wa ter, telephone, GRNs made on every month for the accuracy of the monthly MIS reports.

20.14 SUNDRY CREDITORS

1. The schedule to be drawn up on the same lines as of sundry debtors giving bil l wise, date wise, supplier wise details of amounts payable.

2. There should not be any debit balance in this account.

3. Conformation of balance to be obtained from a few suppliers for audit purpose .

20.16 IOUS

1. All IOUs should be settled within 48 hours. In case of any IOU beyond 48 hour s, accounts department should send a written communication to the concerned staff to settle the same within 24 hours of receipt of this communication

2. If there are any IOUs still pending in spite of these efforts, it has to be b rought to he notice of the resort manager for corrective action.

3. In any case there should be absolutely no IOUs pending as of 31st march.

22.4 SETTLEMENTS.

1. The settlement can be broadly categorized as under

. Cash .

Card . Staff

2. At the end of the shift the cashier makes a summary of all bills raised durin g the shift giving the settlement as described above.

3. Cashier to deposit the settlement summary, bills (stapled with the respective KOTs), cash drop cover, Credit card charge slips in safe deposit locker at the end of the II shift

4. For all cash settlements a CASH PAID stamp to be affixed on the bill.

5. For all settlements through cards the cashier must observe the guidelines.

23. DAILY CASH RECEIPTS ACCOUNTING

23.1 OUTLET CASHIER.

1. At the end of each shift outlet cashier will prepare a cash turn-in envelope (cash drop cover) for surrendering the daily receipts to the Accounts Department along with the system generated sales summary sheets. 2. During periods of high sales and receipts, periodic cash transfers be made th rough out the cashiers shift so that minimum balance is maintained at the cash counters. 3. The Restaurant Manager to check the cash turn in envelopes daily and physical ly check the cash.

4. All shortages to be investigated and recovered from the concerned staff and o verages credited to the overages / shortages account.

5. The daily cash collections should be deposited in the bank on the prescribed dates.

6. At the end of the day general cashier to take a printout of the petty cash ac count (system generated) physically check the closing cash balance and record the IOUs and denominations of cash. The Cashier/F&B Manager should have a register to record the Daily collection and it should be acknowledged by the Accounts Manager.

7. All cash shortages and overages must be reconciled daily. Particular attentio n should be paid to repetitive cash irregularities by the same cashier as this could indicate carele ssness or dishonesty. Any pattern of consistent large cash overages should be investigated for the sam e reasons.

29. LIST OF LICENSES FOR RESTAURANT 29.1 LICENCES

1. Trade Licence 2. Excise / Bar Licence 3. Local VAT / Central Sales Tax Registration 4. PF / ESIC Registration; Registration under shops & Establishment Act 5. Service Tax / Professional Tax Registration 6. Nomination under PFA 7. Weights & Measures Licence. 8. Employment Exchange / Contract Labour / Apprentice Training 9. LPG clearance 10. Copyrights for display of recorded music.

29.2 INSURANCE

1. 2. 3. 4. 5.

Fire Insurance at Reinstatement value Public Liability Insurance Machinery Breakdown Fidelity / Cash in-transit Insurance) Motor Insurance for all vehicles