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ROLL NO. 0906770022
MBA (2009-2011)
In partial fulfillment of the requirement for
MBA Degree Programme
Of Uttar Pradesh Technical University, Lucknow



I am grateful to all those who have helped me directly or
indirectly in company this project. I firmly believe that there is
always scope for improvement and accordingly. I shall took
forward to received suggestions.
First of all I would like to thank God for his grace. I am
further thankful to Financial Auditing in Hotel Man Singh
Palace, Agra which give me chance to held my project study
upon of it
I further want to thank to Mr. Shamsul Huq who guide me
and help taking right direction in field work. I further welcome
inspiration and suggestion to make it best.
I sincerely believe that the road of improvement is never
ending. Hence I shall forward to end gratefully acknowledge
all suggestions received. I am highly grateful to faculty of
HIMCS Farah for acting as a Guiding star for me. Who helped
me in their own way to complete this interim report my sincere
apologies is who helped me in a variety of wage and Whose
name could not be individually acknowledged.



I, Deepti Jain, student of MBA-III Semester, Hindustan Institute of

Management and Computer Studies, Farah, Mathura, Batch 2009-11 Roll
No. 0906770022 here by declare that the Summer Training project title
Financial Auditing in Hotel ManSingh Palace

is the

outcome of my own work and the same has not been submitted to
any other university/institution for the award of any degree or
professional diploma.

Date :
Place : Agra


It is a matter of great privilege for me to present this project.

Financial Auditing in Hotel ManSingh Palace . The report of
this project has been written in a simple and self learning style. The clarity
has been given top priority Financial Auditing the project.
The aim of this project report is to give complete view of Hotel
ManSingh Palace, Agra, with Special Reference to financial auditing.
I trust this Report will be helpful in understanding the subject.


Executive Summary
Objective of the study
Career Opportunities In The Hotel Industry
Financial Auditing for Internal Auditors
Research Methodology

Primary Sources of data

Secondary Sources of data

Graph Analysis & Data Interpretation

Findings & recommendations

Findings & Recommendations



Hotel Man Singh Palace function is continually increasing its hold on all
other functional departments in an organization. In todays competitive
corporate environment, there is hardly any organization, which has not
realized the importance of financial auditing. Those who have still not
realized the importance of financial auditing organization are in a true sense
LAGGARDS. When we look into the scenario of hotel industry in India,
we can say only that hotel will survive who has the competitive advantage
over the others in the industry. The project study focuses on financial
auditing, which is an interval part of the management at Hotel Man Singh
Palace. It relates to the whole of auditing system at the hotel, which in turn
covers the auditing need analysis, formulation of auditing plans, the
auditing methods used in the hotel, the evaluation of auditing and the
feedback system used in the hotel. In order to obtain the relevant
information and data a certain percentage of staff and executives were
covered Financial Auditing questionnaires. Interview with the auditing
manager was conducted in order to know about the current status of the
auditing system at the hotel and to know about the auditing practices being
followed in the Hotel. Further an analysis has been done in order to know
the gap in the financial auditing system and based on that, suggestions have
been made to the management with the objective of a potential
improvement in the financial process system presently being followed.

The ManSingh Palace of Agra, named after Rajput Emperor Sawai
ManSingh, is essentially a hallmark in Indian hospitality, which can be
experienced by the tourists staying at this hotel. The 100 elegantly
furnished rooms have attached bath, running hot and cold water along with
the captivating view of the "Tajmahal" available from the "Taj View
Rooms". The conference and banquet halls offer modern facilities with a
seating capacity of 35 pax to 300 pax. Rajvilas Conference hall is the
largest accommodating up to 300 persons. Darbar Conference hall is the
smallest with a seating capacity of 30 persons. The ManSingh Palace hotel
is overall a hotel worth a stay when you are in Agra.



ManSingh Palace Hotel

3 Star Hotel
Fatehabad Road, Agra, India
100 Rooms
Restaurant, Bar, Conference Facilities, Health Club,
Swimming Pool, Beauty parlor, Barber shop, Billiards,
Table tennis,
Lawn tennis and Squash courts, Putting greens, Joggers
track and
Discotheque, Bowling Alley, Virtual reality games.
Mansingh Group of Hotels

Packages for 2 nights & 3 days (Valid till 30th Sept'10)

Rooms type


Best deal

Deluxe room



Package Includes:
*Free accommodation for two children below 10 years in the same room - without
extra bed.
*Complimentary Breakfast for 2 children below 10 years.
*Supplement charge for extra bed Rs.1200/- in the same room with breakfast per
*One double room for Two Nights/Three days for two persons.
*Complimentary fixed menu breakfast for two PAX.
*Complimentary non-alcoholic welcome drink for two PAX.
*Complimentary fruit basket & cookies on arrival.
*Complementary Ice cream for child/children on arrival.
*Complimentary ironing one set of suit/dress during the stay.
*Other Additional Benefits:
*25% discount on food, alcoholic & soft beverages and laundry.
*Complimentary health club facilities (except massage) at Agra and Jaipur only.

Accommodation : 70 centrally air conditioned rooms.

Dining and Entertainment :
Ripples Coffee shop.
Sheesh Mahal multi cuisine restaurant.
Tequila a well stocked bar.
Conference :
The conference and banquet halls with modern facilities have a capacity of 35 pax
to 300 pax. Rajvilas Conference hall having a capacity of upto 300 persons. Darbar
Conference hall having a capacity of 30 persons.

Health club
Health club provides you complete enjoyment and relaxation.
Party / Conference Areas
Rajvilas Hall, with a capacity of up to 250 pax. It is a 2040 sq. ft. hall with all
latest facilities available.
Darbar Hall, with a capacity of up to 35 pax. It is a 504 sq. ft. hall with all latest
facilities available.
Mumtaz Bagh (open area at pool site), with a capacity of up to 300 Bar -bQue, around 400 pax. for reception and upto 300 pax. to sit down. It is a 1850 sq.
ft. area with all latest facilities available.
Swimming pool
Mumtaz Bagh an open area overlooking swimming pool for Bar-be-Que and
Indian Folk and Cultural Show.
Sheesh Mahal
The Multi - Cuisine restaurant overlooking swimming pool tempts the most
discerning gourmet.
The Tequila
A well stocked bar, serves a wide range of Wines & Spirits from International and
Domestic cellars.

Facilities and Services :

* Laundry and dry-cleaning service * Parking * Doctor on call * 24 hr. money
exchange * Mini Bar * Direct Dial Telephones * Beauty parlour * Health club
CTV * Scretarial services and Fax services * 24 hr room service.
The Travel & Tourism (T&T) industry (of which the hotel sector
forms a part) employs approximately 238 million people worldwide,
representing 8.4 per cent of total global employment (i.e. 1 in every 11.9
jobs) and generates 9.9 percent of world GDP. By 2018, employment in the
T&T industry is expected to rise further to around 296 million people, thus
cementing its position as a major global employer.
Over the last decade and half the mad rush to India for business
opportunities has intensified and elevated room rates and occupancy levels
in India. Even budget hotels are charging USD 250 per day. The successful
growth story of 'Hotel Industry in India' seconds only to China in Asia

'Hotels in India' have supply of 110,000 rooms. According to the

tourism ministry, 4.4 million tourists visited India last year and at current
trend, demand will soar to 10 million in 2010 - to accommodate 350
million domestic travelers. 'Hotels in India' has a shortage of 150,000
rooms fueling hotel room rates across India. With tremendous pull of

opportunity, India is a destination for hotel chains looking for growth. The
World Travel and Tourism Council, India, data says, India ranks 18th in
business travel and will be among the top 5 in this decade. Sources
estimate, demand is going to exceed supply by at least 100% over the next
2 years. Five-star hotels in metro cities allot same room, more than once a
day to different guests, receiving almost 24-hour rates from both guests
against 6-8 hours usage. With demand-supply disparity, 'Hotel India' room
rates are most likely to rise 25% annually and occupancy to rise by 80%,
over the next two years. 'Hotel Industry in India' is eroding its
competitiveness as a cost effective destination. However, the rating on the
'Indian Hotels' is bullish. 'India Hotel Industry' is adding about 60,000
quality rooms, currently in different stages of planning and development
and should be ready by 2012. MNC Hotel Industry giants are flocking India
and forging Joint Ventures to earn their share of pie in the race.
Government has approved 300 hotel projects, nearly half of which are in
the luxury range. Sources said, the manpower requirements of the hotel
industry will increase from 8 million in 2009 to 15 million by 2010.

With the USD 23 billion software services sector pushing the Indian
economy skywards, more and more IT professionals are flocking to Indian
metro cities. 'Hotel Industry in India' is set to grow at 15% a year. This
figure will skyrocket in 2010, when Delhi hosts the Commonwealth

Games. Already, more than 50 international budget hotel chains are moving
into India to stake their turf. Therefore, with opportunities galore the future
'Scenario of Indian Hotel Industry' looks rosy.

The hotel business is a labour-intensive and quality-driven service

industry. The competitiveness and productivity of the industry depends
primarily on the skill levels and professionalism of its employees.
Consequently, the constituents within the Hotels, Restaurant and Catering
sector recognize that education, vocational training, and human resource
development are necessary to ensure their future. In support of this, the
World Economic Forum sees good management of human resources as
one of the key drivers for competitiveness across the industry.

The concept of total quality management is found getting an

important place in the marketing management of hotels. The emerging
positive trend in the tourism industry indicates that hotel industry is like a
reservoir from where the foreign exchange flows. This naturally draws our
attention on HOTEL MANAGEMENT. Like other industries, the hotel
industry also needs to explore avenues for innovation, so that a fair
blending of core and peripheral services is made possible. It is not to be
forgotten that the leading hotel companies of the world have been
intensifying research to enrich their peripheral services with the motto of

adding additional attractions to their service mix. It is against this

background that we find the service mix more flexible in nature.

Table 1. Most visited countries by international tourist arrivals

Table No 2 - World-wide statistics for the hotel industry by global

regions 2009

Rank Country








74.2 million

79.2 million

80.9 million

77.9 million


North America 54.9 million

57.9 million

56.0 million

51.0 million



52.2 million

57.2 million

58.7 million

58.0 million



50.9 million

53.0 million

54.7 million

49.9 million



43.2 million

42.7 million

43.7 million

41.1 million


28.0 million

30.1 million

30.9 million

30.7 million

Turkey Europe

25.5 million

25.0 million

22.2 million

18.9 million


24.2 million

24.9 million

24.4 million

23.6 million


23.6 million

22.1 million

21.0 million

17.5 million


Mexico North America 21.5 million

22.6 million

21.4 million

21.4 million







5.5 million

Revenues of Hotel and Restaurant (H&R) industry in India during

the financial year 2006-07 was INR604.32 billion , a growth of 21.27%
over the previous year, primarily driven by foreign tourist arrivals ,which
increased by 14.17%. Currently there are some 1,980 hotels approved and
classified by the Ministry of Tourism, Government of India ,with a total
capacity of about 110,000 hotel rooms. With tourism industry showing
excellent performance, in terms of foreign tourists arrival and demand
outpacing supply,the hospitality industry, is poised to grow at a faster rate
and reach INR826.76 billion by 2011. It is estimated that over the next two
years 70,000-80,000 rooms will be added across different categories
Financial Auditing though out the country.
Elara Securities estimates India has about 1,14,000 rooms across all
categories, with the shortfall pegged at 1,56,000 rooms. While hotel majors
had announced the development of about 1,00,000 rooms (five- and fourstar categories), only about 60,000 are likely to come up. Developers are
going slow due to credit issues, high land prices and construction delays.
Due to this demand-supply mismatch, the firm expects average
occupancy rates to move up from 72 per cent in CY2012 to 81 per cent in
CY2015, boosting average room rates (ARRs). This is akin to what
happened between the financial years 2004-05 and 2007-08, when ARRs
doubled and occupancies were up 700 basis points to 70 per cent. Analysts

expect companies that have a diversified presence, in terms of geography

and category, stand to gain the most.
Concept of Hotel
At the outset, we go Financial Auditing the concept of hotel. The
common law says that hotel is a place where all who conduct, themselves
properly and who being able and ready to pay for their entertainment,
accommodation and other services including the boarding like a temporary
home. It is home away from home where all the modern amenities and
facilities are available on a payment basis.
It is also considered to be a place where tourist stops, cease to be
travellers and become customers. The definition of hotel states that,
Primarily and fundamentally, a hotel is an establishment which supplies
boarding and lodging not engaged in inter state commerce or in any intra
state commerce, competitive with or affecting inter state commerce (or
so related that the regulation of one involves the control of other).
The hotel may furnish quarters and facilities for assemblage of
people for social business or entertainment purposes and may engage in
retaining portion of its premises for shops and businesses whose continuity
(i.e., proximity) is deemed appropriate to a hotel.

Five Star Hotel, Business Centre (Shopping Centre), P.V.R., Health

Club & Banquet Hall
Five star hotels having business center by making luxurious shops, P.V.R.,
health club, banquet hall is wonderful profit making venture. Hotel
business is a very flourishing business these days not only in India, but it
has been termed as an international hotel industry and it carries very
brilliant prospects. There is a vast scope for setting up of 5 star hotels with
other additions as stated above.
Plant & machinery: Rs. 420.00
Plant capacity:
Working capital: Rs. 140.97 Lakhs T.C.I: Rs. 2005 Lakhs
Return: 16.41%
Break even: 63.02%

Five Star Hotel

The hotel industry is an important component of tourism industry. Its
foreign exchange earning capacity is also high. The irritation of economic
reforms in this country gave a boost to the hotel industry. The demand for
rooms in hotels by foreign businessmen has increased sharly.
Understandly, most indian hotel chains are pushing ahead with their
expansion plans. Perhaps the government should extend a few more sops
to the total industry so that its capacity expands to keep up with the rising
demand. The hotel industry deserves a few more sops because it is capital

intensive, having a long gestation period, and the new tourist destination
and circuits also take a long time. The hotel industry are linked to the
progress of tourism industry. There is bright future of this project.
Plant capacity: 150 Rooms
Plant & machinery: Rs. 2000 Lacs
Working capital: Rs. 237 Lacs
T.C.I: Rs. 1000 Lacs
Return: 30.68%
Break even: 47.21%

5 Star Hotel
he hotel industry is an important component of tourism industry. Its
foreign exchange earning capacity is also high. The irritation of economic
reforms in this country gave a boost to the hotel industry. The demand for
rooms in hotels by foreign businessmen has increased sharly.
Understandly, most indian hotel chains are pushing ahead with their
expansion plans. Perhaps the government should extend a few more sops
to the total industry so that its capacity expands to keep up with the rising
demand. The hotel industry deserves a few more sops because it is capital
intensive, having a long gestation period, and the new tourist destination
and circuits also take a long time. The hotel industry are linked to the
progress of tourism industry. There is bright future of this project.
Plant capacity: 150 Rooms
Plant & machinery: Rs. 2000 Lacs
Working capital: Rs. 237 Lacs
T.C.I: Rs. 1000 Lacs
Return: 30.68%
Break even: 47.21%

Entertainment Club, 4 Star Hotel, Amusement Park Cum Water

Park, and Lake For Boating
Holiday resort business is very flourishing business these days not only in
India but it has brilliant prospects in foreign countries also. The place
which was usually for the let out to travelers was taken as and the keeper,
in accordance with the existing laws of the land, was obliged for providing
shelter and food to those willing to pay price. Today there are quite a good
number of over 300 approved Holiday resorts and hotels comprising
nearly 19,000 guest rooms. But the increase in rooms and other
supplementary forms of accommodation such as motels, youth hostels
camp sanctuaries huts in resorts and has not kept pace with the demands.
Amusement park serves as a nice picnic sport and playful enjoying various
types of joy-rides. It is a place of resort for all sort of people, especially
children. Water park used as a health care park also. It can be used partly
for flower plantation. It can be used for cultivation of different variety of
fish. There is good market for new entrepreneur.
Plant capacity:
Plant & machinery: N/A
Working capital: N/A
T.C.I: N/A
Return: 55.00%
Break even: 41.00%

Five Star Hotel & Business Shopping Mall

Five star hotel contents business center by making luxurious shops inside

the hotel for selling consumer goods, articles and beverages, is wonderful
combination for profit making center. Again if there is facility of p.v.r.,
health club, and banquet hall attract the tourist much more in that hotel.
Now a days most of the citizens all over the world are conscious about
their health, they want to make healthy body and physically fit throughout
the life. It will make the man much more free in their general tensionable
life. It is used mainly for special occasions on higher rent. Health club
consents instrument for exercise, swimming pool, yoga etc. Shopping mall
is newly developed complex centrally air-conditioned all type of business,
commercial and complete family entertainment centers. It contains pubs,
food chains, jewelers, gift shop, shoes, garments, sports, art gallery,
studios anchors retailers investors etc. Everybody come and purchase their
required things in competitive price with quality. Hotel business is very
flourishing business these days not only in India, but it has been termed as
an international hotel industry & it carries very brilliant prospects. There is
good scope of this project.
Plant capacity:
Working capital: N/A
Return: 59.00%

Plant & machinery: 50.95 Crore

T.C.I: 300 Crore
Break even: 29.00%

Water Park
In ancient India, there was large use of water in the Tapovana, and

different Ashrams in the forests. Elephanta caves in the Maharashtra can

be considered as water park. Now the water park is the good idea of
amusement. It is very good assets created by human being to enjoy the
natural scenery artificially, if situated near by forest or hilly area. Water
Park is the generic term for a collection of water rides and other
entertainment attractions assembled for the purpose of entertaining a large
group of people. A water park is more elaborate than a simple city park or
playground, usually providing attractions meant to cater to adults,
teenagers, and small children. A theme water park is a type of amusement
park which has been built around one or more themes, such as an
American West theme, or Atlantis. Today, the terms water parks and theme
parks are often used interchangeably. Amusement water parks generally
feature a few water rides, such as the log flume, bumper boats, and rowing
boats. Such rides are usually gentler and shorter than roller coasters and
many are suitable for all ages. Water rides are especially popular on hot
Plant capacity: 1000 visitors / Day Plant & machinery: 84 Lakh
Working capital: T.C.I: 362 Lakh
Return: 41.00%
Break even: 38.00%


India offers myriad exciting experiences to tourists. The country boasts of
the world's highest mountains, miles of coastline with excellent beaches,
tropical forests and wildlife, lagoon backwaters, ancient monuments and
World Heritage sites, forts and palaces, and of course, the Taj Mahal. The
Indian tourism and hospitality industry has thus emerged as one of the key
sectors driving the country's growth and is thriving, owing to a huge surge
in both business and leisure travel by foreign and domestic tourists. India
have supply of 110,000 rooms. According to the tourism ministry, 4.4
million tourists visited India last year and at current trend, demand will
soar to 10 million in 2010 to accommodate 350 million domestic
travelers. India has a shortage of 150,000 rooms fueling hotel room rates
across India. According to the World Travel and Trade Council, demand in
tourism in India will continue to grow at a rapid pace. It estimates the
demand to grow at an average of 8.8 per cent between 2004 and 2013,
making India the world's third fastest-growing tourist market. The boom in
the Indian tourism industry has percolated to the rural areas as well. India
continues to attract tourists owing to its splendid historical architecture and

rich culture along with beautiful beaches and rural tourism. With India
being on the global tourist map and an increasing number of people
coming to India for tourism or business, Indian hotel industry is looking at
expansion in a major way.
Plant capacity: Single Room - 30
Nos. Double Room - 40 Nos. Suites Plant & machinery: 327 Lakhs
- 10 Nos. Banquet Hall - 1 Number
Working capital: Return: 48.00%

T.C.I: 1500 Lakhs

Break even: 37.00%

Hotel industry totally depends on the growth of the tourism as well as
proper import and export growth of the country. If there are good countries
associated in the territory of the region, there will be good scope for
business transaction, hence there will be good scope for hotel industries
due to the visits of the executives of different countries. Hotel should have
good and well educated staff for maintaining the hotels and servicing the
customers. The hotel industry is very glamour industry and also the
business of hotel industry is growing very fast. But these things are totally
depends on the location of hotels. Hotels should be located near about the
Air ports, Highways etc. There is good scope for establishment of new
hotels in India. The hotel industry in India is going through an interesting

phase. The industry has a capacity of 110,000 rooms. According to the

tourism ministry, 4.4 million tourists visited India last year and at the
current rate, the demand will soar to 10 million by 2010 to
accommodate 350 million domestic travelers. The hotels of India have a
shortage of 150,000 rooms fueling hotel room rates across India. With
tremendous pull of opportunity, India has become a destination for hotel
chains looking for growth. Due to such a huge potential available in this
segment, several global hotel chains like the Hilton, Accor, Marriott
International, Berggruen Hotels, Cabana Hotels, Premier Travel Inn (PTI),
InterContinental Hotels group and Hampshire among others have all
announced major investment plans for the country. The Government's
move to declare hotel and tourism industry as a high priority sector with a
provision for 100 per cent foreign direct investment (FDI) has also
provided a further impetus in attracting investments in to this industry. It is
estimated that the hospitality sector is likely to see US$ 11.41 billion rise
in the next two years, with around 40 international hotel brands making
their presence known in the country by 2011. Simultaneously, international
hotel asset management companies are also likely to enter India. Already,
US-based HVS International has firmed up plans to enter India, and
industry players believe others like Ashford Hospitality Trust and IFA
Hotels & Resorts among others are likely to follow suit.
Plant capacity: Hotel (Total 60 Plant & machinery: 267 Lakhs

Rooms) Single Room - 30 Nos.,



Discotheque - 1 No.
Working capital: Return: 46.00%



T.C.I: 1264 Lakhs

Break even: 35.00%


Tourism as an industry has been flourishing and growing since time
immemorial, but it has been in the last few decades that specific attention
has started to be given to this smokeless industry. Tourism has emerged as
an important as well as organized industry which scattered its benefits over
large segments of the population. Destination resort is a resort that
contains, in and of itself, the necessary guest attraction capabilitiesthat
is to say that a destination resort does not need to be near a destination
(town, historic site, theme park, or other) to attract its public.
Consequently, another characteristic of a destination resort is that it offers
food, drink, lodging, sports, entertainment, and shopping within the
facility so that guests have no need to leave the facility throughout their
stay. Commonly these facilities are of higher quality than would be
expected if one were to stay at a hotel or eat in a town's restaurants. In
India there is a very good gap of availability of holiday resorts in different
place of India. There is good scope of holiday resorts due to demand of

more and more hotel rooms to accommodate the foreign as well as

domestic tourists. Arrival of foreign tourist has increased by 8-10%. India
is seen as a potential country for such developments and awareness is the
requisite to start the process. The vacation ownership is growing at a
compound annual growth rate of 20 per cent for the last three to four years
and has become the reason for resort developments in India. The market
for timeshare models is huge and more importantly, domestic traffic is
adopting the lifestyle that supports the timeshare model. India is in an
embryonic stage of development in innovative product models for
vacation ownership real estate developments. Few Indian Major Players
are as under: Costplus Credit Capital Ltd. Mahindra Holidays & Resorts
India Ltd. Prajay Engineers Syndicate Ltd. South Indian Concerns Ltd.
Sterling Holiday Resorts (India) Ltd.
Plant capacity: 27 Rooms, (3
Plant & machinery: 631 Lakhs
Cottages, 16 Deluxe & 8 Suits)
Working capital: Return: 45.00%

T.C.I: 945 Lakhs

Break even: 35.00%


One Lac / Lakh / Lakhs is equivalent to

one hundred thousand (100,000)

One Crore is equivalent to ten million


T.C.I is Total Capital Investment

We can modify the project capacity and

project cost as per your requirement.

We can also prepare project report on

any subject as per your requirement.

Caution: The project's cost, capacity

and return are subject to change
without any notice. Future projects
may have different values of project
cost, capacity or return.


name in the industrial world for offering integrated technical consultancy
services. Its various services are: Pre-feasibility study, New Project
Identification, Project Feasibility and Market Study, Identification of
Profitable Industrial Project Opportunities, Preparation of Project Profiles
and Pre-Investment and Pre-Feasibility Studies, Market Surveys and






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and overseas professionals including project engineers, information
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their research.

The Mansingh Palace Hotel Agra is conveniently located near the center of
the city, where guests will find a number of business and leisure attractions.
This Agra accommodation is within minutes of shopping, dining, and
entertainment. The Taj Mahal is just over a mile away from the
accommodation as well.
The Mansingh Palace Hotel Agra is just a few miles from the railway
station and guests can make use of on-site parking during their stay.
The guestrooms at the Mansingh Palace Hotel Agra include an array of
amenities, such as air-conditioning, minibars, in-room safes, irons and
ironing boards, and private bathrooms with hairdryers. Select rooms offer
views of the Taj Mahal.

Guests will find a variety of amenities at the Mansingh Palace Hotel Agra,
including a swimming pool, a restaurant, a bar, conference facilities, a
fitness center, a banquet hall, a coffee shop, a laundry service, and 24-hour
reception. The hotel is a traditional style accommodation with local dcor
and views of the area attractions.

24 Hour Reception

Air Conditioned

Banquet Facilities

Bar / Lounge

Barber/Beauty Shop

Bath / Hot Tub

Business Center

Cable / Satellite TV

Coffee / Tea Maker


Conference Room(s)

Currency Exchange

Direct dial phone

Disabled Access

Elevator / Lift

Fitness Room/Gym

Hair Dryer

High-speed Internet

Laundry service

Luggage Storage

Meeting Rooms

Mini Bar

News Stand




Room Service

Safe-Deposit Box


Security Guard

Swimming pool




To study the auditing needs identification, Designing &


To study the various financial auditing Activities

in Hotel Man Singh Palace

To study the financial auditing methodology adopted by the hotel.


To study the effectiveness of financial auditing provided.


Some of the careers opportunities in the hotel industry are as follows.

The industry offers more career options than most: - No matter what
kind of work we enjoy and wherever our aptitudes lie, there is a
segment of the industry that can use ours talents.
The work is varied: - Because hotels and restaurants are complete
production, distribution and service units, and managers are involved
in a broad array of activities.
There are many opportunities to be creative: - Hotels and restaurants
managers might design new products to meet their needs of their
guests; produce training programs for employees; or implement
challenging advertising, sales promotions and marketing plans.
Hospitality jobs are not nine-to-five jobs: - Hours are highly flexible
in many positions.

Many more opportunities are waiting in a queue. With these the role
of FINANCIAL AUDITING is drastically change. Its fields of operation in
todays worlds knew no boundary. Each day it is confronted with new
challenges in new division of hotels. Therefore before knowing the role of
FINANCIAL AUDITING it is essentials to know different department of
the hotels as well their functions.

Financial Auditing for Internal Auditors

Your opportunity to...

Refresh your knowledge of accounting terminology and practices.

Understand how key business processes relate to financial


Understand the impact of information technology on financial


Identify common creative accounting practices.

Calling all...

Internal auditors who want to understand and expand their roles

related to financial reporting.

Internal auditors who need a "refresher" course on financial

accounting concepts.

Managers who want to expand their knowledge of financial reporting

and controls.

Course Description
Prerequisites: None
Advanced Preparation: None
Delivery Method: Group-Live and Group-Internet-Based

Attendees are recommended to bring a calculator to perform simple

calculations such as percentages and ratios.

For internal auditors who want to understand and expand their roles related
to financial reporting, as well those who simply need a refresher course
on financial accounting concepts, this seminar is the ideal way to get up to
speed. Beyond a basic accounting class, this course will enable participants
to approach financial auditing with renewed confidence.
Taking on such topics as common recipes for cooking the books, and
covering information flow from business process to financial statement,
and more, this seminar will help participants understand how key business
processes relate to financial statements, as well as the impact of
information technology on financial statements.
Course Outline

Accounting and Auditing Review

Define key accounting terms and understand accounting rules,

equations, and basic principles.

Understand what journal entries are and demonstrate how they are
used for accounting purposes.

Understand GAAP hierarchy and identify the rules, rule makers, and
rule breakers.

Understand the financial auditing process and recall The IIA Practice
Advisories associated with financial auditing.

Identify the basic COSO principles of internal control, including key

controls and their characteristics.

Identify finance-related management assertions and learn how to

utilize them in the audit process.

Financial Statements An Overview

Identify financial statements.

Identify the purpose and use of a financial balance sheet.

Identify the purpose and use of income statements.

Understand how to properly review a balance sheet and income


Business Processes and Accounting

Identify the difference between management and financial auditing.

Recall how vertical and horizontal analysis can be used in audits.

Understand revenue process activities and recall the types of

revenue-related accounts and associated rules.

Understand the procurement process, including activities, types of

accounts, and process rules.

Understand fixed assets, including fixed asset process activities,

types of accounts, and process rules.

Identify types of revenue- and liability-related ratios.

Recall where to find useful FASB references.

Recipes for Cooking the Books

Identify the basic elements of an accounting scandal (fraud).

Identify the five most common financial games.

Understand the use of analytical procedures in fraud detection.

Technology and Accounting

Understand the risks associated with end user computing.

Understand how spreadsheets are used within business, what the

characteristics of spreadsheets are, and spreadsheet risks to be aware

Identify what Enterprise Resource Planning (ERP) is and how it is

used within a business.

Identify application controls and how to integrate an application

review into a financial audit.

Financial audits exist to add credibility to the implied assertion by an
organization's management that its financial statements fairly represent the
organization's position and performance to the firm's stakeholders
(interested parties). The principal stakeholders of a company are typically
its shareholders, but other parties such as tax authorities, banks, regulators,
suppliers, customers and employees may also have an interest in ensuring
that the financial statements are accurate.
The audit is designed to increase the possibility that a material
misstatement is not detected by audit procedures. A misstatement is defined
as false or missing information, whether caused by fraud (including
deliberate misstatement) or error. "Material" is very broadly defined as
being large enough or important enough to cause stakeholders to alter their
Audits exist because they add value through easing the cost of information
asymmetry, not because they are required by law. For example, a privatelyheld company that does an issue securities on a public exchange might
engage a firm to audit its financial statements in order to obtain more

desirable loan terms from a financial institution or trade accounts with its
customers. Without the audit, the lending party would not have assurance
as to whether or not the company's financial position is accurate. In turn,
the lender could price protect against this information asymmetry.
The exact form and content of the "audit opinion" will vary between
countries, firms and audited organizations.
In the US, the CPA firm provides written assurance that financial reports
are fairly presented, in all material respects, in conformity with generally
accepted accounting principles (GAAP), where the threshold for materiality
is determined via auditor's judgment.
Audit of government expenditure
The earliest surviving mention of a public official charged with auditing
government expenditure is a reference to the Auditor of the Exchequer in
England in 1314. The Auditors of the Imprest were established under
Queen Elizabeth I in 1559 with formal responsibility for auditing
Exchequer payments. This system gradually lapsed and in 1780,
Commissioners for Auditing the Public Accounts were appointed by
statute. From 1834, the Commissioners worked in tandem with the

Comptroller of the Exchequer, who was charged with controlling the issue
of funds to the government.
As Chancellor of the Exchequer, William Ewart Gladstone initiated major
reforms of public finance and Parliamentary accountability. His 1866
Exchequer and Audit Departments Act required all departments, for the
first time, to produce annual accounts, known as appropriation accounts.
The Act also established the position of Comptroller and Auditor General
(C&AG) and an Exchequer and Audit Department (E&AD) to provide
supporting staff from within the civil service. The C&AG was given two
main functions to authorise the issue of public money to government
from the Bank of England, having satisfied himself that this was within the
limits Parliament had voted and to audit the accounts of all Government
departments and report to Parliament accordingly.
Auditing of UK government expenditure is now carried out by the National
Audit Office. Sing industry (acting through various organisations
throughout the years) as to the accounting standards for financial reporting,
and the U.S. Congress has deferred to the SEC.
This is also typically the case in other developed economies. In the UK,
auditing guidelines are set by the institutes (including ACCA, ICAEW,
ICAS and ICAI) of which auditing firms and individual auditors are

Accordingly, financial auditing standards and methods have tended to

change significantly only after auditing failures. The most recent and
familiar case is that of Enron. The company succeeded in hiding some
important facts, such as off-book liabilities, from banks and shareholders.
Eventually, Enron filed for bankruptcy, and (as of 2006) is in the process of
being dissolved. One result of this scandal was that Arthur Andersen, then
one of the five largest accountancy firms worldwide, lost their ability to
audit public companies, essentially killing off the firm.
A recent trend in audits (spurred on by such accounting scandals as Enron
and Worldcom) has been an increased focus on internal control procedures,
which aim to ensure the completeness, accuracy and validity of items in the
accounts, and restricted access to financial systems. This emphasis on the
internal control environment is now a mandatory part of the audit of SEClisted companies, under the auditing standards of the Public Company
Accounting Oversight Board (PCAOB) set up by the Sarbanes-Oxley Act.
Governance and Oversight
Many countries have government sponsored or mandated organizations
who develop and maintain auditing standards, commonly referred to
generally accepted auditing standards or GAAS. These standards prescribe
different aspects of auditing such as the opinion, stages of an audit, and
controls over work product (i.e., working papers).

Some oversight organizations require auditors and audit firms to undergo a

third-party quality review periodically to ensure the applicable GAAS is
Stages of an audit
A financial audit is performed before the release of the financial statements
(typically on an annual basis), and will overlap the year-end (the date
which the financial statements relate to).
The following are the stages of a typical audit:[citation needed]
Planning and risk assessment
Timing: before year-end

To understand the business of the company and the environment in

which it operates.

What should auditors understand?[1]

The relevant industry, regulatory, and other external

factors including the applicable financial reporting

The nature of the entity

The entitys selection and application of accounting


The entitys objectives and strategies, and the related

business risks that may result in material misstatement
of the financial statements

The measurement and review of the entitys financial


Internal control relevant to the audit

To determine the major audit risks (i.e. the chance that the auditor
will issue the wrong opinion). For example, if sales representatives
stand to gain bonuses based on their sales, and they account for the
sales they generate, they have both the incentive and the ability to
overstate their sales figures, thus leading to overstated revenue. In
response, the auditor would typically plan to increase the rigour of
their procedures for checking the sales figures.

Internal controls testing

Timing: before and/or after year-end

To assess the operating effectiveness of internal controls (e.g.

authorisation of transactions, account reconciliations, segregation of

duties) including IT General Controls. If internal controls are

assessed as effective, this will reduce (but not entirely eliminate) the
amount of 'substantive' work the auditor needs to do (see below).

In some cases an auditor may not perform any internal controls

testing, because he/she does not expect internal controls to be
reliable. When no internal controls testing is performed, the audit is
said to follow a substantive approach.

This test determines the amount of work to be performed i.e.

substantive testing or test of details.[citation needed]

Substantive procedures
Timing: after year-end (see note regarding hard/fast close below)

to collect audit evidence that the management assertions (actual

figures and disclosures) made in the Financial Statements are reliable
and in accordance with required standards and legislation.


where internal controls are strong, auditors typically rely more on

Substantive Analytical Procedures (the comparison of sets of
financial information, and financial with non-financial information,
to see if the numbers 'make sense' and that unexpected movements
can be explained)

where internal controls are weak, auditors typically rely more on

Substantive Tests of Detail (selecting a sample of items from the
major account balances, and finding hard evidence (e.g. invoices,
bank statements) for those items)


Some audits involve a 'hard close' or 'fast close' whereby certain

substantive procedures can be performed before year-end. For
example, if the year-end is 31st December, the hard close may
provide the auditors with figures as at 30th November. The auditors
would audit income/expense movements between 1st January and
30th November, so that after year end, it is only necessary for them
to audit the December income/expense movements and the 31st
December balance sheet. In some countries and accountancy firms
these are known as 'rollforward' procedures.

Timing: at the end of the audit

To compile a report to management regarding any important matters

that came to the auditor's attention during performance of the audit,

To evaluate and review the audit evidence obtained, ensuring

sufficient appropriate evidence was obtained for every material
assertion and

To consider the type of audit opinion that should be reported based

on the audit evidence obtained.

Commercial relationships versus objectivity

One of the major issues faced by private auditing firms is the need to
provide independent auditing services while maintaining a business
relationship with the audited company.
The auditing firm's responsibility to check and confirm the reliability of
financial statements may be limited by pressure from the audited company,
who pays the auditing firm for the service. The auditing firm's need to
maintain a viable business through auditing revenue may be weighed

against its duty to examine and verify the accuracy, relevancy, and
completeness of the company's financial statements.
Numerous proposals are made to revise the current system to provide better
economic incentives to auditors to perform the auditing function without
having their commercial interests compromised by client relationships.
Examples are more direct incentive compensation awards and financial
statement insurance approaches. See, respectively, Incentive Systems to
Promote Capital Market Gatekeeper Effectiveness and Financial Statement

Accounts and Audit department

The basic objective of Accounts Department is to keep records of
financial transactions in an accurate, transparent and time-bound manner.
Accounts Department is also responsible for preparing accounts of the
departments on monthly basis and yearly basis which are also placed before
the organization in its meeting. The mission of preparation of monthly
accounts is to enable one to know the financial position of the organization
on a particular date.
The Accounting Department is a staff department that supports all
other departments in the hotel with regard to accounting procedures and
hotel operations. It works with these departments to provide services and
information that will assist them in operating their departments on a daily
Accountants: - help to ensure that firms are run efficiently, public records
kept accurately, and taxes paid properly and on time. They analyze and
communicate financial information to the organization and local
governments. Beyond carrying out the fundamental tasks of the occupation
providing information to organization by preparing, analyzing, and
verifying financial documentsmany accountants also offer budget
analysis, financial and investment planning, and limited legal services.
Internal auditors: - verify the effectiveness of their organization's internal
controls and check for mismanagement, waste, or fraud. They examine and
evaluate their firms' financial and information systems, management
procedures, and internal controls to ensure that records are accurate and

controls are adequate. They also review organization operations, evaluating

their efficiency, effectiveness, and government regulations.
In Hotel ManSingh Palace the accounts department is handled by
only one department head, though there are no assistant to assist him in his
work that is because of the flow of work involved in the hotel accounting
process. He is responsible for the issue of cheque to the vendors and
creditors; he is directly in commutation with the management. In Hotel
ManSingh Palace.




Order Taker











Qualities and attributes as front office Asst.:



Sales Man:- They motivates the guest to spread more as the hotel


Problems Solvers:- Guest in variably approach Front Office for the

help in case they hence problem or a complaint. A staff has to be
diplomats and resources to solve the problem at the shortest possible


Reference Point:- Guest into wants information or wants to pass all

information use front office for this purpose.


Co-Ordination:- Since they are reference point the F.O Asst. are
request to co-ordinate with other departments.


Image Building:- as on extension to these solve role F.O staff can

definitely generate a good image for the establishment in their
manner of dressed, communicates personnel conduct and efficiency.


Personal Growing:- They should have high sense as personnel

growing, uniform should be neat and cleanly presses. Hair should be
well groomed. It is presumable for to tie and hair up in a bus. Nail
should be manipulates.


Personal Hygiene:- This is important to F.O Personal as there are

constantly expose to the hotel guest clean appearance help to object
guest image not only for themselves but for the Hotel as well.


Communication Skill:- It must be correct and clear. It is perforate

that F.o no more than one language it helps is communication with
guest who does not understand or cannot speak local language.


Quick Decision maintains ability:- Guest after approach the F.O

with problems and request. F.O staff must be able to decide quickly a
course as action that satisfactory the guest and at the same time
keeping the interest of the Hotel online.

Duties and Responsibilities of staff in the Hotel Man Singh Palace

Front Office Manager (Take Away):1) Allocation of duties to the subordinates
2) Keeping the counter clean and not chaotic
3) Keeping an fair number of man power in the counter eg: Assts etc,.
4) Welcoming the guests
5) Resolve guest problem quickly, efficiently and curiously.
6) Maintain working relationship and communication with all

There is no specific department called as front office staff in Hotel Man

Singh but the Take Away section itself performs all the duties and
responsibilities of the front office.

Duties and responsibilities of Take Away section

As shown in the above cycle Take Away section handles all the queries of
customers who are in hurry and have no time to sit and have food, the time
between the orders taken to order dispatched is maintained in Hotel Man
1. To generate the order into KOT
2. To pass the KOT to kitchen and other to the customer to
convert it into paid receipt
3. To make customer comfortable until the order is dispatched
4. To maintain the link between the kitchen and all sub sections
5. To maintain the records.
Front Office/Take Away section Equipments:1)





Stationary items (Pen, papers, packing bags, etc,).


Cash register





Hierarchy in store department







Duties and responsibilities of Store manager:

1. To keep an record of the stock purchased and stock issued
2. To check the stocks while purchasing in case of any damages
3. In case of any damages, appropriate action must be taken in consent
with the concerned personnel
4. To keep the store clean and hygienic to avoid any damages
5. To stay communicate with the inventory department & kitchen
6. To implement any of these concept based on the requirement (LIFO,
7. To minimize the variable cost occurring on his department
8. To uplift the confidence of the staff and motivate them to work.

Equipment used in stores:

1. Refrigerators 3
2. Weigh machines 4 (Electronic)
3. Computer 1
4. Stand 3
5. Telephone 1
6. Packing machine 1

Register maintained in store department

Purchase order
Food and beverage indent form
General order
Log book
Stock taking register
Stock book
Invoice book
Requisition form file
Receiving: Daily receiving register
Delivery form record

Inventory and Kitchen Department

Kitchen plays a vital role in restaurant business, because it is a place

where food been processed and delivered to the end customer after adding
numerous frills.

Utmost care is taken to keep the kitchen clean and

hygienic so that the food processed be safe from any unhygienic factors.

Kitchen is the lay where most the equipments are used to process the raw
materials into finished one.
In Hotel Niyaaz Kitchen been located in such a location where it is
connected to each of service areas like General, A/c and Non-AC section to
facilitate the flow of supply and cutoff the time taken to take the order and
to deliver the same to the customers. There is continues communication
between kitchen and other front and back-office departments to facilitate
the whole process.

The process followed by kitchen supervisor in Hotel Niyaaz is

simple and easy to understand. First the day plan been made, writing down
all the requirements of the day, then the inventory been checked for any
stock retained by previous day, considering that stock remaining required
material been put on the requisition sheet and sent to the stores

KITCHEN ORGANIZATION:Refers to how people work within the kitchen food slow. Essential
organization is
critical to any business.
Executive Supervisor:His work into
1) Organize the kitchen
2) Compiles the mess
3) Order the food stuff
4) Show the required persist
5) To engage the staff
6) To supervise the kitchen
PRINCIPLES OF FOOD PRODUCTION:1) Planning of work and its distribution
2) Minimum time lapse between proportion and service
3) Adhesive to standards
4) Proper storage and recycling of food

Production Flow Chart in Hotel Man Singh











Process followed by kitchen section

Dispatch of
processed food
on receipt of


sheet for
required items

the food

receiving the
them on the

Issuing the
sheet to the


The layout of commercial kitchen must be planned around and
efficient and systematic flow of goods from receipt of goods where a
kitchen is built it is designed to achieve a maximum efficiency of time and
1. Selecting the menu items, taking into account the past popular dishes
2. Ability to reuse any food which been not used in the previous day
3. Estimating the requirements of raw materials
4. Communicating the same with the store department to purchase
5. To inspect the material quality (fresh meat, poultry, fish, fruits,

KITCHEN EQUIPMENT:Kitchen equipments and food are necessary to enable various and
specialized task to be performed smoothly in a specific period times.
Therefore its important to have knowledge of care and upkeep of kitchen
equipment. While selectively a piece of equipment certain factors have to
be kept in mind which are as follows:1. Construction of equipment
2. Capacity
3. Price of equipment
4. No. of use of equipment
5. Noise caused by equipment
6. Drainage system
7. Availability of spare parts
8. Fuel supply
9. Maintenance of equipments
10.Weight in relation of movement and capacity of kitchen.
11.Easy to use
12.Over all size in relation to space and work floor.
13.Time construction


There are lot of large and small size of equipments are used in
kitchen (Hotel Man Singh), following are as follows.
1) Large Equipments:A)Heat Generating:1. Three in one stove
2. Traditional cooking fragment
B)Cooling equipments:1. Water coolers
2. Refrigerators
3. Ice-making machines
2) Small and Auxiliary Equipments:
1. Plate knifes
2. Chef knifes
3. Steel knives
4. Choppers
5. Aluminum utensils
6. Chopper utensils
7. Stainless steel utensils
2) Mechanical Equipments:1. Dish washing equipment

2. Sealing machine
3. Choppers
4. Mixer, grinder, beater
5. Kima grinder
3) Storage Equipments:Pot rack
Storage racks.

Register maintained in Kitchen: Standard Receipt

Kitchen order ticket
Stock inventory report
Log book
Store requisition report
Daily inventory report
Standard purchase specification
Food cost control report
Service section
In Hotel Man Singh there are mainly three (3) service areas to serve

1. General
General Family
2. Non A/C (Deluxe)
3. A/C
This section is handled by the manager who is responsible for the
upkeep of this service area. In Hotel Man Singh the general section is
located just to the entrance to get an easy accessibility to the customers.
The sitting arrangement is been made such a way that the section is capable
to accommodate the customers even in full house, without the chaos.
Sitting capacity


This section is introduced to serve those class of customers who are

large in numbers and most of them are frequent travelers and in rush to
have food and get back soon.
The system followed here is very simple, as soon as the customer
enters the hotel he need to give a food order and in exchange of bill amount
he need to collect the token, and the same must be given to the waiter in

exchange of food ordered.

This system is implemented to have a

systematic flow of crowd.

Customer enters restaurant

Orders the food

Exchange money with token

Exchange token with food



This section is one of the traditional one where most of

the people come sit and have food, there is no such
procedure followed as in the Darshini section (token
system), this is because of the number of people step-in.
In Hotel Man Singh General section is also maintained
by the manager who is responsible for the Darshini and
general family section.
General family


This section is located by the entrance of the hotel,

having the capacity to accommodate 38 people in full
house. The coordination between this section and other
two section is very smooth, and the allocation of the
manpower between these section is done diligently.

This section is the most step-in section in Hotel Man Singh. The
service provided in this section is the same what is provided in other
sections but the procedure or system what is followed in the general section
as Darshini is not been followed here, and there are waiters (server) are
been assigned to the specific tables and only those specific servers are
authorized to attain the customers who occupy those seats. The ambience
provided to this particular section is so stimulating towards the kitchen and
the food cooked in Hotel Man Singh, that the customer will come to know
what utmost care is taken to prepare the ordered food. This is all done by
hanging some of the animated photo frames on the walls showing the
animation gestures to prepare food etc,. This also helps the management to
keep the customer busy in having an glance on those photos, so that if any
delay take place that can be covered in that time taken by customer to view
those pictures.
The customers in this section are provided with separate wash rooms
to fresh-n-up, and been also provided with waiting space in case of any
delay or no convenient space to sit at the time of full house. There are
nearly eight (8) fans to spread fresh air and to make customers feel like

In Hotel Man Singh the manager assigned to this deluxe section is

the one who also handles the A/C section; this is done because of the size
of these sections. But the server and the asst. servers are separate to deluxe
and a/c section to facilitate the flow of customers.
This section is most talked in Hotel Man Singh because of its look
and service provided in here, this section is specially introduced to attract
those class of customers who were early untapped because of the specific
category was not introduced in Hotel Man Singh. To attract this category
of people this section is equipped with high-end air-conditioners and
special trained servers with full dress code, who been trained to attain these
class of customers.
This section can easily accommodate around 60 customers in full
house, without any chaos and misplacement; to monitor such misplacement
the management has installed CCTVs around the restaurants to monitor
any uncertain incidents.

But there is no such camera in A/C section

because Hotel Man Singh respects the privacy of the customers.

Hierarchy in service area

(General, Deluxe & A/C)

Line Manager


Asst. Waiters


House Keeping

Duties and responsibility of the service manager


Food service managers are responsible for the daily operations

of restaurants and other establishments that prepare and serve meals to


Coordinating activities among various departments, such as

kitchen, dining room, food service managers ensure that customers are
satisfied with their dining experience.

In addition, they oversee the equipment and supplies and

arrange for the routine maintenance and upkeep of the restaurant's

equipment and facilities.


Managers are generally responsible for all administrative and


resource functions of the business, including recruiting new

employees and monitoring employee performance and training.


Managers oversee the training of new employees and explain

the establishment's policies and practices.


They schedule work hours, making sure that enough workers

are present to cover each shift. If employees are unable to work, managers
may have to call in alternates to cover for them or fill in themselves.

The manner in which a study is conducted is the basic plan that
guides the project. With respect to this, the building blocks of
the research may be explained as under:
The information required for this project study is collected both
through the primary as well as secondary source of data.
Tools for Data Collection
Primary sources of data
Questionnaire method for primary data collection was used to collect
information that was relevant for the objectives of the study.
The questionnaire is a mix of both open as well as close-ended questions
Basis of Questionnaire
The questionnaire is made on the basis of the following parameters. These
Quantity: It includes questions, which voice employees concerns
regarding the number of financial auditing hours spent by them.

Quality: Quality implies the kind of auditing that is imparted to the

employees, how it is done and what kinds of feedback methods are given.
Importance to Financial Auditing : This includes questions from which
we get to know whether the emphasis on auditing is laid down by the
departmental heads.
Effectiveness and Financial Auditing: Questions related to whether the
auditing imparted to different departments is effective and efficient.
Departments covered with sample size
House keeping


Food and beverages


Engineering and laundry -


Front Office


Secondary Sources of Data

A mixture of books, journals, case studies, handouts and Webster are
used to gain a clear understanding of the objectives of the project study.


Housekeeping :- There was a mixed response in terms of importance of the
financial auditing function. 70% of the employees covered said that the
auditing activity in their organization is very important whereas 30% said it
was moderately important. No body said that it is not important at all.

Food & Beverages:- Here also there was a mixed response. 80% of the
employees said that the financial auditing activities are important and 20%
said they were moderately important. This being a food and beverages
department it is important for all the staff to learn new menus and divergent
menus. It is important for them to learn how to present the menu, food and
drinks. They should have knowledge about the various drinks and how to
serve them.

Front Office Staff:- 90% of the employees said that the financial auditing is
very important and only 10% said that auditing is moderately important.
Front office employees / staff said that they are required to keep in touch
with the visitors and guests of foreign countries on a daily basis.

Engineering & LAUNDRY:- Most of the employees said that they are
aware of the financial auditing activities in the organization but they are not
put to any such training and development activity. 40% of the employees
said that there are departmental trainers and training is important whereas

60% said that there are not departmental trainers and no auditing is imparted
to them.

Does the organization have a financial calendar

60% employees of the different departments covered said that there is a
financial calendar that is being formulated by the personnel of RL4 and
above grades. They said that they are not aware of the policies and how the
is formulated. The rest of the employees (40%) said that they are not aware
of the auditing plan / audit calendar but are given and when required.

Front Office:- None of the employees said that they need any cross audit. A
high importance (80%) is given to the need for financial auditing in relation
to enhancement of present job / skill and second highest (20%) importance
goes to the need for behavioral related financial auditing.

Means by which the training and development needs are identified.

30% of the employees said that the financial auditing need is identified on
the basis of the departmental needs whereas 20% said it is based on the
organizational needs, 40% said that the needs assessment is based on the
individual needs and the balance 10% said they do not know. The group or
team level needs is understood by most of the employees as departmental
Means of Assessing the need for financial auditing
(All Four Departments

The various methods by which the individual need analysis is done

According to the various departments surveyed, 80% said that
the financial needs are assessed on the basis of the performance
appraisal done at the end of the year. The next most important








managers i.e. Interviewing and Observations (20%). It is only

the engineering and laundry department where the needs
assessment is not done as per the satisfaction of the employees.
Means of Assessing Individul need
(All four departments)

Linking of financial Program to present profile

Almost all the employees said that the financial program they
undergo is linked to their present job profile and nothing out of
the world is taught to them.

Linking of Financial program to present profile

(All four departments)

Session and financial Objectives are clear or not clear

The responses here were mixed. Around 75% said that they do
go through the financial objectives before undergoing any
financial and understand them and try to link them to their
needs and organizational needs whereas 25% said they just
attend the financial and do not bother about the objectives at
C l a r i t y o f Tra i n i n g O b j e c t i v e s
(All four Departments)

Feedback systems
According to the employees surveyed in all the departments,
70% said that the feedback is taken through a prescribed format

wherein they have to fill in the details of the training with the
summary of the financial and knowledge they have gained.
Whereas 30% said that the feedback is taken verbally and they
are being observed on a daily basis on their jobs.
Fe e dba c k s ys t e ms
( Al l Four De pa r t me nt s )


Agra undisputedly is an international tourist centre of the country. It is
visited by bulk of foreign tourists whose main attractions are the historical
monuments especially the Taj Mahal, Red Fort, Sikandra and Fatehpur
sikri. The city is a domestic centre also.
Agra is also famous for Hospitality services. HotelMan Singh Palace,
Oberoi Amarvilas, Jaypee Palace, ITC Mughal, Taj View are world class
five star hotels in Agra. All Five Star hotels are synonymous the world over
for providing the right blend of service, luxury and quiet efficiency.
Internationally recognized for all-round excellence and unparalleled levels
of service, Oberoi Hotels & Resorts have received innumerable awards and
A distinctive feature of Five Star hotels are their highly motivated and well
trained staff that provides the kind of attentive, personalized and warm
service that is rare today. Five Star hotels have established a reputation for
redefining the paradigm of luxury and excellence in service amongst leisure
hotels around the world.
In the space to follow some suggestions have been discussed to redeem the
chaotic conditions of tourism industry in India in general and Agra in

Environment is one of the most important factor. A sound environment is

precondition for successful tourism and hotel industry. So tourism and hotel
industry has to avoid any negative influence on the natural and human
The disadvantages of unplanned development of tourism must not be taken
lightly as they reduce the tourist potential and affect adversely its future
prospects. Haphazard growth of shops and slums near tourist spots create
bottleneck for tourists as it reduces scenic beauty of the site and creates
problem like traffic congestion & environmental imbalance. The quality of
fascination symmetry & environmental standard should be care for. Careful
cleaning and beautifying ancient monuments, clearing the areas around
them and improving their lot for tourism attraction is very important and it
requires special attention of the authorities concerned.
The cremation ground adjacent to the Taj Mahal needs immediate
improvement and development. It needs expansion as well as
Hotels and service clubs can play an important role by adopting nearby
small parks for beautification and converting them into attractive tourist
spots to encourage the tourist for their extended stay at Agra. They may
open recreational centers also to depict Indian culture. It may come out to
be a very profitable enterprise for hotels, since the foreign tourists come

with purpose to know our customs, culture way of life, so they would
readily willing to spend more both time and money on them.
An instant Medicare Insurance scheme for the tourists, with their office at
main entry points and important places in Agra may be introduced. A
separate hospital with all modern facilities and proper ambulance service
for the exclusive use of tourists may be set up at Agra.
Experience has shown that tourist react sensitively to any possible threat to
their safety and security. So police patrolling in muftis is necessity to keep
an eye on the antisocial element to curb their nefarious activities.
The Indian hospitality industry's rapid growth is being derailed owing to
high attrition and fickle loyalty of its most important resource people. Training can ensure peak performance as technology
develops, guest demands increase and outsourcing of jobs swells
Greek philosopher Aristotle had stated that pleasure at job puts perfection
in work. Both are a derivative of a deeper understanding about
the task on hand - depending on quality education and
comprehensive training. And the latter mentioned dual-pronged
strategy is the solitary talisman available to the embattled Indian
hospitality industry, currently reeling under a manpower crunch
and heightened attrition rates, which threatens to ruin its swelling
fortunes. Education and training, since the inception of the

hospitality industry in India, has played a secondary role, though

an undoubtedly critical one, to its growth per se. A punishing






employees, while promising great rewards, career opportunities

and job enrichment. The skill sets required by an employee have
evolved over the years, transforming their linear roles to multifunctional operations. Today, the misguided notion that the
dwindling supply of trained manpower will keep pace with its
increasing demand is a prognosis of the industry's downfall. And
this insatiable demand for trained manpower fails to cease. A
report commissioned by the department of tourism, Government
of India, revealed that the annual demand for trained manpower
in hotels and restaurants is likely to touch 29,000 by the year
2010. This figure is likely to increase to approximately 39,000 by
the year 2020.
To circumvent the impending dilemma of quality and quantity, the first
visible change in the landscape is domestic hotel brands leaping
into the hospitality education fray, to ensure their own expansion
plans don't set adrift amidst manpower shortages. Apart from
that, for each employee, comprehensive training facilities are
being put into place. Eventually, each organization hopes to
create and retain managers for the future through internal

progressions and develop their leadership skills, keeping in mind

the brand philosophy of the organization.
Today, investing resources like capital, time and manpower into training is
a necessity that one must ignore at one's own peril. To integrate
an individual into the workforce and create a sense of belonging
is paramount. And with a greater portion of jobs being
outsourced, training needs to be imparted to ensure that the
agency meets the brand's set standards. To train, or not to train,
there is no question.
With so much on offer on a platter, the requirements for this service
industry doesn't skim the surface requirement of a mere pleasant
personality as was previously sought, but an assemblage of
character traits. Recruiting is critical to sift out potential
candidates, who would be the right fit for the hotel and the brand,
preventing a lot of grief encountered during subsequent training
and appraisal processes. Today, manifold options are available to
both prospective employers and employees to reach out,
including Internet portals, headhunters and also, employee's
referrals. The preferred candidates for specific areas of
operations are individuals from a hotel management background
and from the industry, while for other functions are those with

requisite educational background for their job role. In the end,

the industry is a creative place, and human resource personnel










grooming, leadership skills and analytical ability, etc. While few

hotels have management training programs, such as IHCL's Taj,
EIH's Hotel Man Singh, which serves as an apt training ground,
other brands recruit young graduates from varied institutes, a fact
that yields them a disadvantage, that having inadequate resources
and infrastructure to train batches of trainees. Every prospective
employee is scrutinized by the hierarchy in place, including the
human resources team, the respective department heads, and for
higher vacancies, by the managing director and the chairman.

The best auditing according to him is On the Financial Auditing imparted
by the supervisors and this does not cost anything to the organization.
But this is not enough. The personnel need to be trained for the future
development. On the auditing can only enhance their knowledge and skills
on the current procedures and systems but cannot train them for the
procedures and systems of the future. This will require the organization to
send their executives to seminars and to other organizations to learn. The
technological development is taking place at a very high speed. Customers
are becoming knowledgeable and king. In a service industry it is very
important for the employees to understand the needs of the customers to
whom they are going to serve. Hotel industry is the best example of a
service industry.

The system of training cards if followed properly can enable better training
in the organization. It is the duty of the departmental heads to ensure that
there is not laxity in adherence to the systems. They can allocate this duty
to any of the supervisors and cross check on it from time to time. However,
the final analysis of the training cards has to be done by the departmental
heads with the help from the supervisors.


The area under the study was very confidential, therefore not much
of the details are given.
The sample size was a small percentage of the employees; as such
the interpretation need not be generalized for the Organization.
As a part time student, I was not given permission to even enter the
premises for the purpose of the survey and was not given any
detailed information on the financial auditing at The Hotel ManSingh

I assure you that the data would be used only for academic
purposes and would not be in any way shown to the authorities.
Department / Post:____________________________________

How long have you been working at the Man Singh Palace, Agra

What are different categories of rooms are available in your hotel?

Total Rooms
Categories of rooms

What are the Rate of Indian Tourist and foreign Tourist arrival in
your hotel for 2007-2008?
Indian Tourist
Foreign Tourist

What are numbers of rooms sold per day for 2009-2010?


What was hotel Occupancy Rate for 2009-2010?


April 2009 to September 2010

October 2009 to March 2010

What is Average Room Rate of hotel for April 2010- September
a) 2600

What is Average Room Rate of hotel for October 2010- March 2011?

How important is the financial development activity in your



b) No

If yes, what is the form of financial plan in your organization?



b) Moderately Important c) Not Important

Does the organization have a financial plan or a audit calendar?



Very Important

Comprehensive audit Plan

b) Policy Statement Only

Who is responsible for the execution of financial program i.e.

who identifies the need for audit?



Audit Head


Departmental Head


HR Head


All the above

Does your organization have a financially manual or an

orientation guide which helps the new incumbents to understand
the hotel business?




Prokopenko Joseph, Management Development
Rolf Lynton & Uday Parkeh, Training for Development
Pattanayak Biswajeet, S. Chand & Publications
P. L. Rao, HRD through In-House Training
V. S. P. Rao, Human Resource Management
Websites referred

Financial Auditing Manually

Guest Room Plan
Name Rent Foot






Guest Allowances Adv.


Occupancy Percentage =

Room Sold
Total Room


x 100

Average Room Rent = Room Revenue/Room sold

Note : No tax on liquor

Room Tax 5%
Vat Tax 13.5%
Entertainment 7.5%








Rooms are provided on following sales plan

EP = European Plan

Only Room

CP = Continental Plan

Room + Break Fast


Room + Break Fast + Lunch or Dinner

AP =

Room + Break Fast + Lunch + Dinner

The billing of the rooms is done on the basis of above following plans.