Finance

Allowance

All units must enclose an Internal allowance policy for their unit with this note. Sample policy is enclosed: - Allowance upto Rs.10,000 /- can be authorized by the GM / Chief Accountant. - Allowance above Rs. 10,000/- can only be authorized by the owners / promoters representative.

Direct Emergency Purchase

1) Direct purchases are made in cases of EMERGENCIES only. 2) Prior to purchase, an Emergency Purchase Request to be filled and duly approved by concerned HOD and Chief Accountant. 3) Only in extreme cases, verbal approval of Chief Accountant may be taken. 4) To regularize the direct purchase, the Emergency Purchase Request must be signed: First, by the concerned HOD (if not already signed) Second, by the Purchase Manager to approve the rate Third, by the Chief Accountant (if not already signed) Last, by the GM for clarification / remarks

EMERGENCY PURCHASE REQUEST

SAMPLE ENCLOSURES
Why was the requirement not foreseen 48 hrs. ago (Must be filled in)

S. No.

Description/ Specification

Quantity Required

Unit

Approx cost/ unit

Total cost

________________________ HEAD OF DEPARTMENT

_____________________ CHIEF ACCOUNTANT

(AAROVAL BEFORE PURCHASE)

_______________________ PURCHASE MANAGER

_____________________ GENERAL MANAGER

Equipment Obsolescene_files
All hotels are advised that while instituting a system for equipments in use and obsolete equipments, the following points must be adhered to in all units at all times. 1. Unit GMs, CEs & Chief Accountant are collectively responsible to ensure optimum usage of equipment, their upkeep, and preventive maintenance and as and when

these are rendered unserviceable, quick action must be taken in obtaining their optimum realizable value. 2. Items lying in the hotel junkyard must be periodically reviewed for speedy disposal. All equipments and their spares must be quickly disposed off in a most profitable manner after obtaining necessary approvals.

3. Unit GMs when making requests for Plant & Machinery write-offs should also include a list of spares that will be rendered obsolete along with the equipment. The Management Committee will take a collective view arising out of equipments to be written-off along with the consequent redundant spares.

Fixed asset files

1) This is applicable to only movable assets of the following nature: Plant & Machinery Furniture & Fixtures

2) All fixed assets to be purchased against the capital sanction / budget approved. 3) When assets are delivered at Receiving, the User department / CE is supported to inspect the items in terms of quality, size etc. 4) After the inspection, Goods received note to be made mentioning the location where the asset is to be installed or put in use. The location is thereafter to be noted in the Fixed Assets Register maintained in the Finance department.

5)

6) Subsequently, if the assets are being be removed or shifted from original position / place, it is the immediate responsibility of the concerned department to inform Finance about the change in

location of enclosures).

the

assets

through

approved

format

(refer

7) Finance department to take periodical inventory of fixed assets and check quantity as well as the location to match with the books of accounts.

Food and Beverage Discount files

DISCOUNT FOR MANAGERS

1) Managers are authorized to avail 50% (Discount percentage is hotel specific) discount for personal entertainment in the restaurant. 2) No discount will be available for certain restaurants on Friday and Saturday in the evening. 3) All checks for 50% (Discount percentage is hotel specific) discount must be settled by cash / credit card before leaving the restaurant. The manager must sign the check along with his / her name.

4) It is recommended that managers take a bill, duly acknowledged for receipt of payment, before leaving the restaurant. 5) The manager entertaining must be present in the restaurant and be formally dressed. 6) Staffs are to be discouraged from entertaining in restaurants. Specific and prior permission of GM is required in writing.

STAFFS PURCHASE FROM CAKE SHOP

1) Staff to give booking one day in advance. 2) A 50% discount is applicable on all non chocolate items only. 3) Bill to be paid in cash.

MANAGER PURCHASE FROM CAKE SHOP

1) A 50% (Discount percentage is hotel specific) discount is applicable on all non chocolate items, between 4 to 7 PM. 2) Bills to be settled by cash or credit card.

Handling of tips received in F&B files

1) Receiving of tips in foreign exchange is to be absolutely discouraged and all staff members have to be briefed that they should tell the guests politely that they cannot receive tips in foreign exchange. 2) Under no circumstances should foreign currency, coins be accepted as tips. 3) All staff members must be strictly briefed that nobody should be carrying or having foreign exchange currency or coins, in person, in the locker or anywhere else within the hotel premises, and, in the event of discovery of such an incidence, strict disciplinary action would be initiated. 4) In the event of a guest leaving behind the money (foreign exchange), the same to be immediately brought to the notice / handed over to the Chief Accountant.

Hotel Doctor files

1. It is advised that the following para be incorporated in the
retainer ship agreement with the hotel doctor. 2. Quote. in the event of any claim or dispute filed by any person, covered by this agreement, treated by you, you shall be responsible for the same and shall indemnify the hotel for all expenses that may be incurred with the same including attorneys fee etc. unquote.

3. Regarding the guest you may obtain the annexed letter from the hotel doctor.

ENCLOSURES

SAMPLE
The General Manager
Name of hotel Address DATED ..

Dear Sir, As you are aware I am in general medical practice for several years and am also visiting the hotel to examine your employees. I would appreciate if you could refer me other cases as well e.g. pre employment medical examination cases. Fee for the same may be paid separately, however, in the event of any claim or dispute from such person treated by me; I shall be responsible for the same and shall indemnify the hotel for any loss or damages that it may suffer, in this connection along with attorneys fees etc. I understand that while you may refer such cases to me, you are not responsible in any manner for the same.

Sign. of hotel doctor

Indenting files
General 1) Indents to be prepared only in the specific formats, in triplicate, duly authorized by HODs / person nominated by HODs. 2) In case of urgent demands, GM / Chief Accountant to countersign the indent endorsing the urgency. 3) Complete specifications of items required must be specified on the indents. Capital / Recurring & Revenue Indents 1) For all Capital / R&R expenditure, budgets are prepared, which are approved by the Promoters or Authorized representatives. This list with code number is provided by Finance to the concerned HODs. 2) A Capital / R&R request must be prepared and signed by the HOD, in the approved format (refer enclosures) and countersigned by Chief Accountant / GM / Promoter or Authorized representative. 3) The code allotted to be specified by the HOD on the indent. 4) Sufficient lead time to be given for procurement of the items. 5) Fixed Assets acquisition form (refer enclosures) to be completed and attached with Capital / R&R indents. GENERAL INDENTS

1) These indents (refer enclosures) are prepared by the Storekeeper for all regular Stores items and by HOD concerned for other items which are need based. 2) Stores indents are prepared on the basis of pre-determined par stock levels, duly approved by the Store Manager, and directly forwarded to Purchase for procurement.

3) Other need based indents raised by the User department are approved by Chief Accountant. 4) User department to check balance in Stores / in hand before raising indents for items. 5) Only after indents are raised with Purchase, orders to be placed on the suppliers. DISTRIBUTION The distribution of the copies of the indents to be as follows: Original Purchase Duplicate Stores Triplicate Records: to be retained by the User Department/Stores (For future review/follow up and audit). All indents to be serially numbered and book copies maintained in the indent book.

DAYS FOR SUBMISSION OF INDENTS Except in the case of an emergency, indents must be submitted to Chief Accountants office for approval only on allotted days. These may be collected back on the second working day after their submission. Department
Engineering Housekeeping

Day of the Week

Monday Tuesday

F&B (S) F&B (P) and Kitchen Stewarding Others

Wednesday Thursday Friday

ENCLOSURES CAPITAL / R & R AUTHORISATION REQUEST

To be submitted in triplicate Hotel Name & Logo For circulation to: 1) Purchase 2) Accounts 3) User Dept. Rs.( ) Dept.. Has been sanctioned by Promoters vide sanction No.. For....(title of the Estimated Expenditure) It is proposed to incur this expenditure as per detail given below Description of Job / Work Suggested Vendors Name Estimated duration for completion of order Value of order Rs/-

Qty.

Remarks

Please enclose all relevant specifications.

Total:.

Drawings, Catalogues & Quotation if any

Approved for Rs/- .. ______________ General Manager Date: ______________ Chief Accountant Date:

Initiating Dept. Head __________________________ Promoter / Authorized Signature Date:

ENCLOSURES BREAK UP PURCHASE REQUEST

A) Non-Quantifiable gains B) Any other Rationable Total (Actual cost break up Rs. in Lacs.) : : :

Equipment : Civil : Others : Furniture : Miscellaneous : Total : (Wherever possible attach copies of brouchers / proforma invoices or give description of items to support the break up of costs.)

_____________________________________________________________
Submitted for Approval FOM / EHK / Ex. Chef / F&B Manager / CE / CSO / HRM / Laundry / S&M Manager Date: ______________________ Approved / Recommended

_____________________
GM

____________________
UFC

Date: _______________________ Approved _______________________ Promoters Date:

CAPITAL EXPENDITURE RELEASE FORM

ENCLOSURES
To be filled and submitted along with the capex indent. HOTEL NAME SANCTION NUMBER PROJECT TITLE SCOPE OF WORK REASON / RATIONALBLE FOR EXPENDITURE Expected annual savings in cost / increase in revenue (Rs. in Lacs) : : : : : :

Increase in revenue : Savings in costs : Total : Less Increase in cost : I. Interest II. Depreciation III. Others Total :

Net impact on Profit Before Tax (Annual)

Internal allowances files

All units must enclose an Internal allowance policy for their unit with this note. Sample policy is enclosed: Allowances upto Rs.2,500/- can be authorized by the Lobby Manager.

Allowances above Rs.2,500/- to Rs. 10,000/- can be authorized by the Front Office Manager. All allowances are subsequently approved by the General Manager.

A copy of all allowances over Rs.10.000/- must be authorized by the General Manager.

Liquor storage files

1) In case any liquor shortages are observed by F&B Controls during inventory of stock, 36 hours will be given to the concerned F&B employee to reconcile and explain the same. Thereafter, a check will be raised by F&B Controls.

2) The charges will be recovered from the tip money unless the check has already been settled by the concerned employee. 3) Under not circumstances, is any check to be kept pending once it is raised by F&B Controls.

Mandatory report files

A list of Mandatory Reports to be circulated by Units is given below for purpose of record and continued compliance. This will also assist us in aligning the system of Management Reporting

S.No. 1 2 3 4 5

Reports General Mangers checklist Weekly Report Daily Report Monday Telex MIS

Frequency 7 of the month

th

Mondays Daily Daily 5th of the month

Addressed / Circulate to GM Operations, support & Quality GMs Operations GM (Finance) GM (Finance) GM (Finance)

Location HO HO HO HO HO

Missing pending cheque files

MISSING CHECKS 1) A check will be treated missing if ALL copies of the check i.e., KOT, guest copy, hotel record copy are not available. 2) Even if KOT is available and all other copies of the check are missing, the check will be treated missing and no benefit of doubt will be given. 3) The penalty amounts to be decided by individual units.

Rest. Food Check Rs/Rest. Beverage Check Rs/-

Banquets Food Check Rs/Banquets Beverage Check Rs/-

Bar Food Check Rs/Bar Beverage Check Rs/-

Pre Warranty by Supplier files

A recent Supreme Court judgment has ruled that in case of dispute with the PFA Authorities in the event of a food sample failing to conform to legal standards, the liability can not be passed on to the packer / supplier / manufacturer if the purchase of said sample of food was not supported by form 6 A (Form of Warranty) as specified in the PFA act. This Supreme Court ruling has a very vital bearing in Hotels system as a very major part of its legal defence in event of dispute would be supported by the systems adherence to every purchase being accompanied by a prescribed Form Warranty filled out in detail. This has reference to the form of warranty given by a supplier under the prevention of food adulteration act. Please note that this warranty has a specific format which is enclosed in form vi-a in the said act and there should be no deviation from the said format and all columns therein should be duly-filled up. for your ready reference enclosed is a copy of the form of warranty as encompassed in form vi-a of the act. Please ensure that all warranties are given in this format only.

Procurement ordering files

GENERAL 1) Procurement only to be done through the Purchase department. 2) User department to pass all information on any local source(s) developed by them to Purchase. Negotiations with supplier to be done through the Purchase department. 3) Advantage to be taken of economy of scale by bulk ordering based on combined requirements of all departments, wherever possible. 4) Orders to be placed with correct specifications for each, based only on approved indents. PRE - ENQUIRY 1) All indents to be examined by Purchase Manager and then allocated to responsible subordinates with instructions for future action, and date stamped on receipt in Purchase department. 2) If indents is for items which are regularly purchased and for which an annual / quarterly contract exists, order to be placed with approved supplier. If no annual / quarterly contract exists, then enquiries to be made. ENQUIRY

3) A directory of suppliers and / or a data bank on source of supply to be maintained in Purchase and updated all the time. 4) Enquiries providing : sent to all current and prospective suppliers

Material description / specification Quantity required Delivery required by Last date for quotation Govt. duties / taxes / levies Freight and insurance Lot size and packing Guarantee / warranty Payment terms and credit period

BIDS COMPARISON 1) Purchase to prepare a comparative statement of all written quotes and other information received from suppliers.

2) Purchase to analyze the merits of each source and give weight age and / or recommendation. 3) Subsequently, Purchase to prepare a short list of suppliers for negotiation . NEGOTIATION 1) Purchase Committee comprising of Purchase Manager, User department HOD and UFC to negotiate with the supplier. Minutes of negotiation to be approved by all Purchase Committee members present. In exceptional / urgent cases, post approval to be obtained by circulating the decision or draft approval by Purchase Manager.

2)

3) Separate list of all comparative statements / Purchase proposal along with the minutes of the Purchase Committee meeting to be maintained at Purchase department.

PURCHASE ORDERS

By purchase and only in the prescribed, serially numbered, specific format. 1) If advance is to be paid, same to be detailed in the Purchase Order (preferably) only against a bank guarantee executed by the supplier in favour of the unit. Records of all advances paid and validity of all bank guarantees must be maintained by both Finance and Purchase departments. 2) For all advances Owners / his representatives approval to be obtained through approved format (refer sample). 3) Payment to be made by A/C payee cheques only. Accounts Payable to send cheque to the supplier with a covering note. 4) Amendments to Purchase Orders can be effected only by Purchase department and the distribution of all such amendments is the same as purchase order copies. Amendments to be attached / stapled together with the respective original orders. A copy must be attached with the purchase order, kept in the master copy file, and the amendments must be mentioned on the master copy.

5)

A Control Register to be maintained in Purchase for all Purchase Orders raised (serial numberwise). There should be separate register for food & beverage orders and general orders.

SAMPLES

1) Samples to be cleared / approved by Purchase Committee. One set of approved samples and / or detailed specification of the product / item to be sent by Purchase to Receiving who, in turn, will use it to compare and inspect the incoming goods. A register to be maintained by Purchase mentioning the samples received, source, date of receipt, person to whom handed over, department and remarks.

ac returnable gate pass_files RETURNABLE GATE PASS A).The Returnable Gate Pass (refer enclosures) should be properly filled and completed as detailed below:
1. Date of issue

2 .Originating department 3 .Expected date of return 4 .Name (of the person removing goods)

5 .Signature of the person removing goods 6 .Name and address of the company (removing goods) 7 .Purpose (of removing goods) 8 .Serial number 9 .Description / Specification 10 .Quantity 11 .Originating department signature 12 .Approved by (signature)
B) The Returnable Gate Pass should be made in 3+1, copies to be distributed as follows:
1.Original material The person taking out the

2.First & Second Security department 3.Third Book / Follow up/Originating department C) The second copy is returned back by the security department to the originating department, on receipt of original copy i.e., on clearance of gate pass (on receipt back of assets). The security department affix the IN stamp and return the second copy back for the record keeping of the originating department.

D) All Returnable Gate Passes will be approved from the originating department by the respective HODs and finally authorized by the GM / Chief Accountant. E) Lobby Manager are authorized to sign the Gate Passes before and after office hours, on Sunday / holidays and due to nonavailability of authorized signatories. The following day all these Gates Passes will be duly ratified by the Chief Accountant. The Security Department should send all Gate Passes authorized the previous day by the LM to the office of the Chief Accountant for ratification. F) The Returnable Gate Pass Register to have the following columns:
1. Date, Gate Pass number, name of the person removing the items, expected date of return, item description, specifications, quantity and remarks (details for receipt date / quantity). 2. All returnable goods to be received back through Security only during office hours by the Originating department.

G) F&B Manager is authorized to sign all Returnable Gate Passes pertaining to Banquet Outdoor catering and related F&B activities. H) No Returnable Gate Passes will be encouraged after office hours. Each department should plan their Returnable Gate Passes in a manner that the items leave only during office hours. I) All items leaving the hotel on Returnable Gate Passes should have complete details e.g., weights, measures, specifications, number in words and for equipment machine number, chassis number, complete descriptions should be mentioned on the Gate Pass. The security control should not entertain Gate Pass without details mentioned above. J) All Gate Passes will be routed only through Security from the time of going out till the time the items come back. K) Since the Security Control is manned 24 hours and 365 days of the year, there should not be any case where the items have not come back into the hotel through Security. No request will be entertained wherein the user department claim later on that the items have been received by them directly. Such Gate Passes will still be shown as pending against the concerned department and not cleared from the records. L) The person should take out the item only through staff gate (Time Office) alongwith the original + two copies of the Returnable Gate Pass. All copies of the Gate Pass to be stamped, signed, timed etc. by security guard on duty after checking all relevant details with the outgoing items. The original copy to be taken by the supplier / person removing the item. The duplicate copies to be retained by the Security department.

M) The Originating department and Security department will each maintain a Returnable Gate Pass Register, wherein each Gate Pass will be entered / filled in chronological order.
In case the item is not received on its expected date of return, then Originating department should confirm the revised date of return alongwith reason /s.

N) The expected date of return can be revised only once; thereafter, any further revision of date to be done through the Chief Accountant. When approved by Chief Accountant a copy to be sent to the Security Department. Security Department will do a monthly reconciliation of outstanding Returnable Gate Passes alongwith Originating Department. Any discrepancies will be resolved by the concerned HOD and CSO. However, for any unresolved discrepancies the Chief Accountants decision will prevail.

O) Security department to maintain proper follow-up of the items not received on the expected date of return by sending reminder letters to concerned HsOD stating following details:
1. Gate Pass number 2. Date of Gate Pass 3. Name / supplier removing the goods / item 4. Item description 5. Total quantity 6 .Expected date of return

The above details should be for all pending Gate Passes. P) The above documents / registers can be checked by the UFC or his nominated representative. Q) In case of a Fixed Asset / Carpex item, the item should be returned on the ENCLOSURES due date. The duration between the date of issue and expected date of return should not be more than 90 days. In case of above 90 days, the Chief Accountants approval and concurrence to be obtained as well. R) In case any furniture items are being sent to managers residence, in addition to the HOD, the signature of GM / Chief R. No. Accountant/ Personnel Manager must be taken. _________________ S) out, in addition to In case any Food & Beverage items being sent Date of issue <<RETURNABLE> <GATE> <<RETURNABLE> <GATE> the HOD, the signature of F&B controller or F&B Manager must be <PASS>> < __________ <PASS>> < taken. Originating Dept. _______________________ Expected date of return T)______ In case any computer related items are being sent out, in addition to the HOD, the signature of MIS Manager / Supervisor Name be taken. must __________________________________ Signature ____________________ ENCLOSURES removing goods) (of the person Name & Address of Company /Customer ______________________________ Purpose _______________________________________________________________ R. No. S. No. _________________ DESCRIPTION Date of issue QUANTITY __________ Originating Dept. _______________________ Name __________________________________ Signature ____________________ (of the person removing goods)

_________________ _______________ Originating Dept. Approved by

Name & Address of Company /Customer ______________________________ Purpose _______________________________________________________________ S. No. DESCRIPTION/SPECIFICATIONS QUANTITY

_________________

_________

ac scrap sale_files

RATE APPROVAL
TO SCRAP (OUTSIDE) DEALERS Regular scrap sale as per annual rate contract. Rates are finalized by Purchase Committee annually on the tenders received Non-regular items are sold after calling for quotation from time to time. These quotations will be approved by UFC in writing and record kept with the Receiving incharge / Finance

PAYMENT
Scrap dealer to give in accordance with annual rate contract, which should be in advance of sale.

PROCEDURES FOR COMPLETING SALE / DISPATCH

 TO SCRAP (OUTSIDE) DEALERS 1) The staff member who is responsible for weighing / counting of item as per annual rate contract will personally supervise the sale 2) After weighing / counting of item(s), four copies of the scrap sale gate pass will be prepared and signed by the authorized signatory. 3) These copies will be retained by Finance, Security & Stores along with receipts & one copy will be given to scrap dealer, to be handed over to the security at the time of removal of scrap. 4) The green and yellow copies of the said pass will be given to the scrap dealer, who in turn will handover both to security guard at Time Office. 5) The security guard will verify the item with the gate pass and accompany the vehicle upto security control. 6) Security Control supervisor to recheck the items with the gate pass before stamping the gate pass OUT, along with dat 5) date and time. The copy to be handed back to the dealer and one copy as mentioned above, to be retained with security. ac social non recuring expenditure_files 1) On some occasions a special unbudgeted expenditure may be required to be made for the enhancement of guest expenditure, to take advantage of new technology, to reduce costs etc. Such expenditure may be sanctioned at General Managers discretion. 2) The special non-recurring expenditure form (refer enclosures)to be filled in by HsOD in duplicate, giving the expected benefits and forwarded to Chief Accountant. 3) Chief Accountant to examine the proposal and send it with necessary recommendation to GM. One copy to be retained in Finance.

4) GM to approve / reject proposal and return to Chief Accountant. ac band musician_files

The enclosed agreement name

1. Draft Agreement for Band (All FPHL Hotels) 2. Draft _ Agreement for Artist / Pianist (All FPHL Hotels) To be used as guidelines for preparing future agreement with Bands / Artists / Pianists.

SAMPLE
Draft _ Agreement for Band (All FPHL Hotels)

AGREEMENT This agreement made on this--- day of 2004 between Fortune Hotel Landmark, situated at Ashram Road, Ahmedabad (hereinafter referred to as The Hotel of the first part), which expression unless repugnant to the context and meaning thereof shall mean and include its successors and assigns and ______________ (hereinafter referred to as The Band of the second part) which expression unless repugnant to the context and meaning thereof shall mean and include its successors and assigns. WHEREAS Fortune Hotel runs several Food & Beverage outlets and engages parties for providing musical services. AND WHEREAS the second party known as ____ band has been requested by the hotel to provide Musical services at the said hotel. ANDWHEREAS the first party has agreed to engage the services of the second party in its hotel on the terms and conditions contained herein. NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:1.The Hotel agrees to engage the services of the second party w.e.f. 1st _______ for a period of one year, subject to renewal as provided hereinafter. 2.The band will include at all times, a ---------------------- the names of whom are given below: a) b) d) The second party shall take prior approval in writing from the Hotel in case of any change in the band composition or in its members. 3. The Band shall be required to provide musical services at any one of the restaurants or banquets of the hotel from --------- p.m. to ---------p.m. with rest periods not to exceed a total of 45 minutes or as instructed by the first party in writing and at such timings as may be fixed by the Hotel. It is, however, agreed that the maximum number of hours for which the Band shall provide musical services shall not normally exceed 45 hours a week, the weekly day off to be determined by the first party at their own discretion which may vary from time to time.
c)

4.The Band can take a break only in the assigned area by the Hotel . 5. For, this service the Hotel shall pay the Band a consolidated sum of Rs. _______ per month. This amount is inclusive of costume hire and / or hire of equipment. 6. That the first party shall not be responsible for providing any accommodation or transfer etc. to the Band party who shall make its own arrangements for the same. providing the musical service: _ _

7. The Band shall bring with them the following equipment for

8. In the event of non performance of the prescribed duration or any part thereof by the Band, for any reason whatsoever, the Band shall pay liquidated damages @ Rs.5000/- per day of non performance. Three consecutive days or five scattered days of non performance by the Band shall entitle the hotel to terminate this agreement and seek damages from the Band. 9. The Band will be entitled to meals i.e. Dinner which will include a soup, main dish, one dessert, tea or coffee and one aerated soft drink. No request items consumed over and above this shall be charged by the first party from the second party. The meals shall be provided in the coffee shop before the Band is due to commence or after the Restaurant closes. The Hotel may change the place of meals as and when feel necessary and as determined by the Hotel and subject to such limits and under such rules as may be prescribed by the party of the first part. 10. It is clearly understood and agreed that this contract does not include the use of telephone facilities whether for local calls or trunk calls, use of Hotels conveyance, guests entrance, loading within the hotel premises, use of hotels laundry or any other such or similar privilege / benefit or discount facility which is available to the guest of the hotel. 11. The Band would use only the employees entrance whilecoming and leaving the hotel premises and would be allowed in the hotel premises only during the hours of operation as decided by the first party. 12. The band shall abide by such rules, regulations and instructions of the party of the Hotel as applicable and in force from time to time. The Band also agrees that the members of the Band will at all times be dressed in a befitting manner as specified by the Hotel. The cost of

such dress being borne by the Band. The Band would not be entitled to any alcoholic beverage. 13.Under no circumstances shall (Members of Band) be under the influence of alcoholic drinks or drugs either at the time of rehearsals or performance. In case any of such person is found under the influence of alcoholic drinks or drugs the party of the hotel shall be entitled to dispense his services for that day and treat the same as non performance. However, in case the Hotel, then the Hotel shall be entitled to dispense with the services of the entire band and charge the Band for a default of nonperformance and claim damages. 14.The contract can be renewed by the parties on the terms mutually acceptable and by giving to the other party the notice of intention at least 45 days before the expiry of the contract. 15.It is clearly understood and agreed between both parties that the Hotel shall have no responsibility regarding the safety of such equipment(s) as may be necessary for the Band to hire / own for the purpose of providing musical services. 16.The Hotel reserves the right to select and the band agrees to provide back up (background) music to any entertainer as may be determined from time to time by the Hotel at no extra. 17.That during the currency of this agreement and extension (s) thereof the Band shall be prohibited from playing anywhere and for anyone else outside or accepting any engagement during the hours specified in this agreement or vide subsequent communication without prior written permission in writing of the Hotel. 18.The Hotel reserves to themselves the right to require the Band to play in any of their associate establishment in any part of India during the currency of their agreement of its extensions on paying travelling charges and the second party expressly acknowledges and accepts and agrees to the same. 19.The Band agrees to report punctually for all performance and rehearsals required and to furnish all the necessary requisites and music and not to introduce any impropriety of word, action or posture or deed into the performance and to eliminate any such part which the party of the first part might, for any reason, consider to be undesirable. 20 In case the Band commits any breach or infringement of any of the terms and conditions of this agreement by his acts or commissions, the Hotel will have the right to terminate this agreement with immediate effect. Decisions of the General Manager, of the Hotel shall be final and binding on the point

whether or not any breach of the terms of the agreement has been committed. This termination shall be without prejudice to any other right of the Hotel against the Band in this behalf. 21.The band shall comply with all directions, instruction as may be given by the first party from time to time that shall be deemed to be part of this agreement. The Hotel may vary / delay and withdraw such directions / instructions from time to time. 22.The Band shall indemnify and shall keep the Hotel indemnified for any claims made or damages suffered by the Hotel by reason or any default omission or act of the Band, his agents or employees. 23.The Band shall not remove the instruments from the premises of the first without prior written consent of the Hotel. The Hotel shall, however, have lien over the instruments / articles and the Band shall not be allowed to take the same unless the dues, if any, of the Hotel have been paid by the Band. No equipment shall be removed from the hotel premises without a duly signed gate pass authorizing them to do so. 24.It is mutually agreed that in case of suspension of the business of Fortune Hotel Landmark as a result of riot, civil commotion, labour strike or any other reasons beyond the control of the Management, the Band shall be entitled only to cash value in lieu of duty meal, provided always that if such closures or suspensions exceeds the period of the month, this contract shall stand automatically terminated without any obligation whatsoever evolving on any of the party. 25. Not withstanding the currency of the agreement for the period of one year i.e. from 1st ________ to the 30th _________ or further extension thereof the parties to this agreement shall be entitled to terminate this agreement by giving one months prior written notice to the other party. However, without prejudice to the above, the Hotel shall have option to terminate this agreement, if the second party contravenes any of the terms of the agreement, or its members are guilty of intemperance, insubordination, misbehaviour, etc. or if their quality of music deteriorates in the estimation of the Hotel without any liability, whatsoever, devolving on the Hotel, other than payment for the number of days for which work was performed.

26. Any person engaged by the Band in order to provide musical services, including any services incidental or in connection with such services, the Hotel shall have no legal obligation whatsoever in regard of such employees of the Band in relation to any act or other legal obligations. 27. The Hotel shall not be responsible for any injury or damages caused to the Band or to any of their goods or property because of any act of God or by fire at gas pipes or by any fire in electrical connections or form any cause thereof, while performing the musical services or otherwise. The contract is prepared in duplicate and the acceptance of its terms and condition is signified by the signatures of the second party thereon. In WITNESS WHEREOF the parties have set their hand hereunder on the day above mentioned in the presence of UNIT GENERAL MANAGER
UNIT FINANCIAL CONTROLLER WITNESSES (BAND LEADER)

I.
II. ON BEHALF OF __________ AND FOR OTHER MEMBERS OF THE BAND

ac procurement ordering_files

GENERAL
1) Procurement only to be done through the Purchase department. 2) User department to pass all information on any local source(s) developed by them to Purchase. Negotiations with supplier to be done through the Purchase department. 3) Advantage to be taken of economy of scale by bulk ordering based on combined requirements of all departments, wherever possible. 3) 4) Orders to be placed with correct specifications for each, based only on approved indents.

PRE - ENQUIRY

1) All indents to be examined by Purchase Manager and then allocated to responsible subordinates with instructions for future action, and date stamped on receipt in Purchase department. 2) If indents is for items which are regularly purchased and for which an annual / quarterly contract exists, order to be placed with approved supplier. If no annual / quarterly contract exists, then enquiries to be made.

ENQUIRY
3) A directory of suppliers and / or a data bank on source of supply to be maintained in Purchase and updated all the time. 4) Enquiries sent to all current and prospective suppliers providing :

Material description / specification Quantity required Delivery required by Last date for quotation Govt. duties / taxes / levies Freight and insurance Lot size and packing Guarantee / warranty Payment terms and credit period

BIDS COMPARISON
1) Purchase to prepare a comparative statement of all written quotes and other information received from suppliers.

2) Purchase to analyse the merits of each source and give weightage and / or recommendation. 2) 3) Subsequently, Purchase to prepare a short list of suppliers for negotiation .

NEGOTIATION

1)

Purchase Committee comprising of Purchase Manager, User department HOD and UFC to negotiate with the supplier. Minutes of negotiation to be approved by all Purchase Committee members present. In exceptional / urgent cases, post approval to be obtained by circulating the decision or draft approval by Purchase Manager.

2)

3) Separate list of all comparative statements / Purchase proposal along with the minutes of the Purchase Committee meeting to be maintained at Purchase department.

PURCHASE ORDERS
By purchase and only in the prescribed, serially numbered, specific format. 1) If advance is to be paid, same to be detailed in the Purchase Order (preferably) only against a bank guarantee executed by the supplier in favour of the unit. Records of all advances paid and validity of all bank guarantees must be maintained by both Finance and Purchase departments. 2) For all advances Owners / his representatives approval to be obtained through approved format (refer sample). 3) Payment to be made by A/C payee cheques only. Accounts Payable to send cheque to the supplier with a covering note. 4) Amendments to Purchase Orders can be effected only by Purchase department and the distribution of all such amendments is the same as purchase order copies. Amendments to be attached / stapled together with the respective original orders. A copy must be attached with the purchase order, kept in the master copy file, and the amendments must be mentioned on the master copy.

5)

A Control Register to be maintained in Purchase for all Purchase Orders raised (serial numberwise). There should be separate register for food & beverage orders and general orders.

SAMPLES

1) Samples to be cleared / approved by Purchase Committee. One set of approved samples and / or detailed specification of the product / item

to be sent by Purchase to Receiving who, in turn, will use it to compare and inspect the incoming goods. A register to be maintained by Purchase mentioning the samples received, source, date of receipt, person to whom handed over, department and remarks.