CHAPTER-1

INTRODUCTION:

Cost control by management means a search for better and more economical
ways of completing each operation. Cost control is simply the prevention of waste
within the existing environment. This environment is made up of agreed operating
methods for which standards have been developed.
Cost control is defined as the regulation by executive action of the costs of
operating an undertaking. Cost control aims at achieving the target of sales. Cost
control involves setting standards .The firm is expected to adhere to the standards.
The Large holding of current asset especially cash strengths the firms
,liquidity position but also reduces the overall profitability. Thus a risk returns trade
off involved in holding current asset .
The most essential of all the cost control methods is to designate a little group
of exceptionally qualified and experienced individuals knowledgeable in an
extremely proficient and orderly way.
In the background of effort can be made to understand Cost Controling
Technigues and Overhead Analysis in Mr. Ravi Kamth Kumta.
Hotel accounting practice is intended to give of knowledge , to investigate the
connections between understudies, scholarly arrangement and their field work, and
to help members in creating and completing the significant exploration venture
which will serve to come full circle their temporary position experience.

1
 Every level positions are individualized and custom-made to the necessities
and hobbies of every understudy in the system. As a major aspect of the temporary
position experience, understudies are relied upon to play a dynamic part in finding
a fitting entry level position for themselves.

A hotel is an establishment that provides lodging paid on a short term basis.

The provision of basic accommodation, in times past, consisting only of a room
with bed, a cupboard, a small table and a washstand has largely been replaced by
rooms with modern facilities, including en-suite bath rooms & air conditioning or
climate control. Additional common features found in hotels rooms are telephone,
an alarm clock, television, a safe foods, drinks and facilities for making tea and
coffee. Luxury features include bathrobes and slippers, a pillow menu, twin sink
vanities and Jacuzzi bathtubs. Larger hotels may provide additional guest facilities
such as a swimming pool, fitness center, business centre , child care, conference
facilities and social function services. Hotel rooms are usually numbered smaller
hotels allow guests to identify their room. Some hotels offer meals as part of a
room and board arrangement. In the hotel is required by law to serve food and
drinks to all guests within certain stated hour. A hotel can be in more than the one
building. Squash courts, tennis courts, a swimming pool, a car parks etc., which
are part of the amenities of the hotel are part of the hotel and so qualifying
expenditure on them qualifies for allowances even if non residents are also allowed
to use them.

In VARADA HOTEL, conveniently located walking distance from railway

station and new bus stand on national highway NH.17 has been operating for over
more than ten years now providing impeccable service and excellent
accommodation for all travelers be it businesses or pleasure. Our hotel has various
2
services available to make your guests stay as comfortable as possible, encouraging
them to return time and time again.

1.1 NEED FOR THE STUDY

Now a day’s running a hotel due to lab our factor on the one side and
increased dependence on hotels by tourists is difficult. So quality decision is vital
one sound accounting procedure can help in this regard. Hence a project is taken
upon the hotel account and Varada international a leady hotel in coastal area of
North Canara district is selected. Account the project is titled as “A Study On Cost
Controling Techniques And Overhead Analysis of Varada international Hotel
Kumta (UK)”.

1.2 OBJECTIVES OF THE STUDY

1 .To study and understand impact of cost control and cost reduction on
profit and loss.
2. To identify weaknesses and areas of improvement.
3. To study and analyze the imfact of overhead expenses of different
department of the company on overall expenses.
4. To closely examine the utilization of cost and elimination of waste full
expenditure.

3
1.4 SCOPE FOR THE STUDY

1. The study is mainly concerned with the analysis of overhead at Varada

hotel .
2. The study attempts to find out the existing cost controlling techniques used
at Varada hotel.
3. The study helps to find out the problem for cost controlling.

1.5. METHODOLOGY

Successful compulsion of any project work or report are very much based
on type of information available and used in the study. In what method we collect
the data is important in checking the reliability of the project report.

A. SOURCE OF DATA

Collection of data through proper channel is very important for the

analysis. The two major types of data which were used for the analysis and
interpretation were:

1. Primary sources data

2. Secondary sources data

4
1. Primary sources data:

The data collected through actual respondents of the survey is known as

Primary data in this method a questionnaire is given to the employees with request
to answer the questions and return the questionnaire. A questionnaire consists of
number of questions printed in definite order. The respondent was expected to read
and understand the questions and write a reply in the space meant for the purpose
in the questionnaire. The respondents have to answer the questions based on their
own experience and perception. In the present study, data collected through
interview with the manager of hotel by using the questionnaire.

2. Secondary source data:

These are the source containing data which are collected and complied for
another purpose the secondary source consist of readily available components and
already complied statistical statements and reports whose data may be used
by researchers for their studies. In present study secondary data collected through,
annual reports of hotel.

B. ANALYSIS AND INTERPTATION OF DATA

A study on profit organization on hotel account has been collecting done by

data from the employees working at hotels in Kumta. The data had been collected
by using the structured questioner and analysis the data.

1.6 LIMITATION OF THE STUDY

5
 1. The above analysis is confined to only one company varada hotel.
2. The information provided will be less or not sufficient.
3. In this analysis dependent on the information provided by the company.

The study is at micro level and it may fail to cover all the aspects

B. ANALYSIS AND INTERPTATION OF DATA

A study on profit organization on hotel account has been collecting done by

data from the employees working at hotels in Kumta. The data had been collected
by using the structured questioner and analysis the data.

6
 CHAPTER 2

CONCEPTUAL FRAMEWORK

INTRODUCTION TO COST CONTROL TECHNIQUES AND OVERHEAD

Taken a toll control is the act of overseeing or diminishing costs of doing business.
Cost controls begin by the business distinguishing what their expenses are and assess
whether those expenses are sensible. Taken a toll control is not a particular system
it is normal action to be habitually completed. Taken tall must be control generally
there will be wastage and misappropriation of assets is a constant action.

Cost is a basic control function which should be included in any project control
system. With the increase in size and complexity of construction projects,
construction managers are faced with the need to have greater understanding of all
their projects economic aspects . This will enable them to implement a greater degree
of control, not only over the day-to-day cost of work which they manage, but also
over the wider aspects of their work in general.

The present study in Varada Hotel Kumta is intended to study the current practice in
Cost control and to evaluate the performance of the cost control techniques and
overhead.

7
MEANING:
The Cost Control is the practice of identifying and reducing business expenses
to increase profits,and it starts with the budgeting process. A business owner
compares actual results to the budget expectations,and if actual costs are higher than
planned, management takes action. As an example,a company can obtain bids from
other vendors that provide the same product or service , which can lower costs .

OBJECTIVES OF THE COST CONTROL

1. To ascertain the cost per unit of the different products manufactured by a

business concern.
2. To provide a correct analysis of cost both by process or operations and by
different elements of cost.
3. To ascertain the probability of each of the products and advise management
as to how these profits can be maximized.
4. To give suggestions to the growth of the company.

ACCUMALATIONS O F OVERHEAD:
Accumulation of overheads means the pooling of circuitous things
of costs from books of record and strong or demonstrative records in consistent
gatherings having respects to their temperament and reason. Overheads are gathered
on the premise of pre-arranged grouping, called cost pools. Homogeneity in the cost
pools is to be kept up to make the allotment of overheads more rational and scientific.

CLASSIFICATION OF OVERHEAD:
1) PRODUCTION OVERHEAD:

8
 It otherwise called processing plant overheads, works overhead or
assembling overhead. It implies circuitous use caused regarding creation operation.
It is total of processing plant aberrant material cost, circuitous earnings and
roundabout Costas. Not at all like straight materials and direct work,is generation
overhead an updateable part of the completed item.

2) ADMISTRATION OVERHED:
.
Office and administration overhead be relevant to general
organization and administration of business. These overheads are of a general
character are incurred for the business as whole .The consists of all expense in a way,
control and administration of responsibility which is not connected directly to
manufacture, selling and distribution function.
Example: General management salary ,audit fees, legal charges, postage and
telephone, stationary and printing, office rent and rates, offices lighting and salaries
of office staff ,etc.

3) SELLING OVERHEAD:
There are the costs of looking for to create and simulate demand
of securing orders. In other words these are those overhead which are incurred to
promote sales and are incurred for rising sales to the existing and possible customers.
Example: Advertise salary and commission of sales personnel, store expenses,
travelling expenses ,bad debts, catalogues and price lists, etc.

4) DISTRIBUTION OVERHEAD:

9
 It comprise of all expenditure incurred from the time is product is
completed in the factory until it reaches its destination or customers. It includes
packing costs , carriage outwards, delivery van costs, warehousing costs, etc.

ELEMENTS WISE CLASSIFICATION:

1) INDIRECT MATERIALS :
They are costs, which cannot be allocated but which are to be
apportioned to or absorbed by centers or units.
Examples are: Stationary ,coal, lubricants and tools for general use.
2) INDIRECT WAGES:
Indirect wages are those which cannot be allocated but which are to be
apportioned to or absorbed by centre or cost units.
Example: Wages of sweeper, idle time wages, maintenance and repair wages, and
foremen’s pay.

3) INDIRECT EXPENSES:
Indirect wages are those which cannot be allocated but which are to be
apportioned to or absorbed by cost center or cost units are indirect expenses.
Example: Power, depreciation ,insurance ,taxes and rates and rents.

LIMITATIONS OF COST CONTROL:-

1) The system is more complex
10
2) It is expensive
3) No suitable for small scale units
4) Lack of accuracy
5) Lacks social accounting

ASPECTS OF COST CONTROL:

❖ Planning: Initially a plan or set of target is established in the form budgets,

standerds.
❖ Communication: The next step is to communicate the plan to those whose

responsibility is to implement the plan.

❖ Motivation: After the plan is put into action, evaluate ion of the performance

starts`Costs are ascertained and information about achievements is collected

and reputed.
❖ Appraisal: Comparison has to be made with the predetermined targets and

actual performance .

TECHNIQUES OF COST CONTROL:

1) PLANNING THE PROJECT BUDGET:

You would need to ideally make a budget at the beginning of the

planning sesssion with regard to the project at hand. It is this budget that you would
Have to help you for all payments that need to be made and costs that you will incur
during the project life cycle. The making of this budget therefore entails a lot of
research and critical thinking. Like any other budget, you would always have to
11
leave room for adjustments as the costs may not remain the same right through the
period of the project budget at all time is key to the profit from project.

2) KEEPING A TRACK OF COSTS:

Keeping track of all actual costs is also equally important as any

other technique. Here,it is best to prepare a budget that is time-based. This will
help you keep track of the budget of a project in each of its phases. The actual
costs will have to be tracked against the periodic targets that have been set out in
the budget. These targets could be on a monthly basis even yearly if the project
will go on for long.

3) EFFECTIVE TIME MANAGEMENT:

Another effective technique would be effective time management.

Although this technique does apply to various management areas, it is very
important with regard to project cost control.The reason for this is that the cost of
your project could keep rising if you are unable to meet the project deadlines;the
longer the project is dragged on for, the higher the costs incurred which effectively
means that the budget will be exceeded.

4) PROJECT CHANGE CONTROL:

12
 Project change control is yet another vital technique. Change
control systems are essential to take into account any potential changes that could
occur during the course of the project. This is due to the fact that each change to
the scope of the project will have an impact on the deadlines of the deliverables, so
the changes may be increase project cost by increasing the effort needed for the
project.

5) USE OF EARNED VALUE:

Similarly, in order to identify the value of the work that has been
carried out thus far, it is very helpful to use the accounting technique commonly
known as ‘Earned value’. This is particularly helpful for large projects and will
help you make any quick changes that are absolutely essential for the success of
the project.

CHAPTER 3

ORGANIZATION PROFILE
13
 In Varada hotel, conveniently located walking distance from Railway
Station and New Bus Stand on National Highway No. 17 has been operating for
over eight years now providing impeccable services and excellent accommodation
for all travelers be it business or pleasure. Our hotel has various services available
to make your guests stay as comfortable as possible, encouraging them to return
time and time again.

A hotel is an establishment that provides lodging paid on a short-term basis.

The provision of basic accommodation, in times past, consisting only of a room
with a bed, a cupboard, a small table and a washstand has largely been replaced by
rooms with modern facilities, including en-suite bathrooms and air conditioning or
climate control. Additional common features found in hotel rooms are a telephone,
an alarm clock, a television, a safe, a mini-bar with snack foods and drinks, and
facilities for making tea and coffee. Luxury features include bathrobes and slippers,
a pillow menu, twin- sink vanities, and Jacuzzi bathtubs. Larger hotels may provide
additional guest facilities such as a swimming pool, fitness center, business center,
childcare, conference facilities and social function service.

14
 Hotel rooms are usually numbered to allow guest to identify their room.
Some hotels offer meals as a part of a room and board arrangement. In the hotels
is required by law to serve food and drinks to all guest within certain stated hours.

The word hotel is derived from the French hotel (coming from hotel
meaning host), which referred to a French version of a townhouse or any other
building seeing frequent visitors, rather than a place offering accommodation.

In contemporary French usage, hotel now has the same meaning as the
English term, and hotel particular is used for the old meaning. The French spelling
with the circumflex, was also used in English, but is now rare. The
circumflex replaces the found in the earlier hostel spelling, which over time took
on a new, but closely related meaning.

Hostels today are much more than just a place to sleep and rest. Many
travelers view them as an integral part of a gateway experience. With the recent
boom in boutique hotels, spiffed-up budget properties, and novelty
accommodation, travelers can choose a hotel that is a much a selling point as the
destination itself.
15
Management

Hotel management is a globally accepted career field and academic field of

study. Degree programs such as hospitality management studies, a business degree,
and/or certification programs formally prepare hotel managers for industry
practice.

Most hotel establishments consist of a General Manager who serves as the

head executive (often referred to as the “Hotel Manager”), department heads who
oversee various departments within the hotel, middle managers, administrative
staff, and line-level supervisors. The organizational chart and quantity of job
position varies by hotel size, function, and is often determined by hotel ownership.

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 maintain
the hotels and servicing the customers. The hotel industry is very glamour industry
16
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. these is good scope for establishment of new hotels in
India.

Hotel Service and Amenities in VARAD Hotel

• In house satellite TV and interactive TV system with paid movies

• 24 hours room service

• In room electronic safe deposit box

• Laundry and dry cleaning facilities

• Complimentary coffee, tea making facilities and filter machine

• Iron and ironing board is available up on request

• Air conditioning unit in each room

• Fire preventing equipment in each room.

Terms and Conditions

17
 ❖
Individual booking, the time for cancelling without is 24 hours before the
scheduled date of arrival. Reservation should be cancelled before 24 hours
otherwise there is one night no show charge.

❖
Group booking with ten and above individuals, the time for cancelling
without penalty is 72 hours before the date of arrival. If you fail to cancel
your reservation resulting in they will charge you a one night per
individual in the group.

❖
Cancellation of your reservation should be unwritten.

❖
Payment can be possible through cash, credit card (VISA, AMEX and
Master Card).

Check and checkout time

18
 10am is checking in time (we can make rooms available any time up on
request) and 12:00 (noon).Is our check out time? Late checkout can be possible
with 50% charges till 7:00pm.

Number of rooms

For the times being they have 20 rooms besides in 2 months time we will
have additional 2 rooms.

Vision

19
 “To create a family of brands, and to be the influential force within the
Scandinavian hospitality landscape, through continuous improvements, attitudes,
behaviors and management practices.”

Mission

“To create positive and memorable guests experiences.”

Aims and objectives

• To be seen as ‘Best In Class’ hotel operators by delivering superior

profitability whilst maintaining high levels of guest satisfaction.

• To provide innovative management solutions (including Joint Venture

Investments) for hotel owners to help them achieve their investment objectives.

• To ensure we attract, develop and retain the highest quality employees. We

want Kew Green to be the hospitality company to work for.

• To provide excellent returns to investors, owners and shareholders by ensuring

that we use most efficient financial structures possible and deliver excellent
levels of profitability.

Types

20
 Hotel operations vary in size, function, and cost. Most hotels and major
hospitality companies that operate hotels have set widely accepted industry
standards to classify hotel types. General categories include the following:

• Conference and resort hotels often contain full-sized luxury facilities with
full service accommodations and amenities.
• Historic inns and boutique hotels often contain luxury facilities of varying
size in unique or intimate setting with full service accommodations.
• Select service.
• Limited service.
• Extended stay.

Specialty hotels

Varada hotels are typically hotels with a unique environment or intimate

setting. Some hotels have gained their renown through tradition, by hosting
significant events or persons. One of India’s most famous and historical hotel
because of its association with the Indian independence movement. Some
establishment have given name to a particular meal or beverage. Others have
achieved fame by association with dishes or cocktails created on their premises.
Some hotels are built specifically to create a captive trade. Located on the coast
but high above sea level, these hotels offer unobstructed panoramic views and a
great sense of privacy without the feeling of total isolation.

Hotels rooms as an investment

21
 Some hotels sell individual rooms to investors. Timeshare is an example of
this kind of investment. The buyer is allowed to stay in the room without charge o
rat a reduced rate for a given number of days each year. The investor id paid a share
of takings for the room. Rooms can be sold on a leasehold basis, sometimes on a
999-year lease. Room owners are free to sell at any time.

CHAPTER 4
22
 ANALYSIS AND INTERPRETATION OF DATA:

A study on profit organization on hotel account has been collecting done

by data from the employees at hotels in Kumta. The data had been collected by
using the structured questionnaire and analysis the data.

Table 4.1:

The Table and Chart showing the room occupancy rate in Varada hotel
Kumta:

No.of rooms occupied

Room occupancy rate= _______________________________
X 100
No. of Let table rooms available in the hotel

2013-2014 : 12
= ______________
X 100 = 60%
20
2014-2015 :
15
= ______________
X 100 = 75%
20
2015-2016 : 17
= ______________
X 100 = 85%
23
 20
2016-2017 :
19
= ______________
X 100 = 95%
20
Chart No 4.1 :
100 95
90 85
80 75
70
60
60
50
40
30
20 20 17 20 19 20
20 12 15
10
0
2013-2014 2014-2015 2015-2016 2016-2017

No of Rooms Available No of Let Table rooms available Percentage

INTERPRETATION :
The above chart No. 4.2 shows the room occupancy rate in Varada hotel.In the year
2013-14. The No. Of rooms occupancy rate is 60 and No of Let table rooms
available is 20 it fixed.. And in the year 2014-15 it has been increased to 75 and in
the year 2015 again it is increase in room occupancy rate i.e 85. And again it is
further increased in the year 2016-17 i.e 95.

Table No. 4.2

24
The table and Charts showing the bed occupancy rate

No. of Beds Occupied by the guests

_______________________________________________
Bed occupancy rate = X 100

No. Of total Beds available in the hotels

2013-2014 : 12+(6*2)
= ______________
X 100 = 48%
20(15*2)

2014-2015 : 15+(6*2)
= ______________
X 100 = 42%
20(15*2)

2015-2016 : 18+(6*2)
= ______________
X 100 = 48%
20(15*2)

2016-2017 : 20+(6*2)
= ______________
X 100 = 44%
20(15*2)

Chart No.4.2

25
 60

50 50 50 50
50

40
32 32
30
30
24

20

10

0
No.of Beds Occupied by the guests No.of Total Beds available in the hotels
2013-14 2014-15 2015-16 2016-17

Interpretation :
The above chart No. 4.2 shows the Bed occupancy rate in Varada hotel.In the year
2013-14. The No. Of beds Occupied by the guests is 24 and No of total beds
available in the hotels is 50. And in the year 2014-15 it has been increased to 32
and in the year 2015 there is a decrease in No. Of beds Occupied by the guests i.e
30. And again it increased in the year 2016-17 i.e 32.

Table 4.3:

26
 The Table and Chart showing the Double occupancy rate in Varada hotel

Kumta:

Total No. guest –No. of Rooms Occupied

Double occupancy rate = ________________________________ *100
No. of Rooms occupied

20-12
2013-14 = ×100 = 66%

12

25-15
2014-15 = X 100 = 66.67%

15

32-17
2015-16 = x100 = 88%

17

27
 36-19
2016-17 = x 100 = 89%

19
Chart No.4.3

100
90
80
70
60
50
88 89
40
66 66.67
30
20
10
0
2013-14 2014-15 2015-16 2016-17

Double occupancy rate

Interpretation
The above chart No. 4.3 shows the Double occupancy rate in Varada hotel.In the
year 2013-14. The No. Double occupancy rate is 66 . and 2014-15 Double
occupancy rate is increased to 66.67 .and 2015-16 to 2016-17 Double occupancy
rate is remain constant i.e. 89

28
Current Ratio:
Current Ratio= Total Current assets/ Total current liabilities

Table No 4.4
Year 2014-15 2015-16 2016-17
Total current 225825 248925 263842
Assets
Total Current 292742 309884 325424
Liabilities
Current ratio 0.77 0.80 0.81

Chart No.4.4
0.82

0.81

0.8

0.79

0.78 0.81
0.8
0.77

0.76 0.77

0.75
2014-15 2015-16 2016-17

CURRENT RATIO

Interpretation:
From the above chart showing that current ratio of Varada hotel is in the
year 2014-15 is 0.77 and it is increase in the year 2015-16 is 0.8 and further
increase in the year 2016-17 is 0.81.
Debtor turnover Ratio =(Total sales/debtors):
29
Table No 4.5
Year 2014-15 2015-16 2016-17
Total Sales 18471505 19561202 20525895
Debtors 894985 925773 99998
Current ratio 20.64 21.13 20.59

Chart No.4.5

CURRENT RATIO
21.2
21.1
21
20.9
20.8
20.7 CURRENT RATIO

20.6
20.5
20.4
20.3
2014-15 2015-16 2016-17

Interpretation:
From the above chart showing that debtor turnover ratio of Varada hotel
is in the year 2014-15 is 20.64 and it is increase in the year 2015-16 is 21.13 and
further decrease in the year 2016-17 is 20.59.

Profitability Ratio:
30
 Gross Profitability ratio=Gross Profitability /net sales*100
Table No 4.6
Year 2014-15 2015-16 2016-17

Profitability Ratio 925900 958200 987425

Total sales 18471505 19561202 20525895

PBT to sales % 5.01 4.90 4.81

Chart No.4.6

Profitability Ratio
5.05

4.95

4.9

4.85 Profitability Ratio

4.8

4.75

4.7
2014-15 2015-16 2016-17

Interpretation:
From the above chart showing that profitability ratio of Varada hotel is in
the year 2014-15 is 5.01 and it is decrease in the year 2015-16 is 4.90 and again
decrease in the year 2016-17 is 4.81.

Net profit Ratio:

31
Table No 4.7
Year 2014-15 2015-16 2016-17

PAT 856400 878225 985200

Total Sales 18471505 19561202 20525895

PAT to sales % 4.64 4.49 4.80

Chart No.4.7

4.85
4.8
4.75
4.7
4.65
4.6
4.55 4.8
4.5
4.64
4.45
4.4 4.49
4.35
4.3
2014-15 2015-16 2016-17

Net Profit Ratio

Interpretation:
From the above chart showing that net profit ratio of Varada hotel is in the
year 2014-15 is 4.64 and it is decrease in the year 2015-16 is 4.49 and again it
increases in the year 2016-17 is 4.80.

Personal cost:

32
Table No 4.8
Year 2014-15 2015-16 2016-17

Salary wages 75000 92000 98000

Total exp 194628 102400 158400

Percentage 38.54 89.84 61.87

Chart No.4.8

PERSONAL COST
100
90
80
70
60
50
PERSONAL COST
40
30
20
10
0
2014-15 2015-16 2016-17

Interpretation:
From the above chart showing that personal cost of Varada hotel is in the
year 2014-15 is 38.54 and it is increase in the year 2015-16 is 89.84 and further
decrease in the year 2016-17 is 67.87.

Administration overhead :
33
Table No 4.9

Year 2014-15 2015-16 2016-17

Legal and 83000 86000 88900
Professional Exp
Total Exp 194628 102400 158400
Percentage 42.65 83.98 56.12

Chart No.4.9

90
80
70
60
50
40 83.98
30 56.12
20 42.65
10
0
2014-15 2015-16 2016-17

Administration overhead

Interpretation:
From the above chart showing that Administration Over head of Varada
hotel is in the year 2014-15 is 42.65 and it is increase in the year 2015-16 is 83.98
and further decrease in the year 2016-17 is 56.12.

CHAPTER-5
34
 FINDINGS, SUGGESTION AND CONCLUSIONS

FINDINGS :
The present chapter focuses on the major findings of the study and a few
suggestions also been made in light of observed findings and at the end conclusion
are provided for the chapter.

The following are the major findings of the study:

❖ Room occupancy rate was increased by year to year.

❖ Bed occupancy rate was increased in every year.

❖ Current Ratio is increased

❖ Sales are also fluctuated in year by year.

❖ Varada hotel slowly earns to profit

❖ Debtor turn over ratio, profitability ratio and Personal Cost is decreased.

❖ Current assets are increased by year by year.

❖ Net profit ratio is increased

❖ Current liabilities increased year by year.

35
SUGGESTIONS:

At the outset of hotel Varada International, Kumta, has better growth of these
following suggestions may be considered.
➢ Varada Hotel may concentrate extensively on advertising as to improve the
awareness of the hotel.

➢ Suggested to decrease the current liabilities of the hotel for the improvement of
hotel.

➢ Net Profit should be increased in year to year.

➢ Varada hotel mainly concentrated to local customers.

➢ Varada hotel is situated in near rail way station and new bus stand Kumta so
hotel can take suitable steps to attract the people.

36
CONCLUSION:

Varada international hotel is providing good services to the people. It is

having own reputation in Kumta. The hotel is comes under American system of
hotel system. It provides the lodging and boarding. But the hotel is under loss in
during two year but last year was hotel can earn profit. So the hotel is trying to
keep changing in its method of services and trying to attract the customers towards
the hotel.

This project includes the study and explains the cost controlling techniques
and overhead analysis of VARADA INTERNATIONAL HOTEL, KUMTA, so in
order to generalize the study of employees or members have a clear understanding
of controlling techniques and overhead analysis and financial report covering all
funds and financial transaction. The hotel has better financial record keeping
systems. Thus recording, summarizing and evaluating process are accurate and
relied with generally accepted and accounting practices.

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BIBLIOGRAPHY:

BOOKS:

• S.P. Jain and K.L. Narang, Advance accountancy –II Corporate accounting
(18th edition).

• S.N.Maheshwari and S.K.Maheshwari. Advance accountancy volume-II.

(10th edition).

MATERIALS:

• Annual report of Varada hotel Kumta.

WEBSITES:

• www.google.com

• www.wikipedia.com

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