REPORT

About the overview of HOTEL SARINA DHAKA

Submitted to-
Md. Mofasserul Islam
Assistant Professor, CTHM

Course Name: Educational planning

Course Code: ART 102

Submitted by-
The group of
Sazid Al mahamud– 23111004
Salma Akter – 23111024
Rubayat Binte Rukun– 23111044
Sharmin Akter Mim-23111032
Sifat Islam-23111003
Nusrat Jahan Nishi-23111047

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Letter of Transmittal

22 March, 2023

Mohammad Mofasserul Islam

Assistant Professor

College of Tourism and Hospitality Management (CTHM)

International University of Business Agriculture and Technology (IUBAT)

4 Embankment Drive Road, Sector 10, Uttara Model Town, Dhaka-1230

Subject: Letter of Transmittal

Respected Sir,

With due respect informing you that, it is my great pleasure that; today we are submitting our
report on “AN OVERVIEW OF Hotel Dhaka Sarina under the course- Educational Planning.

Though we are freshers, don’t have previous experience and much knowledge on this sector, this
report has helped us to learn many things about Hotel Management sector. So, it becomes as a
challenging and interesting experience for all of us. Thank you for your supportive consideration
for generating this idea. This report would have been an incomplete one without your inspiration
and support.

Lastly, we would be thankful to you once again if you give your judicious advice on this effort.

Yours sincerely,

Team Sazid

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 Acknowledgment

The successful completion of this report is the outcome of the contribution of the number of
people to whom we are grateful and want to give them thanks from the deep of my heart. So, we
would like to take this opportunity to thank all those people who helped us preparing this report
on “AN OVERVIEW OF HOTEL SARINA DHAKA”.

First of all, we would like to express our all praises to the almighty, our creator, sustainer to
whom we all must have to return.

We are very thankful to respected course instructor Mohammad Mofasserul Islam, Assistant
Professor of College of Tourism and Hospitality Management, to give us the opportunity to do
this effective report. Without his continuous support and guideline, it would have been
impossible for me to prepare this report.

We want to thank the HR of HOTEL SARINA DHAKA for helping and cooperating us by
giving important information. We also want to thank other employees and staffs of this hotel for
supporting us.

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Table of Content
Declaration .................................................................................. i
Letter of transmittal .................................................................. ii
Acknowledgement ...................................................................... iii
Executive Summary.................................................................... iv
Chapter 01
(About AIBL)
1.1 Introduction, Origin of the Report .................... 1
1.2 Objective of the Study......................................... 2
1.2.1 Board Objective................................................ 2
1.2.2 Specific Objective.............................................. 2
1.3 Methodology of the Study................................... 2
1.3.2 Scope of the Study............................................. 3-4
1.3.3 Limitation ......................................................... 4
Chapter02
(Background of AIBL)
Company Profile 6
2.2.1 Vision ..................................................................... 6
2.2.1 Mission ................................................................... 6
2.2.1 Commitment .......................................................... 6-7
2.2.1 Value........................................................................ 7
2.2.3 Risk Management Committee.............................. 8-9
2.2.4 Audit and Executive Committee 9-10

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 2.2.5 Shariah Supervisory Committee ......................... 10
2.2.6 Operational Details................................................ 11
2.2.8 General Banking Division..................................... 12-13
2.2.9 Investment Division............................................... 13-14
2.2.10 Human Resource Division.................................. 14-15
Chapter 03 (Framework of AIBL)
3.1 Applied Framework................................................. 16
3.2 General Banking Section.......................................... 16
3.3 Electronic Fund Transfer......................................... 17
3.4 Automated Clearing House...................................... 17
3.5 Cheque....................................................................... 17
3.6 Deposit Products of AIBL................................ 18
3.6.1 Fixed Deposit................................................... 18
3.6.2 Mudaraba Term Deposit................................ 18
3.6.3 Electronic Products........................................ 19
Chapter 05 (Analysis and Findings)
5.1Division of General Banking ............................. 22-25
5.2 Findings .............................................................. 25-26
Chapter 06
6.1 Recommendation ................................................. 30-31
6.2 Conclusion ............................................................ 31
6.3 Reference ............................................................... 32

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Letter of Transmittal

Mohammad Mofasserul Islam

Assistant Professor
International University of Business Agriculture and Technology
Uttara, Dhaka-1212

Subject: Submission of the Report on “The overview of HOTEL SARINA DHAKA.”

Dear Sir,
It is with great pleasure, here I, on the behalf of my group, present you the “ The overview report
on HOTEL SARINA DHAKA” under your command.
It gives us great pleasure to complete our report successfully and submit this report as our
midterm task, which we have conducted during our reviewing period. It would be really helpful
if you accept our report and we will be happy if to clarify any of your queries and concerns.
Your support in this regard will be highly cherished.

Sincerely Yours
On the behalf of the group,
Md. Sazid Al Mahamud
ID: 23111004
Program: BATHM
Session: Spring 2023

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Declaration

It is hereby declared that

1. This overview report submitted here is our own original work.
2. The report does not contain material previously published or written by any third party,
except where this is appropriately cited through full and accurate referencing.
3. The report does not contain material previously accepted, or submitted, for any other
degree or diploma at a university or other institution.
4. We have acknowledged all main sources of help.

Group Members Full Name & Signature:

 Sazid Al Mahamud:
 Salma Akter:
 Sifat Islam:
 Nusrat Jahan Nishi:
 Rubayat Binte Rukun:

Faculty’s Full Name & Signature

_______________________________
Mohammad Mofasserul Islam
Assistant Professor
IUBAT

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Acknowledgement

Completion of this overview report has made us grateful to a number of persons who helped us
throughout the assignment. Firstly, we would like to acknowledge our faculty Mohammad
Mofasserul Islam for guiding us to prepare this report. He provided us all the support needed to
complete this report successfully.

A special thanks goes to Sazzadur Rahman organization’s guide of us. He is the Senior
Executive of “HOTEL SARINA DHAKA” We want to thank him because he helped us through
our reviewing period by giving information about our assignment.

We also like to extend our gratitude towards Sumayia Farazi, The Executive, Human Resource
for helping us by giving valuable information.

Thank you.

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List of Illustrations

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 Executive Summary

In this report I tried to conduct the Working Capital Management of Hotel Sarina Ltd. Where I have
shown and used my practical work experience as a finance intern to analyze the data and interpret the
information in descriptive way. Firstly, I tried to collect the necessary information to conduct this
research. Then I put the essential financial figures into the required structures to get the desired result.
Through this report we can know how Hotel Sarina carries their day-to-day operation. In this report I
have included their cash management thus cash holding and disbursement. Then how they manage
their account receivables and set their credit policies. Again, when it comes to suppler financing how
they purchase and pay for the payables, describes elaborately here. As this report mainly focuses on
working capital management, it shows how efficiently Sarina can pay their obligation along with carry
out daily expenses to run their business smoothly. Lastly, I tried to show numerically to how their
operational efficiency is going on, in terms of monetary values. Where I have exposed their numerical
figure to towards some ratio analysis

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 2.1 Introduction

Hotel Sarina is originated at Chittagong city where it was named as Sarina Inn Limited. Which I then
hand overed to Mr. Golam Sarwar who is the current owner of Hotel Sarina Limited. It is the first
privately owned 5-star boutique Hotel in Dhaka came into operation in 2003.The Hotel is located near
the diplomatic zone and shopping arcade at main approach road of Banani, Dhaka. A 30-minute drive
from Shahjalal International Airport, the hotel is located at a unique place for comfortable
accommodation and convenient visit to any part of the city within a short time. It has 201 luxury rooms,
1 imperial suit and 10 exclusive suits, 3 banquet halls, valet and laundry services, restaurants, bar, club
lounge, coffee shop, business center, car rental, fitness club, swimming pool, safe deposit lockers,
distinctive lobby lounge and 24- hour room and restaurant service

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 2.2 HISTORY

The Sarina Hotel First opened its doors in 2003. Welcome to Hotel Sarina, Dhaka’s most
conveniently located Five Star Hotel. ‘Banani’ heart of the new business hub. Being located in this
business district you are not far from any of the important destination of your choice like business
district of Gulshan, Baridhara Diplomatic Zone, Airport and so on. It is only 7 km from the International
Airport, about five to ten minutes’ drive to Gulshan and to the diplomatic zone.

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 2.3 Objective of The Study

The main motto is to develop a basic understanding regarding the practical activities of hotel.
Then, to relate those with the theoretical knowledge gained from the hotel. Besides these, some
of the other objectives of this study are given below:
 First of all, to learn about General Hotel Management Activities of Hotel Sarina Dhaka
 Secondly, another objective is to make some recommendation for their policy.

2.3.1 Broad Objective

 This report is based on our overview study to HOTEL SARINA DHAKA

 This report and also the overview are done by the students of CTHM department
 This report will help us to analyze the practical problems which are related to the
Tourism sector.

2.3.2 Specific Objectives

 This report will provide us some knowledge about Hotel Management System.
 It will also help to develop our thoughts and creativity in ourselves.
 It will help to understand the subjects which are related to Hotel Management.
 This report will give us a basic knowledge of Hotel Management as well as
it’s activity.
 This report is prepared to learn about performance management practices and
compensation practices of a hotel.
This report represents a clear view of what is happening and how are the activities going at
HOTEL SARINA DHAKA.

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 2.4 Background of the Study

Group work is a mandatory part for our ART 102 course. After completing our first term
examination, we must participate in group works by the faculty’s commands or instructions.
We’re doing this non-departmental course to our honorable faculty, Mohammad Mofasserul
Islam. By his instruction, we have done an overview at HOTEL SARINA DHAKA.
This overview or group work will increase our logical thinking capacity, also will give us a
minimum knowledge about visiting any hotel

2.5 Methodology
2.5.1 Sources of Data
For completing this report, the collection process of data depended on primary data collection
process and secondary data collection process. Primary data are originally collected. Secondary
data are the collection of work.

2.5.1.1 Primary Sources

To prepare this overview report, we mainly depend on secondary data. Cause it was very
difficult for us to collect primary information during a short period of time.
The method for primary data collection process we followed are given below:
 Face to face conversation with the employees to gather the information : While gathering
information for our report, we had to take several interviews of the officers to get the
proper idea about Hotel management sector. After gathering all information, it was easy
for us to write this report properly.
 Different file study given by the staffs about the hotel : While some of us were taking the
interview session, the officers/employers were mainly focused on their policies and data
collection. Moreover, they had given us different file to study, which were related to our
group work.
However, this information was not enough for our report. So, we had to collect secondary
data for completing our report.

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2.5.1.2 Secondary Sources
For completing my report, we mainly followed secondary data. It was easy for us to gather all
the information from this.
Published data, which we have followed, are given below:
 Several publications of articles: From different articles, which were written on Hotel
Sarina Dhaka , we had collected data for our report.
 Report and publications of different Hotel management sector, association and
industry: Finally, we had gone through several reports and publications based on Hotel
Management sectors, association, financial institution and industry to come up with better
idea for completing our report. Specially we have collected maximum information from
Hotel Sarina brochure.

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 2.6 Limitations

Our report is based on primary data, secondary data and some interview session with the
hotel Executive members . In our report, we have tried to represent the theoretical knowledge
and practical work experience.
In this report, various data were incomplete, so it was very difficult for us to fulfill those gaps
properly. Most importantly, while taking the interview from different officers, most of the time
they were busy with their works and as a result, we faced many difficulties to complete this
report.

Limitation of our report are given below:

 Lack of time period: I got only few minutes to collect information at Sarina and
complete the report based on that. It was a very short period of time to get proper idea
about the organization. So, it was the main limitation we had faced while completing
the report.

 Lack of records: Then, while studying different records of Sarina to enhance our
report, we found few of them were incomplete. So, as a result we could not attach
those in our report.

 Incomplete data collection: While gathering data for our report, we found their data
collection process was not well balanced. Few of them were empty, lack of
information. So, it was really hard for me to gather that information again from
different department.

 Unwillingness of the key person: While we were taking interview of several

members to get to know about the company or their work, we faced problems. They
were busy with their work schedule most of the time. They tried to give us enough
time but because of their work pressure, they could not focus more and finally gave us
suggestion to focus on the online statements of the bank to get the idea.

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 3.1 Literature Review
Working Capital management basically refers to the management of capital an organization use to run
their daily operation.

According to Stutely, working capital is simply the difference between current asset and current
liability. (2003, p.276)

Where Higson mentioned, working capital is daily inventory management, account receivable related
and payable related activities.

So, it can also act as a tool to maintain enough balance for an organization to pay its debt or meet
short term goals. It’s a risk survival tool. However, there are few components of working capital.

First one is Inventory. Now how it is connected to working capital? Well, if a firm hold more inventory
than requires then it won’t be able to pay bills. Again, if it sells all of its inventory then firm won’t be
able to meet customer requisition.

Second one is account payable and receivable. Where if firm pay quickly to their clients, then there will
be more cash outflow that will affect the firm negatively. But converting credit sell into cash is
important as it ensures the cash inflow and will help the firm to finance their daily operation.
So, it’s a matter of balancing these components according to the need of the organization. Where our
main focus will be achieving short term goals thus smoothly carrying out daily operation.

Now if we focus on calculating working capital, we can simply calculate the amount of current asset
and liability we have then subtract the current asset from the current liability. And we definitely know
the condition of the firm by the result of it. Whether firm has enough current asset to cover the
obligation of it or they need more cash to meet daily operation, is going to be ensure by that. However,
it is not as simple as that always. Every organization is different and based on their size and operation it
requires more calculation to get the job done.

Here, current asset includes cash, account receivables and current liabilities include all the payable
accounts. To measure these aspects here are some metrics we need to keep in mind:

Firstly, DSO (Days Sales Outstanding): which are the average days it takes for clients to pay their
invoices.

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Secondly, DPO (Days Payable Outstanding): the average days it takes for the firm to pay back its
suppliers.

Lastly, the cash conversion cycle which refers, the average time it takes for a firm to convert its
investment in inventory to cash.

Apart from these metrics, to learn either the firm is operating efficiently or not, ratio analysis can be an
effective method. Which the quantitative method of learning about firm’s operational efficiency. That
Includes:

Asset turnover: whether or not a firm is using its asset efficiently to generate sales. It acts as supportive
information for the investor if the firm is doing good or not.

Formula: Total Asset

(Beginning assets + Ending Assets)

There’s one related to inventory. Inventory turnover ratio that reflects how well company manages
cost with its sales efforts. Generally higher the inventory turnover the better it is. Also it shows how the
inventory and purchase department are in sycn. Higher inventory also indicates higher demand for
products and firm misses out selling opportunity. So a good balance between purchasing it and selling
products are necessary.

Formula: Cost of goods sold

Average inventory

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Again, Receivable turnover that shows how efficiently a firm is getting its payment from customers. It

measures to quantify the effectiveness of collection of firm’s debt from its customer.

Formula: Net Credit Sales

Average Account Receivables

Finally Account payable turnover that indicates how many times a firm pays off its accounts payable
during a period. As it is related to short-term debt, it shows how efficiently firm is paying its suppliers
and other short-term debts.

Formula: Total Supply Purchase

(Beginning accounts receivables+ Ending Accounts receivables)

Apart from that to know if a firm is able to pay off its short-term debt or not, liquidity analysis thus
ratios are a significant tool. Which includes current ratio, quick ratio and working capital ratio.

So, these are the tool to quantify whether a firm is operating efficiently or not. But even after getting
the desired result, an organization has to follow a pattern or some activities to manage the
components of its working capital. And if there are problems related these components then how we
can minimize it. To learn and manage, we have to follow some approaches.

Here we can see about inventory management. Where from inventory requisition process to pricing
and reordering point everything maintains in some fixed steps. If it doesn’t work for the firm then they
will change it to minimize loss and to gain efficiency. But to know in which point or at what rate is the
optimal or economic order quantity, we have to measure by using the formula.

2×𝑇×𝐹 𝐻

EOQ = √
Where, T= total cost, F=fixed cost and H= holding cost of inventory.

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Now to gain EOQ, we know, we have to improve our inventory turnover. And to do that there we can
use balance fraction approach. It shows the trend of inventory and how the sales work.
Month of Purchase January February March April
Purchase Amount

January 100tk. 50% 15%

February 100 50% 15%
March 100 50% 15%

As we can see in every month 50% purchase is at the end of the month and 15% remaining over the
next month, so we can see a trend here. This analysis also suggests that the accumulation of the
inventory won’t conflict with reduced sales or cost of goods sold. That used by the management to
adjust with new lowest sale.

Apart from inventory, firm has to manage its payable and receivables to maintain efficiency. Where
they need to concern about supplier payment policy and collection credit sales from customers. It can
vary in different organization. But choosing the right one for every organization is important.

To manage supplier financing to credit sales first thing an organization has to do is managing cash
holdings and disbursement. Where disbursement is related to cash flow. It is also a record of dayto-day
expenses. If cash flow is negative, it means disbursement is higher than revenue. Which shows
insolvency of the firm. In that case, their has to be some mechanism to follow by the firm to run this
operation seamlessly. It can be Controlled disbursement or Delayed Disbursement.

In Controlled disbursement, that allows the firm to review and reset it according to daily operations
where it gives the opportunity to earn or maximize the cash on hand by delaying the precise time an
amount of money has been taken out from the account.

In Delayed Disbursement, the entire process has deliberately dragging out the payment to a remote
region and disbursement happen from that region to other departments or outlets. That’s why it takes
time and get delayed.

So, the form of disbursement varies between different type of organization.

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 3.2 Cash holding of different outlets
Every outlets and bars hold specific amount of money to bear day to day need and they have to keep
the record where they are spending the money. Here is the cash holding receipt:

Cash Holdings

20,000

Street17 50,000

Summerfield 50,000

Amrit 15,000

Bar-I 15,000

Bar-II = 1,50,000

Total

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3.3 Supplier Payment Policy:
Hotel Sarina Ltd. Pay their supplier within 10days of delivering the raw materials. And when it comes to
the rate, they fix a specific rate for each material one month earlier. But if the suppliers want to change
the rates, then they will negotiate it after one month of supply.

Generally, Sarina tries to pay their supplier on time but if they can’t, they make sure the payables are
done within 40 days of getting the supply on hand. And as they set a specific rate, so suppliers don’t
give any more discounts even they purchase in bulk quantity.

Apart from that, if a particular supplier wants any specific requirement regarding payment, then it will
be reviewed by the head of finance then they finalize the deal.

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 4.1. Findings

▪ Their Purchase and store department is included in finance department.

▪ They accept city ledger without security payment.
▪ They don’t include bars revenue into their balance sheet.
▪ They don’t include depreciation in their balance sheet anymore.

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 4.2. Recommendations

▪ As we know if depreciation is not included in their record, then fixed assets won’t be
considered when it comes to setting sale price. So, it’s necessary for them to include it.
▪ As hotel industry do lot of purchasing to supply their customers, lot of activities occurs on daily
basis. So, it needs a separate identity. Where they have more people and authority to run the
operation smoothly. So, Sarina needs to add more work force to their purchase department
and need to make it a separate department to lower the work pressure.
▪ They earn a good amount of revenue from bar which is not included in their balance sheet. It
can affect their business as bars are also affecting their daily operation and they are investing
their time and effort in that. Not recording this revenue may result in lower profit earning.
▪ Before allowing credit sale they need to make sure of the security payment. Because it can
bring losses for the business. Where the organization to whom they are granting city ledger
may not pay them in future or maybe they can do fraudulent act. That may rise the problem of
litigation.

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 4.3 Conclusion

Hotel Sarina has developed their business in many ways and with that their business is expanding day
by day. They are adding different elements to make it run smoothy. They are continuously changing
their patterns in case of day-to-day operation. In this report I tried to mention their whole process
regarding their financial operation. But their financial activities are not just limited to their finance &
accounts department. The sale associates, Food & beverage associates, room & guest in charges are
both included in that. Firstly, these associates deal with the clients initially for financial transaction.
After that it’s reported to the finance associates. Where in case of purchase and store, security team is
their coordinating department. Where every product and inventory are checked very carefully by the
security team for the purpose of everyone’s safety. However, finance controller actively looks after
financial activities.

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