Faculty of Hospitality Management and Catering Technology

Ramaiah University of Applied Sciences

Department Hotel Costing and Finance Programme Bachelor of Hotel Management
Semester/Batch VI Semester / 2015
Course Code HM 304 A Course Title Hotel Costing and Finance
Course Leader(s) Chandrakala DP

Assignment - 01
Reg.No. Name of Student

Marks
Sections

First

Marks
Marking Scheme

Max
Examiner Moderator
Marks
Ratio analysis is the most powerful tool for investors
A 1.1 Overview of ratio analysis 02
Part A

A 1.2 Pros and Cons of ratio analysis 04

A 1.3 Justification 04
Part-A Max Marks 10
Analyse and compare profitability ratios of any two Hotel Businesses
Part B.1

B 1.1 Overview of Profitability Ratios 03

B 1.2 Compare profitability ratios of any two Hotel Business 05
B 1.3 Conclusion 02
B.1 Max Marks 10
Discuss the importance of Ratio Analysis in Financial Planning
B 2.1 Overview financial Planning 02
Part B.2

B 2.2 Importance of Ratio analysis in financial planning 06

B 2.3 Conclusion 02
B.2 Max Marks 10
Discuss the relationship between operating ratio and operating profit ratio
B 3.1 Operating ratio 02
Part B.3

B 3.2 Operating profit ratio 02

Explanation of interrelation between operating ratio and
B 3.3 06
operating profit ratio
B.3 Max Marks 10
Calculate operating ratio of given hotel and discuss the significance
B4.1 Calculate operating ratio of any one hotel of your choice 05
Part B.4

B4.2 Discuss the significance and interpretation of hotel operating 05

ratio

B.4 Max Marks 10

Total Assignment Marks 50

1
 Course Marks Tabulation

Component-1 (B) First

Remarks Moderator Remarks
Assignment Examiner
A

B.1

B.2

B.3

B.4

Marks (Max 50 )
Marks (out of 25 )

Signature of First Examiner Signature of Moderator

Please note:
1. Documental evidence for all the components/parts of the assessment such as the reports,
photographs, laboratory exam / tool tests are required to be attached to the assignment report
in a proper order.
2. The First Examiner is required to mark the comments in RED ink and the Second Examiner’s
comments should be in GREEN ink.
3. The marks for all the questions of the assignment have to be written only in the Component –
CET B: Assignment table.
4. If the variation between the marks awarded by the first examiner and the second examiner lies
within +/- 3 marks, then the marks allotted by the first examiner is considered to be final. If the
variation is more than +/- 3 marks then both the examiners should resolve the issue in
consultation with the Chairman BoE.

2
 Assignment

Instructions to students:

1. The assignment consists of 5 questions: Part A –1 Question, Part B- 4 Questions.

2. Maximum marks is 50.
3. The assignment has to be neatly word processed as per the prescribed format.
4. The maximum number of pages should be restricted to 20.
5. Restrict your report for Part-A to 3 pages only.
6. Restrict your report for Part-B to a maximum of 17 pages.
7. The printed assignment must be submitted to the course leader.
8. Submission Date: 12th March 2018
9. Submission after the due date is not permitted.
10. IMPORTANT: It is essential that all the sources used in preparation of the assignment must
be suitably referenced in the text.
11. Marks will be awarded only to the sections and subsections clearly indicated as per the
problem statement/exercise/question

Preamble

The analysis of financial statement is the systematic numerical calculation of the relationship
of one fact with the other to measure the profitability, operational efficiency and growth potential of
the business. Thus, the analysis of financial statement is basically a study of the relationship among
various financial facts and figures given in the financial statement.

In financial management, various tools are available for analysis of financial statements. Among this,
ratio analysis is a very powerful analytical tool useful for measuring the performance of an
organization.

3
Part -A (10 marks)

‘‘Ratio analysis is the most powerful tool for investors’’. Debate on the above statement highlighting the
following points:

A1.1 Overview of ratio analysis

A1.2 Pros and Cons of ratio analysis

A1.3 Justification

Part B (40 marks)

B .1 Analyse and compare profitability ratios of any two Hotel Businesses

B .2 Discuss the importance of Ratio Analysis in Financial Planning

B .3 Discuss the relationship between operating ratio and operating profit ratio

B.4 Calculate operating ratio of any one hotel and discuss its significance

Note:-Evidence for field study has to be enclosed