NIFT 2017 Case Study Set 1 (4 Questions)

Raj Mal Jewellers is a leading jewellery firm in Hyderabad and they have a…

NIFT 2017 · Case Study · 4 questions

Raj Mal Jewellers is a leading jewellery firm in Hyderabad and they have a reputation of producing the best quality gold jewellery in Hyderabad, With one of their sons Sumeet having completed his MBA from a ranked management school, they have embarked upon renovation of the firm. With the gold rates sky rocketing, they decided to buy gold in bulk as an investment. At ₹28,000 per 10gm, they bought gold worth ₹270 crore and again as the rates went up they bought gold worth ₹396 crore at ₹ 32,000 per 10 gm. The international market crashed and they had to sell the entire gold at ₹29,000 per 10gm to repay the interest free friendly loan.

Question 1

Raj Mal Jewellers bought gold assuming that

A. the market rate will keep going up in future too
B. Sumeet will be able to come up with an innovative scheme.
C. the demand for jewellery will go up.
D. None of the above

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Question 2

Raj Mal Jewellers sold off the gold assuming that the

A. market rate will keep going up in future too.
B. market rate may further go down.
C. demand for jewellery will go down
D. None of the above

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Question 3

As a buying and selling decision, Raj Mal Jewellwers

A. gain from the deal
B. lose in the deal
C. Nothing can be said about the deal
D. None of the above

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Question 4

The buying and selling decision of Raj Mal Jewellers was a/an

A. part of the renovation plan.
B. part of the routine business process
C. international gold market driven decision
D. None of the above

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