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NIFT PG 2012 Question Paper with solutions

PASSAGE-II

McLeod Russel India Ltd (MRIL) is keen to make further acquisitions in Rwanda where it already has a presence. “Rwanda is on our scanner now”, sources said. MRIL, which had bought into a government-owned tea outfit in the African country in 2010, has so far had a good experience, according to sources. Following a privatization drive in Rwanda, the government had divested 60 per cent of its stake in this estate while retaining 30 per cent. The remaining 10 per cent has been given to a workers’ cooperative. “This is as per the divestment policy of the government.” At present, two more tea estates—Mulundi and Saggasa—have been put on the block for which bids have been invited by the government. MRIL may bid for these two estates after getting a nod from its board. The Gisovu tea estate in Rwanda, which was bought earlier this year, contributed 2 million kg out of the 23 million kg tea crop that McLeod Russel reaped out of its overseas estates in Vietnam, Rwanda and Uganda. “Production increases were recorded from our tea estates in all these three countries,” say sources. The company’s overseas foray started with acquisition of the Phu Ben Tea Company in Vietnam in 2008-09. From a production level of 4.5 million kg, Phu Ben now produces around 5 million kg. The B.M. Khaitan group company believes that the only way to grow is through acquisition and since 2005 it has made quite a few acquisitions within the country. In 2010, it completed its acquisition of the Ugandan tea company, Rwenzi Tea Investments Ltd, from James Finlay International Holdings Ltd of the U.K. through its wholly-owned subsidiary Borelli Tea Holdings (U.K.), the outfit through which McLeod Russel makes its overseas acquisitions. MRIL, which makes its acquisitions through a mix of debt and internal accruals, currently has reserves of around ₹ 900 crore. “Our debts are set to decline to ₹ 260 crore by March 31, 2002, from ₹ 316 crore at end-March-2011 and we have enough liquidity to fund any future acquisition,” sources said.

Question : 8

Total: 75

The debts of MRIL are set to decline in the coming months.

if the statement is a Major Objective making the decision: one of the goals sought by the decision maker.
if the statement is a Major Factor in making the decision: an aspect of the problem, specifically mentioned in the passage, which fundamentally affects and/or determines the decision.
if the statement is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly
if the statement is a Major Assumption in making the decision: a projection or supposition arrived at by the decision maker before considering the factor and alternative.

Validate

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