1. XYZ Power Ltd.

set up a factory for manufacturing solar lanterns in a remote village as there

was no reliable supply of electricity in rural areas. The revenue earned by the company was
sufficient to cover the costs and the risks. As the demand of lanterns was increasing day- by-
day, the company decided to increase production to generate higher sales. For this/they
decided to employ people from a nearby village as very few job opportunities were available in
that area. The company also decided to open schools and creches for the children of its
employees.

1. Identify and explain the objectives of management discussed above.

2. State any two values which the company wanted to communicate to the society.

2. Your grandfather has retired as the Director of a manufacturing company. At what level of
management was he working? What functions do you think he was performing at that level?
State any two

3. Gurpreet is running a retail mart in Varanasi to provide various types of products of daily use
under one roof to the buyers. The employee turnover in his business is very high and he is
perpetually on a look out for new staff. The fact of the matter is that he lacks managerial skills
and assigns work to his employees on adhoc basis without letting them settle down in a
specific work. This approach of his creates a sense of insecurity among the employees and
they tend to leave the job very quickly. However, he is a very god fearing person and offers fair
wages to his employees so they can afford a reasonable standard of living.
In context of the above case:

1. Identify and explain the principle of management which Gurpreet is unable to apply
and is perpetually on a look out for new staff.
2. “He is a very god fearing person and offers fair wages to his employees so they can
afford a reasonable standard of living.” Name and explain the relevant principle of
management will has been brought into effect by Gurpreet.

4. After finishing her BBA degree course, Tanya gets a job of Assistant Manager in a retail
company through the reference of her cousin Taruna who works in the same company as a
Senior Manager. Taruna decides to guide Tanya through her experience by making her aware
of the important facts about management in practice. She tells her that neither the principles of
management provide any readymade, straitjacket solutions to all managerial problems nor they
are not rigid prescriptions, which have to be followed absolutely.
In context of the above case :

1. Identify the two features of principles of management mentioned in the above paragraph by
quoting lines from the paragraph.
2. Why do the principles of management not provide readymade, straitjacket solutions to all
managerial problems?
5. ‘Accent Electronics Ltd.’ was operating its business in Malaysia. The company started
exporting its products to India when the Prime Minister announced relaxation in import duties
on electronic items. The company appointed retailers in India who had direct online links with
the suppliers to replenish stocks when needed.
Identify and explain the dimensions of business environment discussed in the above case.

6. After completing her MBA, Beni took up a job with a multinational company named Fortio. The
company paid good salaries and perks to its employees. The wages were within the paying
capacity of the company that provided the employees with a reasonable standard of living. The
company also had a good work-culture and the behaviour of superiors was very good towards
their subordinates. Beni was very happy in this organisation but due to long working hours, she
did not have time to cook her meals. She had to depend upon outside food which was
deteriorating her health.
She observed that this problem was faced by many of her colleagues, not only in her company
but also in many other companies. This was because of increase in the number of working
women and non-availability of hygienic home-cooked food. She identified this as a great
opportunity and decided to give up her job to supply packaged home-cooked food to office-
goers at a reasonable price. At the end of the day, she also distributed the leftover food to the
nearby night-shelters.
1. State the dimension of business environment being discussed above.
2. State the principle of management being followed by Fortio.
3. Identify any two values being communicated by the company to society in above case.

7. ‘Flows Technology’ deals in bulb manufacturing business. It plans for a successful year of
production and sale this year. It has in advance given targets to all its departments and
employees. The departments and employees are happy about this. They know that now they
won’t have to do unconcerned activities thus leading to more focused approach resulting in
saving of resources. The company is thinking of starting two new plants in the southern portion
of India. For this some concrete plan has to be made. The main core team of the company has
decided to weigh all the options and then choose the best one. The road might be long but the
company is geared to face all the challenges.
In the above case identify importance of planning highlighted.

8. An established firm has fifty years of experience in shipping industry. The company time and
again proves itself as one of the dominant figures in the market. The plan for the whole year is
given a lot of importance. According to the owner of the company their plans are the basic
structures upon which other important functions of management rest. It is important that the
plans are communicated to the employees. The top management ensures that the plans are
communicated and implemented at all levels and in all departments. To learn from past
mistakes is a habit of this successful company. They prepare plans for short term as well as
long term where it can be seen that throughout the year the plans are prepared one after
another. Shipping industry needs such dedicated companies. The goals are specific and the
activities to achieve these specific goals are undertaken. The company has planned a growth
of 20% in revenue this year. Let’s see how much it’s possible for it to achieve it by the end of
the year.
In the above case identify the various features of planning highlighted.
Which type of plan is indicated in the above case?
 9. ‘Aasmaan Colours’ is a profit-making colour producing company. The company deals in making
different types of colours used in painting. The organisation has always been systematic in its
approach and due to good organizing has seen a continuous increase in its revenue. Workers
are given their respective jobs clearly which leads to gaining of experience since they do their
respective jobs on a regular basis leading to high productivity. The organisation has many
challenges and it wants to improve. There is no doubt in the lines of communication and
everyone knows who has to report whom. With passage of time, there is more need to connect
with the employees. They are the most important asset to the organisation. When managers
delegate work to their subordinates they set themselves free from routine jobs and this leads to
great amount of learning for the subordinates in practical situations.
1. Which importance of organizing has been highlighted in the above case?
2. How would a company adapt to changes with the help of organizing?

10. Identify the following into formal and informal organisation:

1. Mountain cold storage has a well defined structure of authority relationships. This
structure is created after a lot of planning by the top level management.
2. Tanuj Drinks is an organisation which helps quench the thirst of people sitting on
roadside and parks on Sundays. This organisation has originated from Mountain cold
storage spontaneously.
3. An organisation holds its meeting according to the mood of the members. It has no set
pattern of behavior.
4. An organisation which is run in Central Delhi is known for its rigid nature.
5. Cricket Club is an organisation in which the authority of the members, constituting it, is
because of their positions in the management.
6. Translife is an organisation in which only the managers are the leaders.

11. In ‘Amazing Kids’ which is a school of reputation the ^principal has decided to improve the
performance of teachers through proper motivation. He has planned to promote some of the
good performing teachers to the post of supervisors in their respective wings. The adjoining
school after knowing this decides to do the same but the school is new and there is no scope of
filling the higher slots with the teachers of the school as all of them are new too.
This school then goes for external sources of recruitment for which two sources are checked:

1. They approach a government office for this purpose. Here in this government agency
link between job seekers and employers is matched and people who are unemployed
get registered for skilled as well as unskilled jobs.
2. They check the data of people who applied for the jobs of teachers but were unable to
98 44 Business Studies—Case Studies Tapan Pathak
make it. There was a chance that these people could be easily recruited since they were
interested in the jobs last year.

A friend of the principal of ‘Amazing Kids’ is a factory owner. He told him that finding workers for his
factory is easy as he generally requires unskilled labour. Daily notification is put outside the factory
building and people apply and get selected on spot.
 1. In the above case which type of recruitment is attempted by the principal of ‘Amazing
Kids’?
2. Which limitation is discussed in the last part of first paragraph of the case?
3. Identify the two external sources of recruitment involved by the second school in the
above case.

12. Anjana chemicals is looking for qualified and talented people to apply for vacant jobs in the
organisation. With the passage of time the organisation has learned a lot with its experience. It
knows when it goes for final selection of candidates, if will have to
design different tests. They want to test the employees on the basis of their learning and
decision making ability. The company wants to ensure proper testing of the recruited
candidates. After this the candidates will be judged on the basis of in-depth formal
conversation.
After the selection the candidates are placed and trained. Employees have to be trained on the
equipment they will be using but this training will take place away from the workplace.

1. Which type of recruitment should the company depend upon?

2. Which type of test should be conducted done by the organisation to suit their need?
3. Which stage in the selection process is highlighted after the written test?
4. What type of training is given to the candidates?

13. Identify the concept of staffing highlighted here:

1. ABCD is a new organisation. All the employees are new and the management has no
idea about the nature, performance and attitude of the employees. The organisation is
unable to use promotion as a way of filling the upper posts or transfer as a way of
balancing the man power in different departments.
2. The process of selection and placement has got simplified in an MNC as the
employees which are already part of the organisation can be more easily evaluated.
3. A company during the selection process relies heavily on a formal in-depth
conversation of the applying candidate. Information is sought and personality of the
applicant is judged.
4. An important psychological test conducted to know the level of a person’s ability to
learn and make decisions and judgments.
5. When an employee passes all the tests, clears the interview and is confirmed after
reference and background checks, he has to go through this stage. The concerned
manager’s decision is to be considered here as he will be responsible for the
performance of the new employee.
6. This source of recruitment is for requirement of unskilled workers at a short notice. The
agent involved here himself is the employee of the organisation and is in direct contact
with the labourers.
7. Government agencies acting as good source of recruitment. They provide both skilled
as well as unskilled job seekers. These agencies act as link between job seekers and
job providers.
8. This process helps an organisation get assessment of the number and types of
employees required for the performance of various jobs in order to achieve
organisational objectives.
 9. Raman who is a senior manager in a company decides to judge the performance of
the employees of his department. He makes sure that in this step of staffing process
he judges their past as well as present performance. He asks his team of five members
set for this purpose to make standards on which the employees could be judged.

14. Brightest Papers’ is a leading paper manufacturing company. The enthusiasm level of
employees in this organisation is very high. The management has applied a process of
directing where the financial and non financial needs of the employees are identified and are
satisfied accordingly. The result has been amazing for the organisation. The output levels of
the employees have touched a new high. Recently an award was also given to the HR
department of the organisation for doing its job in the best manner in the industry. Two years
back when the organisation had not applied this process the employees were leaving the
organisation and were not loyal but now the situation has changed and there has been
increase in the number of applicants for various jobs in the company. The organisation believes
that its best resource is the human. The idea is to maximize the output of the human resources.
There are many steps taken to increase the input of the employees and for this the work
environment is made interesting in order to increase their regularity which has obviously
increased the labour input during the recent years. The company is now among the most
inspiring organisations in the industry.

1. Which element of directing has been applied by the management?

2. Which benefits of this element are highlighted in the above case?

15. Shilpa is a senior middle level manager. She is a departmental head of marketing in a very
progressive company. She is very good at conveying what she means to the subordinates, and
not just that, she goes beyond that by staying a very patient listener. Her rise in the
organisation has been very fast. She has led her team successfully on several occasions. The
reason for her exceptional success has been her ability to understand the needs of her team
and getting extra work done by satisfying them. Since her college days her level of courage is
high. She has the ability to grab opportunities and use them to her best ability. People of other
departments like finance, operations, etc. have also been a part of her fan club. They say that
she knows a lot about her core area and this has made her irreplaceable in the department.
Everybody hopes that she is going to be a part of the higher management one day as her
company wants to benefit maximum by tapping her potential.

1. Which concept of directing has been highlighted in the above case?

2. Identify the types of this concept in the above case.

16. Identify in the following cases various elements of communication which are highlighted:

1. A department ‘X’ has sent an encoded message to department ‘Y’ through internet.
What is the role of internet here?
 2. Atul is making gestures so that he can send a message to Raman. What is Atul doing
here?
3. Raman is trying to understand the message sent by Atul by reading his gestures. What
is Raman doing here?
4. Ramesh picks up his phone and finds a message on it. He reads the message
carefully. What is the role of Ramesh here?
5. Mr. Suraj who is a senior manager is informing his team for convention, a day later, by
giving a common message of timing and venue to all. What is the role of Mr. Suraj
here?
6. Ramit tried several times but his mom is unable to listen to what he is saying. It’s all
because of a faulty telephone connection. What will you call this faulty connection
here?

17. Adarsh is trying to reduce wastage of resources in his company. He is trying to do it in the best
possible manner. He has set standards for performance of different types of activities and is
doing his level best to perform according to these set standards to minimise wastage of
resources. Things are not going to be over for him as he will have to look into other aspects
too. He has set up a good monitoring system which helps him know how to employees ate
performing according to set standards as when the employees meet these standards they will
be given incentives. He is hoping to pull out a good performance from his team this year.

1. Which function of management has been referred to in the above case?

2. Which benefits of this function of management have been highlighted in the above
case?

18. Identify the step of controlling process applicable in the following cases:

1. Esha is keenly observing the quantity of capsules produced in a pharmaceutical

company. She realises that there is no need for any action to be taken as the
deviations are within the acceptable limits. A day later when she comes to work she
finds the situation opposite to that of the previous day. This lime the deviation wa’S
beyond the acceptable range and needed immediate action. She called her
subordinates and told them that this should not happen again.
2. Mahesh who is the owner of a company has decided to focus only on a few activities of
his business. He considers that the rest of all activities are not critical to the
performance of his company. One such area he finds is of labour. The labour cost
recently went up by 4% sending signals of coming danger. Now he will put his efforts to
control this variation by arranging labour at a cheaper rate.
3. In a company a manager is trying to find out the deviation between the actual number
of fans produced and the desired number. He already knows about the standard as the
company has assigned him a definite quantity of fans to be produced.
4. Manoj Khanna a senior experience manager is concerned about the 2% rise in the raw
materials. However, he knows that this is an acceptable range. He tells his staff that if
this rise goes beyond 2% it should be brought into the notice of management. Then he
sets a limit of 5% when the management should give it the priority over other activities.
 5. Virendra wants to ran his company in a different manner. He wants to set standards to
be achieved in both qualitative as well as quantitative terms. He wants to judge the
motivation, skill levels and satisfaction of the employees. Ail these things will require
qualitative standards. On the other hand the company will have to set quantitative
standards for the number of units produced.
6. Some employees have been assigned the job of judging the output of production in a
neutral and reliable way. They are applying different techniques for achieving this aim.
Some of these are personal observation, sample checking, etc. They are also keeping
the units of measurement same to that of the units of set standards.

19. Identify in the following cases factor affecting the choice of capital:

1. Rajan has an option of taking loan from his relatives. These people have assured him
to give loan at a low interest rate. So he decides to use debt as a source of financing
his project. Now he goes to different relatives and friends to see if he can get a
cheaper source of debt with even lower rate of interest.
2. Prerak Iron Ltd. is thinking of raising finance to further its projects overseas. For this
the company is observing the other companies’ raising of finance. Their deb^equity
ratios are being thoroughly studied by the financial experts of the company.
3. A company is trying to raise funds after consulting the experts. The owner of the
company has decided to find out the banks which can grant loan under norms. He will
assure that all norms are followed by the company. He has also decided to gain
knowledge about the SEBI guidelines related to public issues of shares and
debentures.
4. The management of a company is very much concerned about the latest happenings
in the stock market. They always w’ant to know whether the conditions in the stock
market are bullish or bearish so that they may know the feasible time to grow money
by issue of shares.
5. A firm has decided not to issue equity this year. The reason they have given is the
involvement of costs like printing charges, brokerage, advertising costs and
underwriter’s commission. The company says all these costs will add on to become
substantial.
6. A company already has high fixed operation costs. If it takes loan its fixed financial
costs will increase leading to an overall increase in payments. Had the situation been
opposite it would have considered taking loan but now the only option is to go for
equity.
7. A company is thinking of taking debt to meet its finance requirements. It is thinking so
because interest is a tax deductible expense. Due to the new budget by the
government raising debt has become comparatively cheaper and equity is losing its
attractiveness.
8. Mr. Madan Sharma has a company having 10 branches throughout the country. He is
thinking of opening a new branch. For this he requires a good amount of investment.
He talks to his friends, banks and other sources to raise debt as a source of finance.
However, he prevents himself from using all possible sources of finance so that he can
maintain his borrowing power.
9. A leading company decides to raise fund. It decides to go for debt as the source of
finance. The reason behind this choice is the possibility of losing management’s
 holding in the company if equity is issued. The company already has been using equity
as a source of finance during last couple of years.
10. A company is no more interested in raising funds in the form of debt. The amount of
EBIT that the company has is decreasing in relation to the amount of interest it has to
pay on the debt it has borrowed. If it borrows more of debt than this ratio EBIT/ Interest
will further go down.
11. Neelam has decided to consider debt as the source of raising finance. Her decision
has come after considering the strong buffer of funds she already has. She has
enough amount of funds to cover fixed cash payments. Her business unit has no
problem in running normal business operation and it has low business risk. Further the
financial risk is also low.
12. A company has decided to go for trading on equity as an option. This is being done to
increase the Earning per Share (EPS). Definitely the ability of the company to use debt
is greater.

20. Raghu has started a mobile manufacturing company. The company has decided to meet the
competitor’s market hold by giving liberal credit terms to their customers. They have decided to
check the creditworthiness of their customers before giving them this facility. They will provide
this facility to customers having credit cards.

1. Predict the fixed capital requirement of Raghu’s company.

2. What do you think will be the working capital requirement of his company?

21. Identify the type of decisions:

1. Ravi wants to open a restaurant and is looking for a proper place to open it. He is also
thinking of the amount of funds which will be required for some of the set ups like food
making and storing machineries.
2. Ravindra is running a toy manufacturing company. He thinks of expanding his
business. He meets his uncle and asks him for a sum of Rs. 2 crores. His uncle asks
for a high interest rate. He agrees to it and promises to pay the money back within 2
years.
3. A leading marketing company has decided to raise money through the stock market. It
issued IPO in the market last year. The company knows there are going to be sizeable
floatation costs involved in it.
4. A company which has 10 branches in the city has decided to open its 11th branch. The
company has taken this branch on rent. In this way the company has saved money
which it would otherwise have invested in purchasing it.
5. A company has decided to plough back the money in the form of retained earnings.
This decision will save the company at least ‘50 crores. These funds can be used for
the long term growth of the business.
6. ‘Rakesh Iron Works’ has been doing a great job in the area of manufacturing iron.
Within two years the company has reached among the top 3 performers of the
industry. The company has made a lot of profit and decided to distribute its profits to
the shareholders who stood with it during the hard times.
 7. Ra an Power looms, a leading company in its industry has decided not to issue equity
shares this year as they want to keep the management control in their own hands. The
company’s management already has only 60% shares in the company. So it would
avoid any further dilution of its stake in the company. Company would prefer taking
loan.
8. A company has decided to issue debentures as it knows that it will not lead to any
additional costs. These debentures will be carrying a very low rate of return for the
debenture holders but will be a surety for them to get their money back. Investors who
want financial safety would like to go for this option as there will be an assured definite
return. ,
9. Shuddhi Steel Manufacturers has been a brand but due to some HR related issues it
came into limelight for bad reasons. The issue was related with non-payment of
salaries of the employees but now the company wants to sort this issue out. The
company has decided to pay the salary of all the employees which were not paid their
emoluments since last six months. The company has done so to avoid any image
spoiling to take place.
10. A soft drink company has decided to run an advertisement campaign. It will hire many
famous Bollywood celebrities for this purpose. The advertisement campaign could
involve more than ‘150 crores. Every major newspaper is mentioning about it.
11. Tarachand and Sons has decided to open a new branch in the middle of the city in
order to increase its business.

22. A company uses a financial instrument for bridge financing. The instrument here is short term,
low risk, unsecured and highly liquid. It needed to buy machinery for which it issued equity.
This turned out to be expensive as this issue involved floatation costs. The company is a large
and creditworthy and this method has come up as a great help to it.

1. Which financial instrument is indicated in the above case?

2. Which type of instrument is this?
3. Name the types of floatation costs which are generally involved?
4. How has this method helped the company?
5. Name two money market instruments which are issued at discount and redeemed at
Par.

23. Identify the type of financial market in the following cases:

1. The value of securities issued by a company is low. It has not set up a huge financial
outlay. Mr. Manuj has purchased 100 units of shares with the value of ?8G each.
Though he has small savings yet he is able to invest money in this financial market.
2. A financial market deals only in short term securities. The securities in the market may
even be issued for a single day.
3. A financial market deals in medium and long term securities such as equity shares and
debentures.
4. The participants in this financial market are institutions like banks, corporations, large
sized companies and members of the public.
 5. The securities in this financial market yield low rate of return.
6. The securities return in this market is riskier in relation to both the returns as well as
principal amount. The reason is the performance of the issuing companies. When
these companies perform well there are chances of high return but when the other way
round happens the returns may go down and result in loss of money to the investors.
7. In this financial market there is a higher degree of liquidity of the financial instruments
available to the investors as there is an institute which takes guarantee of this action.
The name of this institute is DFHI (Discount Finance House of India).
8. There is minimum risk of default in this financial market. There is shorter duration of
investment and this provides financial stability to the investors. The issuing houses
have a very good history of creditworthiness.

24. Identify the marketing management philosophy involved in the following cases:

1. Geetika scooters are the leading manufacturers of scooters in the industry. They have
the first mover advantage in the industry. When they started manufacturing scooters no
other company was doing it. They manufacture scooters and the middle class
purchases them in a high number. With each passing year the number of scooters sold
is increasing. The company’s main concern usually is to produce maximum number of
scooters. Company’s profit is governed by the maximum number of scooters they
produce.
2. Aman microwaves produce microwaves but they do not try to understand the needs of
the customers. Their main focus is always on the quality of the product but never on
customer requirement. They try’ to include as many features as possible in their
product. This year they have added a special type of alarm in their product which is a
unique feature. The alarm is available in ten varieties. However, the customers say that
the product is not of much use to them as it consumes a lot of electricity.
3. Ravi coolers is a very progressive company. The owners of the company feel that
unless and until they contribute to society it is worthless to exist as a company. In a
recent move by the government the organisation has decided to help it. The
organisation will be making five teams of hired environmentalists from foreign
countries. This team will help the local people clean the portions of a polluted river in
the country. The costs of this project will be borne by the company.
4. Rajesh is a manager in a company. His main area of focus is to generate revenue for
the company through repeated sales. He decides to develop a product for the
company which can generate revenue in the long run. For this he meets a team of
R&D (Research & Development) of his company. After a long meeting they decide to
do survey. Based on the survey a product is made to fulfill needs pf the customers.
The product later produces a lot of revenue through repeated sales in the long run.
5. A company decides to do promotion for a new chips flavour. For this many contests
are organized in different colleges. The youth is the target market for the chips makers.
However, there hasn’t been proper research about the liking of the flavour among the
youth. The company has launched this product based only on intuition. The company
has decided to go ahead with the promotional campaign even if there is a negative
response from the buyers.
6. Aakriti foods is making a great impact in the food industry. The top management of the
company has been in news for helping the villagers in the rural areas grow their
income. They have made alliances with groups of people of different villages. They
 procure handmade food products from them and help these products find a way to the
elite class of metro cities. The company has its motto of replacement of the western
taste with that of Indian among the elite class. The company is very intelligent to see a
high paying elite class as the target segment.
7. A company is manufacturing a new type of helicopter for the rich people. The
helicopters manufactured are patented products of the company. No other company
has made this type of helicopter yet. The company says since the helicopter is unique
the booking of the product is done in advance by the buyers. There has been demand
in excess. The company is in no need to market its product. It has to see that it can
make the helicopter available to people who can buy it.
8. An Air Conditioner manufacturing company is busy these days in adding features to its
products. This is being done to increase its customer base. The company has not done
any research to see which types of features are liked and which are in excess. It is only
making its product loaded with new features. The needs of the customers are not
considered. When asked why they are not doing proper research to know the
expectations of the customers they replied that they have full faith on the performance
of their Air Conditioners.
9. A company which deals in apparels has decided to clear its stock. The company has a
huge pile of clothes to be cleared across its various branches. The company has
decided to give discount on its products. It even has decided to go for various fashion
shows in different colleges. It has also decided to sponsor a few events. However,
people say that the clothes are not much of current fashion and the company is not
considering the choice of the customers.
10. An automobile company is a leading manufacturing company in its segment. The
company has decided to launch fully solar charged vehicles. This technology will cost
the company ?2000 crores annually. When the relationship manager of the company
was asked about the reason of bearing so much extra cost he replied that the company
considered environmental friendly techniques as the only solution to increasing
pollution. The company feels by bearing extra cost it is fulfilling its responsibility.

25. Amit went to purchase a fridge from a showroom having electrical appliances. He purchased a
fridge for Rs.10,000. However, when he confirmed the price of the fridge form his friends and
searched on the net he found that the price of the fridge was Rs.9,500. When he contacted the
showroom owner he was told that the prices of the fridge model has come down and that the
cash memo handed over to him also had the billing of Rs.10,000. But at the time the model
was introduced the price of the model was Rs.10,000 only.

1. Do you think Amit should get his Rs.500 back?

2. Do you think Amit has proof of purchase?
3. Which consumer right of Amit has been violated here?

26. ‘Amazing Duniya’ is a tourist agency. It also has a group of hotels. The company offers new
types of schemes to the potential customers. Amit was offered a scheme of staying in a hotel
for 6 days and 5 nights for free. However, when he reached the destination, he was told that
every room of the hotel was booked. He told them that he was told earlier that his room was
booked. He even showed them the confirmation he received on his mail.
 1. Can Amit file a complaint against the tourist agency?
2. Will he get a relief in this case?
3. Name the relief he will get.
4. Which consumer right has been violated in this case?

27. Dr. Ahuja purchased a washing machine of a renowned company. The price of the machine
was Rs.10,000. The company provided the cash memo on purchase. The money was paid in
cash. The machine model was semi-automatic and it was with a warranty of 3 years. For 3
years 1 month there was no problem in the functioning of the machine. But due to water
logging around the machine while washing clothes the main rotator of the machine got fused.
When the complaint was registered with the company it was told that the warranty period of the
machine had expired and Dr. Ahuja would have to pay for the service charges as well as the
replacement of rotator motor.

1. Is the company justified in not providing free service to Dr. Ahuja?

2. Can Dr. Ahuja file a complaint against the company?
3. Which consumer right of Dr. Ahuja is overlooked here?
4. Was any party at fault?
5. Did Dr. Ahuja fulfil her consumer responsibility?