UGC NET JUNE 2013 SOLVED COMMERCE PAPER III

                                  UGC NET JUNE 2013 SOLVED COMMERCE PAPER III

1. Under the provisions of the Industries (Development and Regulation) Act, 1951, a licence is necessary for
(A) Changing the location of an existing industrial undertaking.
(B) producing or manufacturing a ‘new article’ in an existing industrial undertaking.
(C) Establishing a new undertaking.
(D) All of the above.

2. Match the items of List-I with the items of List-II and select the correct answer.
             List – I                                                                  List – II
(i) Political and Legal Environment                        (a) Important for industries directly depending on
                                                                                imports or exports.
(ii) Demographic Environment                               (b) Close relationship with the economic system
                                                                                 and economic policy.
(iii) Economic Environment                                   (c) Related to natural resources.
(iv) Geographical and Ecological Environment       (d) Occupational and spatial mobilities of population
                                                                                  having implications for business.
Codes :
      (i) (ii) (iii) (iv)
(A) (b) (d) (c) (a)
(B) (b) (d) (a) (c)
(C) (a) (b) (c) (d)
(D) (a) (b) (d) (c)

3. Match the items of List-I with the items of List-II and select the correct answer :
    List – I                                 List – II
(i) SLR                        (a) Working in the field of consumer protection.
(ii) SIDBI                    (b) Credit control.
(iii) CUTS                   (c) Industrial policy.
(iv) ILPIC                   (d) Facilitating Small Scale Industries.
Codes :
      (i) (ii) (iii) (iv)
(A) (a) (c) (d) (b)
(B) (b) (d) (a) (c)
(C) (a) (b) (c) (d)
(D) (a) (c) (b) (d)

4. Match the following :
              List – I                                                                 List – II
(i) National Stock Exchange                                  (a) Marks the beginning of
                                                                                 the process of dematerialisation of shares of
                                                                                 the participating companies.
(ii) National Securities Depository Limited            (b) Facilitation of equal access to investors across
                                                                                 the country.
(iii) Securities and Exchange Board of India          (c) To foster the development of an active
                                                                                secondary market for Government Securities.
(iv) Securities Trading Corporation of India          (d) Abolition of Capital issues control and retaining
                                                                                the sale authority for new capital issues.
Codes :
      (i) (ii) (iii) (iv)
(A) (b) (a) (d) (c)
(B) (a) (b) (c) (d)
(C) (a) (b) (d) (c)
(D) (d) (c) (b) (a)

5. The United Nations Conference on Trade and Development (UNCTAD) was set up in
(A) 1944 (B) 1954 (C) 1960 (D) 1964

6. Indicate the ground on which a complaint under the Consumer Protection Act, 1986, shall be invalid.
(A) A product having short weight.
(B) A service provided free of cost.
(C) A misleading advertisement given in newspaper.
(D) None of the above.

7. Out of the following, which are the four components of food security ?
(i) Food availability
(ii) Food market
(iii) Food accessibility
(iv) Food utilization
(v) Food credit
Codes :
(A) (iii), (iv) and (v)
(B) (i), (iii) and (iv)
(C) (i), (ii) and (iii)
(D) (i), (ii) and (iv)

8. Performance evaluation of a responsibility centre can be done by
(A) ROI
(B) Return on sales
(C) EVA
(D) All of the above

9. Social Balance Sheet shows
(A) Social costs
(B) Social revenues
(C) Value of employees of the organisation
(D) All of the above

10. Which of the following comes under efficiency ratios ?
(A) Average collection period
(B) Inventory turnover ratio
(C) Fixed assets turnover ratio
(D) All of the above

11. Match the items of the following two lists :
            List – I                                                          List – II
(i) Statement of changes in Working Capital    (a) Cash Flow Statement
(ii) Deferred Tax                                            (b) Fixed Assets
(iii) Three activities                                         (c) Funds Flow Statement
(iv) Impairment Loss                                      (d) Balance Sheet
Codes :
       (i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (c) (d) (b) (a)
(C) (c) (d) (a) (b)
(D) (d) (c) (a) (b)

12. Match the items of the following two lists and indicate the correct answer :
         List – I                                                 List – II
(i) Earning ability of firm                      (a) Basis of Accounting
(ii) Conservatism                                 (b) P/V ratio
(iii) Cash profit                                    (c) Cash flow statement
(iv) Cash and Accrual                          (d) Prudence
Codes :
       (i) (ii) (iii) (iv)
(A) (b) (d) (c) (a)
(B) (b) (a) (d) (c)
(C) (c) (d) (a) (b)
(D) (c) (d) (b) (a)

13. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
      Assertion (A) : Only the relevant costs should be taken into consideration for decisionmaking.
      Reason (R) : All variable costs are relevant costs and all fixed costs are irrelevant costs. In the
      above two statements, which one alternative of the following is correct ?
Codes :
(A) Both (A) and (R) are correct.
(B) Only (A) is correct, but (R) is wrong.
(C) Only (R) is correct, but (A) is wrong.
(D) Both (A) and (R) are wrong.

14. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) :
      Assertion (A) : Variance analysis is undertaken for planning and control of costs.
      Reason (R) : Future costs are taken into consideration in budgeting and standard costing
    . In the above  two statements, which one alternative of the following is correct ?
Codes :
(A) Both (A) and (R) are correct and (R) is the Reason for (A).
(B) Both (A) and (R) are correct  and (R) is not the Reason for(A).
(C) (A) is correct, but (R) is wrong.
(D) (A) is wrong, but (R) is correct
.
15. Assertion (A) : Mark-up pricing is a method of determining price.
      Reason (R) : P = ATC + (m × ATC) is the expression for that.
Codes :
(A) (A) is correct but (R) is not correct.
(B) Both (A) and (R) are correct.
(C) Both (A) and (R) are not correct.
(D) (R) is correct, but (A) is not correct.

16. Match the items of List-I with the items of List-II and select the correct answer.
        List – I                                   List – II
(a) Economic profit              (i) Total Revenue Explicit cost
(b) Accounting profit           (ii) Buyers and Sellers exchanging
(c) Collusion/ Cartel            (iii) Total Revenue – Total cost
(d) Market                          (iv) Oligopoly
Codes :
      (a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B)  (i) (ii) (iii) (iv)
(C) (iv) (iii) (ii) (i)
(D) (ii) (iv) (i) (iii)

17. Which one is not the item of economic cost to the business ?
(A) Owner supplied resources.
(B) Market supplied resources.
(C) Implicit costs.
(D) Non-monetary opportunity costs of using owner supplied resources.

18. Demand must have the elements
(A) Desire
(B) Want
(C) Quantity, Price and Time
(D) All of the above

19. Match the items of List-I and items of List-II and select the correct code for the answer.
            List – I                                       List – II
(a) Utilitarian Approach               (i) Marginal Rate of Substitution
(b) Ordinal Approach                 (ii) Budget line & Indifference Curve
(c) Price- Consumption Curve    (iii) U=f (x, y)
(d) Consumer Equilibrium           (iv) MRSxy =\ MRSyx
Codes :
      (a) (b) (c) (d)
(A)  (i)  (iv) (iii) (ii)
(B)  (ii)  (iii) (iv) (i)
(C)  (iii) (i)  (ii) (iv)
(D)  (iv) (ii)  (i) (iii)

20. The Learner Index measures
(A) Market power
(B) Price
(C) Price-Marginal cost
(D) None of the above

21. Match the items of List-I and items of List-II and select the correct answer.
          List – I                                          List – II
(a) Perfect competition                  (i) Different prices for the same product
(b) Monopolistic competition        (ii) Dominant strategy
(c) Oligopoly                                (iii) Product differentiation
(d) Discriminating Monopoly         (iv) Identical product
Codes :
      (a)  (b)  (c)  (d)
(A) (iv) (iii)  (ii)  (i)
(B)  (i)  (ii)  (iii) (iv)
(C) (ii)  (iv)  (i) (iii)
(D) (iii) (i)   (iv) (ii)

22. If there are 8 possible classes under consideration for a goodness of-fit, the number of degrees
      of  freedom will be
(A) 8
(B) 7
(C) 6
(D) Cannot be determined from the given information.

23. Identify from the following, the test statistic for which the value of numerator should always be greater
      than that of denominator.
(A) ‘Chi-square’ (B) ‘F’ value (C) ‘Z’ value (D) ‘t’ value

24. Which of the following tests can be applied to ordinal scale data ?
(i) Chi-square test
(ii) ‘Z’ test
(iii) Kruskal-Wallis test
(iv) Wilcoxon Mann-Whitney test
Codes :
(A) (i), (ii) and (iii)
(B) (ii), (iv) and (iii)
(C) (i), (iii) and (iv)
(D) (i), (ii) and (iv)

25. Which of the following tests can be based on the normal distribution ?
(A) Difference between independent means
(B) Difference between dependant means
(C) Difference between proportions
(D) All of the above

26. From the following, identify one situation where ‘F’ test cannot be used ?
(A) To compare more than two population means.
(B) To test the hypothesis about a single population variance.
(C) To test the hypothesis about two-population variance.
(D) To study about randomized block design.

27. Which statistical test should be applied to test the effectiveness of ‘special coaching’ on
      the marks  scored by the students ?
(A) Paired ‘t’ test
(B) ‘Chi-square’ test
(C) ‘Z’ test
(D) ‘F’ test
28. In a linear equation, y = a + bx, ‘a’ refers to
(A) Slope
(B) Y-intercept
(C) Dependant variable
(D) Independent variable

29. Which among the following is the most popular approach for accomplishing the results ?
(A) Management by exception
(B) Reward system
(C) Management by objectives
(D) Mentor system

30. The managerial function of organizing involves
(A) Reviewing and adjusting plan in the light of changing conditions.
(B) Establishing programme for the accomplishment of objectives.
(C) Creating structure of functions and duties to be performed.
(D) Getting things done through others.

31. A leader who identifies what subordinates need to do to achieve objectives, clarify organizational
      roles and tasks, set up an organization structure, reward performance and provide for the social
      needs of their followers, is
(A) a transformational leader
(B) a participative leader
(C) a transactional leader
(D) an autocratic leader

32. Which of the following is not an assumption of theory X ?
(A) An average human being has an inherent dislike of work and will avoid it if he can.
(B) An average human being prefers to be directed, seeks to avoid responsibility, has relatively
      little ambition, and want security above all.
(C) An average human being learns under proper conditions, not only to accept responsibility but
      also to  seek it.
(D) Most people must be coerced, controlled, directed and threatened with punishment to get them
      put forth adequate effort.
33. If a network of interpersonal relationship that arise when people associate with each other is an
      informal organization, then find out which of the following is not an informal organization ?
(A) The “machine shop” group
(B) Customers’ group
(C) The “sixth floor” group
(D) The “Friday evening bowling” gang

34. Which of the following are sources of ethics ?
(i) Religion
(ii) Legal system
(iii) Economic system
(iv) Culture
(v) Family system Select the correct answer from the codes given below :
(A) (i), (ii), (iii), (v)
(B) (i), (ii), (iv)
(C) (i), (iv), (v)
(D) (i), (ii), (iii), (iv), (v)

35. Which of the following has refined Maslow’s theory of motivation by proposing a hierarchy of
      three needs ?
(A) MeClel land (B) Aldorfer (C) Herzburg (D) Vroom

36. Which segmentation approach is the most compatible with the spirit of the marketing concept ?
(A) Benefit sought
(B) Income
(C) Social class
(D) Family size

37. The description of a product’s quality, features, style, brand name and packaging identifiers the
(A) Actual product
(B) Augmented product
(C) Core product
(D) Tangible product

38. Consider the following statements and find out the correct alternative from the codes given below :
(i) A firm’s marketing information system is a component of its marketing research system.
(ii) The most common forms of marketing researches conducted in most of the firms are the measurement
     of  market potential and the analysis of market share.
(iii) Survey research is seldom used for studying consumer perception and attitudes.
(iv) The concept of cognitive dissonance is relevant to study consumer’s post-purchase behaviour.
Codes :
(A) All the statements are true.
(B) All the statements are false.
(C) (i) is false and the rest are true.
(D) (ii) and (iv) are true and the rest are false.

39. In India, which pricing practice is not permissible ?
(A) Penetrating pricing
(B) Skimming pricing
(C) Predatory pricing
(D) None of the above

40. Consider the following statements and find out the correct alternative from the codes given below :
(i) A good salesman is one who can sell refrigerator to an Eskimo.
(ii) Salesmen are born, not made.
(iii) Physical distribution is an area where high cost-savings is possible.
Codes :
(A) (i) and (iii) are correct.
(B) (i) and (ii) are correct.
(C) (ii) and (iii) are correct.
(D) All are correct.

41. Which form of retail outlet has the highest operating costs ?
(A) Super market
(B) Consumer co-operative store
(C) Department store
(D) Retail chain store

42. Consider the following statements and indicate the correct alternative from the codes given below :
(i) The product management system often turns out to be costly.
(ii) When customers belong to different user groups with distinct buying preferences and practices,
      a market management organization is not suitable.
(iii) Advertising department has the closest interface with the finance department of the company.
Codes :
(A) (i) and (ii) are correct.
(B) (ii) and (iii) are correct.
(C) Only (i) is correct.
(D) All are correct.

43. Match the statements in List-I with dividend models in List-II as follows :
                 List – I                                                                   List – II
I Dividend Capitalisation Approach                                 .1. Traditional Model
II Dividend Policy has a bearing on the share valuation.     2. Gardon Model
III Stock Market places more weight on dividends than
on retain earnings.                                                            3. Walter Model
IV Dividend payout is irrelevant to the value of the firm    .4. Modigliani and Miller
Model
Codes :
      I II III IV
(A) 2 3 1 4
(B) 1 2 4 3
(C) 4 1 3 2
(D) 3 4 2 1

44. Venture capital financing at starting stage is generally not done through
(A) Debt instruments
(B) Deep discount bonds
(C) Equity shares
(D) Conditional loans

45. Match the statements in List-I with the types of lease in the List-II as follows :
                                List – I                                                            List – II
 I Lessor transfers all risks and rewards of an asset to the lessee. 1. Indirect lease
 II Lessor transfers the
assets to the lessee but bears the cost of maintenance                  2. Operating lease
III The owner of the asset sells it to the
lessor who in turn leases it back to the owner (now lessee)          3. Finance lease
 IV Lessor owns/ acquires the assets that are leased to given les  4. Direct lease
Codes :
     I II III IV
(A) 2 3 4 1
(B) 1 4 2 3
(C) 3 2 1 4
(D) 4 1 3 2

46. Full details for the issue of ADRs by a company must be furnished within 30 days from
      the date of its  closure to
(A) Securities and Exchange Commission (SEC)
(B) Reserve Bank of India (RBI)
(C) Securities and Exchange Board of India (SEBI)
(D) Company Law Board (CLB)

47. The degree to which the returns of the two securities change together, is reflected by
(A) Correlation (B) Leverage (C) Covariance (D) Beta

48. The transfer by a company of one or more of its business divisions to another newly
      set u company is called
(A) Demerger
(B) Merger
(C) Equity Carve-out
(D) Disinvestment

49. What combination of the following factors influences the working capital requirement ?
I Market Conditions
II Production Policy
III Firm’s goodwill
IV Supply conditions
Codes :
(A) I, II and III
(B) II, III and IV
(C) I, III and IV
(D) I, II and IV

50. Which of the followings are the modern method of performance appraisal ?
(i) 360 degree performance appraisal.
(ii) Graphic rating scale.
(iii) Management By Objectives (MBO).
(iv) Forced distribution method.
(v) Behaviourally Anchored
Rating Scales (BARS). Select the correct answer from the codes given below :
(A) (i), (ii), (iii) (B) (ii), (iv), (v) (C) (i), (iii), (v) (D) (iv), (ii), (i)

51. Which of the following principle serves as a warning to organisations not to take the selection and
       promotion process lightly ?
(A) Promotion Principle
(B) Drucker Principle
(C) Validity Principle
(D) Peter Principle

52. According to D. Katz morale has four dimensions :
(i) jobs satisfaction
(ii) satisfaction with wages and promotional opportunities.
(iii) Identification with company.
(iv) Pride in the work group.
(v) Top Management Support.
Select the correct combination.
(A) (i), (ii), (iii) and (iv)
(B) (i), (ii), (iii) and (v)
(C) (i), (ii), (iv), and (v)
(D) (i), (iii), (iv) and (v)

53. HRM is viewed as a management process, consisting of four functional activities :
(i) Acquisition
(ii) Motivation
(iii) Development
(iv) Resolution of industrial disputes
(v) Maintenance Select the correct combination.
(A) (i), (ii), (iii) and (iv)
(B) (i), (ii), (iii) and (v)
(C) (i), (ii), (iv) and (v)
(D) (i), (iii), (iv) and (v)

54. O C TA PA C stands for
(A) Order, Co-ordination, Trust, Authority, Personality and Cooperation.
(B) Openness, Confrontation, Trust, Authenticity, Pro-action and Collaboration.
(C) Organisation, Conflict, Team, Authority, People and Collaboration.
(D) Oneness, Compromise, Tress pass, Authority, Protection and Combination.

55. Technique of ‘Transaction Analysis’ was developed by
(A) Elton Mayo
(B) Peter Drucker
(C) Eric Berne
(D) Adam Smith

56. Which one of the following methods is not a demand forecasting method of Human Resource Planning ?
(A) Managerial judgement
(B) Managerial grid
(C) Work study techniques
(D) Statistical techniques

57. Transaction of Internet Banking excludes
(A) Withdrawal of cash any wherein India.
(B) Statement of account for a specific period.
(C) Transfer of funds from one account to another account.
(D) Balance enquiry
.
58. Which among the following is not a category of Non-Performing Assets ?
(A) Substandard Assets
(B) Doubtful Debts
(C) Loss Assets
(D) Devaluated Assets

59. When a loan will be NPA ?
(A) Interest and/or loan installments overdue for more than 90 days.
(B) Account is out of order for more than 90 days in case of overdraft/cash credit.
(C) Bill remains overdue for more than 90 days.
(D) All of the above.

60. Assertion (A) : “The problem orural credit is not primarily one of rural credit, it may
     be said to be one of  rural minded credit.”
     Reason (R) : The Indian economy has yet to come out of rural mentality.
Codes :
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are incorrect.
(C) (A) is correct, but (R) is incorrect.
(D) (R) is correct, but (A) is incorrect.

61. Match the items of List-I with the items of List-II and select the correct answer :
              List – I                                                  List – II
(i) Debit card                                            (a) Several storage
(ii) Credit card                                          (b) Online recovery of amount
(iii) Electronic purse                                  (c) Image processing use
(iv) Cheque function                                  (d) Revolving credit
Codes :
(i) (ii) (iii) (iv)
(A) (c) (a) (d) (b)
(B) (a) (b) (d) (c)
(C) (d) (c) (a) (b)
(D) (d) (c) (b) (a)

62. Assertion (A) : The Indian economy could survive in the recent global recession due to its
                             strong banking system.
         Reason (R) : The Indian economy contains a large amount of black money.
Codes :
(A) Both (A) and (R) are correct and (R) is the explanation of (A).
(B) Both(A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (R) is correct, but (A) is not the appropriate assertion of (R).
(D) Both (A) and (R) are incorrect.

63. Assertion (A) : Most of the development bank in India have setup private commercial banks
                             after the introduction of capital adequacy norms.
      Reason (R) : Development banks in India have not adhered to their basic objectives.
Codes :
(A) (A) and (R) both are correct, and (R) is correct explanation of (A).
(B) (A) and (R) both are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (R) is correct, but (A) is incorrect
.
64. Match the following items of List-I with List-II :
                          List – I                                                             List – II
(a) Brettonwoods conference                                                    (i) 1947
(b) General Agreement on Trade and Tariffs                              (ii) 1964
(c) ACCRA conference                                                           (iii) 1944
(d) United Nations Conference on Trade and Development       (iv) 2008
Codes :
       (i) (ii) (iii) (iv)
(A) (b) (d) (a) (c)
(B) (b) (d) (c) (a)
(C) (b) (c) (d) (a)
(D) (c) (a) (b) (d)

65. The forces that lend momentum to the process of globalization have been identified
       by Michael Porter include the following :
(i) Fluid global capital market.
(ii) Technological restructuring.
(iii) Decreasing religious command.
(iv) Ethnic decontrol.
(v) New-global competitors.
(vi) End of the ‘cold war’ in 1990s.
Codes :
(A) (vi), (v), (iv) and (iii)
(B) (vi), (iii), (ii) and (i)
(C) (vi), (v), (ii) and (i)
(D) (iv), (iii), (ii) and (i)

66. Statement (I) : Green Box subsidies include amount spent on Government services such
                             as research, disease control, infrastructure and food security.
     Statement (II) : Blue Box subsidies are certain direct payments made to farmers, to limit production,
                             and are certain government assistance programmes to encourage agriculture
                             and rural development.
Codes :
(A) Statement (I) is correct, but (II) is not correct.
(B) Statement (II) is correct, but (I) is not correct.
(C) Both statement (I) and (II) are correct.
(D) Both statement (I) and (II) are incorrect.

67. Assertion (A) : The major economic powers have succeeded in creating a new international
      regime where the profits and the dominance of their transnational corporations will be the
      decisive consideration.
      Reason (R) : This regime will legitimise the process of progressive erosion of the sovereign
      economic space of the third-world countries.
(A) Both (A) and (R) are correct, and (R) is the right explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(C) Both (A) and (R) are incorrect.
(D) (R) is correct, but (A) is not correct.

68. Assertion (A) : The ‘Balance of Payments’ presents a classified record of all receipts on
      account of   goods exported, services rendered and capital received by ‘residents’ and
      payments made by them on account of goods imported and services received from capital
      transferred to ‘non-residents’ or ‘foreigners”.
     Reason (R) : The ‘Balance of Payments’ of a country is a systematic record of all economic
                    transactions between the ‘residents’ of a country and the rest of the world.
(A) Both (A) and (R) are correct and (R) is the right explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(C) (R) is correct, but (A) is not correct.
(D) Both (A) and (R) are incorrect.

69. Which among the following is not rightly explained ?
(i) M1 = Currency with the public + demand deposits of the public.
(ii) M2 = M1 + Post Office Savings Deposits.
(iii) M3 = M1 + Time Deposits of the public with Banks.
(iv) M4 = M3 + Total Post Office Deposits.
(v) M1 = Narrow money (vi) M3 = Broad money
(A) Only (v) and (vi)
(B) Only (i) and (iii)
(C) Only (vi)
(D) None of the above

70. Which of the followings are not effect of dumping on importing country ?
(i) Domestic industry might be affected adversely by a decline in sales and profits.
(ii) If dumping is continued for a longer period, survival of the domestic industry may be threatened.
(iii) Dumping may create BOP problems for the country.
(iv) It finds market for its surplus production.
Codes :
(A) (i), (ii), (iii) and (iv)
(B) (ii), (iii) and (iv)
(C) (iii) and (iv)
(D) Only (iv)

71. Donation to National Children’s Fund will come in which of the following deduction
      under Sec. 80G of Income Tax Act, 1961.
(A) 100 percent deduction without any qualifying limit.
(B) 50 percent deduction without any qualifying limit.
(C) 100 percent deduction subject to qualifying limit.
(D) 50 percent deduction subject to qualifying limit.

72. If the taxable income of a domestic company for the Assessment Year 2011-12 is `
      9,00,000, its tax liability will be
(A) ` 2,76,800 (B) ` 2,78,100 (C) ` 3,70,800 (D) ` 3,70,880

73. Unabsorbed depreciation which could not be setoff in the same assessment year,
      can be carried forward upto
(A) 4 years
(B) 8 years
(C) 10 years
(D) Indefinite period

74. If the book profits of a partnership firm is ` 1,10,000, the remuneration
     admissible to working partners under Sec.40(b) of the Income Tax Act, 1961 is
(A) ` 1,10,000
(B) ` 1,50,000
(C) ` 99,000
(D) None of the above

75. Which of the following expenses is inadmissible while computing income from other sources ?
(A) Interest paid on amounts borrowed to meet tax liabilities.
(B) Collection charges paid to the banker or any other person to collect interest/dividend.
(C) Interest on loan taken to invest in securities.
(D) Depreciation on let-out machinery and plant.