Section 8 in The Punjab State Aid to Industries Rules, 1936
8. Valuation of security and assets.
- The value of the assets of an applicant shall, so far as they do not consist of money, be taken to be, -(a)in the case of fixed assets acquired by purchase for cash such as land, buildings, leasehold, railway sidings, plant and machinery, development of property trade marks and designs etc., the price at which these assets were acquired, subject to proper deductions for depreciation, and such deductions shall be calculated in the case of buildings, machinery and plant at the rates fixed as allowable depreciation under sub-section (2) of section 10 of the Indian Income-tax Act, 1992, and any appreciable increase or decrease in the market value of site, machinery and buildings may also be taken into consideration;(b)in the case of fixed assets acquired by purchase otherwise than for cash, the value of the consideration at the time the assets were acquired subject to such appreciation or depreciation as may be allowed by the Board;(c)in the case of stores, spare gear or tools not taken into use, the cost price or price of replacement, whichever is less;(d)in the case of stores, spare gear and tools which have been used but are still in stock, the cost price less a proper deduction for depreciation;(e)in the case of stock in trade consisting of manufactured stock, the actual market selling price at the time of valuation less a reasonable margin or where it consist of purchased stock, the cost price or price of replacement (whichever is less), less such reasonable margin ad may be determined by the Board;(f)in the case of book debts, the nominal amount of these debts, provided that debts which are in the opinion of the Board doubtful debts and all debts which remain due and recoverable for a period of ever two years shall not be taken into consideration;(g)in the case of investments, the market value of those investments on the day on which the valuation is made;(h)in the case of any other assets which have not been acquired by purchase, the value of the assets at the time when they became asset of the business subject to proper deductions for depreciation, provided that no value shall be placed upon the goodwill, patents or secret processes of any business.
