Section 8(1) in The M.P. State Aid to Industries Rules, 1959
(1)The value of the assets of an industry 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 siding, plant and machinery, development of property, trade-marks and designs, etc., the price at which these assets were acquired subject to proper deductions for wear and tear; such deductions shall be calculated in the case of buildings, machinery and plant at the rates fixed as allowable depreciations under Section 10 (2) of the Indian Income-tax Act, 1922; appreciable increase or decrease in the market value of the 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; provided that any appreciable increase or decrease in the market value of such assets may also be taken into consideration;(c)in the case of stores, spare gear or tools not taken into use the close 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 such deduction for wear and tear, as may be considered reasonable by the Director, or any officer duly authorised by him in this behalf;(e)in the case of stock in trade, if of manufactured stock, the cost of manufactured stock or the market selling price, whichever is less; if purchased stock, the cost price or price of replacement, whichever is less;(f)in the case of book-debts, the nominal amount of those debts; but the debts shall be classed as good and doubtful and no account shall be taken of doubtful debts; all debts which shall have been due and recoverable for over two years, shall be classed as doubtful;(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 that time when they became assets of the business subject to such deduction for wear and tear, as may be considered reasonable by the Director or any officer duly authorised by him in this behalf :Provided that no value shall be placed upon the good-will, patents or secret processes of any business.
