Audit of Co Op Soasdciety Maharashtra

8/20/2019 Audit of Co Op Soasdciety Maharashtra

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Audit of Co-operative Housing Societies in MAHARASHTRA

Laws Applicable to Co-op. Housing Societies

1) The Maharashtra Co-op. Societies Act, 1960 (MCS Act) – having 167 sections

efective ro! "6#1#196" an$ The Maharashtra Co-op. Societies %&'es, 1961 –

having 110 r&'es efective ro! "#1"#196.

") The nco!e Ta* Act, 1961 an$ %&'es.

) The Service Ta* Act an$ %&'es

+) The o!a Sta!p Act or The n$ian Sta!p Act

/) The n$ian Contract Act 17", Transer o ropert Act 1" 2 Sa'e o 3oo$s

Act 190.

6) 4a5 o 4i!itation.

7) Circ&'ars, otications an$ $irectives iss&e$ ro! ti!e to ti!e the

respective $epart!ents o co-operation.

) e'a5s o the Societ.

9) Acco&nting Stan$ar$s – o'icies 2 3&i$e'ines.

Types of Audit

• Stat&tor a&$it s.1(1)

• 8'ing S&a$ a&$it s. 1()()

• %e-a&$it s. 1()(c)

• nterna' a&$it

Specic eatures of Audit


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!ote" #All sections $ rules stated %erein below pertain to MCS Act and

rules unless ot%erwise stated&.

Chapter : o the MCS Act an$ Chapter : o the MCS %&'es $ea' 5ith A&$it,

n&ir, nspection an$ S&pervision.

1) Appoint!ent an$ 8ees

• Sec.1(1)(a) – Certain societies to e a&$ite$ the %egistrar;s a&$itors.

• Sec.1(1)() –


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• %&'e 69(") – A&$it to e con$&cte$ or a'' the previo&s co!p'ete$ ears or

5hich the a&$it has not een $one (provi$e$ no A&$itor appointe$ or

A&$itor has resigne$).

• Sec. 1(/) 2 %&'e 69() – esi$es a&$it report, A&$itor to s&!it A&$it

Me!oran$&! in the prescrie$ or!at. 8or! 1 is a genera' or!at or a''

tpes o a&$it. n a$$ition, separate or!ats prescrie$ or each tpe o

societ

• %&'e 69(7) – S&!!ar o A&$it Me!oran$&! prepare$ the A&$itors

re&ire$ to e rea$ in genera' !eeting.

• %&'e 69(9) – Stat&tor A&$itor to a5ar$ a&$it c'assication (A, , C, =) to

Societ ase$ on certain criteria. 8or this p&rpose, $ept. has iss&e$ certain

g&i$e'ines (Cir.o.CC#A=T#A#>3#A.# o 199" $t. "9th ?&',199") o''o5e$

Circ&'ar o. CC#A=T#A#AC#AC#1/#"00/ $ate$ 7th ?an&ar "00/ iss&e$

@onora'e Co!!issioner o Co-operation o Maharashtra.

) oos # %egisters re&ire$ to e !aintaine$ Bin a$$ition to reg&'ar oos o

acco&nts

Sec.'( ) Rule *+ "

• %egister o Me!ers (8or! D;) – Sec. , %&'e "

• 4ist o Me!ers in 8or! D?; – Sec.9, %&'e

• %egister o shares

• Min&te oos o genera' !eetings an$ oar$ !eetings.


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• o!ination %egister.

• %egister o a&$it oEections an$ rectications in 8or! D


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H >n$er this hea$, Iin$ivi$&a's; !eans share capita' o a'' e*c'&$ing co-operative

instit&tions an$ State 3overn!ent. >n$er Sec."", a r!, a p&'ic tr&st, a 'oca'

a&thorit, a societ or an o$ corporate can eco!e !e!er.

H Sec." – esi$es veriing the oos state$ hereineore, A&$itor has to ens&re

that no !e!er ho'$s shares e*cee$ing 1#/ o the share capita' o the Societ or

%s."0,000#- 5hichever is 'ess.

H %&'e "0 - Shares can e iss&e$ in Eoint na!es. Minors an$ persons o &nso&n$

!in$, inheriting the share o a $ecease$ !e!er, can a'so e a$!itte$ as

!e!er thro&gh their 'ega' representatives or g&ar$ians.

H Sec."9(")(a) – A !e!er cannot transer his shares &nti' he has he'$ it or one

ear.

H Sec.0, %&'e "/ – o!ination is per!itte$, inc'&$ing no!ination o a !inor or a

person o &nso&n$ !in$.

H Sec."9 – Societ a''o5e$ to & ac its shares ro! its !e!ers on their

resignation etc., &pto a !a*i!&! o 10J o the pai$-&p share capita' ever ear.

H %&'e " – A!o&nt to e pai$ ac is ase$ on the va'&ation o his share, 5hich

in no case can e*cee$ the a!o&nt pai$ or the p&rchase o those shares.

H Sec."7 – There is a princip'e o I


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(ii) %eserve 8&n$ 2


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%&'e /1() – A &n$ create$ to ens&re $&e &'''!ents o MaEor repair 2 (i

g&arantee given 3overn!ent in respect o 'oans raise$ the societ.)

(i) A$$itiona' 8&n$s (


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(i) CashG-H %&'e 107C – Ma*i!&! cash ho'$ing 'i!its prescrie$ or certain

societies. O*cess cash has to e $eposite$ in an approve$ an 5ithin $as.

'i!its prescrie$ or Co-op. ho&sing societies, it is %s.00#-.

(ii) a'ance 5ith


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/) %ecticationG- Sec.", %&'e 7 – Nithin !onths ro! the $ate o the stat&tor

a&$it report, the societ has to s&!it a %ectication %eport in 8or! D

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Audit of Co Op Soasdciety Maharashtra