Power of Registrar on Accounts of co-operative Society: Rule 40 of the DCS Rules, 2007 specifies Power of Registrar to direct accounts and books to be written up:–
The Registrar may, by order in writing, direct any co-operative society to get any or all of the accounts and books, required to be kept by it under rule 39, of these rules written up to such date, in such form and within such time as he may direct. In case of failure by any co-operative society, the Registrar may depute an officer subordinate to him or any Chartered Accountant from the approved panel to write up the accounts and books. In such case it shall be competent for the Registrar to determine, with reference to the time involved in the work, the emoluments of the officer deputed to do so, the charges which the cooperative society concerned shall pay to the Government/Chartered Accountant and to direct its recovery from the society.
MOST OF THE TIME: It happens that the managing committee of the society do not make the accounts and they do not get the accounts audited by the auditor appointed by the Registrar of co-operative societies. In fact they do not approach the registrar of co-operative societies for appointment of auditor. Once the auditor is not appointed their accounts will not be known to the office of the registrar also.
As per law every auditor of the co-operative society is required to submit the audit report to the registrar of co-operative societies. There after only the members of the managing committee can present these audited accounts to the annual general meeting of the members.
EXCUSES OF NOT GETTING THE AUDIT DONE: The managing committees make several excuses like not received the accounts from the previous managing committee. Another excuse is that they have not received the bills from parties to whom they have made the payments. Reconciliation of accounts is not yet done due to fault of other parties and they are making their efforts to reconcile. Change of Treasurer is also one of the excuse taken by many societies.
PUNISHMENT FOR NOT COMPLETING THE ACCOUNTS: If any member of the society takes up the case, every member of the managing committee in whose period the accounts were not written and audit was not completed in time can be barred for becoming eligible for next terms election of the managing committee.
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