Amendment status not verified — confirm the current text below against the official source.
Audit: - (1) The audit under section 48 shall in all cases extend back to the last date of previous audit and shall be carried out up to the last date of the co- operative year immediately preceding the audit or where the Registrar so directs 59 Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road, Junglighat, Port Blair, PIN-744103 (Contact No.03192232388), 2019. ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974 in the case of any particular co-operative society or class of co-operative societies, such other date as may be specified by Registrar. (2) Unless the Registrar directs otherwise, the audit of a co-operative society as provided in section 48 of the Regulation, shall be conducted in the registered office of the co-operative society. (3) The officers and the employees of co-operative society shall give the auditor all assistance necessary for the conduct and completion of audit and take such action with regard to the verification or examination of its accounts and stock as he may require. (4) The Registrar shall, in cases where the audit is done by him, prepare, and in case where the audit so done by a person authorised by him under subsection (1) of section 48, obtain from such person, an audit report in the form specified by the Registrar on the account and on every balance sheet and profit and loss account examined by him and shall state whether in his opinion and to the best of his information as given to him, the said accounts give all the information required by the Regulation and give a true and fair view: (i) in the case of the balance sheet, of the state of the affairs of the co-operative society as at the end of the co-operative year or any other subsequent date to which the accounts are made up and examined by him; and (ii) in the case of profit and loss account, the profit or loss of the co-operative year, or the period covered by audit, as the case may be. (5) The audit, report shall include statement under the appropriate parts with full particulars of: (a) all transactions which appear to be contrary to the provisions of the regulations, rules or the bye-laws of the co-operative society; (b) all sums which ought to have been but not have been brought into account by the co-operative society; (c) the amount of any deficiency or loss which appears to have been incurred by breach of trust, wilful negligence, misappropriation or fraudulent retention of any money or property of any person; (d) any transaction which appears to him to require further investigation; (e) any of the assets which appear to be bad or doubtful; and (f) any other matters specified by the Registrar in this behalf. (6) The person who does the audit shall also state: (a) Whether he had obtained relevant records/information which to the best of his knowledge and belief were necessary for the purpose of his audit; 60 Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road, Junglighat, Port Blair, PIN-744103 (Contact No.03192232388), 2019. ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16 (b) Whether in his opinion proper books of accounts, as required by the Regulation, rules and the bye-laws of the co-operative society have been kept and regularly maintained by the co-operative society so far as it appears from his examination of such records; and (c) Whether the balance sheet and final accounts examined by him are in agreement with books of accounts and returns of the co-operative society. (7) Where any of the matters referred to in sub rule(6) are answered in the negative or with a qualification, the person who does the audit shall specify in his audit report the reasons for such facts and figures in support of such reasons. (8) The auditor shall examine the monetary transactions of a society in so far as may be necessary for the purpose of ascertaining whether there has been any material impropriety or irregularity in the expenditure or in the realisation of moneys due to the co-operative society and whether any transaction infringe any provisions of the Regulation, Rules or bye-laws or any directions of the committee. In case of difference of opinion between the auditor and the co-operative society in regard to the propriety of any of its monetary transactions; the Registrar shall decide the matter and his decision shall be final. (9) The Registrar shall issue direction regarding treatment of certain assets as bad and doubtful. Before proceeding to take action to write off any assets considered bad all possible steps be taken by the committee to realise the same. Any assets considered bad and irrecoverable may be written off by the general body meeting; provided, any approval of the financing agency if any and the Registrar is obtained before the writing off is made. (10) After every audit, the Registrar shall grand to the concerned co-operative society an audit certificate and copy of the audit report duly signed by him after exercising the test audit wherever necessary. The Registrar may modify or expunge any portion of the audit report which appear to him objectionable or not justified by fact. (11) The Co-operative society shall publish- (i) the audit certificate granted by Registrar under sub rule (10), ] (ii) the statements showing the receipts and disbursements, profit and loss accounts and the balance sheet in the manner specified by the Registrar and shall keep them open for inspection by any member of the co-operative society. The summary of defects as revealed by audit report shall also be read out in the general body meeting of the co-operative society. A rectification of the report based on the deliberations of the meeting on the defect pointed out in the audit report shall be forwarded to the Registrar within three month of the receipt of the report by the co-operative society. The Registrar may direct the co-operative society or its officers to take such action, and within such time, as may be specified by him, to remedy the defects disclosed in the audit. 61 Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road, Junglighat, Port Blair, PIN-744103 (Contact No.03192232388), 2019. ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16 Explanation: - (i) For the purpose of this chapter, audit shall include annual or periodical audit, continuous or concurrent audit and test or super audit and re- audit. (ii) For the purpose of this rule: A person authorised” means *(a) A person who is serving in the Co-operative Department of this Union Territory and authorized to audit the accounts of the Co-operative Societies. *(b) A person who holds a Higher Diploma in Co-operation or Diploma in Co- operative Audit or Co-operative Management or Degree in Cooperation or Degree in Commerce and whose name is included in the panel of certified auditors of Co-operation Societies maintained in the office of the Registrar of Co-operative Societies. *** In the said rules the following provisions shall be inserted as item(C) after item (b) under explanation (ii) of rule 51 :- “(C) an ‘Accountant’ means a Chartered Accountant whose name is included in the panel of certified Auditors of Co-operative Societies maintained in the Registrar’s Office” **** (12) Every registered Co-operative Society shall pay to the Government for the audit of accounts conducted by the Co-operative Department for each Co- operative year in accordance with the scale prescribed in respect of class of society as under:- i). The audit fee to be levied on a Co-operative Society shall not exceed Rs.25,000/- that the minimum fee payable by the society shall be Rs.250/- in a Co-operative year. ii). The scale of audit fees payable by the societies are as follows:- a). The Co-operative Societies dealing in consumer goods shall pay audit fee at the rate of Rs.0.25 paise per every hundred rupees or part thereof on their sale in a co-operative year. * (Item (a) under explanation (ii) of rule 51 substituted vide A&N Administration, Secretariat’s vide Notification No. F.No.30-51/94/Dev.I(Coop) dated 21.08.1997, A&N Islands Co-operative Societies (Amendment) Rules 1974) ** (the explanation (ii) (b) substituted in sub-rule 11 of rule 51 of the principal rule 1974, vide Registrar of Co-operative Societies’ Notification No.267/F.No.RCS/26- 5/2009 dated 21.02.2011, A&N Islands Co-operative Societies (Amendment) Rules, 2010) (Item (C) inserted under explanation (ii) in sub-rule 11 of rule 51 vide A&N Administration, Secretariat’s Notification No. F.No.30-51/94/Dev.I(Coop) dated 21.08.1997, A&N Islands Co-operative Societies (Amendment) Rules 1974) 62 Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road, Junglighat, Port Blair, PIN-744103 (Contact No.03192232388), 2019. ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974 b). The audit fees to be levied in respect of Agricultural credit Co-operative Societies shall be at the rate of Rs.0.10 paise per every Rs.100/- or part thereof the working capital of the Institution. c). The audit fees to be levied in respect of Thrift and Credit Co-operative societies, Credit Co-operative and Co-operative Banks shall be paid at the rate of Rs.0.25 paise per every Rs.100/- or part thereof of the working capital of the institution. d). The scale of audit fees leviable from Transport Printing, Industrial Co- operative Societies shall be at the rate of Rs.0.25 paise per every Rs.100/- or part thereof the turnover of these societies in a Co-operative year. e). The scale of audit fees leviable from Labour Contract, Fisheries, Milk, Poultries Farming and other Agricultural Produces and Marketing Co- operative Societies, Co-operative Societies for tribal and weaker sections of the Society shall be at the rate of Rs.0.10 paise per every Rs.100/- or part thereof of the turnover of these societies in a co-operative year. f). In respect of Housing Co-operative Societies the audit fees chargeable at the rate of Rs.25/- per member upon the total member of these societies in each co-operative year. g). All other Co-operative Societies shall be required to pay audit fee at the rate of 3% of the net profit earned by the societies in each co-operative year. iii). Provided further that the scale of audit fees prescribed above shall not be apart to those Co-operative Societies which are being classified as ‘D’ Class by the Auditor and those Co-operative Societies which are being put under liquidation. These types of Co-operative Societies are being exempted from payment of audit fee. iv). In respect of Co-operative Societies, authorisation of audit of which is given to Chartered Accountants the rate of audit fee shall be negotiated by the concerned Chartered Accountant with management of the concerned Co-operative Society, subject to final approval of Registrar of Co-operative Societies in this regard. v). The audit fee payable by the Co-operative Societies whose audit is conducted by the departmental officers so authorised shall be deposited in the office of the Registrar of Co-operative Societies Andaman and Nicobar Islands and the receipt against it should be obtained under TR. ***** (13). The Registrar may at his discretion remit in whole or in part the audit fees payable under clause (ii) of sub-rule (12) by the Society or a class of societies for any year or for any specific period. (****Rule 12 and *****Rule 13 inserted after sub-rule (11) of Rule 51 vide A&N Administration, Secretariat’s Notification No. F.No.30-51/94-Dev.I(Coop) dated 19.03.1999, A&N Islands Co-operative Societies (Amendment) Rules, 1999). 63 Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road, Junglighat, Port Blair, PIN-744103 (Contact No.03192232388), 2019. ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974