Amendment status not verified — confirm the current text below against the official source.
(1) The audit shall include an examination of overdue debts, if any, the verification of the cash balance and securities and valuation of assets and liabilities of the society concerned and such other audit matters, as may be prescribed. 69G[(1A) In the case of co-operative societies whose accounts are prepared using a common software or any other software approved by the Registrar, the audit includes the audit of information system and evaluation of software as well as hardware. (1B) If during the audit of information system and evaluation of software and hardware, any manipulation of records or manipulation in the working of the software or hardware is revealed, the auditor/auditors/audit firms shall inform the manipulations to the Director of Co-operative Audit and the Registrar. (1C) The Registrar himself, or the Director of Co-operative Audit in consultation with the Registrar shall inform the manipulations in the system to the Police or Vigilance officer, as the case may be, for investigation.] (2) For the purpose of audit, the Director of Cooperative Audit or the person authorised by him under S.63 shall have the following powers, namely:- (a) he shall, at all reasonable times, have access to all the books, accounts, documents, papers and all other relevant records, securities, cash and other properties belonging to, or in the custody or control of the society; (b) he may summon any person in possession of or responsible for the custody of any such books, accounts, documents, papers, other records, securities, cash or other properties to produce the same at any place at the headquarters of the society or any branch thereof or, where there is no working office for a society, at the office of the Director of Cooperative Audit or at the office of any of his subordinate officers, as may be specified by him; and (c) such other powers as may be prescribed. (3) Every person who is or has been, at any time, an officer or employee of the society and every member and past member of the society, who is in possession of any information and records in regard to the transaction and working of the society, shall furnish such information in regard to the transactions and working of the society, as the director or the person authorised by the Government under sub-section (3) of S.63, may require. 69CB[(4) The financial statements and other statutory statements as required by auditors shall be prepared by the chief executive of the society within one month from the date of close of the financial year and submit it before managing committee and the fact shall be reported to the Director of Cooperative Audit or to the persons authorised by him in this behalf. (4A) It shall be the duty of the managing committee of every society to ensure the accuracy of financial and other statutory statements. It is the responsibility of the managing committee to submit the above statements for audit within 69H[fifteen days] from the date of receipt of the above statements before the auditor. Lapse on the part of managing committee in this regard will be considered as a disqualification to hold office and they shall cease to be a member of the committee as may be prescribed. In such cases to avoid administrative stalemate, the Registrar may suo motu or on application from the Director of Cooperative Audit or by any person authorised in this behalf, appoint an administrator or an administrative committee consisting of not more than three persons, 69I[who shall be from among the] members of the society, one among them as convener, to manage the affairs of the society, for a period not exceeding six months as may be specified in the order: Provided that administrator or administrative committee shall arrange for the constitution of a new committee, or for entering upon office of the new committee, as the case may be. (4B) Within 69J[forty five days] from the date of receipt of the audit report, the Director of Cooperative Audit shall issue an audit certificate to the concerned society with a copy of audit memorandum as may be prescribed.] 69CC[(5) The auditor 69K[or team of auditors] or auditing firms appointed as per Section 63 shall complete the audit within 69L[ninety days] from the date of receipt of the statements and submit audit report to the Director of Cooperative Audit or to the persons authorised by him in this behalf.] 69M[(5A) On completion of audit and before submission of audit report to the Director of Co-operative Audit, the auditor or audit team or audit firm, as the case may be, shall discuss the audit findings with the Managing Committee of the society concerned and get their reply in writing.] (6) The amount of fee 69D[or cost] for the audit of accounts of society for each year shall be such, as may be fixed by the Director of Cooperative Audit, in accordance with the rules made in this behalf. (7) The fee 69D[or cost] shall be paid by the society concerned within thirty days of intimation thereof and in case of non-payment of the fee 69D[or cost] within the period it shall be recoverable in the manner specified in S.79 69DA[or can be recovered from the account maintained in the financing bank by the society, through an order issued by the Registrar upon the request from the Director of Cooperative Audit] (8) The procedure for payment of the fee 69D[or cost] shall be such, as may be prescribed. 69N[(9) If the result of the audit held under this section discloses any defect in the working of the society, the Committee shall take steps to rectify the defects and irregularities pointed out in the audit report, if any, and place the audit report along with the action taken report before the general body meeting to be held every year and explain therein the said defects or the irregularities. The Committee shall continue to take steps for rectification of all the defects and the irregularities in the audit report and appraise the general body meetings every year till all the defects and the irregularities are rectified. The Committee shall send a report of action taken to the Director of Co-operative Audit and to the Registrar within fifteen days from the date of the general body meeting.] 69O[(9A) If the Director of Co-operative Audit or the person authorized by him to carry out the audit of a society is of the opinion that any person had attempted to destroy or to tamper with the records or documents so as to evade legal action on the mischief committed in the society, he shall report the matter to his controlling officer for filing a complaint to the Police or the Vigilance Officer in consultation with the Registrar or the person authorized by him, as the case may be.] (10) If the result of the audit held under S.63 discloses any serious defects in the working of the society, the Director of Cooperative Audit or the person authorised by him shall communicate the same forthwith to the Registrar for immediate further action. (11) The Director of Cooperative Audit may, by order in writing, direct the society or its officers to take such action, as may be specified in the order, within the time mentioned therein to rectify the defects disclosed in the audit, under intimation to the Registrar. 69E[(12) Notwithstanding anything contained in this Act it shall be the duty of the committee of a society,-- (a) to request the Director of Cooperative Audit to get its accounts audited every year by remitting the required fee or cost for audit in advance or as determined by the Director of Cooperative Audit and to get its books, accounts, financial statements and all other statements required by the auditor for audit, written up and completed and to submit them for audit through its Chief Executive, to the Director of Cooperative Audit or officer authorised by him for the purpose of audit within the time limit stipulated in sub-section (4), before a request for audit is made to the Director of Cooperative Audit; (b) to place the audit certificate in full before the general body or the representative general body and to read over to the general body or Representative General body of the defects mentioned in it and also to place the rectification reports of each defects before the general body or the Representative General body. (c) to rectify all the defects mentioned in the audit certificate and to submit the rectification reports on the defects mentioned in the audit certificate, to the Director of Cooperative Audit and to the Registrar within two months of the receipt of the audit certificate.] 69F[(13) Notwithstanding anything contained in this Act or the rules made thereunder or the bye-laws of a Regional Cooperative Milk Producers' Union and its apex society, Annual Performance Audit in Regional Cooperative Milk Producers' Union and its apex society shall be conducted for every financial year, in the prescribed manner, by engaging person/s from among the panel of experienced person/s in dairy industry, recommended by the apex society and approved by the Functional Registrar of Diary Cooperatives.] Substituted by Act 8 of 2013 for "the financial statement and other details required for the completion of audit shall be prepared by the society, within three months from the date of completion of the year and the fact shall be reported to the Director of Cooperative Audit or to the person authorised by him in this behalf" w.e.f. 14/02/2013. Substituted by Act 8 of 2013 for "The audit shall be commenced within one month from the date of receipt of the report under sub-section (4) by the Director of Cooperative Audit or the person authorised by him, as the case may be, and shall be completed within a period of nine months" w.e.f. 14/02/2013. Inserted by Act 7 of 2010 w.e.f. 28-04-2010. Added by Act 8 of 2013 w.e.f. 14-02-2013. Substituted by Act 7 of 2010 w.e.f. 28-04-2010. Added by Act 34 of 2021, (w.e.f. 12-02-2021). Added by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024). Substituted by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024). Prior to the Substitution it read as "one month" Substituted by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024). Prior to the Substitution it read as "who need not be" Substituted by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024). Prior to the Substitution it read as "three months" Inserted by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024). Substituted by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024). Prior to the Substitution it read as "four months" Inserted by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024). Inserted by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024). Added by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024).