Audit of a society
This query is : Resolved
27 September 2011
Dear Members,
Please guide me on the following query relating to the audit & accounts of a society;
1. Whether a society registered in UP during the month of February 2010 is to prepare its Financial Statements for the Year 2009-10 even if any financial transaction has not taken place ?
2. If yes, whether audit of those Financial Statements is compulsory under any Law(if not registered under Section 12A of the Income Tax Act, 1961 ?
3. Whether the Financial Statements are to be prepared for the Financial Year 2010-11 even if the income earned by the society is less than the minimum amount not chargeable to tax ?
Regards,
CA. Rahul Mishra
Please guide me on the following query relating to the audit & accounts of a society;
1. Whether a society registered in UP during the month of February 2010 is to prepare its Financial Statements for the Year 2009-10 even if any financial transaction has not taken place ?
2. If yes, whether audit of those Financial Statements is compulsory under any Law(if not registered under Section 12A of the Income Tax Act, 1961 ?
3. Whether the Financial Statements are to be prepared for the Financial Year 2010-11 even if the income earned by the society is less than the minimum amount not chargeable to tax ?
Regards,
CA. Rahul Mishra
29 September 2011
Sec 43(h) of central cooperative societies act states that state govt can frame rules regarding books and account to prepare.
For example Maharashtra housing societies requires to prepare general ledger, cash book, personal ledger, stock register, property register etc. The requirements regarding book and accounts resembles with sec 209 of companies act to far extent.
So In my opinion...
1. Yes, although preparation of FS is not possible, but proper books are required to be maintained.
2.Sec 17 of cooperative societies act 1912 sates that registrar shall audit or cause to be audited by some person authorized by him to audit at least once in a year.
3. Yes, no correlation with amount of Income earned.
Kindly let me know whether this solution has solved your query.
Regards,
CS Sumat Singhal
For example Maharashtra housing societies requires to prepare general ledger, cash book, personal ledger, stock register, property register etc. The requirements regarding book and accounts resembles with sec 209 of companies act to far extent.
So In my opinion...
1. Yes, although preparation of FS is not possible, but proper books are required to be maintained.
2.Sec 17 of cooperative societies act 1912 sates that registrar shall audit or cause to be audited by some person authorized by him to audit at least once in a year.
3. Yes, no correlation with amount of Income earned.
Kindly let me know whether this solution has solved your query.
Regards,
CS Sumat Singhal
Message likes :
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04 October 2011
Thanks Sumat for you reply,
But this society is not a co-operative society registered under Cooperative Societies Act 1912.
Its a society registered under the Societies Registration Act 1860.
As far as the Societies Registration Act 1860 is concerned, each and every state is having some amendments or additions to the basic sections provided in the actual act.
I am unable to find the exact wording of law regarding this situation or any law relating to this.
But this society is not a co-operative society registered under Cooperative Societies Act 1912.
Its a society registered under the Societies Registration Act 1860.
As far as the Societies Registration Act 1860 is concerned, each and every state is having some amendments or additions to the basic sections provided in the actual act.
I am unable to find the exact wording of law regarding this situation or any law relating to this.
06 October 2011
Sec 43(h) of central cooperative societies act states that state govt can frame rules regarding books and account to prepare.
For example Maharashtra housing societies requires to prepare general ledger, cash book, personal ledger, stock register, property register etc. The requirements regarding book and accounts resembles with sec 209 of companies act to far extent.
So In my opinion...
1. Yes, although preparation of FS is not possible, but proper books are required to be maintained.
2.Sec 17 of cooperative societies act 1912 sates that registrar shall audit or cause to be audited by some person authorized by him to audit at least once in a year.
3. Yes, no correlation with amount of Income earned.
So audit is mandatory in nature
For example Maharashtra housing societies requires to prepare general ledger, cash book, personal ledger, stock register, property register etc. The requirements regarding book and accounts resembles with sec 209 of companies act to far extent.
So In my opinion...
1. Yes, although preparation of FS is not possible, but proper books are required to be maintained.
2.Sec 17 of cooperative societies act 1912 sates that registrar shall audit or cause to be audited by some person authorized by him to audit at least once in a year.
3. Yes, no correlation with amount of Income earned.
So audit is mandatory in nature
08 October 2011
More views please..........
15 July 2024
Dear CA. Rahul Mishra,
Here are responses to your queries relating to the audit and accounts of a society registered in Uttar Pradesh:
1. **Financial Statements for the Year 2009-10**:
- Yes, even if no financial transactions have taken place during the year 2009-10, the society is required to prepare its financial statements for that period. Financial statements typically include a balance sheet, income statement, and cash flow statement, regardless of whether there are financial transactions. These statements reflect the financial position and performance of the society during the reporting period.
2. **Compulsory Audit of Financial Statements for 2009-10**:
- Generally, under the provisions of the Societies Registration Act and other relevant regulations, there is no explicit requirement for mandatory audit of financial statements for societies that are not registered under Section 12A of the Income Tax Act, 1961. However, it is advisable to check the specific regulations applicable in Uttar Pradesh or any guidelines issued by the Registrar of Societies. Even if not mandatory, conducting an audit can provide assurance on the accuracy and reliability of the financial statements.
3. **Financial Statements for the Year 2010-11**:
- Yes, the society should prepare financial statements for the financial year 2010-11, regardless of the amount of income earned. Financial statements are essential for providing a clear picture of the financial performance and position of the society during the year. These statements are important for internal management purposes and may also be required for statutory compliance or reporting to stakeholders.
### Recommendations:
- **Consultation**: It is advisable to consult with a local chartered accountant or legal advisor who is familiar with the specific laws and regulations governing societies in Uttar Pradesh. They can provide guidance tailored to the unique circumstances of the society and ensure compliance with all applicable requirements.
- **Documentation**: Maintain proper documentation of all financial transactions and decisions taken by the society, even if there are no financial transactions in a particular year. This helps in preparing accurate financial statements and facilitates audits if conducted voluntarily or as required by the members or stakeholders.
- **Compliance**: Ensure that all financial reporting obligations are met in a timely manner to avoid any penalties or legal consequences.
By following these guidelines and seeking appropriate professional advice, the society can fulfill its financial reporting obligations effectively.
Best regards,
Here are responses to your queries relating to the audit and accounts of a society registered in Uttar Pradesh:
1. **Financial Statements for the Year 2009-10**:
- Yes, even if no financial transactions have taken place during the year 2009-10, the society is required to prepare its financial statements for that period. Financial statements typically include a balance sheet, income statement, and cash flow statement, regardless of whether there are financial transactions. These statements reflect the financial position and performance of the society during the reporting period.
2. **Compulsory Audit of Financial Statements for 2009-10**:
- Generally, under the provisions of the Societies Registration Act and other relevant regulations, there is no explicit requirement for mandatory audit of financial statements for societies that are not registered under Section 12A of the Income Tax Act, 1961. However, it is advisable to check the specific regulations applicable in Uttar Pradesh or any guidelines issued by the Registrar of Societies. Even if not mandatory, conducting an audit can provide assurance on the accuracy and reliability of the financial statements.
3. **Financial Statements for the Year 2010-11**:
- Yes, the society should prepare financial statements for the financial year 2010-11, regardless of the amount of income earned. Financial statements are essential for providing a clear picture of the financial performance and position of the society during the year. These statements are important for internal management purposes and may also be required for statutory compliance or reporting to stakeholders.
### Recommendations:
- **Consultation**: It is advisable to consult with a local chartered accountant or legal advisor who is familiar with the specific laws and regulations governing societies in Uttar Pradesh. They can provide guidance tailored to the unique circumstances of the society and ensure compliance with all applicable requirements.
- **Documentation**: Maintain proper documentation of all financial transactions and decisions taken by the society, even if there are no financial transactions in a particular year. This helps in preparing accurate financial statements and facilitates audits if conducted voluntarily or as required by the members or stakeholders.
- **Compliance**: Ensure that all financial reporting obligations are met in a timely manner to avoid any penalties or legal consequences.
By following these guidelines and seeking appropriate professional advice, the society can fulfill its financial reporting obligations effectively.
Best regards,
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