MAHATMA EDUCATION SOCIETYS PILLAI COLLEGE OF ARTS, COMMERCE AND SCIENCE NEW PANVEL

RE- ACCREDITED BY NAAC WITH A GRADE

A PROJECT ON

Audit and Financial Statements of co-operative Housing Society

In the subject Advanced Financial Accounting SUBMITTED TO

UNIVERSITY OF MUMBAI FOR SEMESER II OF MASTER OF COMMERCE BY MR. VISHAL ASHOKRAO KADAM ROLL NO. : 3734 UNDER THE GUIDANCE OF Prof. Farhat Shaikh

YEAR: 2013-14

MAHATMA EDUCATION SOCIETYS PILLAI COLLEGE OF ARTS, COMMERCE AND SCIENCE NEW PANVEL
RE- ACCREDITED BY NAAC WITH A GRADE

Dr. K. M. Vasudevan Pillai Campus, Sector 16, New Panvel 410 206

DECLARATION BY THE STUDENT

I, Mr. Vishal Ashokrao Kadam student of M. Com. Part I, Roll No. 3734 hereby declare that the Paper Advanced Financial Accounting titled, Audit and financial statements of co-operative Housing society submitted by me for Semester II during the academic year 2013-14, is based on actual work carried out by me under the guidance and supervision of Prof. Farhat Shaikh. I further state that this work is original and not submitted anywhere else for any examination.

Signature of Student

Tel.: 27482133/27456030

website: www.pcacs.ac.in

MAHATMA EDUCATION SOCIETYS PILLAI COLLEGE OF ARTS, COMMERCE AND SCIENCE NEW PANVEL
RE- ACCREDITED BY NAAC WITH A GRADE

Dr. K. M. Vasudevan Pillai Campus, Sector 16, New Panvel 410 206

EVALUATION CERTIFICATE

This is to certify that the undersigned has assessed and evaluated the project on Audit and Financial statements of Co-operative Housing society in the subject Advanced Financial Accounting submitted by Mr. VISHAL ASHOKRAO KADAM student of M. COM. Part I. This project is original to the best of our knowledge and has been accepted for internal assessment.

Internal Examiner Prof. Farhat sheikh

External Examiner

Principal Dr.Daphne Pillai

PILLAI COLLEGE OF ARTS, COMMERCE AND SCIENCE Internal Assessment: Project 40 Marks
Name of the Student First Name : VISHAL Fathers Name : ASHOKRAO Surname : KADAM Class Roll Number

M COM PART I

3734

Subject: Advanced Financial Accounting Topic for the Project: Audit and financial statements of Co-operative Housing
society

Marks Awarded DOCUMENTATION Internal Examiner (Out of 10 Marks) External Examiner (Out of 10 Marks)

Signature

Presentation (Out of 10 Marks)

Viva and Interaction (Out of 10 Marks)

TOTAL MARKS (Out of 40)

CHAPTER SCHEME

Chapter No.

Topic

Page No. 6

Introduction : Meaning 1. 2. 3. 4. 5. 6. CHS Rules under Cooperative Societies Act, 1960 Receipts and Payment Account Income and Expenditure Account Balancesheet Conclusion

11

23 24 25 26

Chapter 1 : INTRODUCTION
Co-operative societies have been established in India as a democratic form of business organization. The co-operative sector has witnessed a tremendous growth especially after independence and today it occupies an important position in numerous economic activities of the Indian economy. Co-operative societies are formed particularly by those people who have modest means with them. These co-operative societies enable such people to conduct an economic activity for their mutual benefits. Today, co-operative societies are established in numerous economic activities such as : Farming, Credit, Banking, Consumer Co-operatives, Marketing, Housing, etc. Maharashtra is considered as a most progressive state in the development of co-operative societies. The accounting procedures and final accounts formats differ from states to states as each state in India has its own co-operative act. In the state of Maharashtra, co-operatives are govern by the The Maharashtra co-operative societies Act, 1960 and Maharashtra cooperative societies Rules, 1961 formulated under it.

Meaning:
Co-operative housing is an arrangement in which an association or corporation owns a group of housing units and the common areas for the use of all the residents. The individual participants own a share in the co-operative which entitles them to occupy an apartment (or town house) as if they were owners, to have equal access to the common areas, and to vote for members of the Board of Directors which manages the cooperative. In a cooperative there are often restrictions on transfer of shares such as giving priority to other members, limits on income or maximum sales price. Housing co-operative is a legal mechanism for ownership of housing where residents either own shares reflecting their equity in the co- operative's real estate, or have membership and occupancy rights in a not-for-profit co-operative and they underwrite their housing through paying subscriptions or rent.

Definitions:
Under Section 2(27) of the MCS Act, Society means a co-operative society registered or deemed to be registered under this act. Co-operative society is corporate body distinct from its members. Section 167 of Co-operative Societies Act state that provisions of Companies Act are not applicable to co-operative societies. Section 2(16) of the act was amended in 1986 to widen the scope and clearly define the term Housing Society. Under the amended definition the Housing Society also includes society which provides open plots to members for housing and where the open plot or dwelling houses or flats are already acquired, the society which provides its members the common amenities and services. A cooperative is defined as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

Classification:
Section 2(16) and Rule 10 require the Registrar to classify a Registered Housing Society into either (1) Tenant ownership or (2) Tenant co- partnership or (3) Others. These classifications have material bearing on the balance sheet of Housing Society.

Objectives:
The object of co-operative housing society is not to carry on business for profit. Thus, unlike the co-operative consumers store, a housing society does not prepare Trading and Profit and Loss Account but it prepares Income and Expenditure Account to find out whether its income sufficient to meet with its expenditure or not.

Books of Accounts and Records:

According to Rule No. 65, every society shall keep certain books of accounts. Further, a Co-operative Housing Society has to maintain 1. 2. 3. 4. Register & Ledger of Loan of Maharashtra Housing Finance Society. Dead Stock Register. Contractor and Engineers Account. A Pass Book to be given to the members showing all his transactions with the society.

Advantages:
1. Easy Formation :
The formation of co-operative society is very easy. The formation for registration is simple and formation expenses are also normal. The registration of a society is not compulsory but it desirable to have its registration.

2. Equal Rights :
All members of co-operative society enjoy equal right of vote and ownership. Each shareholder has only one vote in the management of co-operative societies.

3. Financial Assistance :
These societies also provide financial assistance to its members. In case of house building co-operatives housing society provides loan for the purchase of inputs.

4. Friendly Relations :
A co-operative society is a mean of developing friendly relations among the members. A society provides a platform for the introduction of members with each other.

5. Improves the Standard of Living :

Such societies provide the goods and services to the members of the society at low prices. Due to this, the purchasing power of the people increases and their standard of living improves.

6. No Monopoly :
A start of the society is the end of monopoly. The monopoly eliminates the competition and controls the market and prices. The society tries to restore competition and to eliminate control over market and prices.

7. Mutual Co-operation :
It is worthwhile to mention here that co-operative society is very useful for creating the spirit of friendship and brotherhood among the members. Cooperative society is the basic need of human being in modern era.

8. Saving in Expenditure :
In co-operative societies, most of offices bearers work voluntarily. So, there are no heavy expenditures on management. It also reduces the cost of production.

Disadvantages:

1. Lack of Capital :
Generally the members of co-operative societies are related to poor group and they cannot provide the capital on large scale. External financial resources are also limited. So, co-operative society faces the shortage of capital, which is a handicap to their development.

2. Untrained Supervision :
The government has sufficient control over the movement of these societies. These societies cannot prosper because the staff appointed for supervision is mostly untrained.

3. Defective Organization :
The organization of co-operative societies is defective and these cannot operate efficiently to fulfill their objectives.

4.

Illiterate and Ignorant : In our country, the villagers are generally illiterate and ignorant. So, they are not familiar with the basic concept of the co-operative societies. Lack of Experience : The members of societies have less experience of business. Due to lack of capital, they cannot hire the services of experts.

5.

6.

Lack of Discipline : Every member of the co-operative society considers himself as the owner of the business. Due to lack of discipline, business suffers a loss. Lack of Sincere Management : It is our common observation that the management of society remains in the hands of selfish and dishonest persons or members who obtains undue advantage from their powers. So, business suffers a loss. Lack of Knowledge : The members of co-operative society do not know the principles and rules of society. So, they create great problem for society. Lack of Unity : In the absence of proper education and training, it is useless to think about unity. The lack of unity leads towards the destruction of the business.

7.

8.

9.

Co-operative Housing society (CHS) rules under Co-operative Societies Act, 1960
How much non-occupancy charges can be taken from flats vacant or given on lease? Co-operative housing societies registered under the Act cannot charge non occupancy charges beyond 10% of the service charges (excluding municipal taxes), as per Government Order dated 1/8/2001 issued in public interest under Section 79A of the MCS Act, for flats given out on rent. Exemption from the payment of non-occupancy charges will not be applicable to the near relations like son-in-law, brother-in-law (sister's husband), sisterin-law (wife's sister) and sister-in-law's (wife's sister) husband and the same exemption shall be applicable only to the members of the family, including a married daughter and grand children. Non-occupancy charges of 10% will also be applicable to the paying guest, as per GR SAGRUVA- 2010/PRA.KRA-173/14S. Basics of Associate members The person whose name stands second in the share certificate i.e. an associate member will have a right to vote provided that the original member i.e. person whose name stands first in the share certificate is absent at the Annual or Special General Meeting, as per amendment to Section 27(2) of the MCS Act 1960. But the member whose name stands first in the share certificate, should be required to surrender his voting right in writing to the society. The Associate member has to fill up a form and pay Rs 100 to the society. The society should prepare before the election an eligible final list of voting members. An Associate member cannot contest elections (Sec 79A of MCS Act). No associate member has any property rights over flat held by the member to whom he is an associate member. It is the nominee of the First member who claims right over the shares and the interest in the flat on death of the original member (i.e. the member whose name stands first in the Share Certificate) and on admission of the nominee to membership of the society, it is further clarified that an associate member has no right over the shares and interest in the property of the society and when the original member dies his associate member automatically ceases to be an associate member. Nominees Nominee is merely a trustee. He does not get ownership rights in the property till the member is alive. Member is advised to make a will. Subject to the provision of the Section 30 of MCS Act 1960 by sub rule No. 34, 17(A) or 19, in the event of death of the member, nominee/ nominees shall submit the application within 6 months for membership. If there are more than one nominee on the death of a member, such nominee shall make joint application to the society and indicate the name of the nominee who should be enrolled as member. The other nominees shall be enrolled as its Associate member unless the nominees indicate otherwise.

The nominees shall also file an Indemnity bond in the prescribed form indemnifying the society against any claims made to the shares and interest of the deceased member in the property of the society by any of them. The society shall then transfer the shares of the deceased member in the property of the society to the nominees. As per the new bye-laws, cost of any legal action between society member and their family in which the society is made a party, can be recovered from the respective member. Procedure where no Nomination is done by member in society 1. Bye law No. 35 provides that where a member of the society dies without making a nomination or no nomination comes forward for transfer, the society after knowing this shall display such a notice in the prescribed form exhibited on the notice board of the society. It shall also publish such notice in at least two local newspapers having wide circulation, inviting claims regarding property or objections of deceased member through this notice. 2. The Managing Committee by considering the claims received after the notice should select the legitimate representative of the deceased member as per provisions of the bye laws No. 17(a) and 19. Provided that he gives indemnity bond along with his application for membership in the prescribed form indemnifying the society against any claims made to the share and interest of the deceased member in the capital property of the society at any time in future by any person above taking and the society could approve the membership. 3. If there is not one such person and there are more than one person then such nominees shall make a joint application to the society. Society should give first person membership and to others co-membership. Such person should not be owner by this transfer. He should be a trustee. The society should make aware of this fact to them. 4. Society should also make aware to them that legal heirship certificate from the competent court regarding ownership of the property is essential. 5. However, if there is no consensus among the person came forward after this notice the society can inform to all such members claiming heirship that they should bring legal heirship certificate from the competent legal machinery and then only membership will be transferred. Other membership issues A member may have multiple flats or a flat and a shop. For each flat, member will get separate share certificate. SUPREME COURT opines in the case of Veena Kumari Tandon vs Neelam Bhalla and Others. Civil Appeal No. 5130 OF 2007 (Arising out of SLP (C) No. 525 of 2005). ONE FLAT ONE VOTE AND NOT ONE MEMBER ONE VOTE. It is binding to make provisions in the rules of the Company, to make provision for making available of residential places for their employees. It is compulsory for the company to take the membership of the society. The management committee shall consist of not more than one fourth members of the firms and companies and the remaining shall be from the individual members and such provision shall be made in the bye-laws of the society. No animal, birds should be kept in the flat of the society without prior permission of the society and local authority. The society should make code as per the provisions in the law regarding pet animals by making resolution in the general body meeting.

Commercial usage The member can use his flat for the purpose of dispensary, consulting room, nursing home, flour mill, coaching classes, cradle home, beauty parlour etc. as per the bye-law No. 3. However, it is obligatory on him to obey the code of conduct if made by the general body meeting in such a way that there would be no nuisance to other members in the society by this profession. Commercial usage in no way violates provisions of change of user and is not a breach of model bye-laws. Presently rules allow 20% commercial usage in residential units. (Supreme Court V Sasidharan v/s Peter and Karunakar and ors) and (Supreme Court Dev Brat Sharma v/s Dr Jagjit Mehta CA No 4216 of 1988).

Repairs and Illegal construction If member wants to do internal structural changes in his flat, he has to obtain approval from Municipal Corporation and a society NOC. If such changes were made without the prior permission of the society, then the society can take action under the Bye-law No. 166 of the model Bye-laws and similarly can make complaint to the local authority in this regard. Having regard to the recent building crashes, a specific provision has been made that if a member changes the usage of the premises and carries out unauthorized construction without permission of the society as well as of the competent authority, then he can be expelled.

Whose responsibility is leakage? Terrace repairs and other relevant external leakages are the responsibility of the Society (Bombay High Court Writ Petition No. 7231 of 2002 delivered on 28/06/2006) and Section 160 of Model Bye-laws. Old Bye-laws stipulated that internal leakage as well as external leakage of the premises was the responsibility of society. However, in the new Bye-Laws it is specifically mentioned that internal leakage will be the responsibility of the member. If the resident above and/ or society is not co-operating to solve the internal leakage problem, you can complaint to local BMC ward office. BMC has the power to inspect and then issue a notice to the resident staying above, under section 381 of the BMC Act. If the member or the society still does not act, then there are several district court orders (Vile Parle district court order on Prashant Trivedi v/s Bansi CHS, as reported by DNA newspaper on 22/1/2011) also in such matters of internal flat leakage. Other solutions for solving internal flat leakage problem:

File police complaint.

Mandatory injunction against him/her for carrying out the repairs to the seepage or file a civil suit for injunction and obtain stay order restraining that resident from using the area which is the cause for the seepage For quick response file a petition u/s 133 crpc in the court of local 2nd Class Magistrate. Criminal cases can also be filed against him/her with charges of criminal intimidation and verbal abuses/insult. To prevent water leakages:

Do not throw hair clumps or threads or matchsticks or chewing gum or band-aids or diapers or sanitary pads or plastic carry bags or leftover foods or ear buds into the drain. It tangles, and clogs the drainage system, potentially leading to leakage or seepage in drainage pipes. Only toilet paper can be easily flushed out. Do not poke the drainage pipe with a sharp object like screw driver to remove blockage. It may cause leakage to the lower floors. Do not use a strong acid to clean the drains at it may damage the plumbing sealings leading to leakage Educate your children and maid to follow the above instructions

Transfer fees/ Donation on transfer of Flat The Co-operative Court has held that the co-operative society can place reasonable restrictions on transfer of a flat to prevent nuisance from unwanted element but that does not mean that the society can have such a right of profiteering out of the co-operative movement. Transfer fee of Rs. 25000/- maximum is allowed. Even though there is no necessity of society No objection certificate for transfer of flat, according to rule 24 of the Rule 1961, he has to give 15 days notice to society before transferring of flat. On receipt of such notice, the Secretary should place the same before the meeting of the committee and take decision thereof before 30 days and inform such decision to the member within 8 days from the decision of society. If Society has not taken any decision of transferring the share certificate within the 3 months stipulated period as per provision in Section 22(2) there is a provision to appeal before the Register u/s 23(2). Donations under Model bye Laws 2001 have been expressly prohibited. Societies having bye laws as per earlier Model Bye Laws can accept donation given voluntarily. Parking basics and Garages There are 3 types of parking spaces viz. Closed garages; stilt parking and Open parking spaces. As per MOFA Act, the definition of a flat includes closed garage, but does not include an open car parking space. An enclosed garage is not the same as a stilt parking slot. Stilt portion is not charged to property tax whereas garage which is closed on all the four sides is charged to property tax.

Parking space (stilt or open) availability is as decided by Layout (LOP) plan approved by BMC and also as dictated by DC Rules and Fire Safety Act. As per Supreme Court order; Bombay High Court and Maharashtra State Consumer Disputes Redressal Commission judgements, no builder can sell such common parking space (open or stilts) separately. Such common parking space can be allocated by the housing society committee on 'First-comefirst-served' basis or on rotation or as decided by the AGM. No 'deposit' can be collected by the managing committee for such common parking space. Just because one member has paid money to the builder for car parking space that does not mean that the said member is entitled to the said parking space. Court judgments are crystal clear on the same. Even if a member has not paid for car parking space he is entitled to park his vehicle in the building premises, based on resolution passed by the AGM. Parking facilities have to be given to members having shops on ground floor. Visitors also have a right to park their vehicles in the building premises. 10% of the total parking space has to be reserved for visitors as per Table 15 (and Regulation 36) of the Development Control Rules. As per sub regulation (18) of Regulation 38 of the Development Control Rules, the size of a clearly marked parking space should be 2.5m x 5.5m. The size of scooter, motorcycle parking must be 2 sq. m.

Can members see each documents and transactions of the society? Maharashtra Co-operative Societies Act (1960), Section 32 states that any registered member cannot be denied right to see how the society is functioning. If the society is not co-operating, then the member can make an application to Chairman/ Secretary u/s 32 of the MCS Act, to inspect the required information, with prior permission, in the society office during office hours. Your society is bound to give you the required information within 30 days of the application on payment of legitimate charges prescribed in the bye-law, at Rs. 5/- per page. It is IMPORTANT to use polite language, and avoid accusations, references to previous incidents. In your application you may mention:- Under section 164 of MCS Act 1960, No suit shall be instituted against a society, or any of its officers, in respect of any act touching the business of the society, until the expiration of two months next after notice in writing has been delivered to the Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left. With luck, this notice may itself subdue the managing committee, causing them to give you the necessary documents. Can one make an RTI application? Cooperative Housing Societies are not directly under Right to Information (RTI) Act 2005. But they are indirectly covered, through the office of Deputy Registrar u/s 2(f), which entitles you to information relating to any private body which can be accessed by a public authority under any other law for the time being in force. The Deputy Registrar has to provide the said

information, after getting it from your Society, using his powers u/s 77 & 78 of the MCS Act. But if the desired information is not provided within 30 days, you can invoke the mechanism of First Appellate Authority under RTI Act Sec 19(1).

New Bye-Laws for Co-operative Housing Society in Maharashtra Some Key Point with ByeLaws No. Bye-laws & Promoter 3. (ii) Bye-laws' means bye-laws consistent with Act and registered under this Act for the time being in force and includes registered amendments of such bye-laws. (xiii) "Promoter Builder" means a person and includes a partnership firm or a body or association of person, [whether registered or not] who constructs or causes to be constructed a block or building of flats [or apartments] for the purpose of selling some or all of them to other persons, or to a company, Co-operative Society or other association of persons, and includes his assignees; and where the person who builds and the person who sells are different persons, the term includes both Professional Management 3 (xxix) Authorized Person means a person duly authorized to take action under the provisions of this Act. (xxx) State Co-operative Election Authority means an authority constituted or nominated by the State Government for the purposes of superintendence, direction, andcontrol of the preparation of the electoral roll for and conduct of the elections of committee of a society or such class of societies as may be notated. (xxxi) Expert director means and includes a person having experience in the field of Housing and the field relating to the objects and activities undertaken by the society. (xxxii) Functional director means and includes a Chief Executive Officer or Manager or by whatever designation called, nominated by a committee and who is available for wholetime to look after the working of the society and discharge the duties and functions as may be assigned to him by the committee. (xxxiii) Officer means a person elected or appointed by a society to any office of such society and includes any office bearer such as a chairman, vice-chairman, chairperson, secretary, treasurer, manager, member of the committee and any other person elected or appointed to give directions in regard to the business of such society. Objects

5 (a) To promote peaceful co-habitation amongst the members on the Co-operative Principles and ensure Voluntary formation, Democratic Member Control, Member Economic Participation and Autonomous Functioning. (b) To provide co-operative education and training to develop co-operative skills to its members, committee members, officers and employees of the society. (c) To initiate Redevelopment of the building as per the norms of the authority.

(e) To provide co-operative education and training to develop co-operative skills to its members, committee members, officers and employees of the society.

Creation of Funds 7. The funds of the society may be raised in one or more Modes of raising of the following ways: the funds of the society (i) by and for Election Fund. (E) Creation of Other Funds (d) To create Education and Training Fund from the Members as contribution of Rs 10 per month / per unit or as decided by the General Body. Active Member 22. (B) (1) A member shall be called as 'Active Member' if:a. He has purchased and owns the Flat I Unit in the Society.

b. He has attended at least One General Body Meeting within a consecutive period of Five years. c. He has at least paid the amount equivalent to one year of society Maintenance and Service charges, within a consecutive period of Five years. Non-Active Member 22 (B) A member who is not an 'Active Member' shall be the 'non-Active Member'. (2) Society shall classify the members as 'Active' or Non-Active' member at the close of every financial year. (3) Society shall communicate to every Non-Active member about his classification, within a period of 30 days from 31st March of every year as prescribed under these By-laws as per Appendix - (4) lf a question, of a member being Active or Non-Active arises, an appeal shall lie tot he Registrar within a period of 60 days from the date of communication of such classification.

(5) The ' Non-Active' member can be reclassified as 'Active member' if he satisfies the conditions laid down under Byelaw no. 22(B)(1). Access to Documents Inspection of Books and Records Getting Copy of the Bye-laws (a) A member shall have right to inspect free of cost books, registers documents etc. as provided in Section 32 (1) of the Act and get copies of the documents on payment of the
fees prescribed under the bye-law No. 172.

172. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Certified copy of the approved Bye-laws of the Society Rs. 5/- per page. Amendment of the bye-laws of the society Rs. 5/- per page. Last audited Balance Sheet of the Society Rs. 10/- per page. Application for membership of the Society Rs.25/Second and Subsequent Nomination by the member of the Society Rs.50/Share Certificate of the Society (Dup|icate) Rs. 100/List of members of the Society Rs. 10/- per page. Correspondence (related to member) Rs. 10/- per page. Minutes of the general body meetings and committee Meetings Rs. 10/- per page. Indemnity Bond Rs. 20/Copy of Audit Report, Annual Returns and Periodicals -- Rs 10/- per page. List of Non-Active members -- Rs 5/- per page. Any other document as per section 32 of the Act -- Rs. 5/- per page.

Annual General Meeting 96. The annual general body meeting of the Society shall transact the following business:

(x)

To receive from committee the Audit Rectification Report and Action taken thereon.

(xi) To appoint the Grievance settlement and Redressal Committee as provided in Byelaw No. 173. Election

116. (a) Election of all the members of the Committee shall be held once in 5 years, before expiry of its term, in accordance with the provisions of Sec 73- CB of the Act and the Rules / procedure framed there under. It shall be the duty of the committee to intimate to the State Election Authority for holding of its election before expiry of its term. On failure, the committee members shall cease to hold office after expiry of its term and attract action by the Registrar under section 77 A. (b) The Committee of the society may co-opt Two "expert directors" relating to the objects and activities under taken by the society. The number of such co-opted members shall not exceed two in addition to the strength of the committee as provided in bye-laws No. 115., Such co-opted members shall not have the right to vote in any election of the society in their capacity as such member or to be eligible to be elected as office bearers of the committee. (c) The Committee of the society may co-opt Two "functional directors", such members shall be excluded for the purposes of counting the total numbers of the committee and shall have no right to vote.

Last date fixed by commissioner of Co-operation M.S. For Amendment of you Old byelaws to new bye-laws is 30/04/2013 for that you have to call Special General Meeting for Discussion.

My CONCLUSION:

Still Commissioner of Co-operation M.S. Pune do not final the following 1. Draft the format of ANNEXURE of Active Member & other ANNEXURE. 2.Do not final the who is the member of State Election Committee & their charges and work scope. 3. Do not final the ELECTION RULES 4.Do not approve the draft copy of the bye-laws upload on his website and give the Different Housing Federation permission to print this bye-laws and ask them to provide to the Housing Society. 5. Administrator is remove but Dy. Register appoint Authorized Officer/Person" this is same as Administrator So Dont blindly call the SAGM for Amend your CHS Bye-laws approve. First let the byelaws approved print from Commissioner of C.S. Come in the Federation .Let Federation print that bye-laws then read the bye-laws understand it properly and then approved it. Many Dy. Register of C.S. Send the letter through auditor and force the Society to amend the byelaws There are chance to 20 to 30 % change in the Draft copy upload in the Commissioner of Co-operative Society.

AUDIT REPORT
(Maharashtra State Co-operative Act, 1960 Section No. 81 (5-B) and Rules 69)

I have examined the attached Balance-Sheet as 31st March 2013 and the Income and Expenditure Accounts for Financial Year 01.04.2012 to 31.03.2013 of the PRESTIGE GARDEN CO. OP. HOUSING SOCIETY LTD., PANVEL and report that :1. We have obtained all the information and explanation which the best of our knowledge and belief were necessary for the purpose of our audit. 2. In our opinion, proper books of accounts as required under the MCS Act, Rules and Bye-Laws of the society has been kept by Society. 3. In our opinion and the best of our information and according to the explanation given to us. (a) The accounts subjects to and read with the statement of General Remarks there on stated in Part I and Part II attached here which gives information required under the Maharashtra Co-operative Societies Act and presents true and fair view of financial transaction of the Society. (b) The Balance Sheet and Income and Expenditure Account are in agreement with the books of accounts and the said Balance-Sheet gives true and fair view of state of affairs of the society as on 31st March 2013 and the Income and Expenditure Accounts gives true and fair view of the Surplus/Deficit for the period ended on that dates.

Place : Panvel. Date : 15.09.2013

As per our report on the same date --sd/-(DESHMUKH) Certified Auditor Panel No. RGD/GDC/20

Details of the Housing Society :

Name of the Society :- PRESTIGE GARDEN CO-OP. HOUSING SOCIETY LTD., PANVEL Full registered Address :- B/3 & B/4, Survey No. 19, Vrindavan Complex, old Panvel, Tal.- Panvel. :- Panvel. :- Raigad. :- BOM/CIDCO/HSG(OH)/1500/JTR/Yr.2003-04 :- 12/08/1999. :- B/3 & B/4, Survey No. 19, Vrindavan Complex, old Tal.- Panvel. Audit Classification :- B :DESHMUKH Govt. Certified Auditor, Co-operative Societies, Panel no. RGD/GDC/20 01-04-2012 to 31-03-2013. 23.

Taluka or Block District Registration Number Date of Registration Area of Operation panvel,

Full name, designation and Head Quarter of auditing officer

Period covered during the present audit :No. of members :-

PRESTIGE GARDEN Co Op Housing Society Ltd., PANVEL Receipt & Payment Account for the Period 01.04.2012 to 31 .03.2013
Receipt Opening Cash Balance Opening Bank Balance R.D.C.C. Bank Amount Payment 169 Fixed Deposit Receipt Maintenance & Repairs 9,007 Water Bill Electric Bill Salary 1,12,500 Accounting and Audit Fees 60,090 Stationery and x-erox 24,312 Bonus 55,400 Bank Charges 5,882 Postage and Courier 5,000 4,828 3,416 1,400 Closing Cash Balance 1,500 Closing Bank Balance 1,584 R.D.C.C. Bank 2,80,088 TOTAL Amount 1,15,000 35,240 45,320 34,160 8,600 3,300 579 500 462 40

Conveyance Deed Service Charge Sinking Fund Water Charge Member Interest Transfer Premium Parking Charge Non- Occupancy Charge Entrance Fee Other Income Bank Interest TOTAL

391 36,496 2,80,088

PRESTIGE GARDEN Co Op Housing Society Ltd., PANVEL Income and Expenditure Account for the Period 01.04.2012 to 31.03.2013

Expenditure Maintenance & Repair Water Bill Electric Bill Salary Accounting and Audit Fees Stationery and x-erox Bonus Bank Charges Postage and Courier Depreciation : Dead Stock Motor Pump Surplus

Amount 35,240 45,320 34,160 8,600 3,300 579 500 462 40

Income Service Charge Recovery in Yr. 60,090 (-) O/s Last Yr. 23,655 (-) Adv. Recovery 555 35,880 (+) O/s Current Yr. 34,022

Amount 69,902

Water Charges Member Interest Parking Charge 847 Non- Occupancy Charge 1,853 Other Income Bank Interest 11,611

55,400 5,882 4,828 3,416 1,500 1,584

TOTAL

1,42,512

TOTAL

1,42,512

PRESTIGE GARDEN Co Op Housing Society Ltd., PANVEL Balance Sheet as on 31st March 2013

Liabilities Authorized Capital Paid up Share Capital Reserve and other fund Reserve Fund 38,300 (+)Entrance Fees 1,400 Sinking Fund As on 31.03.2011 2,22,321 (+) Recovery in Yr. 24,312 2,43,633 (-) Utilized Fund deducted from deficit 99,365 Members Contribution Compound Wall Contribution Member Advance Conveyance Deed Contribution recovery in Yr. 1,12,500 (+) O/s Dues 7,500 Current Liabilities & Provisions Member Deposit TOTAL

Amount Assets 6,000 Cash and Bank Balance Cash in Hand 5,750 Cash at R.D.C.C. Bank 39,700 Investment and Deposit Fixed Deposit Receipt Current Assets, Loans & Adv. 1,47,268 O/s Dues receivable from members/Non-members O/s Conveyance Deed Con. Fixed Assets Dead Stock (-) Depreciation 1,12,000 555 Motor Pump 1,20,000 (-) Depreciation Compound Wall Exp

Amount 391 36,496

1,15,000

34,022 7,500

7,627 8,474 847 16,800 18,653 1,853 2,08,000 -------

Income & Expenditure A/c Deficit Bal. 1,10,976 563 (-) Surplus in Yr. 11,611 (-)Transfer from Sinking Fund 99,365

4,25,836

TOTAL

4,25,836

CONCLUSION Several cooperative housing societies regularly ignore many bylaws and rules that affect their proper and transparent administration procedures. This could be either plain ignorance or intentional, to create some problems. In such situations, it is the duty of the members of the society to point out the erring ways of the officials of the society. Very often, members are not aware of the society's faux pas. Listed below are some rules that members should be aware of: The deputy registrar/assistant registrar can grant permission until 14/11 of a current year, to hold the annual general meeting (AGM) for a CHS. After 14/11, such a meeting should be convened by an officer appointed by the deputy registrar/assistant registrar. If the AGM is not called for a number of years, the office bearers and committee members can be disqualified by the registrar not only for the current accounting year but for one full term, for ignoring the obligatory duties. One of the basic principles of membership of a CHS is the open membership. It is open to all caste and communities without any discrimination, or else it will be discriminatory or arbitrary and thus, violate article 14 of the constitution of India. An adopted child is deemed to be the natural child of the adoptive parents and is entitled to all the rights, as if he or she were a real child. Such a child is liable for all the obligations of a natural child. S/he has the right to inherit property as per the Hindu law governed by the Hindu Adoption and Maintenance Act, 1956. A nominee as a minor can be admitted as a member of the society, only through his guardian or legal representative. The guardian or legal representative should make an application for membership, for and on behalf of the minor. No member without the previous permission of the committee in writing shall stock/store any kind of goods or materials, which are obnoxious or combustible and require previous permission of the committee. Every lift in Maharashtra needs to be inspected at least once in six months, by an officer authorized by the state government as per Bombay Lifts Act, 1939. Interest earned by the society is liable to income tax, as it is not covered by the principle of mutuality. A tenant cannot assign tenancy rights in a document styled as a will. A member may be expelled as the member of the society, if such a member has willfully deceived the CHS, by giving false information or if s/he is persistent defaulter or has used his/her flat for immoral or illegal purposes habitually, or has been in the habit of breaching the provisions of the society bylaws, which in the opinion of the committee are of a serious nature.