Wednesday, 18 January 2017

Directive from Asst. Commissioner Social Welfare Mumbai to Society
Office-bearers to behave properly with handicapped persons.


Thursday, 5 January 2017

Recent changes in Maharashtra Co-op Society Act on December 26, 2016

Following are some of the important changes done in the MCS Act, 1960 and also in the Model Bye-laws of Cooperative Housing societies.
Condition for membership- Applicant to take 10 shares of Rs.50 each as against 5 shares. Bye law No.22 on rights of membership talks about the right to receive the notice of demand from society if there is increase in minimum contribution of member in share capital.
*Classification of Active and Non-Active members*.Associate member definition- ownership in the property individually or jointly with others is must and whose name does not stand first in the share certificate.Co-operative .
Education and training to members, committee members ,officers and employees. Education and Training fund of Rs.10 per member per month to be collected as against Rs.3 per member per annum.
*Sinking fund can be utilized by the society and no permission of the Registrar is needed-General body permission however, is must. 
NOC of society for transfer of flat or property is not required.However, Rule 24 and Bye law No.38 on transfer of shares and interest wants the transferring member to give 15 days notice to the society of his intention to do so along with the consent of the transferee member.
*Elections of management committee must be notified six months in advance and to be held under the supervision of the newly constituted State Co-operative Election Authority (SCEA).-Sec.73CB Casual vacancy in management committee to be informed to Election Authority and co-option is not allowed. Disqualification of committee and its members- Sec.77-A & 78 Strength of Management committee and Reservation of seats for Women and for members of SC,ST & OBC category with Expert and Functional Directors appointment possible subject to conditions.
- Sec.73AAA & bye law No.113 *Last date for conducting AGM is 30th Sept.as against 14th August* .Appointment of Auditors ,their Remuneration, Rights and Responsibilites ,removal etc.-Auditor should be a panel auditor and Maximum appointment for consecutive three years and maximum 20 audits excluding for societies with paid capital of less than Rs.1 lac.-Additional responsibility to file FIR if misappropriation of money is noticed –Special & Specific Reports to be filed with Registerar- 
Sec.81/R- 69/Bye la 150-152 Cash expenses limit Rs.1500/- as against Rs.4500/-in Bye laws.-Bye law No.144 /R-107D Cash in Hand at the close of the day limit increased from Rs.300 to Rs.5000/-Bye law 143/R-107C
*For encroachment of common areas by members to be charged at 5 times the monthly maintenance charges for the period of such encroachment.*
-Bye law No.168 Applicability and adoption of Accounting standards prescribed by state government and by ICAI-Sec.81 & notification dtd.29th Oct.2014. Filing of Annual Mandatory Returns with the Registrar.-Sec.79(1A) & 79(1B) Penalties prescribed for various offenses and consolidated penalty for all defaults to be Rs.5000/- maximum in any financial year.-
Bye law No.164(a) Concept of Emergency Planning Scheme and Fire Safety Audit introduced.-Bye law No.75*The Maharashtra Fire Prevention and Life Safety Measures Rules, 2009, made it mandatory for building owners and residents to conduct half – yearly fire safety audits and submit the report to the fire department. As per the directive of Directorate of Maharashtra Fire Services, the safety audit has to be conducted by the ‘Licensed Agency” approved by them.
Other imp bye law provisions auditor should know:
*Structural Audit –once in 5 yrs for Bldg ageing 15-30 years and once in 3 years if Bldg ageing more than 30 year by BMC approved structural engineers.*
*One time limit for repairs and maintenance expenses management committee can decide is Rs.1 lac Max.-else General Body permission must.
*Cheques should be signed by Secretary And Chairman/Treasurer and same with the vouchers. Creating Awareness regarding Nomination to be filed.Mandatory filing of Annual returns and auditors appointment should be insisted for.Security bond for holding cash from the employee and officer -500 and 1000 if paid up capital is less than 1.50 lacs and Rs.1000 & 2000 if it is more than 1.50 lakh R-107B
*The word “Administrator” has been removed and now the term is “authorized officer” *Audit rectification memo needs to be submitted to Registrar in O form within 3 months from the date of the audit report and even auditor has to give remarks on that-Penalty for society of Rs.5000 u/s 147 Introduction of sec.146 offences and 147 which talks about penalties.
Dismissal of committee if the election due date is not intimated or mandatory returns are not filed & non submission of audit rectification report etc.
Copy of Bye laws ,list of members to be kept open for inspection to public free of charge- Sec.39

Saturday, 30 July 2016

New Format of Audit Report for financial year 2015-2016

To,
      The Chairman /Secretary

            ___________________


Sub : Submission of Statutory Audit Report for the accounting year ended 31st March, 2016.
Sir,
The accounts of ______ Co-op Housing Society Ltd. have been audited on the basis of record produced and information supplied (oral and written) by the office bearers of the society during course of our audit.  The statement of accounts viz..Income & expenditure A/c. & the Balance sheet, for the aforesaid period have been duly examined and the observation and discrepancies so noticed on the transaction and affairs of the society have been mentioned in audit objection and general remarks.
Please find enclosed herewith the Statutory Audit Report for the accounting year 1st April, 2015 to 31st March, 2016 along with the following -
1.            Statement of Income and expenditure Account & the Balance Sheet
2.            Auditors certificates, brief introduction & comment on the present status of the society, Auditors Report with audit objections, observations & general remarks & other mandatory details of the society viz table 1, 2 & 3.
3.            Schedule of Infringement of M.C.S. ACT 1960, RULES 1961 as per new amendments in the model bye_laws of the society.
4.            Audit memorandum viz. form no. 1 & form no 28.
Society is instructed to submit audit rectification report in “O” form within three months from the date of obtaining audit report to the office of registrar of co-operative societies without fail.
Thanking you,
                                                                                     AS PER OUR REPORT OF EVEN DATE

                                                                                            FOR ______________________________

                                                                                                                               Chartered Accountants
   Place: Vasai                                                                                                   Firm Reg.No.______________
   Date: /  /
                                                               
                                                                                                                                     

Copy to : The Deputy  Registrar,_____________



--------------------------------------END OF PAGE--------------------------------------------- 




FORM No. N-2

[See Section 81 and rule 69 (3)]

An Illustrative Format of Report of the Auditor of Co-operative Society

INDEPENDENT AUDITOR’S REPORT

To

The Chairman/Secretary
____________________

Ref. :- Appointment Letter Reference No._______ Dated_______

Report on the Financial Statements as a Statutory Auditor

1. We have audited the accompanying financial statements of The _____ Co-operative Society Ltd., which comprise the Balance Sheet as at 31st March 2016 and the Statement of Profit and Loss / Income & Expenditure for the year ended, and a summary of significant accounting policies and other explanatory information incorporated in these financial statements of the Society alongwith its Branches audited by us for the period 1st April 2015 to 31st March 2016. *

Management’s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements in accordance with Maharashtra Co-operative Societies Act, 1960 & Rules there under. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.



Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the applicable Standards by The Institute of Chartered Accountants of India and under the MCS Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Society’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.


5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion and to the best of our information and according to the explanations given to us, the said accounts together with the notes thereon give the information required as per the Maharashtra Co-operative Societies Act 1960 and the Maharashtra Co-operative Societies Rules 1961, and any other applicable Acts, and or circulars issued by the Registrar, in the manner so required for the society gives a true and fair view in conformity with the accounting principles generally accepted in India:


(i) in the case of the Balance Sheet, of the state of affairs of the society as at 31st March 2016;

(ii) in the case of the Statement of profit and loss / Income & Expenditure of the profit/loss for the year ended on that date; and

Report on Other Legal and Regulatory Matters

7. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with the provisions of the Maharashtra State Co-operative Act.

8. We report that :

(a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit and have found them to be satisfactory.

(b) The transactions of the Society, which have come to our notice, have been within the powers of the Society.

(c) The returns received from the offices and branches of the Society have been found adequate for the purposes of our audit.

9. In our opinion, the Balance Sheet and Profit and Loss / Income & Expenditure Account comply with applicable Accounting Standards.






10.  We further report that :

(i) The Balance Sheet and Profit and Loss / Income & Expenditure Account dealt with by this report, are in agreement with the books of account and the returns.

(ii) In our opinion, proper books of account as required by law have been kept by the Society so far as appears from our examination of these books.

(iii) The reports on the accounts of the branches audited by branch auditors have been dealt with in preparing our report in the manner considered necessary by us.

(iv) for the year under audit, the society has been awarded “__” classification.

Signature

(Name of the Member Signing the Audit Report / Name of Auditor)

(Designation)

Membership Number

Firm Registration Number

Audit Panel Number

Place of Signature:

Date of Report:

Note :- in case the auditor have not audited all branches or taken assistance of other auditor or branches are audited by another auditor appointed by bank, following lines should be inserted in above report.

*These unaudited branches account for ______________________ per cent of advances,

_______________ Per cent of deposits, ___________________ per cent of interest income

and____________________  Per cent of interest expense.



 ---------------------------------------END OF PAGE------------------------------------------








_________________________________________________________________________

Part A :-
1.    Financial embezzlement                                 :           Nil
2.    Misappropriation of funds                               :           Nil
3.    Improper appropriation of funds                     :           Nil
4.    Effects of the transaction to be caused on     :           Loss of interest because of the society due to policy decision.                                  keeping huge balance in saving
                                                                                    a/c.
5.    Improper and irregular loan transaction          :           Nil                                                                         
6.    Improper investment                                       :           Nil


INFRIGMENT OF THE M.C.S. ACT 1960 RULES 1961 & THE BYE-LAWS OF THE SOCIETY

Sr.No.
Act
Rules
Bye-Laws
Details Of Infringements
1
38
32
141(i)
Members register in I form.
2>>>
--
26
32
NOMINATION NOT FULLY RECEIVED
3

33
141(2)
List of members in “j” form not kept on record
4
82
73
153
Audit rectification report in prescribed O form submission to registrar witin prescribed limit.
5>>>


154
Conveyance of the property
6>>>


160
Insurance of building
7
071 (a)


Defaulter member 3 months
8


127 (i)
Managing committee meeting
9>>>


145
Payment beyond the limit in cash
10
75(iI)

95(9)
A G M within prescribed limit
11>>>
24(a)
14
Education & Training fund collection
12>>>
70
54,55
 15
Investment of fund
13>>>

65
141 (I to 16)
Required registers to be kept (property reg.)
14
73 

115
Reservation for female member on the managing committee.
15.
73FF

119 B
Disqualification for membership of managing committee.
16
29


Restriction of transfer of shares & property.
17



9
Issue of share certificates to the members witin the prescribed limit.
18.

61
146(a)
Drafting financial statement after the prescribed limit.
19


144
Cash in hand beyond the prescribed limit..
20
160

124
 Handover the charge to new committee.
22>>>
73 b 73 c

114
Strength of the meeting.

Pl.note : Only >>> mark breach are applicable to the society





-----------------------------------------END OF PAGE-------------------------------------------- 






Part B :-
A  Management part               :           Introduction  :                      

Name of the society               :           --------
Register Address                    :           -------
Reg. no & date                        :           -------
Period of audit                         :           --------
Audit classification                  :           -------
Society’s last election             :           -------
Date of end of the tenure of   :           -------
Present committee                 :          
            -----------------------------------------------------------------------------------------------------------------
2    Membership                            :           ----------

3    No of committee meeting       :           ------------

4    Annual general meeting          :           -----------

5    Special general meetings       :           -----------

6    Audit compliance report          :           ----------

7    Compliance of statutory         :           -------------
      Controls.

      B    Finance management           :
1.    Appropriation of funds            :           No
2.    Provisions                               :           Provisions made towards outstanding liabilities.
      C   Loan transactions                    :           Not applicable
           
Cash balance : Rs.--------  were lying in hands at the end of 31-03-2015.

Bank Balance : Society has saving a/c in following banks.The details are as under.
T.D.C.C Bank                                                                        Rs.   ----------
Thane District Central Co-op Bank                                       Rs.    -------  

Society’s liabilities status as on 31-03-2016.

Watchman Salary payable                                                     Rs. ------
Audit fee payable                                                                    Rs. ------
Electriicty charges payable                                                    Rs. ------
Education fund                                                                        Rs  -----
                                                                       
Valuation of property :
Land & building :                                                         Not shown in the balance sheet.
                       




                                     
1.    No personal expenses recorded in income & expenditure a/c.
2.    All the expenses incurred for fulfilling the objectives of the society.
3.    There are no such transaction which hurts the interest of the society.
4.    Society is fulfilling its liability towards the members
5.    There is not any loan kept overdue by the society.
6.    Amount to be spent for fulfilling the objectives : Yes but not other than routine management expenses.
7.    Society has not received any financial assistance from any authority for fulfillment of its objectives.

Society’s managing committee formed on Date:              as follows.

---------------------                                                          Secretary
--------------------                                                           Chairman
--------------------                                                           Treasurer       
----------------------                                                         Member
----------------------                                                         Member

 --------------------------------END OF PAGE---------------------


PART C :  Audit objections & general remarks.
Compliance of the following not done
1      Conveyance deed is not yet executed.
2      Insurance of the society premises is not yet taken.
3      Audit rectification report not submitted to Registrar for the audit memo of 2014.
4      Education fund is due for the year 2013-14.
5      No affiliation has been taken with the district housing federation.
6      Sinking fund not provided in the balance sheet.
7      Society has not filed Income Tax Return for the income of mobile tower rent.
8       Property & lean register not kept on records.
9      Fixed deposit not taken in 2013-14 & 2014-15 also.Society should have taken fixed deposit of share capital, reserve fund & sinking fund.
10   Huge balance in saving a/c.Society has maintained huge balance in saving a/c throughout the year.Society should have kept at least 450.000.00 in short or medium term fixed deposit.There is a interest loss of Rs.25546.00 during 2013-14 & 2014-15.
11   Membership to the members : There are 12 members in the society.out of which 11 members are regularize & adopted as the members of the society & the membership of Sr.12, the previous land owner is not yet cleared on the grounds of settlement of prior liabilities & submission of proper documentation  to the society.

      Suggestions.

1      Send audit rectification report within 90 days from the date of obtaining audit report.
2      Provide for sinking fund @ .25% from the available funds.
3      Don’t keep huge balance in saving a/c. Surplus amount in hand must be invested in short or medium term fixed deposits.
4      Keep cash in hand below Rs.5000.00.Erroer of crossing the maximum limit is appearing because the society is withdrawing the funds in the ending days of the month.if these are withdrawn in first week this error will be automatically rectified.
5      Strength of the managing committee shall be 6 male members 2 female members.
6      Take the insurance of the society premises.
7      Form a special grievance redresser committee of senior person to bridge co-ordination between the members & the managing committee.
8      Society should comply general remarks no 1 to 11 at the earliest.




DATE   :                                                                                            PLACE :                                            


           
------------- END OF PAGE ---------------

Statutory Report as required  u/s 81 (2)

   
PERIOD OF AUDIT                    :   -----------------

Schedule: I.               Transaction involving infringement of the provisions of the Act.
                                    Rules and Bye_laws.

                                    : Vide General Remarks.
                                   
Schedule: II.              Particulars of sums, which ought to have been but have not been
                                    Brought in to the account.

                                    :     NIL

Schedule: III.             Improper and irregular payments.

                                    :      NIL

Schedule: IV:                        List of doubtful debts.

                                    :     NIL

Schedule: V.             List of Movable & Immovable Property and Other Assets.
                                    Considered doubtful of realization.

                                    :     NIL




DATE   :  
PLACE :
                       

  
           
_________________________________________________________________________


NAME OF THE SOCIETY          :  -----------
   
PERIOD OF AUDIT                    :   ------------




DATE   :  
PLACE:



 -------------END OF PAGE----------






FORM NO. 1
(AUDIT MEMO FOR ALL TYPES OF CO-OP SOCIETIES)
NAME OF THE SOCIETY
SR. NO. OF THE AUDIT MEMO AS PER AUDIT REGISTER
TALUKA OR BLOCK
DISTRICT
REG NO
FULL REGISTER ADDRESS
DATE OF REGISTRATION
AREA OF OEPRATION
NO OF BRANCHES  DEPOSIT AND  SHOPS (GIVE
(REMARKS)

1. AUDIT INFORMATION

1)
FULL NAME, DESIGNATION & HEAD QUARTERS OF THE AUDITING OFFICER

2)
PERIOD COVERED DURING THE PRESENT AUDIT

3)
DATE ON WHICH


1) AUDIT WAS CONMMENCED AND
     CONTINUED


2) AUDIT WAS COMPLETED


3) AUDIT MEMO WAS SUBMITTED

2.  MEMBERSHIP
i.
NO. OF MEMBERS:     a)  Individuals            i)Ordinary                                                                                                                                  Ii) Nominal
                                                   B) Societies
                                                   C) Others
Give details of other Members, if any.
11 +1

TOTAL
11+1
ii)
Have new members been duly admitted? Have they paid entrance fees?
No share transfers during 2014-15.
iii)
Are their written applications in order & are they filed properly?
==do==  
iv)
Is the member’s register kept in Form “I” prescribed under Rules 32 and 65 (i) of M.C.S. Rules 1961?
Yes

v)
Is the list of members kept in Form “J” under Rule 33 of the M.C.S. Rules 1961?
Yes

vi)
Have due remarks been pass against the names of the deceased, dismissed, or resigned members in the member’s register?
No share transfer during 2014-15.
vii)
Are resignations in order and are they duly accepted?
No resignations receivd in 2014-15
viii)
Have nominations made under Rule 25 of the M.C.S. Rules 1961 been duly entered in the nomination register under rule 26?
Yes
Register not yet maintained.
3) SHARES
 i)
Are applications for shares in order?
Yes Except Memb sr no 12
ii)
Is share register written up-to-date?
Yes
iii)
Do the entries in share register tally with the entries in the cash book?
Yes
iv)
Is share ledger written up-to-date?
NA
v)
Do the total of share ledger balances tally with the figures of share capital in the balance sheet?
NA
vi)
Have share certificates been issued to the share holders for the entire share subscribed?
No
vii)
Are share transfers and refunds in accordance with the provisions of the Bye-laws, Act and Rules?
No share transfer in 2014-15

4) OUTSIDE BORROWINGS
 i)
What is the limit fixed in the Bye-laws for borrowings of the society?
No outstanding borrowings.
ii)
Has it been extended?
Not applicable.
iii)
If so, state whether necessary permission has been obtained from the competent authority?
Not applicable.
5) MEETINGS
 i)
Give dates of
a)       Annual General Meeting
b)       Special general Meeting


ii)
State the no. of meetings held during the period as follows : -
a)       Board or Managing Committee Meetings
b)       Executive or Sub-Committee Meetings
c)       Other Meetings


-
6) RECTIFICATION REPORT
 i)
Has the society submitted audit rectification reports of the previous audit memos?  If so, give the dates of submission.  If not, state the reason for non submission


ii)
Have any important points mentioned in the previous audit memos been neglected by the society.  If so, state them in general remarks

7) AUDIT FEES
 i)
Give amount of fees last assessed – state period for which assessed:


State the date of recovery of the audit fees, name of Treasury and amount credited.(Give No. & date of Treasury Challan)


ii)
If the audit fees have not been paid by the Society, give details about outstanding audit fees and reasons for non-payments.

8) INTERNAL OR LOCAL AUDIT
 i)
If there is internal or local audit state by whom is it done, period covered and whether memo is on the record of the Society.

ii)
State whether there is proper co-ordination between Statutory Auditor and Internal Auditor

9) MANAGING DIRECTOR / MANAGER / SECRETARY
  A  i)
Name of the Officer:

ii)
Pay drawn:


Grade:

iii)
State other allowances, if any, any facilities given such as rent free quarters etc.

iv)
State whether he is a member.

v)
If so, whether he has borrowed or has been given any credit facilities? State the amount borrowed and the amount over dues if any.

vi)
If other amounts are due from him, give details

B)
Obtain a list of staff showing names, designations, qualifications, scales, present pay and allowances given, dates from which employed, security furnished.  



07) BREACHES
 i)
Do the society posses a copy of Act, Rules and the registered Byelaws?

ii)
Give only no. of breaches of the Act, Rules and Bye-laws.
1)       Section Nos.    ……………….
2)       Rules Nos.       ……………….
3)       Bye-laws Nos...……………….

iii)
Have any rules been framed under the Byelaws?
Are they approved by appropriate authority?
Are they properly followed? (These breaches should discussed in brief in general remarks)
11) PROFIT & LOSS
i)
What is the amount of profit earned or losses incurred during the last co-operative year?






ii)
State how the net profits are distributed?
(In case of non business societies, figures of surplus or deficit may be given against query No. 11 (1) above
12) CASH, BANK BALANCES AND SECURITIES
(a)
Cash :

      1)
Count cash and sign the cash book stating the amount so counted and the date on which counted

      2)
Who produced the cash for counting? Give his name & designation.  Is he authorised to keep cash?

      3)
Is it correct according to the cashbook?

      4)
Are the arrangement for safety of cash in safe and cash in transit adequate?

(b)
Bank Balance
Do the bank balances shown in bank pass book or bank statements and the bank balance certificates tally with such balances shown in the books of accounts?

(c)
Securities

      1)
Verify securities physically and see whether they are in the name of the society.

      2)
Are dividends and interest being duly collected?

      3)
If securities are lodged with the bank, are relevant certificates obtained?

      4)
Is investment register kept & maintained up-to-date

13) MOVEABLE & IMMOVEABLE PROPERTY
1)
Are relevant registers maintain and written up-to-date

2)
Verify property physically and obtain its list.
Do the balances tally with balance sheet figures

3)
In case of immovable property including land, verify title deeds & see whether they are in the name of society.

4)
Is the property is duly insured wherever necessary, If so, give details in general remarks




5)
DEPRECIATION
i) Is due depreciation charged?
What is the rate of depreciation charged on various assets?

6)
Have you discussed the draft audit memo in the Board or Managing Committee Meeting? If not state the reason for the same.




DATE   :                               
PLACE:


   ------------END OF PAGE ---------


  


FORM NO. 28
Audit Memo Co-operative Housing Societies
Part II
I.       Borrowings:
(i) State the loans obtained by the Society for 
various purposes from Government & other agencies:
 1.Agency Sanctioning Loan                                       :
 2.Purpose for which the Loan is sanctioned.              :


  1. Amount of Loan Sanctioned :
4.       Maximum amount drawn  :

5.       Repayments made  : 

      6.      Outstanding: 


7.       Amount overdue, if any :


8.       Remarks  :


(ii) Are repayments of loans punctual.:

.     (iii) Are all conditions laid down for grant of various 


loans and credits observed? Note breaches, if any.  : (iv) Are necessary documents executed in favour of the authority sanctioning the loan. 
2.       Government Financial Assistance:



(i) What is the amount of Government subsidy 
sanctioned and received by the Society.                     :           .
(ii) Has Government sanctioned any amount for 
land development? If so, state the amount. Have 


development expenses exceeded the said amount.  :
3.       Membership:
(i) State whether in case of backward class  co-operative housing societies, certificates from  the social welfare officers are obtained for their  eligibility to membership and obtaining of financial   assistance.                                                                    :          
 (ii) State whether certificates are obtained from 
officers of the concerned industry in case of the 


subsidized industrial housing scheme.:


(iii) Have declarations been obtained from members 


 that they and their family members do not own lands  or houses in the area of operation of the Society as


per provisions in the Bye-laws.
4.       Lands and their developments:



(i) State whether lands for constructions of houses  have been secured, purchased or obtained on lease.  Give details of the lands, stating total area, survey 
Nos. and C.R.S. Nos. if any, price for which 
purchased, lease rent etc.                                             :          
(ii) See the title deeds and ascertain whether they 
are properly executed in favour of the Society
:


(iii) State how the land has been utilised for 
:


(a) Construction of houses
(b) Construction of roads
(c) Open spaces
(d) Other Purposes give details
(iv) Have the layouts and plans for development 
been approved by the Municipal authorities before 



actual commencement of the work                              :          
 (v) Have completion certificates been obtained 
from appropriate authorities for drainage, water 
supply, roads, etc. before construction work of 
buildings is commenced                                              :            
5.       Construction of Buildings:


(i) (a) Have building constructions commenced  : (b) State the no. of houses or flats constructed and under construction.                                                      :          
 (c) Have the completed houses and flats allotted to 
Members.                                                                     :            
(ii) Are building constructed on contract basis?
See the terms and conditions of contracts and state 
whether they have been properly observed. 
Note breaches, if any.                                                  :           .
(iii) Are these contracts properly sanctioned by the 


competent authority as per Byelaws of the Society  :
(iv) Have tenders or quotations been called after  giving due advertisements in local newspapers, If  the works are not given to the contractors quoting 

 the lowest figures, see whether reasons for the same 
are recorded.                                                                :            
(v) Are contractors paid after necessary work 
progress certificates are obtained from the Architect. Are running and final bills obtained before payment
are made to the contractors.                                        :            
(vi) See the terms on which the architects are 
employed. Are there any breaches.                              :            
(vii) See whether completion certificates have been 
obtained from the qualified engineers and architects, 
stating that the constructions have been completed 
according to approved plans, specifications and 
other terms of contracts.                                              :            
(viii) Is a property register kept in proper form?
Is it written up-to-date.                                               :          
(ix) When buildings are build departmentally, state 
whether the following books are kept and written 
up-to-date.                                                                   :          
(a) Job registers and measurement books.                   :          
(b) Stock registers.                                                       :          
(c) Are valuation certificates from qualified 
engineers and/ or architects obtained                          :          
(d) Is expenditure allocated properly between items 
of capital and revenue nature                                      :          
(x) State whether building has been constructed 
according to the original plans and estimates 
submitted with the loan applications and which are 
approved by the competent authority. Are there 
any deviations? If so, are they got approved from
the competent authority.                                              :          
(xi) In case of flat-owners societies, see whether 
titles to the land have been transferred in the name 
of the society.                                                              :          


(xii) Are buildings and constructions got insured.  :

 (xiii) In case of flat-owners societies, have the  promoters fulfilled their obligations as per  agreement entered with them by the members prior to the registration of the Society.

       (xiv) Examine the agreements entered into with the  promoters and see whether they are in the interest of the society.                                                              :           .
(xv) Has the Society executed lease deeds in favour 
of members for giving plots and/or buildings on 
lease to them.                                                               :          
(xvi) Has the Society created sinking fund as per 
provisions of the Bye-laws.                                         :            
(xvii) Examine the basis on which monthly rents or 
contributions are fixed in case of tenant co-partnership 
societies or flats owners societies and see that the
following items are adequately covered.                     :          
(i) Amounts required for re-payments of loan 
instalments.                                                     :          
(ii) Municipal and other taxes.                         :          
(iii) Lease rent                                                  :          
(iv) Service charges and common expenses  :             


(v) Contribution to the sinking fund. 

:
6.       Loans to Members:
(i) Are recoveries of loans punctual  


:


(ii) State the amounts of over-dues.  

:


(iii) State what steps are being taken to recover overdue. 
7.       Expenditure
Has the expenditure been approved by the 

 Managing Committee, from time to time.  


  

Date: 

Place: