Principles of Co-operative Audit

It can also be created under the applicable state co-operative society’s regulation. A co-operative society can be created by a minimum of 10 adult members. The members are willing to build a society which needs to have a common interest and bond between them. They may be the citizens of similar locality or operators of some organisation. The fundamental thought is that all the people planning to form society should have few mutual goals to accomplish.

what do you understand by cooperative society

The effectiveness of Test Audit depends, to a good extent, on careful selection of societies If test audit of a society discloses serious defects, the work of the concerned auditor should be examined in-depth by test auditing more societies audited by such auditors. It also helps the staff to rectify the irregularities mentioned in the interim audit report. It ensure prompt action on the part of the management for rectification of errors pointed out in the interim audit report. Interim Audit Report has to be submitted for the period concerned with the summary of defects, if any. The manner for seizure and the period for which they could be impounded are laid down in Rule 53 A of the K.C.S. Rules.

Challenges of Cooperative Society

A society engaged in the performance of any manufacturing operation with the aid of power, provided its gross total income does not exceed Rs. 20,000. The members of a cooperative society choose the person who would handle the day-to-day activities of the society. Various high courts have held that all co-operative societies other than those coming under the control of RBI are eligible for a deduction. A co-operative society conducting banking activities is not a co-operative bank licensed by the Reserve Bank of India. If a co-operative society is also eligible for profit-linked deduction under Section 80HH, 80HHA, 80HHB, 80HHC, 80HHD, 80-I, 80-IA, 80J, the deduction allowed under Section 80P is from the gross total income after reducing the deductions under these sections.

Business Strategy : Cooperative Societies

Today, in almost every sphere of life, cooperative institutions are engaged in the welfare of their members. In 1958, the National Development Council had recommended a national policy on cooperatives and also for training of personnel and setting up of Cooperative Marketing Societies. No member could have more than 1/5 of the total share capital or hold share exceeding Rs. 1,000 in such a society. Any society, credit or otherwise, could be registered which had as its objective, the promotion of the economic interest of its members.

Pandit Jawaharlal Nehru considered cooperatives as one of the three pillars of Democracy, the other two being the Panchayat and the Schools. After independence, the nation adopted the approach of planned economic development for establishment of a mixed economy consisting of three sectors namely Public, Private and Cooperative Sectors. The membership of the Cooperative societies increased considerably during this period. Through the Montague- Chelmsford Reforms of 1919, co-operation became a provincial subject which gave further impetus to the movement. This enables all the citizens to form cooperatives by giving it the status of fundamental right of citizens.

The application must have attached four copies of the proposed by-laws of the co-operative society. A membership application must be duly filled out and submitted to the Registrar of co-operative societies. It is essential for all who wish to become co-operative society members per the Co-operative Societies Act, 1912. Managing committee’s approval of the membership application submitted by the individual is a must. ADDA is the only community management SaaS built in India, uplifting thousands of living communities, property managers, developers, and billions of homeowners across 6 countries worldwide. Relief funds & subsidies on training and education programs available to both producers and consumers. Therefore, being a part of either a retail or food co-op is a sign of self-sustainability in a world of constant change and transitions.