Professional Documents
Culture Documents
ON
Accounting and auditing of Hari leela co-op. housing society Ltd., New Panvel (E)
In the subject Advance Financial Accounting
SUBMITTED TO
UNIVERSITY OF MUMBAI
FOR SEMESTER-II OF
MASTER OF COMMERCE
BY
SUNITA KUMARI YADAV
MCOM PART-I AND ROLL NO- 1890
UNDER THE GUIDANCE OF
Ms. FATEMA
YEAR- 2012-2013
Signature of Student
EVALUATION CERTIFICATE
This is to certify that the undersigned have assessed and evaluated the project on
Accounting and Auditing of Hari leela co-op. housing society Ltd., New Panvel (E)
Submitted by SUNITA KUMARI YADAV 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
External Examiner
vice Principle
Class
Division
Roll
Numb
M
COM
PART I
1890
Mark Awarded
DOCUMENTATION
Internal
Examiner (Out
of 10 Marks)
External
Examiner (Out
of 10 Marks)
Presentation
(Out of 10 Marks)
Viva and
Interaction (Out
of 10 Marks)
TOTAL MARKS (Out of 40)
Signature
CHAPT
ER
NO.
1.
TOPIC
Introduction
MEANING
Non-profit organization
Co-operative year
2.
3.
4.
5.
AUDIT REPORT
Part-I(introduction)
Audit report
(Maharashtra state cooperative act 1960 section
no. 81(5-B) & rules 69)
6.
7.
Conclusion
PA
G
E
MEANING
A co-operative Society is a body corporate with perpetual succession. It can acquire, hold and
dispose off properties, enter into contracts and it can sue and it can be used. In the state of
Maharashtra a society is formed, regulated and governed and controlled by the Maharashtra Cooperative Societies Act, 1960. (Section 36 of M.C.S. Act, 1960).All the Co-operative Societies
have to maintain the records as per the Maharashtra Co-operative Societies Act, 1960, M.C.S.
Rules, 1961 and the Byelaws of the Society.
NON-PROFIT ORGANISATIONS
There are certain institutions whose main aim is not to earn profit. They are established to
provide services and their sole motto is to render services, e.g., schools, libraries, sports clubs,
hospitals and professionals like, doctors, lawyers, chartered accountants, company secretaries
and co-operative housing societies, etc. Though the main aim of these bodies is not to earn profit
but still they are interested in knowing whether their current income is more than the current
expenses or not. They are also keen in knowing the financial position of their concern. Cooperative Societies are not charitable societies. They carry on Economic Activities. The profit is
not the motive but the proper accounts need to be maintained and presented before the members
for their approval in the Annual General Body meeting. The same need to be properly audited as
per the provisions of the Act.
CO-OPERATIVE YEAR
Earlier the accounting year for Societies was a year ending on 30th June or other day fixed by a
particular society with the Approval of the Registrar. However, with the amendment made in
1993, the Co-operative year has been compulsorily made to end on 31st day of March.
ACCOUNT
ACCOUNTING YEAR
The erotically speaking a business may adopt any period of 12 months as its accounting year
except for first accounting year which may be less or more than a period of 12 months. Under
income tax act however every person is required (W.E.F 1.4.1989) to adopt a uniform
accounting year i.e. financial year, commencing on 1st April and ending on 31st march next
year. Accordingly, since 1993, the co-operative year also has been changed to Financial Year.
As per bye law no 142 and as per standard accounting principles following accounts books need
to be maintained in respect of the financial transaction of the society.
a) The cash and the bank book
b) The general ledger
c) The personal ledger (member wise monthly collection register)
d) Bill register (month wise charges register)
e) Expense vouchers with receivers signature, authorization to pass vouchers and corresponding
bill and receipt
f) Monthly /quarterly bills raised on the members for outgoings of the society.
g)Receipts of the collection of charges transfer fees and other funds of the society.
h)Bank passbook, check issued with counter files ,pay in slips book of the bank.
i) Issues of individual pass books issued to the members in respect of their transaction with the
society
a) Formation of Co-operative Housing Society:Practically every developer has to form a Co-operative Housing Society at one point of time or
another. With the limited amount of options available with regard to management of the affairs
of the building i.e.
Condominium
it will not be an exaggeration to state that in at least 90% cases particularly in Mumbai the
Promoters and/or the Builders have formed a Co-operative Housing Society.
There are basically four types of Co-operative Housing Societies connected with the housing.
(a) Open Plot Societies- members purchase or take one lease a plot of land and they construct
the building.
(b) Flat Owners Societies- When a builder constructs flats and sells them to Flat Owners, the
Society when formed is called Flat Owners Society
(c) Tenant Societies- When Landlord forms a Society of tenants, it is called Tenants Society.
(d) Housing Board Societies- When a Society is formed by Allotted of flats and building is
constructed by the Housing Board Authorities, i.e. Mumbai Housing and Development Board,
then the Society so formed is of the type of Housing Board Society
The procedure for Registration of a society begins with electing a Chief Promoter in a meeting of
the Promoter.
Normally, the name reservation proposal should be accompanied with the signature of at least 10
Promoters who have attended the meeting. It is a common belief that the Society should consist
of at least 10 members.
Flat means a separate set and self-contained set of premises used or intended to be used or
intended to be used for residence, or office or show-room, or shop, or go down and includes a
garage, or dispensary, or consulting room, or clinic, or flour mill, the premises forming part of a
building and includes an apartment.
The Chief Promoter should submit Registration Proposal to the Registering Authority within a
period of 3 months from the date of issue of Letter of Reservation in the name of the proposed
Society.
The documents that are normally to be submitted to the Registering Authorities are as under :-
3. Information about promoter members of the proposed society in Statement C (vide Govt.
Circular Dt. 2-5-1980).
5. Model Bye-laws.
10.
Affidavit on Rs. 20/- Stamp Paper from at least 10 promoter members to the effect that they
are residing in the area of operation of the Society (Proposed), made before a Competent
Authority.
12. Affidavit from the Chief Promoter on Stamp Paper of Rs. 20/- executed before the
Competent Authority in form Y.
13.
Certified True Copy of agreement made on Stamp paper and registered between the builder,
Where the promoter members are firms/ companies, a letter of authority from such
In case of such proposed societies, names of 60% of the flat holders of the total number of
flats constructed or proposed to be constructed as per the plan approved, must be included in
Statement A to be attached to the Registration Proposal.
1
1
b) Stamp duty:-
Present rates of stamp duty for residential premises in the city of Mumbai are RS. 38,750/- on
Rs. 10, 00,000/-. Thereafter it is @ 8% for the additional value. The rate of stamp duty for
shops/Galas/office Premises and Garage even if used for car parking is 10% in Mumbai Stamp
duty has to be paid on the agreement Value or the market value of the property whichever is
higher. Stamp duty has to be paid every time the flat is being sold. Stamp duty has to be paid
even if it is a transfer within family.
c) Registration of Documents:-
The documents have to be registered within a period of fours months from the date of its
execution. The parties can go to the office of the Joint Sub-Registrar individually /collectively to
register the document. If for certain reasons the parties cannot attend the office of the subRegistrar within a period of the four months then in such cases the parties can execute a deed of
confirmation and complete the registration formalities.
d) Stamp paper:-
As per the amendment of section 34 of the Bombay Stamp Act 1958, the stamp paper should be
in the name of one of the parties executing the document.
PART-I
INTRODUCTION
The statutory audit of Hari leela co-op. housing society Ltd., New Panvel (E)
Taluka- Panvel, dist- Raigad has been completed in the basis of records produced to me by the
disignitories of the society, oral explanation given by them and on my total knowledge.
The financial statement at the end of the audit period prepared the disignitories of the society are
attached herewith which will give the idea of financial position of the society.
1. MEETING:- (01-04-2009 TO 31-03-2011)
A. First general body meeting: N.A.
B. General meeting date:- -C. Managing committee meetings :- -D. Special general body meeting :- -2. MEMBERSHIP:- as per the list there are 18 members in the society
3. RECTIFICATION REPORT:the society should submit the audit rectification report within in three month of receipt of
audit report.
4. ANALYSIS OF BALANCE SHEET: - (31-03-2011)
A) LIABILITIES SIDE:(1) SHARE CAPITAL:(a) ) share paid up share capital:- 4500/(02)RESERVE AND OTHER FUND:(a) reserve fund:- Rs. 60770 amount received as entrance fee, transfer premium,
transfer fee transferred to reserve fund as per BYE-LAWS.
(03) INCOME & EXPENDITURE A/C:- surplus balance as per balance sheet for
year ended 31-03-2011 Rs. 1,45,788/-
(B) ASSETS SIDE:(1) CASH & BANK BALANCE:(a) ) cash in hand Rs. 9,683.00
(b) The R.D.C.C. Bank, New Panvel Br.(C.P) Rs.4,420.00
(c) abhyudaya Co-op. bank Rs. 23,570.00
(d) The R.D.C.C. Bank, New Panvel Br. Rs 30,212.00
the above balance are correct as per cash book and bank pass book as on 31-03-2011.
(2) INVESTMENT & DEPOSITS:(a) fixed deposits Rs. 1,30,000/(b) sinking fund F.D. Rs 4,000/(3) FIX ASSETS:(01) dead stock :- Rs. 9,273/kept dead stock register and record dead stock in dead stock register.
5. AUDIT CLASSIFICATION:taking into consideration the financial position and over all working of the society has
st
st
been awarded B audit class for financial year 01 april 2009 to 31 march 2011.
6. ACKNOWLEGEMENT:we are thankful to the members of managing committee for their co-operative during the
audit.
PART-II
REMARK AND SUGGESTION
1) To be making provision of major repair fund as per Bye-Laws 13(b) of each member
on squire fir basis or value of cost which is decided in general body meeting and
invested as fixed deposit in RDCC bank.
2) Monthly meeting of committee and annual general body should be conducted as per
the laws, with prior agenda to each member. Minutes of general body meeting and
committee meeting should be recorded in register (two separate register).
3) Collect registered agreement from all members of society and take building cost those
units in balance-sheet.
4) Every voucher should be signed by chairman, secretary or treasurer.
6) Close the saving account of chief promoter Raigad district central co-op. bank Ltd,
New Panvel
7) Cash in hand to be maintained as stated in bye laws and shall make necessary
transaction of payment by cheque only.
8) Audit should be done after ending of every financial year.
Member contribution
Water, shed & color
Transfer premium
Bank interest
TOTAL
Rs.
1270
206219
20251.50
4420
178995
168930
30000
3288
613373.50
PAYMENT
Maintenance & repair
Stationery and Xerox
Pest control
Water bill
Rs.
30713
672
1000
27846
Electric bill
950
Bonus
Meeting
Bank charge
Crack filling, shed & coloring
Flooring work
2200
2292
211
293700
7000
Fix deposit
Salary
Festival & pooja exp
Plastic tank
80000
24200
12548
15250
6021
81583
22767.50
4420
TOTAL
613373.5
0
Rs.
EXPENDITURE
Rs.
Member contribution
178995
30713
168930
672
Recovery in Yr
168930
Pest control
1000
Water bill
27846
In last Yr.
135433
Electric bill
950
Bonus
2200
Meeting
2292
Bank charge
211
293700
Flooring work
7000
Plastic tank
15250
Salary
24200
12548
Depreciation(dead stock)
2573
Surplus balance
65491
TOTAL
486646
Bank interest
TOTAL
3288
486646
Rs.
ASSETS
Rs.
4250
6021
R.D.C.C. bank
81583
Reserve fund
30770
22767.50
30000
60770
4420
--
Member contribution
--
Fixed deposit
80000
--
Fixed assets
Surplus balance
Dead stock
12864
74571.50
65491.00
140062
(-) depreciation
10291
2573
TOTAL
205082.50
TOTAL
205082.5
0
Rs.
PAYMENT
Rs.
6021
27431
R.D.C.C. bank
81583
4000
22767
Pest control
2500
4420
Water bill
30844
Electric bill
24590
Bonus
1250
Member contribution
139800
Meeting
849
76500
Bank charge
40
4024
Shed work
73900
Bank interest
2403
Dead stock
1300
Member share
250
Fix deposit
50000
100
Salary
32200
16241
insurance
4838
9683
R.D.C.C. bank
30212
23570
4420
TOTAL
337868
TOTAL
337868
Rs.
EXPENDITURE
Rs.
Member contribution
139800
27431
76500
insurance
4838
Bank interest
2403
Pest control
2500
4024
Water bill
30844
Electric bill
24590
Bonus
1250
Meeting
849
Bank charge
40
Shed work
73900
Salary
32200
16241
Depreciation(dead stock)
2318
Surplus balance
5726
TOTAL
222727
TOTAL
222727
2
0
Rs.
ASSETS
Rs.
4500
9683
R.D.C.C. bank
4420
23570
30212
60770
Member contribution
--
--
Fixed deposit
130000
4000
--
Fixed assets
Surplus balance
140062.50
Dead stock
12864
(+)purchase in Yr.
1300
5726.00
145788
(-) depreciation
9273
2318
TOTAL
211158
TOTAL
2
1
211158
AUDIT REPORT
(Maharashtra state co.operative act 1960 section no. 81(5-B) & rules 69)
st
st
I have examined the attached balance sheet as 31 march 2010, 31 march 2011 and the income
& expenditure account for financial year 01-04-09 to 31-03-2011 of the Hari leela co-op.
housing society Ltd., New Panvel (E) and report that:1. We have obtained all the information and explanation which the best of my knowledge
and belief were necessary for the purpose of our audit.
2. In our opinion, proper book of accounts as required under the M.C.S Act, rules and Bye
Laws of the society has been kept by the society.
3. In our opinion and the best of our information and according to the explanation given to
us.
a) the accounts subject to and read with the statement of general remarks there on stated
in PART-I and PART-II attached here with gives information required under the
Maharashtra Co-operative societies Act and present 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 account and the said balance sheet gives true and fair view of state of affairs of the
st
st
society as on 31 march 2010 and 31 march 2011 and the income and expenditure
accounts gives true and fair view of the surplus/deficit for the period ended on that dates.
Comparative Balance Sheets as on 31st Dec 2010 & 31st Dec 2011
Particular
31-032010
31-03-2011
Liabilities
Paid up share capital
(Increa
se/
Decreas
% Of
(increase/
Decrease)
4250
4500
250
5.88
60770
60770
Member contribution
--
--
--
--
140062
145788
5726
4.08
TOTAL LIABILITIES
205082.50
211158
60755
29.62
ASSETS
Closing cash/bank balance
6021
9683
3662
60.82
R.D.C.C. bank
Abhyudaya co-op bank
RDCC bank (chief promoter)
81583
22767.50
4420
4420
23570
30212
(77163)
802.5
25792
(94.58)
3.52
583.52
80000
-
130000
4000
50000
4000
62.5
100
--
--
Fixed assets
10291
9273
(1018)
(9.89)
TOTAL ASSETS
205082.50
211158
60755
29.62
CommentComparative Financial Statement analysis provides information to assess the direction of change
in the business. Financial statements are presented as on a particular date for a particular period.
The financial statement Balance Sheet indicates the financial position as at the end of an
accounting period and the financial statement Income Statement shows the operating and nonoperating results for a period. But financial managers and top management are also interested in
knowing whether the business is moving in a favorable or an unfavorable direction. For this
purpose, figures of current year have to be compared with those of the previous years. In
analyzing this way, comparative financial statements are prepared.
Comparative Financial Statement Analysis is also called as Horizontal analysis. The
Comparative Financial Statement provides information about two or more years' figures as well
as any increase or decrease from the previous year's figure and it's percentage of increase or
decrease. This kind of analysis helps in identifying the major improvements and weaknesses.
There is increase in total liability and a total asset as in 2010 it was 205082.50 but in 2011 it
increase by 29.62% i.e. 211158. We can see that there is increase in all asset and liability except
fixed asset in 2010 it was 10291 but It fall by 9.89% in 2011 i.e. 9273.
I conclude based upon the data in my project I have learned what is cooperative housing society
and there are many advantages and disadvantages in cooperative housing society. Though the
main aim of these cooperative housing society is not to earn profit but still they are interested in
knowing whether their current income is more than the current expenses or not. They are also
keen in knowing the financial position of their concern. Co-operative Societies are not charitable
societies. They carry on Economic Activities. The profit is not the motive but the proper
accounts need to be maintained and presented before the members for their approval in the
Annual General Body meeting.
While doing this project I learn how to register the cooperative housing society, step involve
while registering a society. While studying the auditing report of two year 2010 and 2011 and
making project on a Hari leela cooperative housing society was also a knowledgeable experience
for me.