You are on page 1of 29

1.

INTRODUCTION
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 Co-operative 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. 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. The same need
to be properly audited as per the provisions of the Act.

DEFINITIONS UNDER MCS ACT:1) Co-operative society:-Under section 2(27) of the 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 member. Section 167
of co-operative societies A ct state that provisions of companies Act are not
applicable to Co-operatives.
2) Working capital:-Under section 2(31) of the Act, Working capital means
funds at the disposal of society inclusive of paid up share capital, funds built
up out of profits and money raised by knowing and other means. The
definition of the term is different as generally working capital means Net
current assets less current liabilities. The audit fees of certain types of
socities such as Urban co-operative banks, salaray earners credit socities
are related to the amount of the working capital.
3) Auditor:- Rule no 69 of co-operative societies rules states that the audit of
co-operative societies shall be conducted either by departmental auditor or
certified auditors. The term certified auditors includes the following:
a) Chartered accountant
b) A person who holds a government diploma in co-operative accounts
and audit.
c) A person who has served as an auditor in the co-operative
department of the state government .
4) Bye-laws:- Under section 2(5) bye-laws registered under this Act and for
the time being in force and includes registered amendments of such byelaws. bye-laws of a co-operative society may be be compared with the
articles of a company. The bye-laws cannot be contrary to the provisions of
the co-opreatives societies Act. The bye-laws

generally includes the

followings clauses for internal management of co-operatives society1. Name and address of society
2. Area of operation
3. The manner in which , and the limits upto which the funds of the
4.
5.
6.
7.
8.
9.

society should be raised.


Objects of society
Maximum amount of the share capital that may held by a member
Terms and qualifications for admission of membership
Rights , duites and liabilities of members
Maximum loans admissible to a member
Disposal of net profit
2

(Rule 8 of Maharashtra State Co-operative Societies Rules, 1961 give the


various details if the items in the bye-laws of the society. Any
amendments , changes or deletion in bye-laws shall have to be approved
by a resolution at special general meeting and also a wirtten approval for
the District Deputy Registrar is necessary. The first bye-laws of the
society are required to be approved by the Registrar, as per Rule No. 9.)
5) Co-operative year:- The Act as fixed 31st day of March as day of bal;ancing
of accounts of the society. However ,any other day can be fixed by the
society for this purpose with the prior approval of the registrar. It means that
the co-operative year need not necessarilyber from 1

st

April to 31st March.

Normally , now-a-days societies follow 31 March as the year-ending to


comform with the Income-tax Act.
6) Member:- Under Section 2(19), a member of a Co-operative Society means
a person joining in an application for the registration of a Co-operative
Society, which is subsequently registered , or a person duly admitted to a
membership of Society after registration and includes and associates,
nominal or a sympathiser member. Following are the different types of the
membersa) Associate Member : Associate Member means a member who holds
jointly share of society with others, but whose name does not stand
first in share certificates.
b) Nominal Member : Nominal Member means a person admitted to
membership as such after registration in accordance with its laws.
c) Sympathiser Member : Sympathiser Member means a person who
sympathises with aims and objects of the society and who is admitted
by society as such member.

Objectives of Co-operative Society


A co-operative housing society may be formed for all or any of the following objectsTo enable each of its members-

to purchase land and to erect a dwelling-house thereon; or


3

to erect a dwelling-house on land already owned by him; or


to erect a dwelling-house on Crown land leased by him for a term of not less
than 50 years being Crown land within an area approved by the Governor in
Council for the purposes of this Act;

subject to section thirty-four of this Act to purchase land upon which is


situated a dwelling-house; or

to maintain and keep in proper repair his dwelling-house; or


where the approval of the Governor in Council given after consideration of a
report by the registrar is first obtained-to discharge a mortgage held by
another society upon any land; or

to discharge a mortgage or any other charge or security over or affecting


any land which mortgage charge or security was granted or executed by the
member in question in anticipation of the society's making an advance to
him and with the approval of the registrar to the making of the advance.

2.BOOK OF ACCOUNT TO BE MAINTAINED

ACCOUNT
An account is formal presentation of the transactions pertaining to an item or
person or an income or expense. An account is generally prepared in T form
4

wherein the left hand side is called the debit side and the right hand side the
credit side. All accounts (except the cash or bank), which are maintained in
cashbook, are maintained in ledger.

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.

Provisions under Bye-laws of Co-operative Housing Societies


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

3.ADVANTAGES & DISADVANTAGES OF CO-OPERATIVE SOCIETY

Advantages of Cooperative Society


A Co-operative form of business organization has the following advantages:
1. Easy Formation: Formation of a co-operative society is very easy compared
to a joint stock company. Any ten adults can voluntarily form an association

and get it registered with the Registrar of Co-operative Societies.


2. Open Membership: Persons having common interest can form a cooperative society. Any competent person can become a member at any time
he/she likes and can leave the society at will.
3. Democratic Control: A co-operative society is controlled in a democratic
manner. The members cast their vote to elect their representatives to form a
committee that looks after the day-to-day administration. This committee is
accountable to all the members of the society.
4. Limited Liability: The liability of members of a co-operative society is limited
to the extent of capital contributed by them. Unlike sole proprietors and
partners the personal properties of members of the co-operative societies are
free from any kind of risk because of business liabilities.
5. Elimination of Middlemens Profit: Through co-operatives the members or
consumers control their own supplies and thus, middlemens profit is
eliminated.
6. State Assistance: Both Central and State governments provide all kinds of
help to the societies. Such help may be provided in the form of capital
contribution, loans at low rates of interest, exemption in tax, subsidies in
repayment of loans, etc.
7. Stable Life: A co-operative society has a fairly stable life and it continues to
exist for a long period of time. Its existence is not affected by the death,
insolvency, lunacy or resignation of any of its members.

Disadvantages of Cooperative Society


1. Limited Capital: The amount of capital that a cooperative society can raise
7

from its member is very limited because the membership is generally confined
to a particular section of the society. Again due to low rate of return the
members do not invest more capital. Governments assistance is often
inadequate for most of the co-operative societies.
2. Problems in Management: Generally it is seen that co-operative societies do
not function efficiently due to lack of managerial talent. The members or their
elected representatives are not experienced enough to manage the society.
Again, because of limited capital they are not able to get the benefits of
professional management.
3. Lack of Motivation: Every co-operative society is formed to render service to
its members rather than to earn profit. This does not provide enough
motivation to the members to put in their best effort and manage the society
efficiently.
4. Lack of Co-operation: The co-operative societies are formed with the idea of
mutual co-operation. But it is often seen that there is a lot of friction between
the members because of personality differences, ego clash, etc. The selfish
attitude of members may sometimes bring an end to the society.

5. Dependence on Government: The inadequacy of capital and various other


limitations make cooperative societies dependant on the government for
support and patronage in terms of grants, loans subsidies, etc. Due to this, the
government sometimes directly interferes in the management of the society
and also audits their annual accounts.

4.FORMATION OF CO-OPERATIVE HOUSING 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

Private Limited Company and

Co-operative Society, (excluding the unrealistic rental housing)

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.

10

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 showroom, 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 :1. Application for registration of Society in Form A along with Statement A.
Enclosure to application for Registration as per Rule 4(1) of Maharashtra Cooperative Societies Rules, 1961.
2. Information about proposed society in Statement B (vide Govt. Circular dated
2-5-1980).
11

3. Information about promoter members of the proposed society in Statement C


(vide Govt. Circular Dt. 2-5-1980).
4. A Statement of Accounts as per Form D.
5. Model Bye-laws.
6. Bank Balance Certificate.
7. R.B.I. / Treasury Challan for payment of Registration Fee of Rs. 500/-.

8. Title Clearance Certificate from an Advocate


9. A true copy of the approved Building Plan.

10. Letter of Authority Granting permission to commence construction


work/Completion Certificate (if applicable).

11. 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, promoter and purchasers of flat.

14. Where the promoter members are firms/ companies, a letter of authority from
such firms/companies authorizing the promoter to sign on behalf of
12

firm/company.

15. 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.

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
13

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 sub-Registrar 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.

5.AUDIT REPORT
SHIV SAMRATH CO-OPERATIVE HOUSING SOCIETY
PART-I

INTRODUCTION
14

The statutory audit of Shiv Samrath 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 31-032011)
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:15

(1) SHARE CAPITAL:-

share paid up share capital:- 4500/(2)RESERVE AND OTHER FUND:reserve fund:- Rs. 60770 amount received as entrance fee,
transfer premium, transfer fee transferred to reserve fund as per
BYE-LAWS.

(3) INCOME & EXPENDITURE A/C:surplus balance as per balance sheet for year ended 31-03-2011
Rs. 1,45,788/-

(B) ASSETS SIDE:(01) 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

16

(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 3103-2011.
(02) INVESTMENT & DEPOSITS:(a) fixed deposits Rs. 1,30,000/(b) sinking fund F.D. Rs 4,000/(03) FIXED 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 been awarded B audit class for financial year 01 st april 2009 to
31st march 2011.

6. ACKNOWLEGEMENT:17

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.
18

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.
5) Member information register form T and member registration register form
J should be update time to time.
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.

Shiv Samrath co-op. housing society Ltd., New Panvel (E)


RECEIPT AND PAYMENT for the year ended 01-04-09 to 31-03-2010
RECIEPT

Rs.

PAYMENT

Rs.

Opening cash/bank balance


R.D.C.C. bank
Abhyudaya co-op. bank
RDCC bank

1270
206219
20251.50
4420

Maintenance & repair


Stationery and Xerox
Pest control
Water bill

30713
672
1000
27846

19

(chief promoter)

Member contribution
Water, shed & color
Transfer premium
Bank interest

TOTAL

178995
168930
30000
3288

613373.50

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

Closing cash balance


R.D.C.C. bank
Abhyudaya co-op bank
RDCC bank (chief promoter)

6021
81583
22767.50
4420

TOTAL

613373.50

Shiv Samrath co-op. housing society Ltd., New Panvel (E)


INCOME & EXPENDITURE for the year ended 01-04-09 to 31-03-2010
INCOME

Rs.

EXPENDITURE

Rs.

Member contribution

178995

Maintenance & repair

30713

Water, shed & color

168930

Stationery and Xerox

672

Recovery in Yr
168930

Pest control

1000

(+) trf. From B/S recovery

Water bill

27846

In last Yr.
135433

Electric bill

950

Bonus

2200

20

Bank interest

3288

TOTAL

486646

Meeting

2292

Bank charge

211

Crack filling, shed & coloring

293700

Flooring work

7000

Plastic tank

15250

Salary

24200

Festival & pooja exp

12548

Depreciation(dead stock)

2573

Surplus balance

65491

TOTAL

486646

Shiv Samrath co-op. housing society Ltd., New Panvel (E)


BALANCE SHEET for the year ended 31-03-2010
LIABILITIES

Rs.

ASSETS

Rs.

Paid up share capital

4250

Closing cash/bank balance

6021

Reserve and other fund

R.D.C.C. bank

81583

Reserve fund

30770

Abhyudaya co-op bank

22767.50

(+) trf. Premium

30000

60770

RDCC bank (chief promoter)

4420

--

Investment & deposit

Member contribution

Fixed deposit

80000

Current assets, loans


Current liabilities & provisions --

&
advances
21

--

Income & expenditure A/C

Fixed assets

Surplus balance 74571.50

Dead stock
12864

(+) surplus in Yr. 65491.00

140062

(-) depreciation

TOTAL

205082.50 TOTAL

2573 10291

205082.50

Shiv Samrath co-op. housing society Ltd., New Panvel (E)


RECEIPT AND PAYMENT for the year ended 01-04-10 to 31-03-2011
RECIEPT

Rs.

PAYMENT

Rs.

Opening cash/bank balance

6021

Maintenance & repair

27431

R.D.C.C. bank

81583

Sinking fund F.D.

4000

Abhyudaya co-op. bank

22767

Pest control

2500

RDCC bank (chief promoter)

4420

Water bill

30844

Electric bill

24590

Bonus

1250

Member contribution

139800

Meeting

849

Water, shed & color

76500

Bank charge

40

Sintex tank refund

4024

Shed work

73900

Bank interest

2403

Dead stock

1300

Member share

250

Fix deposit

50000

Member entrance fee

100

Salary

32200

22

TOTAL

337868

Festival & pooja exp

16241

insurance

4838

Closing cash balance

9683

R.D.C.C. bank

30212

Abhyudaya co-op bank

23570

RDCC bank (chief promoter)

4420

TOTAL

337868

Shiv Samrath co-op. housing society Ltd., New Panvel (E)


INCOME & EXPENDITURE for the year ended 01-04-10 to 31-03-2011
INCOME

Rs.

EXPENDITURE

Rs.

Member contribution

139800

Maintenance & repair

27431

Water, shed & color

76500

insurance

4838

Bank interest

2403

Pest control

2500

Sintex tank refund

4024

Water bill

30844

Electric bill

24590

Bonus

1250

Meeting

849

Bank charge

40

Shed work

73900

Salary

32200

Festival & pooja exp

16241

23

TOTAL

222727

Depreciation(dead stock)

2318

Surplus balance

5726

TOTAL

222727

Shiv Samrath co-op. housing society Ltd., New Panvel (E)


BALANCE SHEET for the year ended 31-03-2011
LIABILITIES

Rs.

ASSETS

Rs.

Paid up share capital

4500

Closing cash/bank balance

9683

R.D.C.C. bank

4420

Abhyudaya co-op bank

23570

RDCC bank (chief promoter)

30212

Reserve and other fund


Reserve fund

Member contribution

60770

--

Investment & deposit


Fixed deposit

130000

Sinking fund F.D.

4000

Current assets, loans


Current liabilities & provisions --

&
advances
24

--

Income & expenditure A/C

Fixed assets

Surplus balance 140062.50

Dead stock
12864
(+)purchase in Yr.
1300

(+) surplus in Yr.

5726.00

145788
(-) depreciation

TOTAL

211158

TOTAL

2318 9273

211158

AUDIT REPORT
(Maharashtra state co.operative act 1960 section no. 81(5-B) & rules 69)
I have examined the attached balance sheet as 31 st march 2010, 31st march 2011
and the income & expenditure account for financial year 01-04-09 to 31-03-2011 of
the Shiv Samrath 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

25

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 society as on 31st march 2010 and 31st march 2011
and the income and expenditure accounts gives true and fair view of the
surplus/deficit for the period ended on that dates.

6.Comparative Balance Sheets as on 31st Dec 2010 & 31st Dec


2011
Particular

31-03-2010 31-03-2011 (Increase/


Decrease)

% Of (increase/
Decrease)

Liabilities
Paid up share capital

4250

4500

250

5.88

Reserve and other fund


Reserve fund

60770

60770

Member contribution

--

--

Current liabilities &


provisions

--

--

145788

5726

4.08

60755

29.62

Income & expenditure A/C 140062


TOTAL LIABILITIES

205082.50 211158

ASSETS
Closing cash/bank balance 6021

9683

3662

60.82

R.D.C.C. bank
81583
Abhyudaya co-op bank
22767.50
RDCC bank (chief promoter) 4420

4420
23570
30212

(77163)
802.5
25792

(94.58)
3.52
583.52

26

Investment & deposit


Fixed deposit
Sinking fund F.D.

80000
-

130000
4000

50000
4000

62.5
100

Current assets, loans &


advances

--

--

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 non-operating 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.
27

7.CONLUSION
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 Shiv Samrath cooperative housing society
was also a knowledgeable experience for me.

28

8.BIBLIOGRAPHY
The Maharashtra Co-operative Societies Rules, 1961
Advanced Financial Accounting (M.Com Part-I)
Dr. Varsha M. Ainapure (Manan Prakashan)
sahakarayukta.maharashtra.gov.in/

29