Section 44 in Uttarakhand Self Reliant Co-Operatives Act, 2003
44. Audit.
(1)A Co-operative shall get its accounts audited by a chartered accountant within the meaning of the Chartered Accountants Act, 1949 :Provided that where a co-operative's business turnover is less than Rs, Ten Lakhs, it may appoint as auditor, any person/s, from within its membership or outside, with such qualifications as are specified in the articles of association.Explanation. - For the purpose of this section, business turnover shall mean the value of sales, services provided and /or loans recovered.(2)A co- operative, at its Annual General Meeting, shall appoint an auditor. this appointment will be valid only until the close of the next succeeding Annual General Meeting.(3)The remuneration of an auditor may be fixed by the general body or, if not so fixed, by the Arbitral Tribunal.(4)An auditor ceases to hold office when the auditor(a)resigns;(b)is removed from office under sub-section (6); or(c)completes his/her term of office.(5)The resignation of an auditor becomes effective at the time a written resignation is received by the co-operative, or at the time specified in the resignation whichever is later.(6)The general body may, by a special resolution, remove an auditor from office.(7)An auditor, who(a)resigns; or(b)receives a notice or otherwise learns of a Board's meeting called for the purpose of removing him/her from office;Is entitled to submit to the Board a written statement giving the reasons for the auditor's resignation or the comments on the proposed removal, as the case may be.(8)A vacancy created by the resignation of an auditor shall be filled up by the arbitral tribunal.(9)A vacancy created by the removal of an auditor, too, shall be filled up by the arbitral tribunal.(10)An auditor appointed to fill a vacancy holds office for the unexpired term of his/her predecessor.(11)The auditor shall be given notice of every general meeting and at the expense of the co-operative, will be entitled to attend and be heard thereat on matters relating to the auditor's duties as auditor and their exercise.(12)It shall be the duty of the Board to ensure that annual financial statements are prepared and presented for audit within forty-five days of closure of the cooperative's financial year.(13)Upon the reasonable demand of the auditor of a co-operative, the chief executive shall arrange to(a)provide such access to records, documents, books, accounts and vouchers of the co-operative; and(b)furnish such information and explanations, as are, in the opinion of the auditor, necessary to enable him/her to make the examination and report, and as the chief executive or a present or former Director, members, or employees are reasonably able to furnish.(14)it shall be the duty of the auditor to ensure that audited annual financial statements and the auditor's accompanying report are furnished to the cooperative within sixty days of the submission of annual financial statements by the Board.(15)The auditor' report to the members of the co-operative shall;(a)state whether the auditor has obtained all the information and explanations which to the best of the auditor's knowledge and belief were necessary for the purpose of the auditor's audit;(b)state whether the co-operative's balance sheet and income and expenditure account dealt with by the report are in agreement with the books of accounts;(c)indicate the basis on which each asset and liability was valued, and make specific mention of any change in the manner in which such valuation was done in the year under examination and its effect on surplus/deficit;(d)indicate the amount of the surplus earned/deficit incurred from provision of services to non-members as distinct from surplus/ deficit accruing because of members or in normal course of business;(e)indicate every deviation in actual expenses and income from the estimated expenses and income in the approved budget;(f)specify the gross remuneration and/or honorarium and/or allowances paid and/or value of benefits provided, if any, to the chief executive, any of the office bearers, or Directors, in the financial year under audit;(g)state whether or not any of the office bearers or Directors had become, at any time during the year under review, ineligible under this Act to continue in office as an office bearer or Director; and(h)state whether the decisions on disposal of surplus or assessment of deficit, of the general body, at its previous annual general meeting were implemented correctly and completely or not.
