Section 77 in The Assam Co-operative Societies Rules, 1953
77. Audit classification.
- The Audit Officer shall at the completion of the audit classify the societies whose accounts are audited, as A,B,C and D on the following principles and other standards as may, from time to time, be laid down by the Registrar-(i)"A" Class - Societies which are well managed keep their accounts neatly and correctly, have built up a strong financial position observe co-operative principles, have a co-operative outlook in all their dealings and do not require outside guidance or supervision and further enforce punctual recovering of dues from members with complete loyalty assured from all members.(ii)"B" Class - Societies which may contain certain of defaultering members, their accounts are not entirely faultless but have displayed a certain amount of co-operative spirit with a general desire for self improvement, self-help and shift. Outstanding of dues should not be more than 25 per cent of the total.(iii)"C" Class - Societies where bye-laws and rules are not property observed management is not .satisfactory, the financial position is weak and overdues exceed than that of "B" Class but within 50 per cent of the total outstanding and(iv)"D" Class - Societies which fail to show any activity, have forfeited the confidence of creditors where the overdues are more than 50 per cent and they do not show any chance or improvement to class "C" within 2 years of such classification, but where should be considered for liquidation.
