(1) A self-supporting co-operative society shall get its accounts Aud audited by a Chartered Accountant (hereinafter called as Auditor) as defined under the Chartered Accountants Act, 1949.
(2) A self-supporting co-operative society, at its annual general meeting, shall resolve to appoint an Auditor. The appointment shall be valid till the conclusion of succeeding annual general body meeting.
(3) The remuneration of an Auditor shall be such, as may be fixed by the general body. }
(4) An Auditor shall cease to hold office on—
(a) his resignation ; or
(b) his removal; or
(c) completion of his term of office.
(5) The general body may, by special resolution, remove an Auditor from office.
(6) It shall be the duty of the Board to ensure that annual financial statements of accounts are prepared and presented for audit within ninety days of the closure of the financial year.
(7) The Board shall invite the Auditor in the annual general meeting at the expenses of the self-supporting co-operative society in respect of the matters relating to his duties and the audit done by him :
Provided that an Auditor may be invited by the Board in any general meeting also where any matter relating to audit is to be discussed.
(8) The Auditor shall be entitled to be heard at such meeting in respect of any business, which concerns him as Auditor.
108 PUNJAB GOVT GAZ. (E X RA). NOV 8 2010 (KRTK 17. 1932 SAKA)
(9) ( demand of an Auditor, the Directors including, former Di rectors, members, managers of em ployees of shalla self-supporting co-operative society
(a) provide access (0 records, documents, books, acco unts, vouchers, papers, securities, cash and othe r properties belonging to or in the custody of such self-supporti ng cooperative society ; and furnish such information and explanations, as are, in the opinion of the Auditor, necessary to enable him to make the examination and report, and the aforesaid Directors, members, managers or employees are reasonably able to furnish.
(10) It shall be the duty of the Auditor to ensure that audited annual financial statement of accounts and his audit report are furnished to the selfsupporting co-operative society within a period of forty-five days from the date of submission of annual statement of accounts to him by the Board.
(b)
(11) The report of the Auditor shall—
(a) state whether the Auditor has obtained all the information and explanations which to the best of his knowledge and belief were necessary for the purpose of the audit ;
(b) state whether the balance sheet of the self-supporting co-operative society 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 mention specifically and change in the manner in which such valuation was done in the financial year under examination and its effect on surplus or deficit ;
(d) indicate the amount of surplus earned or deficit incurred from provision of services to the non-members as distinct from surplus earned or deficit incurred because of services to members in normal course of business ;
¢) indi a (e) cheate every deviation in actual expenses and income from the estimated expenses and income in the approved budget ;
v i PUNJAB GOVT GAY. (EXTRA), NOV. 8.2010 109 (KRTK 17, 1932 SAKA)
(1) state whether any of the Directors had at any time during the financial year under review, become inelipible under this Act to, continue in office as a Director
(g) state whether the decisions on disposal of surplus or assessment of deficit. of the general body, at its previous annual general necting were implemented correctly and completely;
(1) classify all debts and other assets as good, doubtful for recovery and bad and state whether the debts or other assets classified as doubtful and bad, are fully covered by adequate provision made in that behalf;
(1) state the details of loans given or credits allowed, if any, to any of the Directors or any member of his family including a selfsupporting co-operative society, firm or company of which such Director or member of his family is a member ; and
(j) state the factors contributing to the losses and indicate the members, Directors, officers, employees or staff, if any, responsible for such losses and extent of their responsibility for the same.
(12) The Auditor, who conceals the facts intentionally and causes damage to the self-supporting co-operative society, shall be guilty of an offence under this Act.
(13) Every self-supporting co-operative society shall file audit compliance report within a period of sixty days to the Auditor from the receipt of the audit report.
(14) The general body after consideration of the report of the Auditor, regarding apportionment of losses, shall forward it to the Arbitration Council, which after giving an opportunity of being heard to the concerned, shall pass an award for recovery, which shall be executed as per the provisions of this Act.