Short Answer

Yes, societies are required to obtain approval of the Registrar for their balance sheet.

Detailed Explanation

Section 84 of the Gujarat Cooperative Societies Act, 1961 mandates that every cooperative society shall prepare its balance sheet and profit and loss account annually. Rule 113 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the format and contents of the balance sheet and profit and loss account.

The requirement to obtain approval of the Registrar for the balance sheet is crucial for ensuring transparency and accountability in the financial affairs of the society. This approval process acts as a safeguard against any potential financial irregularities or mismanagement within the society. The Registrar's scrutiny helps in verifying the accuracy and compliance of the financial statements with the provisions of the Act and Rules.

In practice, the society's management committee prepares the balance sheet and profit and loss account at the end of each financial year. These financial statements are then submitted to the Registrar for approval within the specified timeline. The Registrar reviews the documents to ensure that they reflect the true financial position of the society and comply with the statutory requirements.

Real-world Scenarios

• Scenario 1: XYZ Cooperative Society prepares its annual balance sheet and profit and loss account for the financial year ending on March 31. The management committee submits these financial statements to the Registrar for approval by the due date of June 30 as per the Act and Rules.

• Scenario 2: ABC Housing Cooperative Society faces delays in preparing its financial statements due to internal issues. The Registrar grants an extension for submission upon receiving a formal request along with valid reasons for the delay.

Overall, the approval of the Registrar for the balance sheet is a critical step in ensuring financial transparency and regulatory compliance within cooperative societies.

References

• Section 84 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 113 of the Gujarat Cooperative Societies Rules, 1965: Official PDF