Short Answer

The society should verify inventory, including common consumables, at least once a year.

Detailed Explanation

Section 77 of the Gujarat Cooperative Societies Act, 1961 mandates that every cooperative society should maintain proper books of accounts, including an inventory of common consumables. This inventory should be verified at least once a year by the society to ensure accuracy and transparency in the management of resources. The verification process involves physically counting and reconciling the actual stock with the records maintained by the society.

Rule 59 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the procedure for inventory verification. It specifies that a committee appointed by the society should conduct the physical verification of inventory and prepare a report detailing any discrepancies found. This report should be presented to the general body meeting for approval and necessary action.

In practice, the society typically forms an inventory verification committee comprising members who are not directly involved in the handling or maintenance of inventory. This committee conducts a thorough inspection of all common consumables, cross-checks them with the records, and prepares a detailed report highlighting any discrepancies or irregularities.

For example, let's consider a scenario where a cooperative housing society in Gujarat decides to verify its inventory of common consumables, such as cleaning supplies, maintenance tools, and office stationery. The inventory verification committee conducts a physical count of all items, compares them with the records, and identifies a shortage in cleaning supplies. The committee reports this finding to the general body meeting, which then takes necessary steps to address the issue, such as ordering additional supplies or investigating potential misuse.

In another scenario, a cooperative society managing a grocery store conducts an annual inventory verification to ensure accurate stock levels of common consumables like groceries, toiletries, and household items. During the verification process, discrepancies are noted in the stock of certain products, prompting the society to investigate possible theft or mismanagement. The committee's report is crucial in initiating corrective measures and maintaining the integrity of the society's inventory management system.

Overall, regular verification of inventory, including common consumables, is essential for cooperative societies to uphold transparency, prevent fraud or mismanagement, and ensure efficient resource utilization.

References

• Section 77 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 59 of the Gujarat Cooperative Societies Rules, 1965: Official PDF