Short Answer

Changing the financial year of a cooperative society can impact audit schedules.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 deals with the financial year of cooperative societies. It states that the financial year of a society shall be determined by the Registrar, and once determined, it can only be changed with the Registrar's approval. If a society decides to change its financial year, it must apply to the Registrar for approval and follow the prescribed procedure.

Rule 91 of the Gujarat Cooperative Societies Rules, 1965 provides details on the procedure for changing the financial year. It outlines the steps to be followed by the society, including passing a resolution in a general meeting, obtaining approval from the Registrar, and making necessary adjustments in the audit schedules.

In practice, changing the financial year can disrupt the audit schedules as the audit timelines are usually aligned with the financial year. Auditors may need to adjust their schedules, timelines, and procedures to accommodate the change. Failure to properly adjust the audit schedules can lead to delays in completing audits and submitting reports to the Registrar.

Real-world Scenarios

• Scenario 1: A cooperative society decides to change its financial year from April-March to January-December. The society follows the procedure outlined in Rule 91 and obtains approval from the Registrar. The auditors are informed of the change and adjust their audit schedules accordingly.

• Scenario 2: A society fails to follow the prescribed procedure for changing the financial year and proceeds with the change without Registrar approval. This leads to confusion among auditors, delays in audits, and potential non-compliance issues.

Reference

• Section 81 of the Gujarat Cooperative Societies Act, 1961

• Rule 91 of the Gujarat Cooperative Societies Rules, 1965