Short Answer

The society must fix its accounts for audit within 6 months after the financial year closes.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 states that every society shall close its accounts at the end of each financial year. Within 6 months from the close of the financial year, the society must prepare a balance sheet and profit and loss account, get them audited, and submit them to the Registrar. This timeline is crucial to ensure transparency and accountability in the financial operations of the society.

In practice, this means that the society's management committee must promptly initiate the process of finalizing the accounts after the financial year ends. They need to gather all financial records, prepare the necessary financial statements, engage an auditor, and ensure that the audit is completed within the stipulated timeframe. Failure to adhere to this timeline can lead to penalties and non-compliance issues.

For example, if a cooperative housing society in Gujarat closes its financial year on March 31st, it must complete the audit process and submit the audited financial statements to the Registrar by September 30th of the same year. This ensures that the society's financial health is regularly monitored and reported in a timely manner.

Another scenario could involve a cooperative credit society that faces delays in finalizing its accounts for audit. In such a case, the society may incur fines or face legal repercussions for non-compliance with the statutory timeline outlined in Section 81 of the Act.

Overall, the timeline for fixing accounts for audit after the financial year closes is a critical requirement that ensures proper financial management and accountability within cooperative societies in Gujarat.

References

• Section 81 of the Gujarat Cooperative Societies Act, 1961: Official PDF