1/3, Shree Vivekanand CHS Ld, OO A. A. MOHARE & CO. | sxutrecirsiscrto CHARTERED ACCOUNTANTS, Ms 9228 543 842 / UL 0251 ~2473000 Email: [email protected] AUDIT MEM( DUM To, ‘The Members of Casa Uno H to O Co-Operative Housing Society Ltd. Registration No. TNA/DOM/HSG/(TC)/31168 DT-01/09/2018 Dombivli. INDEPENDENT AUDITORS REPORT Report on the Financial Statements as a Statutory Auditor 1, We have audited the accompanying financial statements of Casa Uno H to O Co- operative Housing Society Ltd, which comprise the Balance Sheet as at March 31, 2022 Income and Expenditure Account and Receipts and payments for the period then ended, and a summary of significant accounting policies and other explanatory information incorporated in these financial statements of the society audited by us for the period 1+ April, 2021 to 31+ March 2022. Management's Responsibility for the Financial Statements 2. Management is responsible for the preparation of these financial statements which give a true and fair view of the financial position and financial performance of the Society in accordance with the accounting principles generally accepted in India, the Maharashtra Co-operative Societies Act, 1960 and Rules there under. This responsibility inchides maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the society and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate intemal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 3. Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and Rules made there under. We have conducted our audit in accordance with the applicable standards issued by the Institute of Chartered Accountants of India and under the Maharashtra Cooperative Societies (MCS) Act, 1960. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from. statement,4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures on the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the societies preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing, an opinion of the effectiveness of the societies internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements, Opinion, 6. In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the notes thereon give the information required as per the Maharashtra Cooperative Societies Act , 1960 and the Maharashtra Co-Operative Societies Rules 1961, and any other applicable Acts, and or circulars issued by the Registrar, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i. in the case of the Balance Sheet, of the state of affairs of the Society as at March 31, 2022; and fi, in the case of the Income and Expenditure Account, of the Surplus for the period ended on that date; and in case of the Receipts and Payments Account, of the receipts and payments for the period ended on that date on and Re; ents 7. The Balance sheet, Income and Expenditure account and Receipt and Payment Account have been drawn up in accordance with the provisions of the Maharashtra State Co-operative Act, 1960. 8. We report that: i, We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and have found them to be satisfactory. ii, The transactions of the society which have come to our notice have been within the powers of the society. iii, The returns received from the office of the society have been found adequate for the purposes of our audit. 9. In our opinion, the Balance sheet, Income and Expenditure account and Receipts and Payments Account comply with applicable Accounting Standards. s BESS.10. We further report that : i. the Balance Sheet, Income and Expenditure Account and Receipts and Payments Account dealt with by this report are in agreement with the books of account and the returns and give true & fair view of statements of affairs. i, in our opinion, proper books of account as required by law have been kept by the Society so far as appears from our examination of these books. iii, for the year under audit the society has been awarded “B” Classification. 1. As required by the Maharashtra Co-operative Societies Act, 1960 and Rules made thereunder and in terms of circular No 976/2014 dated 28/10/2014, we give in part A, B & Cstatement on the matter specified in the said parts to the extent applicable. -nartered Accouptants CAPyAISA. Mohare: Mu. Me. : 148601 Sariner Panel No, 12242 Date : 11% March, 2023 Place : Dombivli ‘UDIN- 23148601 BGWJ}K43851/3, Shree Vivekanand CHS Ltd, ‘Guru Mandir Road, Saraswat Colony, Dombi (East) 421 201. ‘M: 9223 543 842 /LL:0251 ~2673000 Email: [email protected] A! A. A. MOHARE & CO. CHARTERED ACCOUNTANTS: (Part A, B,C) We have successfully conducted the audit of Casa Uno H to O Cooperative Housing Society Limited for the period from 1* April, 2021 to 31* March 2022 and our audit report is as follows: PART A SECTION SPECIFIC REPORT The Specific Report is NIL as during the audit we have not found any fraud, misutilisation of funds and properties, misapplication of funds, manipulation of accounts and falsification of accounts. Note - Due to inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls, material misstatement due to error or frauds may occur and not be detected, SECTION-2 SPECIAL REPORT The Special Report containing the serious irregularities in administration of the society serious breaches of Act, rules and byelaws are as follows: St. | Provisions of ‘Compliance Violation ‘Suggestions ‘Act/Rules Required/done — 1. | Bye Laws _No.156 | Conveyance of Land | Conveyance Deed is | The tile of the Land and Building and Main Object of rot yet executed in | las not been transferred in favor Society favor of the society | of the society. The society should lake necessary steps to complete the Conveyance process as early | as possible 2 | Section 244 of | The Society to | No training has | Society is advised to obtain Maharashtra co- | provide education | been provided to | training from approved institute operative Societies | and training to 20% of | members during the | and obtain certificate of training Act, 1960, members every year | year, within three months from the as per circular dated ‘Audit date or before submission 15th May, 2015 of Audit rectification report 13.) Rule 1076 of The | Cash in Vand within | Society has not | The society should take necessary Maharashtra Co- | Rs.10,000 followed limits | steps and avoid cash collection ‘operative Societies ‘mentioned under | from members. Further, payment Rules (Amendment Rule 107C of The | to vendors should not exceed Rules, 2014) Maharashtra Co- | Rs:1,500 in cash. ive Societies Rules (Amendment Rules, 2014) |4 | Bye Laws No. 141 | Maintenance of ‘Society fas not statutory Register| maintained Property Register, Sinking Fund Register Society has to maintain following Registers 2) Form Register, 1) Form Register ©) Sinking Fund Register 4) Investment Register ‘e) Nomination Register 1) Managing Committee Minutes Book g) Annual General Meeting -ninutes book ‘) Property Register hy) Structural” and Fire Audit Register Society is advised to maintain ‘and update all above registers with all details completely in prescribed format and present the same before us for verification within three months of the Audit date or before ‘submission of Audit Rectification Report. 5. | Section 1548-29 (le, | Recovery proceedings | Society has not ‘old Section 101) of | for outstanding | followed provisions ‘Maharashtra’ Co- | balances. of 1548-29 (Le. old Act, 1960 Maharashtra Co- operative Societies ‘Act, (Amendment ‘Act, 2013) towards recovery of long | | operative Societies Section 101) of The | ‘The society should take steps to recover outstanding balances, within three months of the Audit date or before submission of audit rectification Report. Building Insurance premium against outstanding. { balances. [6 | Section. 139 of the | Filing of Income Tax | Income Tax Return | Society is advised to file income Income Tax Act 1961 | Retum for F-Y. 2020-21 has | tax returns on regular basis. - not been file, 7. | Bye-law No.160(a). | Building insurance | Society has adjusted | The society should avoid such discount con | adjustments in Insurance Premium Expenses. Discount, if any, received from Insurance Repairs and | Premium should” be adjusted Maintenance "| against Insorance premium Expenses expenses. PARTB The following are the observations regarding the activity and working of the society found during the audit. 1. Balance sheet and Profit and loss account. a) Share capital : We could not verify the authorised Share Capital of the Society due to non availability of the Original Bye-laws of the Society. As per books of accounts of the Society the bank balance of the T.D.C.C. Bank as on 31/03/2021 was recorded as Issued, subscribed and paid up capital of the Society ie. Rs.4,86,804. During the audit the Society has reconciled the books and corrected the Issued, subscribed and paid up capital as Rs.3,88,000 ice. 7,760 Shares of Rs.50 each from 776 Members, Membership Fees as Rs.77,600 and balance amount transferred to Reserve Fund to the extent of Rs.22,204, The society should reconcile further for correction by way of collection of additional 10 Shares from all Body Corporates. Further the Society should collect,» 4) additional Membership Fees from all Joint Members and Associate Members of the Society. Reserve fund and other funds: As on 3ist March, 2022 the amount standing to the credit of Reserve Fund & Other Fund is as follows, society is yet to invest the amount in fixed deposits against the fund amount appropriately : i Fund Investment Particulars | Bs) ml Sinking Fund 31,70,854 Repairs Fund 35,62,622 Reserve Fund 22,204 | Contingency Fund 18,63,000 Transfer Premium 12,00,000 Entrance Fee T 81,200 __| Share Transfer Fee 24,200 - Education & Training, 1,62,928, Income & Fxpenditure A/c | 1,08,84,859 Investment in FDR oo 159,68,891 ‘Accrued Interest | 4,09,892 Total 2,09,71,867 | 1,63,78,783 Shortage of Investments | 45,93,084 Amount lying, in Bank Account 49,20,887 Society should invest shortage of investments immediately against the appropriate funds, In addition to funds position as above the amount receivables from Members towards maintenance amount to the extent of Rs.66,25,977.64. Contribution from Members: (@ Sinking Fund : Society had collected Sinking Fund under separate head during the period under audit. (ii) Repair & Maintenance Fund : Society had not collected Repairs & Maintenance Fund under separate head during the period under audit. ‘The Society should collect Repair & Maintenance Fund as per model bye- Jaws of the Society. (iii) Collection of Training & Education Fund : The society had collected ‘Training & Education Fund during the year from its members. The society should collect the same from its members and utilise it for imparting training to its members, employees & officers. (iv) Non Occupancy Charges : The society should collect 10% of Service Charges as Non Occupancy Charges. Cash and Bank Balance : ‘The society has a bank balance of Rs.12,11,640.85 with State bank of India, Rs.31,80,485.12 and Rs.5,28,286 with the Thane District Central Co-op. Bank, the bank book balance reconciles with the balance as per Bank pass book/statement as on 314 March 2022. feSERS (SC -ey low ake eSDuring the period under audit we observed that huge balance was maintained in saving account resulted into loss of interest to the society. Cash in hand as on 31% March 2021 was Rs.1,224 and as on 31* March, 2022 was s.435 as certified by management. It is observed that during the period of audit, the society had the cash balance in contravention to the bye law no 144. The society should obtain security from manager / office bearer in accordance with Rule 107B of the Maharashtra Co-operative Rules, 1961. Needful should be done in the matter at the earliest. ¢) Fixed Deposits : All the fixed deposits are in the name of the society and are free from any ‘encumbrances. The fixed deposits are not marked against specific funds, During ‘our audit the Society Manager could not produce before us three FD receipts out of that FD No, '404513000744 & FD No. '404513000745 amounting to Rs.10,00,000 each are Sweep Account and FD No. '404513000604 amounting to Rs.8,4,000 is a normal Fixed Deposit with ICICI Bank. f) Amount receivable from members : Total amount receivable from members is Rs.66,25,977.64 against monthly maintenance and amount received in advance from members is Rs.1,82,882.64 towards monthly maintenance. Member's Contribution received in Suspense amount is Rs.92,519.04 and Rs6,278 is receivable from members other than maintenance. 8) Fixed Assets: Cost of land and building is not yet recorded in Books of the Society. Other fixed assets are appropriately depreciated. h) Surplus/Deficit During the year 2021-22 the society had a Surplus of Rs.21,62,658. i) Builder Account (amount receivable/payable) : During the period under audit the Society has not recorded any amount towards receivable/ payable from/to builder/promoter. The society should settle the accounts with the builder/ promoter towards advance maintenance amount on priority. 2. Remarks on growth or decline in deposit/capital/oan/profits etc. and important ratio analysis. Society does not have practice to maintain budget. Society should finalize annual budget for next year. Since society is newly formed figures of previous year are not comparable with the current year. Hence, we are not commenting on the comparatives of the expenses. * ASRS & a) BOY y2 8 PARTC Annual General Meeting and Special General Meetings: ‘The society has conducted it’s Annual General meeting for FY 2020-21 on 27 March, 2022. In addition to this meeting no other Special General Meetings took place during the period under audit as informed by the managing committee. Monthly Managing Committee Meetings: Managing Committee should have monthly meetings with appropriate quorum. Further Signatures of all present members should be recorded appropriately. On few instances we could not verify the attendance sheet due to meetings in virtual modes. ‘The Society should document all virtual meetings appropriately. Society accounting in third party software : Society maintains its Billing module in computerized software through third party vendor. The accounting record and soft copy of data is always in the custody of the third party. The Society is largely dependent on the third party for data and accuracy of the same. During our audit we observed that society do not maintain printed record of books of accounts. Back dated entries are possible in this software without leaving proper audit trail and hence, it is advisable to maintain physical copy of books of accounts after finalization of data for a particular period. Rough Cash book: During the year of audit, the society has maintained rough cash book in excel sheet. Itis advised to maintain this sheet in physical format and mark payments on regular basis. Police Verification for rental flats: ‘The society should complete police verification in case of flats given on rent. It is further advised to keep separate register in physical format for recording all activities while flats given on rent. Disclosure of interest by the related party: ‘We have been told that during the period under audit there was no related party transaction. Nominal Membership: Society has not made the tenants as nominal members. The society should do the same at the earliest. GST Liability, GST Input Credit and GST Returns: We as a statutory auditor under the Maharashtra Cooperative Societies Act, 1960 are not commenting anything on the accuracy of the GST Liability. Society is advised to take proper opinion on the GST applicability to the Society. In our opinion the Society is liable for registration under the Goods and Services Tax Act, 2017 but the registration for the same is not yet obtained. During the period under audit society hhas not charged GST on income other than collection from members towards maintenance,9. Cash Expenses more than Rs. 1500 are as follows: { Date Voucher No. Particulars Amount 30/09/202 | JE-2021- ‘Various Petty Cash Expenses Sagar as per | 5,269.00 1 ‘0000035 _ bills attached from 20.08.21 to 30.09.21 30/11/202. | JE-2021- various petty cash expeneses incurred by | 7,436.00 1 | 0000073 sagar as per statement attached —_ 30/06/202 | JE-2021- Various petty cash incurred by sager till | 7,835.00 a ‘0000020 30th June 21 as per bills attached | 19/08/202 JE-2021- Various Petty Cash Expenses as per bills’ 10,195.00 i 0000025 __ attached from 01.07.21 to 19.08.21 10, Overalll accounting system, management and administration: Considering size and transactions of the society we strongly recommend to appoint a fulltime accountant for the society in addition to the internal auditor. Panel No. 12242 Date : 11% March, 2023 UDIN- 23148601 BGWI}K4385‘ewe pe re mn has Bg dy 0 0 OU ee) Jog al BVA Lg somsrek E202 MYH Ls souyed booerl : ON eres, meses utes raw -00 9 o12yo“y "y “S/N 304 ep vte Posey io ndsy Pr hio0s trey do-0g 0 Hour e905 [same [aon sews [rea epi 9 wa sores SERED TEU} uric [REET srmaiysonetea mo socom vrouiy-nesnypms — | corse swore RE sageronny ano | aes sess seu uo ssn 30 ‘i sec veswocpessd | serors ovo. datuuy-eepeanreaueroy — [yeLot rowsez FISD sweet Severe Hay swczw — |uuro 80 Eo ENS OI ueseee toumeunvissmty | core 99 zeae co's saeser 2 7 meter marco peter ATES TEGL WH Le souues co wat wi. a) sony “wenn rr fans Basen dog 0 tH un eg 04 ens Aung 6649 08 stepmom teesi91 eoveve aioe $8000 rT TTTelie aH A THAR mg MA we ‘ “pM Fas apo 0-0 0 09 Hou sey 104 are a ae pra eT ra wove | = fescuy faver [revere [eves ssvesees seve mere sex soe foe fee eon. ‘ 2 ezcaea] 1 | ences eeu soo [ow (see 2 [orwane ‘ |exwaeo] 4 | ruin oe we fe fae cor | oct anes | s | | coer reson zone | szorisorls ot are |e ee nowe |omoree ceowse |. | | cosoue ernose| zene | vuscisr|> sos ese lnews + fore ‘ 2 rzsre| 2 | ssn sreces wen ve cece | owooee cewwwer | or | | ezaor [sonore sena0e | sense escsn ocese sees ewer laswie sisrre | vy | | erase [isn . sews sccuess |eooooes 3) |ta a covers esvo reeves |vwron [ese sussvee ce roo [rw foxes reve crows | os | ms | exes [reco] ezeno | reissue esse [eros feavse ese fooree amie |aosone covery [ors | as | sees |sexoeo|isono | aunssenoye wav |ocse froeu fave fase covers fouiam cccures [ors | us | snow |senovo| sono | rss ; ‘sa leone 2 ror nafsupectz| somnie | veeeny loose nme rrr tema | ema] low fr eno wecet""fuscrons| see | near ‘mano be re own | TT aR wTos Une Ht 0 o-on Hownin Sci Lid TMADOMNSGTE S108 OT oNN=zOTE ocd essen weocamn | ovmenat cares | OE camera saa | sae] ema] Seca i ie3| eae re Pa OO a or Socom 3, | sa ee ti — Snjencaear Si =|—ser a frassa — ym a oe | “as rare] rar en eV ier aye Amex ra a ae teeta Sea Zao paiae Sara = sa a ae Steere = ar = seas anon Yoneda € a sea = ns a on es a se aun fees em [Stites Seam For Casa Uno to 0 Coop. Hos Sat Bark Oy Chairman ‘Trensorer TAMAR 702331728, 916PM Intp:sn ade otmodusessank_cash_repois_vow php repor=Pariod 7EgN Cae Uno Ho 0 Conap, Housing fodety Led inane nacomaemeneenes cae ow Repo 01-0420 3-3022 rc car aah un Cah Baas begining ot 2- pane sna sess Der 281000 Opes OI BANK ce saae7s6e we ane ss0000 feng STATE SANK OF NOM sane "Tams cone oS peing Sune cou Bank 00 Common tes Ect ipontes 468572000, Contract Salary Expenses: 790,023.00 ‘Opening Petty Cash balance ‘Conveyance Charges 26000 Cov Execs soazeiso SGSetRopr & Monae Espenes —'s898200 Incone om tener (Danis) ‘Aete Invoies toro 01-042021 850,186 09 toes! Goods se.0s.90 doen: soon eat Rep Marner seam See Fest expres esa 788.0 ‘Other charges (CAM) 139,167.00 Wal Expenses - [Festival 1} Eston & Tan Fa asin le hang yt Ropar 8 senso LaPeer bet ssesanan Fred sou Cont AC $6 4000 ee ‘Garden Matenance Expenses 40230000 Hal Psa 20099 ‘Howse Koaping Expenses 147387400 ‘Shing Charges Move InAnd Move Out 88500000 aa ease? ‘ne Te Gocrtsen Charges saesas00 cue sys Nowtonece 8 aren Charges pecrry oa ae | Cantngeney Fund feseaeoe Lut Repair & Maintenance 128.1540, vaio thoaor 7 wenn se Nance ethos eae ee Penacores 3omm00 vese sPatsnn me hatte Meee rasta Meat rea PNET 08 Office Expenses: 4171.00 ter oper ance sis000 Undone Crete -Yoto be Acad 260280 ~~ i ‘Pest Control Expenses, 24,201.00 Undrted ret -Aloota sovmaan Pring ory prazioo Pretest Peco Thaan00 feta Depots oon Pera Coperee pees Secu Expres sono Income rom Non Mebers Stan Att Ep 2500000 Ate ene tre 0-920 ow Se oe ae ‘sam0.00 ‘Water Tank Cleaning Expenses 27,500.00 Mai Sonat ‘0000 ‘ner ar exper res 00.00, save hon Mere O00 soo mans soo [ivencePaymentto Vendor Ate 11,098.00 ‘vane Pyrat Vendors Net at 48 sstese Journal nia Det nassoo ‘mount etude Manbes From 00 soo ‘Amour end rom Randle 00 eat Sorc Tx Pid a0 Po charges, 00 Surat Ere ata) teann003.00 canin oasoaseaar exon eansorsiso Fa ERT EaGRARG TATE — HATO) [Saeng OCEAN Tom atc 0488 Z27e837500| Omar STATEBAMCOF MOA dance 21.6085 tl xe 08a Zears1as0| |r Sweep Acco ccrtant tice a sing Gash Poin for 0.942021 ararssast) —|cingPety Goh bance «ssc msaunseay, ‘veueyy ah ‘apes a 05 a. ove 00e oncoo000 cones oOS50995 —VIONISONNYESIVIS he ot090001 eei901 on coe000 covo0e cero oosers avo08e cozozen, seiozem vesz0e stave 2202-€0-LE 94 1202-¥0-L0 S3P palfouo9ay - p17 Ayalo0g Bulsno} do-09 0 03 H oun eseQ,elOL BVH LG 2202-£0-LE 01 102-70-10 S3F patouodadd- prT AiaIg0g BuisnoH do-o9 0 Or H uN ESeD