Notifications/Orders under the provisions of Goa Co-operative Society Act, 2001 (Act 36 of 2001)

5 · It shall be mandatory on the part of all Cooperative Societies to obtain prior approval of the Registrar before xxxxxx making any new policy decision for incurring capital expenditure to the Rate of 65.00 lakhs and above for the purchase of movable properties, plan&xxxxxxxxxxxxxxx and fixtures, xxxxxx renovations and construction of building office equipmentetc. Moreover,the capital expenditure for purchase of movable properties as stated above less than Rs. 05.00 lakh shall be sectioned as the above loans at zonal level and shall obtainthe necessary approval.

6 · The Management shall ensure that before making purchases, the codal procedure of inviting questions and other retained procedures are followed as per the existing Rules and as per the procedure followed by the Govt, of Goa.

7 · The Management shall ensure that the Account of the Societies are got credited/returns filed/ AGM converted /Election had within a stipulated time as provided under the provision of the Act, go as to safeguard the interest of the shareholders in particular and the society at larger.

8 · The management shall ensure that the investment of funds in purchase of immovable property is done only after approval of the Registrar in accordance with the guidelines issued to this effect.

9 · The Management of the Cooperative institutions shall take necessary step to comply with aforesaid directions with immediate effect.\This order supersedes the earlier order issuedby this office and this shall come in force with immediate effect

1 · Rescheduling of Payments – Term Loans and deferment of interest:

2 · Classification of Non -Performing Asset (NPA):

3 · Additional provisioning:

4 · Provisioning and payment of dividend:

1 · Introduction:

2 · Objectives:

3 · Constitution of Board of Management (BoM):

4 · Functions of Board of Management:

5 · Size of BoM:

6 · Qualifications of Members of BoM:

7 · Meetings of BoM:

8 · Sitting fees:

9 · Tenure of BoM:

10 · Functions of Board of Directors:

11 · Functions of CEO:

12 · Registrar’s powers over BoM and CEO:

13 · Amendments to bye-laws:

1 · Computerization

2 · Interest for loans and deposits

3 · Disclosure of financial results and statutory compliances

4 · Verification of antecedents of employees

5 · Management Board

7 · Board of Directors resume and term

7 · Registration of e-mail/mobile/whatsapps No.

8 · “Fit and proper” criteria for CEO/Managing Director

1 · The Returning Officer appointed by Chief Election Officer/Asstt. Election Officer shall perform all the functions of the Election Officer under the Goa Co-op. Societies Act and Rules in the case of thesocieties having limited resources and membership. However, he may engage the services of a Jr. Auditor/LDC under his control to assist him in conducting the election.

10 · The minimum funds to be deposited by the society for the conduct of election shall be in the following manner:

13 · The honorarium to be paid to the officials/officers engaged for conduct of the election of the societies having paid-up share capital of more than Rs. 25.00 Lakhs shall be as under:-

14 · The honorarium to be paid to the officials officers/engaged for conduct of election of the societieshaving paid-up share capital of less than Rs. 25.00 Lakhs shall be as under:-

15 · The fees towards the election form shall be uniformly fixed at Rs. 20/-.

1 · The Unit Incharge (Assistant Registrar or Co-operative Officer as the case may be) shall beprimarily responsible to ensure compliance of provisions of Sections 72, 73 and 74 of the Act in respectof all Societies placed under his/her charge in a time bound manner by following this Standard Operating Procedure (SOP);

2 · The Unit Incharge shall verify within first fortnight of June every year the Societies that have complied with provisions of Section 73 (4) of the Act by submitting copies of Statements to Zonal Office on or before 30th May and accordingly issue notices to all defaulting Societies calling upon themto comply with the provisions of Section 73(4) of the Act within 15 days from the date of receipt of such notice;

3 · The Unit Incharge shall monitor whether notices convening annual general body

4 · Within first week of October, the Unit Incharge shall prepare a list of all the Societies those have failed to hold the Annual General Body meeting of its members within specified time line and by15th of October a Show Cause Notice shall be issued to each of such defaulter Society seeking explanation for violating statutory provisions of the Act;

5 · By 5th October of every year, a detail list giving status of Audit of all Societies for the preceding financial year shall be prepared by the respective sub-unit incharge in respect of the Societiesassigned to concerned dealing hand and same shall be submitted to the respective Unit incharge for taking necessary action u/s. 74(4) of the Act;

6 · The respective Unit Incharge shall thereafter verify all facts based on the records available and on or before 15th October, issue an Order u/s. 74 (4) of the Act appointing Auditor for conductingAudit of all defaulting Societies;

7 · The respective Unit Incharge shall, before appointing any Auditor from empanelled list, contact concerned Auditor through telephone/email or letter and check whether the Auditor is availableduring the period and confirm that the statutory Audit shall be started immediately upon issue of Orderand completed in any case by end of the month of following December;

8 · The Unit Incharge shall mention the detailed postal address of the Society and also the names of contact persons i.e. employees, CEO/G.M. and the Office bearers of the defaulting Society with their contact numbers/email IDs in the Order issued u/s. 74(4) of the Act. In the same Order, the date and time for start of the Audit shall be compulsorily written;

9 · It shall be the duty of concerned Unit Incharge and Sub-Unit incharge to continuously follow up and monitor the process and ensure that in any case the Audit is completed on or before 31st December. A mere issuing of an Order u/s. 74(4) of Act without taking any efforts to contact Auditor and/or fixing up meeting between Auditor and office bearers of Society shall not be acceptable as compliance of Section 74(4) by the Unit Incharge, but such lethargy shall be treated as negligence in duty. The Unit Incharge should not issue Order u/s. 74(4) mechanically without finding out availability of Auditor or without providing any details of Officials of Society to Auditor. It is the duty of Unit Incharge and Sub-Unit Incharge to ensure that Office bearers of Society and Auditor appointed meet each other and plan to start the Audit immediately;

10 · The Unit Incharge of the society shall undertake fortnightly review of the Societies allottedfor Audit by taking joint meeting of the Auditors and the Office bearers/CEO/Employees of the Societytoeliminate any working difficulties in timely completion of audit. A record of all such joint meetings shall be maintained at Zonal Offices by Unit Incharge and its copy may be submitted to the Registrar with monthly progress report;

11 · The Unit Incharge shall after evaluating the progress in the monthly meeting take necessary steps and may re-allot or interchange the Auditors as per the need to expedite the auditing process;

12 · The Unit Incharge shall after issuing Order u/s. 74(4) of the Act and taking steps to get Audit completed as stated above, shall also simultaneously initiate proceedings under Section 61 (a) and 61 (c) of the Act against the Board of Directors of defaulting Societies for disqualifying all Directors, being ineligible to continue as Director for failure to hold AGM and place the Audit Report before AGM within statutory time limits;

13 · Show cause notices issued under Section 61 of Act to the BoD of the Societies for failure on their part to hold Annual General Body meeting and complete the audit shall be taken for regular hearing by maintaining a proper Case Register and allotting a distinct Case Number to each case. Everysuch case shall be heard and disposed finally as early as possible and within a maximum period of 6 months from the date of issue of SCN. The guidelines issued by Hon'ble High Court of Bombay, Panaji-Goa bench vide Order dated 24-08-2006 in Writ Petition No. 281/2006 shall be strictly followed. The Unit Incharge shall provide opportunity for filing of a reply and hear oral arguments and after providingnecessary opportunity of being heard decide the matter by passing a speaking Order. All statutory provisions shall be strictly followed adhering to the Principles of natural justice. A certified copy of every Order passed u/s. 60 of the Act shall be submitted to undersigned RCS within 3 working days from the date of passing of Order;

14 · The detail review and status of audit shall be taken in the last week of March every year and the list of the societies which are audited/unaudited as the case may be shall be prepared and submitted to the Registrar of Co-operative Societies with full facts and justified reasons for pendency of audit (if any) and financial status of the societies;

15 · The Scrutiny of all Audit reports those are filed by the compliant Societies shall be completed in all respects within 60 days from the date of its receipt at Zonal Office and remedial action plan and required action as per statutory provisions shall be initiated without any delay. Incase there are large number of Audit reports received during the month and due to staff constraints or any other valid administrative reasons, the scrutiny of all received audit reports could not be completed during the particular period, than top priority shall be given for completing scrutiny of audit reports of all Urban Credit Societies which involve public deposits and thereafter the Audit reports of other Societies may be taken up depending on the cIassification of the society and nature of business of the Society. The scrutiny of Audit reports of housing societies may be taken at last since volume and amount of transactions are generally less in housing societies;

16 · The list of disqualified Directors u/s. 61 of the Act on account of failure to complete Audit and/or hold AGM shall be accordingly prepared and submitted to the Registrar of Co -operative Societies for circulating for information of all Zonal Offices so that such disqualified persons are not allowed to continue on BoD of any Society registered in Goa;

17 · Whenever any Society proposes/recommends in the general body meeting for appointing the Departmental Auditor for conducting the Audit, than it shall be ensured that the society shall not select any Officer/Official by name, but the appointment will be left to the Zonal Office taking into consideration the work load. Upon receiving such request, the Order for appointing Departmental Auditor shall be issued by the Unit Incharge u/s. 74(3) of the Act mentioning the resolution number anddate of general body meeting of concerned Society. A copy of the Order shall be immediately served tothe Society concerned;

18 · The audit fees and Government fees as the case may be shall be recovered from the concerned Societies immediately in the succeeding month of completion of Audit and if the Society fails to pay the dues within 30 days from the date of completion of audit, a notice shall be issued to theSociety to recover the fees as arrears of land revenue and by following further procedure as per provisions of law;

19 · The Auditor shall submit his Audit report within a period of one month from its completionand in any case before issuance of notice of the annual general body meeting to the

20 · The Standard Operating Procedure (SOP) as stated hereinabove shall be followed scrupulously and any deviation or inaction/lethargy shall be viewed seriously and shall attract disciplinary action.

3 · 7.1 of the Guidelines issued by the Government of India has been constituted.

1 · It shall be mandatory on the part of the Chief Executive Officer/Secretary/Managing Director/

2 · Such Officer shall also place before the Board of Directors, such statements on Macro level norms as are given hereinbelow as 'effective management tools' for facilitating a healthy decision making process for the Board of Directors for proper management of business and/or to take prudent decisions in the best interest of the Society and members at large.

3 · The deposit kept by the members in their Societies needs to be fully guaranteed and protected on one hand and on the other hand the members are to be rewarded with the reasonable returns to theirsavings. Therefore, effective tools for management are very much imperative to manage the business affairs of these Societies in more transparent manner.

4 · Every Society doing business of credit shall plan and execute different portfolios of the Finances of the Society and maintain financial discipline in such a manner that it will create a balance and maintain a break even point under given conditions and circumstances. The society shall ensure at all times that income generated through all its resources/investments should be higher than its cost of funds.

5 · For the benefit of management of these Societies, the following directives/norms are hereby issued as the 'Macro Level Fund Management Norms' to be complied with at every point of time.

10 · All Societies and such Officers of the Society shall strictly adhere to this Order and ensure financial discipline in the interest of the Society and members at large. In case of any violations, such Officers shall be personally held liable.

1 · The Unit Incharge (Assistant Registrar or Co-operative Officer) of every Society shall, before processing any request for amendment of Bye Laws, change in classification, opening of new branches, appointment/extension of dedicated RCS Nominee, Authorisation/extension of authorization of sales and recovery officer or any other proposal relating to any subject, shall in the first place, verify whetherthe applicant society has complied with provisions of Sections 72, 73, 74 & 81 of the Act and the proposal shall be processed only if the aforesaid provisions are duly complied with by the applicant Society.

2 · The Unit Incharge (Assistant Registrar or Co-operative Officer) shall, while forwarding every proposal of any society under his/her jurisdiction to the Head Office, shall compulsorily record a Certificate in the covering letter/proposal/checklist/note stating that "This Society has duly complied with provisions of Sections 72, 73, 74 and 81 of the Act for the last cooperative/financial year closedon 31-03-20 for which the statutory time limit for compliance ended on 30 -09 -20 ."

3 · The year and date in such certificate shall be incorporated by taking into consideration the latest statutory time limit under the Act that has expired. Like for processing proposals till 3009 -2023, the timeline of Co -operative/financial year 2021-22 ending on 31-03-2022 (timeline over on 30 -09 -2022) would be verified for compliance, because although subsequent year 202223 has closed on 31 -03 -2023, the statutory timeline for filing of Audit report would be over on 30 -09 -2023. Hence any proposals taken up for processing on or after 01-10-2023, the compliance of latest year 2022-23 (timeline will be over on 30-09-2023) will have to be checked.

4 · In cases where the Unit Incharge finds that the applicant society has not complied with the aforesaid statutory requirements, he/she shall immediately follow the guidelines issued vide Order No.15/223/2008/ADT/RCS/Vol.IV/3245 dated 02 -12 -2022 read with Corrigendum No. 15/223/2008/ADT/RCS/Vol. IV/3332 dated 12 -12 -2022 and shall immediately take steps to complete Audit of concerned Society. In all such cases, the reply to the Society shall be sent within 7 days from the date of receipt of proposal, bringing to their attention the non compliance of statutory provisions and informing that their proposals shall not be processed till the aforesaid statutory provisions are complied with by the Society.

5 · In all cases where the defaulting Society is a Urban Credit Society or is doing the business of accepting deposits and granting loans, the Unit Incharge shall immediately submit a proposal to Head Office for imposing restrictions u/s. 68 of the Act for prohibiting the Society from accepting any deposits and sanctioning any loanstill they complete all their pending Audits and statutory compliances.

10 · Any other related matters.

10 · Any other related matters.

58 · Mr. Malhar A. Shenoy, Chartered Accountant, M/s Malhar A. Shenoy & Co., H. No. 918/3,Gouri Shankar, V. P. Road, Nr. Holy Family High School, Porvorim-Goa, Pin. 403501.