File your society's annual return on time

The deadline

Within six months of the close of the accounting year, the board must hold the annual general meeting (section 39) and the society must file its annual return with the Central Registrar (section 120). For an accounting year that closes on 31 March, that is 30 September.

What the annual return contains

1. Annual report of the activities, including details of board decisions that were not unanimous (s.120(a))
2. Audited statements of accounts (s.120(b))
3. Plan for surplus disposal as approved by the general body (s.120(c))
4. List of amendments to the bye-laws (s.120(d))
5. Declaration of the date of the general body meeting, and of elections where due (s.120(e))
6. Disclosure of employees who are relatives of board members (s.120(f))
7. Declaration of any related party transactions by the board (s.120(g))
8. Any other information the Central Registrar requires under the Act or the rules (s.120(h))

Returns are filed online on the CRCS portal.

What the annual general meeting must consider

1. Consideration of the audited statement of accounts (s.39(1)(a))
2. Consideration of the audit report and annual report (s.39(1)(b))
3. Consideration of the audit compliance report (s.39(1)(c))
4. Disposal of net profits (s.39(1)(d))
5. Review of operational deficit, if any (s.39(1)(e))
6. Creation of specific reserves and other funds (s.39(1)(f))
7. Approval of the annual budget (s.39(1)(g))
8. Review of actual use of reserves and other funds (s.39(1)(h))
9. Approval of the long-term perspective plan and the annual operational plan (s.39(1)(i))
10. Review of the annual report and accounts of any subsidiary institution (s.39(1)(j))
11. Expulsion of members (s.39(1)(k))
12. List of employees who are relatives of board members or of the Chief Executive (s.39(1)(l))
13. Amendment of bye-laws, if any (s.39(1)(m))
14. Code of conduct for board members and officers (s.39(1)(n))
15. Election of board members, if any (s.39(1)(o))
16. Appointment of the auditor (s.39(1)(p))

The board must also lay before the meeting a statement of loans or goods on credit given to board members or their spouse or children (section 39(3)).

If the return is not filed

• Failing to file a return is punishable with a fine of not less than five thousand rupees and up to one lakh rupees (section 104(1)).
• A person is not eligible to be elected to the board for five years if the board fails to: call the annual general meeting (s.43(2)(b)); prepare the financial statement and present it in the annual general meeting (s.43(2)(c)); file the annual return within the time in section 120 (s.43(2)(e)); or get the audit done within six months of the close of the financial year (s.43(2)(f)). The Central Registrar gives an opportunity to be heard first.

Source: Multi-State Co-operative Societies Act 2002, as amended in 2023 (CRCS copy). This page summarises the Act. Your auditor or adviser should review your return.