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October 7, 2026 · Guides

Audit and Annual Return of a Multi-State Co-operative Society

If there are two things the Registrar looks at closely, they are the audit and the annual return. Here is what the Act says about each, what the 2023 amendment changed, and how to get ready.

In this guide

Audit

Auditors are dealt with in Sections 70 to 74 of the Act: appointment, who qualifies, their powers and duties, and how reports are signed. The society appoints them in the prescribed manner, and they then examine the accounts and report on them.

Watch the clock here. Under Section 43, a director can become ineligible for re-election if the audit is not completed within six months of the close of the financial year.

What changed in 2023

  • Reports say separate auditor panels now apply to large and small societies.
  • Concurrent audit is reported to be compulsory for societies with turnover or deposits above ₹500 crore. Confirm the exact thresholds in the notification.
  • Uniform accounting and auditing standards can be prescribed by the Central Government.
  • Audit reports of apex multi-state societies are to be placed before Parliament.

Annual return

Section 120 makes every society file an annual return carrying the prescribed financial and operational data. Reports on the 2023 amendment say the return has to go in online through the CRCS portal, and that the persons responsible can be disqualified for non-compliance.

How to prepare

  1. Close books promptly after 31 March.
  2. Reconcile member ledgers, share registers, loans and deposits to the trial balance.
  3. Give the auditor complete records and reply to queries quickly.
  4. Hold the AGM and adopt the audited accounts.
  5. File the annual return on the CRCS portal with the audited statements.

Common problems

  • Late audit, which affects director eligibility.
  • Member and share records that do not reconcile.
  • Delays in AGM, which delay the return.
  • Appointing an auditor who is not eligible for the society’s size.

Our compliance checklist shows where audit sits in the annual cycle.

Need help with your MSCS? See our Multistate Co-operative Society registration service, call +91 93117 95484, or write to mail@taxhint.in.

FAQs

When must the audit be completed?

Within six months of year end. Miss that and directors can become ineligible for re-election under Section 43.

Where is the annual return filed?

Online through the CRCS portal, as reported for the 2023 amendment.

Is concurrent audit compulsory?

Only above a size limit. Reports say that is turnover or deposits above ₹500 crore; confirm against the notification.

Which sections cover audit?

Sections 70 to 74 of the Act.

More in this MSCS series