C/o-Padmaja Super Market, 1841/42, New Paccha Peth, Opp.New WIT College, Solapur-413 005.
Mumbai Off.: 14 - A,Mastan Manzil,127 A-B-C,D. Phalke Road,Dadar(E), Mumbai - 400 014.
Email- mcaassociation_1@rediffmail.com,
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Date-01.12.2010.
MOST IMPORTANT: - ( CHARTERED ACCOUNTANTS & CERTIFIED AUDITORS )
The General Body meeting of the Chartered Accountants/Certified Auditors will be held on Sunday, 26th December, 2010 at 12.00 P.M. to 3.00 P.M. at Hotel Raviraj, 790 Bhandarkar Institute Road, Opp. HDFC Bank. Deccan Gymkhana Pune 411004 (Ph.No. 91 20 25679581, Inquiry 91 20 6602 7001, Reservation 91 20 4104 7000, Fax 91 20 2567497.)
1) To discuss & review the past successful activities of the Association.
2) To take note of the recent favourable High Court Judgment dt.06-10-2010 that the Registrar of co.op. Socs. cannot appoint CAs for the audit of non-aided credit /employees credit etc. societies, and also to take note of the 20% deduction from co.op. audit fees Govt. Appeal matter pending before the Supreme Court.
2) To appoint the Central Executive Committee.
3) To discuss on demanding the higher co-op. audit fees scales from the government.
4) To consider the financial position & financial statements of the Association.
5) To appoint district representatives of our Association on district level audit allotment committees to be
chaired by the District Deputy Registrar of each district, as per the circular dt.27-01-2010 of the
Commissioner for cooperation, Pune.
6) Any other issues with the permission of the Chair.
The CAs are requested to attend the meeting.
Important Notes:-
1. Kindly note that recently by order dt.06-10-2010 passed in W.P.No.1206 of 1997 filed by our Association, the Hon’ble Bombay High Court has held that impugned Govt. Circular dt.11-11-1996 ( which gave powers to the Registrar to appoint statutory auditors for urban credit/employees co.op. credit societies) is not applicable to the non-aided co.operative societies of any category. As a result of this Judgment, henceforth the non-aided employees staff credit/ urban credit societies can appoint auditors of their choice in their AGM/SGM etc. Because of this Judgment, CAs will now can directly approach the societies for statutory audit work, instead of approaching the Registrar, which will also help to reduce the corruption in issuing audit allotment orders. Because of this Judgment, the CAs have got benefit of more than Rs.100 crores per annum. This is another major contribution of the Association for CAs.
- Kindly note that by order dt.13-08-2004 passed in the Writ Petition No.2632 of 1996 with 8812 of 2003 ( reported in 2004 (4) Mh.L.J.-819 ) filed by our Association , the Hon’ble Bombay High Court has quashed & set aside the 20% government charges from the audit fees of chartered accountants/certified auditors. As a result , from the year 1992 the CAs in Maharashtra are so far benefitted by more than approx. 500 crores of rupees. This is a major financial contribution of our Association to the CAs. However, in order to protect the said government revenue, the said order has been challenged by the Government of Maharashtra by filing Special Leave Petitions No.2353 & 2354 of 2005 in the Supreme Court, which is now listed for final hearing. Since last about 10 years, because there is no income to the Association & due to paucity of funds, the association has been unable to pay the higher fees of Supreme Court & high court advocates. Since we could not pay the fees demanded by the Supreme Court Advocates from time to time, the said matter is not being properly attended by the Association’s Advocates. Important point is that if our Association finally loses in the above matters pending before the Supreme Court, all the CAs in Maharashtra will be forced to refund back to the Government the said 20% deduction amounts already collected by the CAs from the cooperatives from the year 1992- till today for 18 years, with interest thereon. The Government is mainly trying to justify the said 20% deduction on the ground of providing various services to the CAs. All the CAs should treat this matter as a very important matter having serious financial repercussions for them. It is sad to say that since last about 10 years, the Association has not yet got the proper financial support from many benefitted CAs to fight these matters of 20% deduction. The Association needs strong financial support at least from all the benefited CAs. to fight these matters of 20% government deduction charges from audit fees. Some CAs have financially contributed, even though some CAs are not concerned with the co.operative audit work, but impressed by the work of the Association. Therefore, it is felt that there should be some limits on the selfishness of some CAs who are hugely benefited financially by the work of the Association, but without any financial contribution to the Association. Such tendency of getting free benefits should stop somewhere, otherwise all other good CAs also will lose financially , if above matters are lost finally. The Association needs strong financial support from the CAs, as the matter is now in final stages. The Association can do the best only when the CAs supports the Association. Therefore, all the CAs who are benefitted financially by above Court orders on 20% deduction, should come forward on their own & substantially contribute ( by cheque to be sent on above Solapur address) donations to the association to continue to fight effectively by engaging topmost lawyers in the Supreme Court. Each CA hugely benefited by the Association’s work should contribute at least Rs.10,000/- or more , and other CAs should contribute Rs.2,500/- each by A/c payee cheque towards the separate legal fund to fight the court cases.
- As per the recent Circular dt.27-01-2010 of the Commissioner for cooperation, Pune, all audit allotments orders for above Rs.25 cores working capital credit societies & above Rs.25 crores deposits Banks audit shall be issued by the District Allotment Committees for each district, for which audit will be done by the allottee chartered accountants as per audit allotment orders issued by the District Committee chaired
by the DDR. The balance of remaining societies below Rs.25 cores will be allotted to the CAs after reserving societies for the government auditors annual audit program. Under the said circular dt.27-01-2010, our Association has been permitted to have one representative on each district level committee who will be charged with the responsibility to ensure the fair & transparent audit allotments. Interested CAs may please inform their willingness in writing on above Association’s Solapur address in this regard. The names of representative will be finalized and list containing names of district representatives will be informed to the Commissioner for cooperation, with a copy to our concerned CA representative for further action on the district level committee purposes. It is now expected that the Registrar will issue audit allotment orders only for aided categories of co.op. societies.
- Our members can do audit of non-aided cooperative societies covered u/S.81 (1) (b) of Mah. Co-op. Socs. Act, as decided by the High Court in Writ Petition No. 4900 of 1995 filed by our association.
- Our Association successfully intervened in the P.I.L. No.62 of 2006 for transparency in the co. operative societies/Banks audit allotments.
- In Writ Petition No.1112 of 2006 , the Bombay High Court by order dt.26-07-2006 has directed the authorities to put on website all the audit allotments and CA empanelments done by them. However, the same is not yet implemented.
- We have about one thousand members ( Apprx. 800 chartered accountants & 200 certified auditors) . All the Chartered Accountants/Certified Auditors who have not yet become members, should become members of the Association to further consolidate the Association, by sending their name, address, phone number, email id., date of CA enrollment etc. and by sending membership fees cheque of Rs.2,000/- to be sent on the above Solapur address of the Association. The membership numbers are given on the present letter address of the members for their convenience. The members should also provide their email ids. on above email for faster communication in future.
Please inform the above information to all the CAs in your area for their knowledge.
Thanks & Regards,
(Ambadas A. Kudkyal)
Hon. Secretary.
9324064188.
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