NORMS AND CRITERIA FOR THE CLASSIFICATION OF THE EMPLOYEES CO OPERATIVE CREDIT SOCIETIES IN AUDIT:The audit classification are
e to be arrived at on the basis of the aggregate marks secured as indicated below:1. Membership and Share Capital: One mark for every 1% increase both in membership and share capital over the membership and share capital at the beginning of the year subject to a maximum of 10 marks. 2. Deposits: (a)Thrift deposit: One mark for every 1% increase in the Thrift deposit at the end of the year over Thrift Deposit at the end of the previous year subject to a maximum of 10 marks. (b)Term Deposits: One marks for increase of term deposits of every Rs.10,000/- over the deposits of the previous year subject to a maximum of 10 marks. 3. Borrowings: If the society has no borrowings from the Financing Bank and is able to the needs of the members with its owned funds it may be awarded 15 marks Or If the society borrows funds from the central bank, marks may be awarded according to the scale laid down below:(a) 25% and below of the total loans issued to members (b) Above 25% but less than 50% of the total loans to members (c) 50% and above but less than 75% of the total loans issued to members (d) 75% and above of the total loans issued to members 4. Processing of loan applications:(a)No. of loan applications received during the year (b)No. of applications sanctioned during the year (c)No. of loans issued during the year (i)If the society has disposed of 75% and above of the loan applications received during year (ii)If the society has disposed of 50% and above, but below 75% of the loan applications received during the year (iii)If the society has disposed of below 50% of the loan applications received during the year 5. Issue of loans to members:One mark for every 2% increase in the issue of loans to members when compared with the previous year subject to a maximum of 10 marks 6. Working results: If the society has declared dividend to members on the paid up share capital for the previous accounting year (5 marks) Maximum marks 10 marks
10 marks
10 marks
15 marks
15 marks 10 marks 5 marks Nil 5 marks
5 marks 3 marks 2 marks 10 marks
NORMS AND CRITERIA FOR THE CLASSIFICATION OF THE EMPLOYEES CO OPERATIVE CREDIT SOCIETIES IN AUDIT:The audit classification are to ne arrived at on the basis of the aggregate marks secured as indicated below:-
(i)If the rate of dividend declared is 9% and above or as per the rates in the bylaws (ii)If the rate of dividend declared is5% and above but below 9% or 3% below the rate prescribed in the bylaws (iii)If the rate of dividend declared is below 5% or 2% below the rates prescribed in the bylaws (iv)No dividend 7. Overdues: Percentage of over dues at the end of the year to the demand for the year (in respect of principal only) Up to 20% Above 20% and up to 40% Above 40% and up to 60% Above 60% 8. Accounts:Whether the society has maintained all the registers prescribed by the Registrar. If so award 5 marks, if not, award less marks keeping into consideration the number of such registers not maintained. 9. Management:(a)Whether the committee meeting and General Body meetings are held as prescribed in the bylaws or at reasonable intervals. If so award (b)If the societys working capital is above Rs.1 lakh whether the society has appointed a paid secretary. If so award (c)Whether the society has taken action against the employer as prescribed in section 48 and rule 69 if the management fails to remit the recovery within 7 days as specified in the Tamil Nadu Co-operative Societies rules. If so award (d)Whether the society rectified the defects pointed out by the inspecting officer and Auditors of the Department and Reserve Bank of India, if so award (e)If the society has undertaken service functions, issue of jewel loan, etc., other than surety loans to members award Audit classification: Depending upon the aggregate of marks secured by the societies audit classification may be made on the basis of the following: Marks secured 60% and above 45% and above but below 60% 30% and above but below 45% Below 30%
5 marks 3 marks 2 marks Nil 20 marks 20 marks 10 marks 5 marks Nil
5 marks
2 marks 1 mark 2 marks 3 marks 2 marks
Audit classification A class B class C class D class
