Housing Society Its Annual Statements

Housing Society Its Annual Statements

• Category: Economy
• Date 12-05-2025

Housing Society Its Annual Statements

In Maharashtra, housing societies are governed by the Maharashtra Co-operative Societies Act, 1960 (MCS Act) and the associated Maharashtra Co-operative Societies Rules, 1961. The requirement to maintain annual statements is a key part of financial accountability and transparency in the management of co-operative housing societies.

1. What Are Annual Statements?

Annual statements of a housing society include:

• Receipts and Payments Account

• Income and Expenditure Account

• Balance Sheet

• Audit Report

• Audit Rectification Report

These reflect the financial performance and position of the society during the financial year.

2. Legal Provisions for Maintaining Annual Statements

Under MCS Act & Rules:

• Section 81 of the MCS Act, 1960: Mandatory audit of the society’s accounts every financial year.

• Rule 69 of MCS Rules, 1961: Details the preparation and submission of accounts and audit reports.

• Bye-laws of the Society: Also provide internal requirements for record keeping.

3. How Are They Prepared?

The process generally involves:

1. Accounts maintained daily by the treasurer or accountant.

2. Books closed by 31st March (end of financial year).

3. Preparation of:

   • Trial Balance

   • Receipt & Payment

   • Income & Expenditure Statement

   • Balance Sheet

4. Submitted to an authorized Chartered Accountant (CA)/Certified Panel Auditors, empaneled with the Registrar.

5. CA/CPA conducts statutory audit and issues the Audit Report.

4. Time Limit and Due Dates

• Financial Year ends: 31st March

• Audit to be completed: within 6 months i.e., by 30th September

• Submission to Registrar: immediately after audit

• Annual General Body Meeting (AGM): to be held on or before 30th September (Section 75)

5. Limitation Act & Annual Statements

While the Limitation Act, 1963 is a general law, it affects housing societies when it comes to:

• Recovering dues or arrears: Limitation period is 3 years from the due date, as per Article 55/62 depending on nature of claim.

• Annual statements are crucial to establish dues and defend claims, hence their accuracy and timely preparation are important for enforcing rights.

6. What Do Annual Statements Reveal?

They tell about:

• Financial health of the society

• Income from members and expenses

• Cash position and bank balance

• Dues from members

• Investment in sinking/reserve funds

• Compliance with statutory norms

7. Consequences of Not Keeping Annual Statements Properly

• Violation of Section 81 & 75 of the MCS Act.

• Registrar can disqualify committee members.

• Society can be declared "non-functional" or "defaulting".

• Penalties may include:

  • Rs. 5,000–Rs. 10,000 fine (as per 97th Amendment/Act provisions).

  • Surcharge under Section 88 for misappropriation.

• May lead to appointment of Administrator by Registrar.

8. If Statements Are Wrongly Prepared or Fraudulent?

• Criminal liability: Misappropriation or fraud can lead to prosecution under IPC and MCS Act.

• Surcharge Proceedings: Registrar may initiate action under Section 88 to recover losses from guilty members.

• Members can file complaints with Registrar or through Consumer Forum/Civil Court.

9. How Can Society Defend Delay or Lapse?

Valid defenses include:

• Auditor unavailability or delay beyond society’s control.

• Natural calamities, pandemic, or legal stay.

• Proper documentation showing efforts made.

• Filing a condonation of delay with explanation to the Registrar.

Summary Table:

========================================================================

Checklist for Preparing Annual Financial Statement

Sr.	Item	Status
1	All books of accounts are written up to 31st March	☐
2	Cash and bank balances reconciled	☐
3	Ledger balances tallied	☐
4	Trial Balance prepared	☐
5	Income & Expenditure Statement prepared	☐
6	Receipts & Payments Account prepared	☐
7	Balance Sheet prepared	☐
8	Audit conducted by certified auditor	☐
9	Audit Rectification Report prepared and signed	☐
10	Submitted to Registrar	☐
11	Presented in AGM	☐
12	Copies made available to members	☐

Template Format for Annual Financial Statement

1. Cover Page

• Name of the Society

• Registration Number

• Address

• Financial Year: 1st April 20XX to 31st March 20XX

• Prepared by: Secretary/Treasurer

---

2. Receipts & Payments Account

Particulars	Amount (Rs.)
Opening Balance (Cash/Bank)	XX
Maintenance Charges Collected	XX
Interest on FD/Savings	XX
Sinking Fund Collection	XX
Parking Charges	XX
Other Income	XX
Total Receipts	XXX
Electricity Expenses	XX
Water Charges Paid	XX
Repairs & Maintenance	XX
Society Function Expenses	XX
Security & Cleaning Wages	XX
Audit Fees	XX
Total Payments	XXX
Closing Balance	XX

3. Income & Expenditure Statement

Particulars	Amount (Rs.)
INCOME
Maintenance Charges	XX
Interest Earned	XX
Other Income	XX
Total Income	XXX
EXPENDITURE
Repairs & Maintenance	XX
Utility Bills (Water/Electricity)	XX
Salaries (Security/Cleaning)	XX
Audit Fees	XX
Statutory Charges	XX
Total Expenditure	XXX
Surplus/Deficit	XXX

4. Balance Sheet (As on 31st March 20XX)

Liabilities:

Particulars	Amount (Rs.)
Corpus Fund	XX
Sinking Fund	XX
Reserve Fund	XX
Security Deposit	XX
Creditors	XX
Surplus from I&E	XX
Total Liabilities	XXX

Assets:

Particulars	Amount (Rs.)
Fixed Assets (Building, Equipment)	XX
Investments (FDs)	XX
Bank Balance	XX
Cash in Hand	XX
Receivables (Members' Dues)	XX
Other Current Assets	XX
Total Assets	XXX

5. Notes to Accounts (Optional but Recommended)

• Method of depreciation

• Any pending legal matters

• Outstanding dues from members

• Summary of major repair work

• Explanation of any deficit/surplus

6. Audit Report (Issued by Auditor)

• Name of CA

• Registration Number

• Comments and observations

• Audit opinion (qualified/unqualified)

---

7. Audit Rectification Report

• Action taken on audit remarks

• Signed by Secretary/Chairman

• To be submitted to Registrar within 3 months

---

8. Signatures

• Chairman

• Secretary

• Treasurer

• Auditor (if applicable)

 =======================================================================

Here’s a list of popular accounting software used by housing societies in India, especially suitable for compliance with the Maharashtra Co-operative Societies Act:

---

Top Accounting Software for Housing Societies

1. Webacc Solution - Society Management

• Cloud-based society management system

• Features: Billing, accounting, complaints, meetings, documents

• Pros: User-friendly, mobile app available

• Pricing: One time Rs. 10000/- upto 100 members, then Rs. 100/- per member + AMC Rs. 2500/- (For Society)

  One time Rs. 7500/- + AMC Rs. 2500/- for Accountants

2. SocietyRun

• Cloud-based society management system

• Features: Billing, accounting, complaints, meetings, documents

• Pros: User-friendly, mobile app available

• Pricing: Subscription-based

3. MyGate

• Known more for security, but also offers billing/accounting features

• Features: Maintenance billing, auto-receipts, expense tracking

• Pros: Easy integration with security and visitor logs

• Pricing: Monthly subscription

4. ApnaComplex

• Comprehensive society ERP

• Features: Double-entry accounting, Tally export, GST reports, member dues, audit reports

• Pros: GST ready, automated invoices

• Pricing: Tiered plans (basic to advanced)

5. Society123 (by Housing Society Software)

• Specialized software for housing societies in Maharashtra

• Features: Auto maintenance billing, receipts, ledgers, notices, reports

• Pros: Designed for local bye-law compliance

• Pricing: One-time + AMC (Annual Maintenance Charges)

6. NoBrokerHood

• Society management app with accounting module

• Features: Payment tracking, expense reports, dues management

• Pros: Mobile-based interface, seamless payment gateway

• Pricing: Subscription based, often per flat/unit

7. SmartSociety

• Cloud-based housing society accounting and management

• Features: Billing, ledgers, reports, TDS, GST filing

• Pros: Focused on statutory compliance

• Pricing: Moderate

8. ADDA.io

• ERP-style platform for gated communities

• Features: Budgeting, collections, double-entry accounting, audit reports

• Pros: Good user experience, scalable

• Pricing: Tiered plans based on size of society

9. SocietyMaster

• Standalone desktop and cloud options

• Features: Billing, accounting, statutory reports, Tally export

• Pros: Designed for Indian societies

• Pricing: One-time license + optional support

10. TallyPrime (with customization)

• Not society-specific, but widely used

• Pros: Reliable, CA-friendly, customizable

• Cons: Needs expert setup for society use

• Pricing: One-time license, annual support

---

Key Features to Look for:

Feature	Why It Matters
Maintenance Billing	Automatic generation and tracking
Receipt & Payment Tracking	For real-time accounting
Audit Reports	Section 81 compliance
Tally Export	For external CAs/Auditors
Member Ledger	Dues & payments
GST/TDS Management	For legal compliance
Mobile App	Ease of use for residents
AGM Notices, Minutes	Statutory requirement
Cloud Backup	Data safety

========================================================================

Housing Society Accounting Software Comparison (2025)

=================================================================================

????Solution????

Contact us on 9136050062, we have each and every solution of Housing Society problems…..

Thank you friends

Last updated: 12/05/2025

HOUSING SOCIETY ONLINE ACCOUNTS & MOBILE APP

Visit our Website : https://webaccsolution.com

Visit our Android Mobile App : https://play.google.com/store/apps/details?id=com.societymanagement.society_management&pcampaignid=web_share

Visit our Business Plan Website (For our Registered Members Only) : https://webaccsolution.in