Article 243ZM

Mandatory Annual Audit of Co-operative Accounts

Official heading: “Audit of accounts of co-operative societies”

Check this article against the official editionAwaiting human legal review

Source edition: The Constitution of India (as on 1 May 2026)
Source locator: Part IXB, Article 243ZM, printed page 141
Last human source-link check: Not yet checked
Last human legal review: Not yet reviewed

Open official PDF at this article Report a text or source error

AI-assisted source comparisons are noted with the citations below; the check date remains pending until a human confirms the link. The report link opens your email app; you choose whether to send it.

1. In One Sentence

Mandates independent annual audits of cooperative accounts by approved auditing firms within six months of the financial year close.

2. What It Means in Everyday Language

Article 243ZM makes annual auditing a constitutional requirement for co-operative societies.

Auditors or auditing firms must possess minimum qualifications and be chosen by the general body from an approved panel.

The audit must be completed within six months of the close of the financial year, and apex cooperative audit reports must be placed before the appropriate legislature.

3. Practical Illustrative Example

Everyday Scenario:

A multi-state cooperative credit society hires an accredited chartered accountancy firm from an approved panel to audit its balance sheet.

Core takeaway: Under Article 243ZM, the audit must be finalized and presented to the general body within six months of the financial year end.

Illustrative Notice: The appointment of auditors belongs to the general body of members, not to individual directors.

4. Important Limits, Qualifications & Exceptions

Article 243ZM safeguards member deposits and shares through rigorous accounting.

Annual requirement: Accounts must be audited at least once in each financial year.
Six-month deadline: Must be concluded within six months of the financial year close.
Approved panel: Auditors must meet prescribed minimum qualifications.

5. Operative Constitutional Text

(1) The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the co-operative societies and the auditing of such accounts at least once in each financial year. (2) The Legislature of a State shall, by law, lay down the minimum qualifications and experience of auditors and auditing firms that shall be eligible for auditing accounts of the co-operative societies. (3) Every co-operative society shall cause to be audited by an auditor or auditing firms referred to in clause (2) appointed by the general body of the co-operative society: Provided that such auditors or auditing firms shall be appointed from a panel approved by a State Government or an authority authorised by the State Government in this behalf. (4) The accounts of every co-operative society shall be audited within six months of the close of the financial year to which such accounts relate. (5) The audit report of the accounts of an apex co-operative society, as may be defined by the State Act, shall be laid before the State Legislature in the manner, as may be provided by the State Legislature, by law.

Transcription for reference; compare with the linked official editionNot yet verified by a human legal reviewer

6. Sources & Historical Assembly Deliberations

Assembly quotations are withheld until wording, dates, and attribution have been checked against the primary record.

Sources & Citation Metadata

•
Constitutional TextThe Constitution of India (as on 1 May 2026)Cited PDF page
Government of India (Legislative Department, Ministry of Law and Justice) • Part IXB, Article 243ZM, printed page 141 • Human source-link check pending
Primary PDF accessed and transcribed with AI assistance on 14 October 2026. Formatting and amendment annotation markers are omitted; operative wording is retained. This is not human legal review. Later amendments and commencement notifications have not been comprehensively checked.

Human legal review is pending; compare the text with the cited editionNon-partisan educational resource