Liuzhou Chemical Industry Co.Ltd(600423)
2021 performance report of the audit committee of the board of directors
In accordance with the operation guidelines of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange, the governance standards of listed companies, the Listing Rules of Shanghai Stock Exchange, the articles of association, the working rules of the audit committee and other relevant provisions, the audit committee of the board of directors of the company earnestly performs its duties with diligence, The summary report on the performance of the audit committee in 2021 is as follows:
1、 Basic information of the audit committee
The audit committee of the board of directors of the company is now composed of three directors: Mr. Wu lvqiu, Mr. Xue Youbing and Mr. Xiao Zequn, including two independent directors, and the chairman is Mr. Wu lvqiu, an independent director with professional accounting qualification. The board of directors of the company held a general election on November 26, 2021, and the audit committee conducted corresponding re-election at the same time.
2、 Meetings of the audit committee in 2021
In 2021, the company’s audit committee held four meetings.
1. On April 13, 2021, the company held the eighth meeting of the fifth audit committee, which deliberated and adopted the following proposals: ① the performance report of the audit committee in 2020;
② 2020 annual report and its summary;
③ Proposal on reappointment of Daxin Certified Public Accountants (special general partnership) as the company’s audit institution in 2021;
④ 2020 annual financial statement report;
⑤ 2021 annual financial budget report;
⑥ Proposal on supplementary consideration of daily related party transactions exceeding the expected part in 2020;
⑦ Proposal on the expected daily related party transactions of the company in 2021.
2. On April 28, 2021, the company held the ninth meeting of the fifth audit committee, which deliberated and adopted the proposal of the company’s first quarter report in 2021.
3. On July 28, 2021, the company held the 10th meeting of the fifth audit committee, which deliberated and adopted the proposal of the company’s 2021 semi annual report.
4. On October 22, 2021, the company held the 11th meeting of the fifth audit committee, which deliberated and adopted the proposal of the company’s third quarter report in 2021.
3、 Main work of the audit committee in 2021
1. Supervise and evaluate the work of external audit institutions
The audit committee of the board of directors of the company supervised and evaluated the performance of Daxin accounting firm (special general partnership) (hereinafter referred to as “Daxin”) engaged by the company in the audit of financial statements and internal control audit in 2020, and believed that Daxin was serious, responsible and diligent in its work, Carry out independent audit on the company’s financial situation in strict accordance with the current laws and regulations, be familiar with the company’s business and situation, have a high professional level and professional level, and the audit report and relevant special financial opinions issued are true and pertinent. After being reviewed and approved by the audit committee under the board of directors of the company, the board of directors of the company is requested to continue to employ Daxin as the company’s external audit institution in 2021. In 2021, Daxin provided the company with financial reports, and the audit cost is 450000 yuan and the internal control audit cost is 350000 yuan.
2. Supervise and evaluate internal audit
During the reporting period, the audit committee of the board of directors carefully reviewed the internal audit work plan of the Audit Department of the company and recognized the feasibility of the plan. At the same time, it urged the internal audit organization of the company to strictly implement the audit plan and put forward guiding opinions on the problems arising from internal audit. After reviewing the internal audit report, we found no major problems in the internal audit.
3. Review and comment on the company’s financial report
During the reporting period, the audit committee of the board of directors carefully reviewed the company’s financial reports at all stages and believed that the company’s financial reports were prepared in accordance with the accounting standards for business enterprises. The financial reports were true, complete and accurate, without relevant fraud, fraud and major omissions, and fairly reflected the company’s financial status and operating results.
4. Supervise and evaluate the effectiveness of internal control
The company has established a relatively perfect corporate governance structure and governance system in accordance with the company law, the basic norms of enterprise internal control and relevant supporting guidelines and the requirements of the relevant provisions of the CSRC and the Shanghai Stock Exchange. During the reporting period, the company was able to implement various laws and regulations, the articles of association and relevant internal management systems, standardize the operation of the general meeting of shareholders, the board of directors, the board of supervisors and the management, and effectively protect the legitimate rights and interests of the company and shareholders.
The audit committee carefully reviewed the internal control evaluation report of the company and the internal control audit report issued by Daxin Certified Public Accountants (special general partnership), and communicated with Daxin on the problems found in the audit process in a timely manner. The internal control audit report issued by Daxin Certified Public Accountants (special general partnership) believes that the company has maintained effective internal control over financial reporting in all major aspects in accordance with the basic norms of enterprise internal control and relevant regulations.
5. Performance of annual report audit in 2021
In the audit of the company’s 2021 annual report, the audit committee of the board of directors promoted relevant work in strict accordance with the requirements of the company’s annual report working procedures of the audit committee. Before the annual audit CPA enters the site, the audit committee discusses the audit work arrangement of the company’s annual report with the company’s management and financial principal, and determines the audit time arrangement of the company’s annual report in 2021 through consultation with the annual audit CPA. During the preparation of the company’s 2021 annual report, the audit committee pays attention to the audit progress of the company’s annual report, fully discusses and communicates with the annual audit accountant about the audit scope, audit methods and key audit fields, actively understands the audit progress and the preparation of the company’s annual report, and urges the accounting firm to submit the audit report within the agreed time limit; Before the annual audit, the certified public accountant reviewed the financial and accounting statements preliminarily prepared by the company and issued the first written confirmation opinion; Strengthen the communication with the annual audit CPA after the annual audit CPA enters the site, and communicate and exchange the problems found in the audit process and the submission time of the audit report; After the annual audit CPA issued the preliminary audit opinion, he reviewed the company’s financial and accounting statements again and issued the second written confirmation opinion.
Before the board of directors considered the 2021 annual report, the audit committee held a meeting to summarize the audit work of Daxin Certified Public Accountants (special general partnership) in this year.
6. Coordinate the communication between management, internal audit department, relevant departments and external audit institutions
During the reporting period, the audit committee fully listened to the opinions of all parties and actively carried out coordination work, which made the communication between the company’s management, internal audit department and relevant departments and the annual audit accounting firm more effective and improved the efficiency of audit work.
7. Review major related party transactions of the company
During the reporting period, the audit committee of the board of directors carefully reviewed the related party transactions of the company and issued professional opinions. 4、 Overall evaluation
During the reporting period, the audit committee of the board of directors of the company completed all the work entrusted by the company with due diligence in strict accordance with laws and regulations, normative documents, working rules of the audit committee and working procedures of the annual report of the audit committee. In 2022, the audit committee will, as always, effectively supervise the company’s external audit, seriously guide the company’s internal audit, constantly improve and improve the company’s internal control construction, and further standardize the company’s operation.
Members of the Audit Committee: Wu lvqiu, Xue Youbing, Xiao Zequn
Liuzhou Chemical Industry Co.Ltd(600423) Audit Committee of the board of directors February 24, 2022
