Company code: 600423 company abbreviation: Liuzhou Chemical Industry Co.Ltd(600423)
Liuzhou Chemical Industry Co.Ltd(600423)
Internal control evaluation report in 2021
Liuzhou Chemical Industry Co.Ltd(600423) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements (hereinafter referred to as the enterprise internal control standard system), combined with the company's (hereinafter referred to as the company's) internal control system and evaluation methods, on the basis of daily and special supervision of internal control, We evaluated the effectiveness of the company's internal control on December 31, 2021 (the benchmark date of the internal control evaluation report). I Important statement
It is the responsibility of the board of directors of the company to establish, improve and effectively implement internal control, evaluate its effectiveness and truthfully disclose the internal control evaluation report in accordance with the provisions of the enterprise's internal control standard system. The board of supervisors shall supervise the establishment and implementation of internal control by the board of directors. The management is responsible for organizing and leading the daily operation of the enterprise's internal control. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this report, and bear individual and joint legal liabilities for the authenticity, accuracy and completeness of the contents of the report.
The objective of the company's internal control is to reasonably ensure the legal compliance of operation and management, asset safety, authenticity and integrity of financial reports and relevant information, improve operation efficiency and effect, and promote the realization of development strategy. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the realization of the above objectives. In addition, as changes in circumstances may lead to inappropriate internal control or reduced compliance with control policies and procedures, there is a certain risk to speculate the effectiveness of internal control in the future according to the internal control evaluation results. II Internal control evaluation conclusion 1 On the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting
□ yes √ no
2. Evaluation conclusion of internal control over financial reporting
√ valid □ invalid
According to the identification of major defects in the company's internal control over financial reporting, there are no major defects in the internal control over financial reporting on the benchmark date of the internal control evaluation report. The board of Directors believes that the company has maintained effective internal control over financial reporting in all major aspects in accordance with the requirements of the enterprise's internal control standard system and relevant regulations.
□ yes √ no
According to the identification of major defects in the company's internal control over non-financial reports, the company found no major defects in the company's internal control over non-financial reports on the benchmark date of the internal control evaluation report. 4. Factors affecting the evaluation conclusion of internal control effectiveness from the benchmark date of internal control evaluation report to the date of issuance of internal control evaluation report □ applicable √ not applicable
There are no factors affecting the evaluation conclusion of the effectiveness of internal control from the base date of the internal control evaluation report to the date of issuance of the internal control evaluation report. 5. Whether the internal control audit opinion is consistent with the company's evaluation conclusion on the effectiveness of internal control over financial reporting
√ yes □ No 6 Whether the disclosure of major defects in internal control of non-financial reports in the internal control audit report is consistent with the disclosure of the company's internal control evaluation report √ yes □ no III Internal control evaluation (I) Scope of internal control evaluation
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. 1. The main units included in the evaluation scope include: Liuzhou Chemical Industry Co.Ltd(600423) and Liuzhou Chemical Industry Co.Ltd(600423) Luzhai branch. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The ratio of the total assets of the units included in the evaluation scope to the total assets of the company's consolidated financial statements 100
The total operating income of the units included in the evaluation scope accounts for 100% of the total operating income in the company's consolidated financial statements
3. The main operations and matters included in the scope of evaluation include:
Organizational structure, development strategy, human resources, social responsibility, capital activities, procurement business, asset management, sales business, engineering project, financial report, comprehensive budget, contract management, information system, etc. 4. High risk areas of focus mainly include:
Key business control links that affect the authenticity of financial information, business efficiency and efficiency, asset safety and integrity, compliance with laws and regulations, etc. 5. The above units, businesses and matters included in the evaluation scope and high-risk areas cover the main aspects of the company's operation and management. Is there any major omission □ yes √ No 6 Is there a statutory exemption
□ yes √ No 7 Other explanatory matters
None (II) Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system and other internal control supervision requirements, combined with the company's internal control system and internal control manual. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with the company's scale, industry characteristics, risk preference, risk tolerance and other factors, the board of directors of the company distinguished internal control over financial reports from internal control over non-financial reports, and studied and determined the specific identification standards of internal control defects applicable to the company, And consistent with previous years. 2. Identification standard of internal control defects in financial reporting
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Business income misstatement ＞ 5% 2% ＜ misstatement ≤ 5% misstatement ≤ 2%
Total assets misstatement ＞ 1.5% 0.5% ＜ misstatement ≤ 1.5% misstatement ≤ 0.5%
explain:
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
The quantitative standard takes the operating income and total assets as the measurement indicators. If the loss that may be caused or caused by the defect of internal control is related to the income statement, it shall be measured by the operating revenue index. If the amount of misstatement in the financial report that may be caused by the defect alone or in combination with other defects does not exceed 2% of the operating revenue, it is recognized as a general defect; If it exceeds 2% but not more than 5% of the operating revenue, it is an important defect; If it exceeds 5% of the operating revenue, it is recognized as a major defect. Losses that may be caused or caused by internal control defects related to asset management shall be measured by the total asset index. If the amount of financial report misstatement that may be caused by the defect alone or in combination with other defects does not exceed 0.5% of the total assets, it is recognized as a general defect; If it exceeds 0.5% but not more than 1.5% of the total assets, it is recognized as an important defect; If it exceeds 1.5% of the total assets, it is recognized as a major defect.
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major defects alone or together with other defects lead to the failure to prevent, detect and correct major misstatements in the financial report in a timely manner. In case of the following circumstances, it shall be deemed as a major defect:
(1) The company's directors, supervisors and senior managers commit fraud and cause heavy losses and adverse effects to the enterprise; (2) The external audit found that there were significant misstatements in the current financial report, and the company failed to find them first;
(3) Major defects that have been found and reported to the management have not been corrected within a reasonable time;
(4) The supervision of the company's audit committee and the company's internal audit department on internal control is invalid.
Significant defects (1) failure to select and apply accounting policies in accordance with generally accepted accounting standards;
(2) Failure to establish anti fraud and important checks and balances systems and control measures;
(3) There are single or multiple defects in the process of financial reporting, which affect the authenticity and accuracy of the financial report, although it does not meet the identification standard of major defects.
General defects and other internal control defects that do not constitute major defects and important defect standards.
Note: none 3 Identification standard of internal control defects in non-financial reporting
The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Business income misstatement ＞ 5% 2% ＜ misstatement ≤ 5% misstatement ≤ 2%
Total assets misstatement ＞ 1.5% 0.5 ＜ misstatement ≤ 1.5% misstatement ≤ 0.5%
explain:
The quantitative standard takes the operating income and total assets as the measurement indicators. The losses that may be caused or caused by internal control defects are related to the profit statement, which shall be measured by the operating revenue index. If the amount of misstatement in the financial report that may be caused by the defect alone or in combination with other defects does not exceed 2% of the operating revenue, it is recognized as a general defect; If it exceeds 2% but not more than 5% of the operating revenue, it is recognized as an important defect; If it exceeds 5% of the operating revenue, it is recognized as a major defect. Losses that may be caused or caused by internal control defects related to asset management shall be measured by the total asset index. If the amount of financial report misstatement that may be caused by the defect alone or in combination with other defects does not exceed 0.5% of the total assets, it is recognized as a general defect; If it exceeds 0.5% but not more than 1.5% of the total assets, it is recognized as an important defect; If it exceeds 1.5% of the total assets, it is recognized as a major defect.
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Qualitative standard of defect nature
If the possibility of major defects is high, it will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, or make it seriously deviate from the expected goal.
If the possibility of important defects is high, it will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, or make it significantly deviate from the expected goal.
General defect if the possibility of defect occurrence is small, it will reduce the work efficiency or effect, or increase the uncertainty of the effect, or make it deviate from the expected goal.
Note: none (III) Identification and rectification of internal control defects 1 Identification and rectification of internal control defects in financial reporting 1.1 Major defects
Whether the company has major defects in internal control over financial reporting during the reporting period □ yes √ no 1.2 Important defects
Whether the company has significant defects in internal control over financial reporting during the reporting period □ yes √ no 1.3 General defect
The general defects of internal control found in the internal control evaluation of the company have been rectified within the reporting period, which will not affect the realization of the internal control objectives of the company's financial report. 1.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting that have not been rectified □ yes √ no 1.5 After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any important defects in the internal control of financial reporting that have not been rectified □ yes √ no
2. Identification and rectification of internal control defects in non-financial reporting 2.1 Major defects
Whether the company found any major defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.2 Important defects
Whether the company found any significant defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.3 General defect
The general defects of internal control found in the internal control evaluation of the company have been rectified within the reporting period, which will not affect the realization of the internal control objectives of the company's financial report. 2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the non-financial reporting internal control that have not been rectified □ yes √ no 2.5 After the above rectification, on the benchmark date of the internal control evaluation report, whether the company finds any important defects in non-financial reporting internal control that have not been rectified □ yes √ no IV Description of other major matters related to internal control 1 Rectification of internal control defects in the previous year □ applicable √ not applicable 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
This year, the company organized and carried out internal control evaluation around the five elements of internal control according to the enterprise internal control standard system and other internal control supervision requirements, combined with the company's internal control system and internal control manual. At the same time, the company also hired Daxin Certified Public Accountants (special general partnership) to conduct an independent audit on the operation of the company's internal control. The existing internal control system of the company can basically adapt to and meet the management requirements of the company. A systematic internal control structure and necessary internal supervision mechanism have been established from the company level to all business levels, which can provide reasonable guarantee for the legality and compliance of the company's operation, the safety and integrity of assets and the correctness and reliability of accounting information. In the next year, the company will continuously improve and continue to improve the internal control system, standardize the implementation of the internal control system, strengthen the supervision and inspection of internal control, improve the overall management level of the company, strengthen the internal control management, effectively prevent all kinds of risks and promote the healthy and high-quality development of the company through pre prevention, in-process control, post supervision and feedback correction of risks. 3. Description of other major events
□ applicable √ not applicable
