Dalian Huarui Heavy Industry Group Co.Ltd(002204) : Zhonghuan Lianshen Zi (2021) No. 10199 audit report Dalian Huarui heavy industry CNC Equipment Co., Ltd
Audit report
Zhong Huan Lian Shen Zi (2021) No. 10199
catalogue
Starting page audit report
one
financial statements
Balance sheet 4
Income statement 6
Cash flow statement 7
Statement of changes in owner's equity 8
Note 10 to the financial statements
Audit report
Board of directors of Dalian Huarui heavy industry CNC Equipment Co., Ltd.: Zhong Huan Lian Shen Zi (2021) No. 10199 I. audit opinion
We have audited the financial statements of Dalian Huarui heavy industry CNC Equipment Co., Ltd., including the balance sheet as of August 31, 2021, the income statement, cash flow statement, statement of changes in owner's equity and notes to relevant financial statements from January to August 2021.
In our opinion, the attached financial statements have been prepared in accordance with the accounting standards for business enterprises in all material aspects and fairly reflect the financial position of Dalian Huarui heavy industry CNC Equipment Co., Ltd. as of August 31, 2021 and the operating results and cash flow from January to August 2021.
2、 Basis for forming audit opinions
We conducted our audit in accordance with the auditing standards for Chinese certified public accountants. The "responsibilities of certified public accountants for the audit of financial statements" in the audit report further expounds our responsibilities under these standards. According to the code of professional ethics for Chinese certified public accountants, we are independent of Dalian Huarui heavy industry CNC Equipment Co., Ltd. and have fulfilled other responsibilities in terms of professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate, which provides a basis for our audit opinion.
3、 Responsibilities of management and governance for financial statements
The management of Dalian Huarui heavy industry numerical control equipment Co., Ltd. (hereinafter referred to as "the management") is responsible for preparing the financial statements in accordance with the accounting standards for business enterprises to achieve a fair reflection, and designing, implementing and maintaining necessary internal control so that the financial statements are free from material misstatement due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating the sustainable operation ability of Dalian Huarui heavy industry CNC Equipment Co., Ltd., disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless the management plans to liquidate Dalian Huarui heavy industry CNC Equipment Co., Ltd., terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Dalian Huarui heavy industry CNC Equipment Co., Ltd.
Audit report page 1 of 3
4、 Responsibilities of certified public accountants for the audit of financial statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement due to fraud or error, and to issue an audit report containing audit opinions. Reasonable assurance is a high-level assurance, but it does not guarantee that an audit performed in accordance with audit standards can always be found when a major misstatement exists. Misstatement may be caused by fraud or error. If it is reasonably expected that the misstatement alone or in summary may affect the economic decisions made by the users of the financial statements based on the financial statements, the misstatement is generally considered to be significant.
In the process of performing audit work in accordance with audit standards, we use professional judgment and maintain professional doubt. At the same time, we also carry out the following work:
(i) Identify and assess the risks of material misstatement of financial statements due to fraud or error, design and implement audit procedures to deal with these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions. As fraud may involve collusion, forgery, intentional omission, misrepresentation or override of internal control, the risk of failure to find material misstatement caused by fraud is higher than that caused by error.
（2） Understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express an opinion on the effectiveness of internal control.
（3） Evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
（4） Draw a conclusion on the appropriateness of the management's use of the going concern assumption. At the same time, based on the audit evidence obtained, draw a conclusion on whether there are significant uncertainties in the matters or circumstances that may lead to major doubts about the going concern ability of Dalian Huarui heavy industry CNC Equipment Co., Ltd. if we conclude that there are significant uncertainties, the audit standards require me to In the audit report, we draw the attention of statement users to the relevant disclosures in the financial statements; If the disclosure is insufficient, we should express a non unqualified opinion. Our conclusions are based on the information available as of the date of the audit report. However, future events or circumstances may cause Dalian Huarui heavy industry CNC Equipment Co., Ltd. to be unable to operate continuously.
（5） Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
We communicate with the management on the planned audit scope, schedule and major audit findings, including the noteworthy internal control defects identified in the audit.
We also provide a statement to the management that we have complied with the professional ethics requirements related to independence, and communicate with the management all relationships and other matters that may reasonably be considered to affect our independence, as well as relevant preventive measures (if applicable).
From the matters communicated with the management, we determine which matters are most important to the audit of the current financial statements, so it constitutes page 2 of 3 of the audit report
Become key audit matters. We describe these matters in the audit report, unless laws and regulations prohibit the public disclosure of these matters, or in rare cases, if the negative consequences of communicating a matter in the audit report are reasonably expected to exceed the benefits in the public interest, we determine that we should not communicate the matter in the audit report.
Zhongshen Zhonghuan Certified Public Accountants (special general partnership) Chinese Certified Public Accountants:
Dalian Branch (project partner):
Liu Yan
Chinese certified public accountant:
plateau
Dalian, China October 28, 2021
Audit report page 3 of 3
Balance sheet
August 31, 2021
Prepared by: Dalian Huarui heavy industry CNC Equipment Co., Ltd
Project notes August 31, 2021 January 1, 2021
Current assets:
Monetary capital VI. 1154360.61411663.71 trading financial assets and derivative financial assets
Notes receivable VI, 2205824.00184809.30 accounts receivable VI, 3679065.801194706.27 accounts receivable financing
Prepayment VI. 4731483.80448099.71 other receivables VI. 588571.50173808.00, including: interest receivable
Dividends receivable
Inventory VI. 610683277.859751745.55 contract assets VI. 742000.0042000.00 non current assets held for sale due within one year
Other current assets VI. 8365531.03291982.43 total current assets 12950114.5912498814.97 non current assets: debt investment other debt investment long-term receivables long-term equity investment other equity instruments investment other non current financial assets investment real estate
Fixed assets VI. 91440.001440.00 construction in progress productive biological assets oil and gas assets use right assets intangible assets development expenditure goodwill long-term deferred expenses
Deferred income tax assets VI. 10
Other non current assets
Total non current assets 1440.001440.00 total assets 12951554.5912500254.97
Legal representative: Sun Baolin person in charge of Accounting: Chen Peng person in charge of accounting organization: Chen Peng
Balance sheet (Continued)
August 31, 2021
Prepared by: Dalian Huarui heavy industry CNC Equipment Co., Ltd
Project notes August 31, 2021 January 1, 2021
Current liabilities: short-term borrowings trading financial liabilities derivative financial liabilities notes payable
Accounts payable VI. 114624455.122830037.19 advance receipts
Contract liabilities VI. 121881787.711973633.80 payroll payable
