Henan Qingshuiyuan Technology Co.Ltd(300437)
Internal control assurance report
Zhitong Certified Public Accountants (special general partnership)
catalogue
Internal control assurance report
Evaluation report on internal control related to financial statements on December 31, 2021 1 1-14
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Internal control assurance report
Zhi Tong Zhi Zi (2022) No. 410a001382 Henan Qingshuiyuan Technology Co.Ltd(300437) all shareholders:
We have accepted the entrustment to verify the confirmation of the board of directors of Henan Qingshuiyuan Technology Co.Ltd(300437) (hereinafter referred to as Henan Qingshuiyuan Technology Co.Ltd(300437) company) on the effectiveness of internal control related to financial statements on December 31, 2021 The responsibility of the board of directors of Henan Qingshuiyuan Technology Co.Ltd(300437) company is to establish and improve internal control and maintain its effectiveness in accordance with the basic norms of enterprise internal control, and ensure that the attached evaluation report on internal control related to financial statements of Henan Qingshuiyuan Technology Co.Ltd(300437) company on December 31, 2021 truly and completely reflects the internal control related to financial statements of Henan Qingshuiyuan Technology Co.Ltd(300437) company on December 31, 2021. Our responsibility is to express opinions on the effectiveness of internal control related to the financial statements of Henan Qingshuiyuan Technology Co.Ltd(300437) company on December 31, 2021.
We have carried out the assurance work in accordance with the provisions of other assurance business standards for Chinese certified public accountants No. 3101 - assurance business other than audit or review of historical financial information. In the process of assurance, we have implemented other procedures including understanding, testing and evaluating the rationality of internal control design and effectiveness of implementation related to financial statements, as well as other procedures we deem necessary. We believe that our assurance provides a reasonable basis for expressing opinions.
Internal control has inherent limitations, and there is the possibility that misstatement may occur and not be found due to error or fraud. In addition, as changes in circumstances may lead to inappropriate internal control or reduce the degree of compliance with control policies and procedures, it is risky to speculate the effectiveness of internal control in the future according to the internal control assurance results.
We believe that Henan Qingshuiyuan Technology Co.Ltd(300437) company has effectively maintained the internal control related to financial statements established in accordance with the basic norms of enterprise internal control in all major aspects on December 31, 2021.
Henan Qingshuiyuan Technology Co.Ltd(300437)
Related to the financial statements as of December 31, 2021
Evaluation report of internal control
Henan Qingshuiyuan Technology Co.Ltd(300437) all shareholders:
In accordance with the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control regulatory requirements (hereinafter referred to as the enterprise internal control standard system), combined with Henan Qingshuiyuan Technology Co.Ltd(300437) (hereinafter referred to as the "company") 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 as of December 31, 2021 (benchmark date of internal control evaluation report).
1、 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.
2、 Evaluation conclusion of the company's internal control
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.
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.
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.
3、 Internal control evaluation
(I) basis of internal control evaluation
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system and the articles of association, internal control and risk identification and evaluation management system, internal audit system, financial management system and other systems.
(II) 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 the situation of high-risk fields. The units included in the evaluation scope include the company and its subsidiaries, namely Henan Qingshuiyuan Technology Co.Ltd(300437) , Jiyuan Qingyuan Water Treatment Co., Ltd., Henan Qingshuiyuan Technology Co.Ltd(300437) (Shanghai) Environmental Protection Technology Co., Ltd., Aichi environmental protection Co., Ltd., Henan Tongsheng Environmental Engineering Co., Ltd., Shaanxi ande Technology Industry Co., Ltd., Henan Qingshuiyuan Technology Co.Ltd(300437) (Beijing) Investment Co., Ltd Jiyuan Siweida Environmental Protection Technology Co., Ltd., Hainan free trade zone Henan Qingshuiyuan Technology Co.Ltd(300437) Environmental Technology Co., Ltd. The total assets of the units included in the evaluation scope account for 100% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue in the company's consolidated financial statements.
The businesses and matters included in the evaluation scope cover all business links related to financial reports and information disclosure in the company's business activities, including but not limited to corporate governance, institutional setting and allocation of rights and responsibilities, human resources, corporate culture and development strategy, risk evaluation management, internal control activities, information and communication control, internal supervision and control, etc. The high-risk areas of focus mainly include subsidiary management, related party transaction management, fund-raising management, internal control activities, information disclosure management, etc. 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, and there are no major omissions.
(III) procedures and methods of internal control evaluation
The audit committee of the board of directors authorizes the supervision and Audit Department of the company to be responsible for the evaluation of internal control, with the cooperation of other relevant departments, organize the inspection of internal control, study and identify the defects of internal control, and report to the board of directors for deliberation and approval according to the specified authority and procedures. During the evaluation, the supervision and audit department used the methods of consulting relevant internal control regulations, systems and the company's management documents, asking relevant personnel about the internal control process, analyzing the internal control environment and its risks, and sampling inspection to understand the company's internal control activities, identify the internal control risks, and check the effectiveness of the implementation of internal control activities.
4、 Establishment, improvement and effective implementation of the company's internal control system
(I) control environment
1. Governance structure
In accordance with the requirements of the company law, the securities law and other laws, regulations and departmental rules, the company has established a standardized corporate governance structure and rules of procedure. The rules of procedure include the rules of procedure of the general meeting of shareholders, the rules of procedure of the board of directors and the working procedures of the board of supervisors, which have formed a scientific and effective division of responsibilities and check and balance mechanism of the company. The general meeting of shareholders, the board of directors and the board of supervisors exercise the voting rights, business decision-making rights and supervision rights of major decisions according to their duties.
The board of Directors consists of 9 directors, including 3 independent directors. The company has 1 president and 4 vice presidents. The board of supervisors consists of five supervisors, two of whom are representatives of the company's employees, and one chairman of the board of supervisors. The board of Directors consists of four professional committees: Strategy Committee, salary and assessment committee, nomination committee and audit committee.
2. Institutional setting and distribution of rights and responsibilities
The company has established an organization with clear rights and responsibilities, mutual restriction and mutual supervision.
The board of directors of the company can review and make decisions on major decision-making issues in the company's business activities or submit them to the general meeting of shareholders for deliberation in accordance with the responsibilities conferred by the company law, the securities law and the articles of association, as well as the authorities and procedures specified in the above rules or procedures, and can make regular information disclosure and announcement of major matters as required. The board of supervisors can effectively perform its supervisory functions.
Management organization of the company: the general meeting of shareholders is the highest authority of the company, which manages and supervises the company through the board of directors. There is an audit committee under the board of directors, which is responsible for reviewing the enterprise's internal control, supervising the effective implementation of internal control and self-evaluation of internal control, guiding and coordinating internal audit and other related matters. The board of supervisors shall supervise the establishment and implementation of internal control by the board of directors. Under the leadership of the board of directors, the president is fully responsible for the daily operation of the company's operation and internal control.
3. Internal audit
The company has set up a supervision and audit department to be responsible for the internal audit of the company and report directly to the audit committee. The person in charge of the audit institution is directly appointed by the board of directors, which ensures the establishment, staffing and work independence of the audit institution. During the reporting period, according to the audit plan formulated at the beginning of the year, the audit institution of the company carried out audit supervision on whether the company and its subsidiaries operated in strict accordance with the internal control system through routine audit and special audit, and timely analyzed the internal control defects found in the audit and put forward improvement suggestions. The company's internal audit institution shall submit the audit work summary report to the Audit Committee on a quarterly basis.
4. Human resources policy
The company closely focuses on the business development strategy and scientifically plans and allocates human resources. Always adhere to the talent strategy, improve the talent management system, more scientifically "select, educate, employ and retain people", and improve the comprehensive competitiveness with talents as the core. The company explores and implements a multi-level medium and long-term incentive system, implements the employee stock ownership plan, further enhances employees' sense of acquisition, belonging and happiness, and improves the cohesion and centripetal force of the enterprise. Closely follow the government's talent policy, complete the declaration of "Internship unit" and provide graduates with a platform for employment and growth; Continue to adhere to scientific and technological innovation, and successfully approved the establishment of "Henan postdoctoral innovation practice base", "Henan intelligent water treatment system International Joint Laboratory", " Henan Qingshuiyuan Technology Co.Ltd(300437) - Ecological Environment Research Institute of Zhengzhou University", actively cooperate with Henan talent recruitment and innovation development conference and attract high-level talents. Organize and carry out multi-level and rich training projects to improve employees' professional skills and comprehensive literacy; Establish the "help and guide" working mode, create a good working environment, and vigorously cultivate young talents. Establish a reserve talent pool to provide a better development platform for excellent employees and make career planning for employees. Always adhere to people-oriented and care for the life and health of employees. Set up Taiji, table tennis and other interest classes to enrich employees' spare time life; Hold various forms of recreational and sports activities such as mountaineering, outward bound training and sports meeting to improve the enthusiasm and cohesion of employees. Care for the physical and mental health of employees and improve the dining environment and quality.
5. Corporate culture and development strategy
The company takes "being a century old enterprise beneficial to the society and serving the world" as the core concept; Take "being China's first-class and world leading environmental protection enterprise" as the enterprise vision; Take "diligence, persistence, learning and innovation" as the enterprise spirit; Take "three disciplines and eight attentions" as the publicity and implementation; Take "the company develops because of me, the family is happy because of me, and the society is harmonious because of me" as the corporate governance concept; Adhere to the principle of "legality, compliance, rationality and reasonableness"; Focusing on the innovative development of the environmental protection industry chain with water as the core, we will strive to build two business segments: industrial water treatment (pharmaceutical R & D, production and sales, water cloud tracking intelligent services, industrial complex wastewater treatment) and ecological environmental protection (municipal engineering, village and town domestic sewage, ecological restoration and river treatment).
(II) risk assessment
In order to promote the sustainable, healthy and stable development of the company, the company comprehensively, systematically and continuously collects relevant information according to the established development strategy and in combination with different development stages and business expansion, timely carries out risk assessment in combination with the actual situation, dynamically carries out risk identification, and analyzes relevant internal and external risks, Formulate corresponding risk response strategies.
In order to effectively reduce internal and external risks, the company identifies the external risks of the company according to social factors such as China's and international economic situation, industrial policies, market competition and resource supply; In terms of production safety, we should strictly follow the policy of "safety first, prevention first and comprehensive treatment", start from the basic work, and constantly improve the system and establish a mechanism
