Avic Heavy Machinery Co.Ltd(600765) board of directors audit and risk control committee
Performance report of 2021
In 2021, the audit and risk control committee under the board of directors of the company performed its duties diligently and prudently, gave full play to its professional role, and effectively promoted the continuous improvement of the scientificity and compliance of the company's decision-making in strict accordance with the standards for the governance of listed companies, the detailed rules for the work of the audit and risk control committee under the board of directors and other relevant management regulations, The annual performance report of the audit and risk control committee is as follows:
1、 Basic information of audit and risk control committee
The audit and risk control committee of the sixth board of directors of the company was originally composed of three members: independent directors Mr. Qiu Hongsheng, Ms. Li Ping and director Mr. ran Xing. After Mr. Qiu Hongsheng resigned in September 2021, the company adjusted the audit and risk control committee of the sixth board of directors. After the adjustment, Ms. Li Ping, Mr. Yu Gegang and Mr. ran Xing.
In 2021, the composition of three members of the audit and risk control committee of the sixth board of directors of the company is as follows:
Li Ping, female, born in June 1972, is an undergraduate and graduate student majoring in Applied Mathematics of Hubei University and a doctor majoring in probability and statistics of the Chinese Academy of Sciences. He joined the work in 2000. He once served as a postdoctoral fellow of the Chinese Academy of Sciences, a visiting scholar of Columbia University and Princeton University, an assistant to the director of the Housing Administration Bureau of Haidian District, Beijing, a deputy general manager of the financial management department of capital group and a deputy director of the financial office of Daxing District, Beijing. He is now a professor and doctoral director of the school of economics and management of Beijing University of Aeronautics and Astronautics and a "Chutian scholar" in Hubei Province. He has presided over and completed a number of NSFC and aviation science foundation, and published more than 60 papers in academic journals at home and abroad. From March 2017 to now, he has served as Avic Heavy Machinery Co.Ltd(600765) independent director.
He majored in casting in the Department of material engineering of Guizhou University of technology, and obtained a master's degree in Business Administration from Guizhou University in 2010. Chairman of the CPC Committee, general manager of Guizhou Precision Foundry Co., Ltd. and legal representative of Anji Precision Foundry Co., Ltd. in July 1990. Now he is the general manager of Avic Heavy Machinery Co.Ltd(600765) company.
Qiu Hongsheng, male, born in February 1965, Bachelor of automatic control from Harbin University of technology and master of management engineering from the school of management of Harbin University of technology. He joined the work in 1989 and once served as an engineer of 710 Institute of the Ministry of aerospace industry, project manager, department general manager, business director and deputy general manager of China financial accounting consulting company. From 2010 to now, he has served as executive director and general manager of Zhonghua Financial Consulting Co., Ltd. Grinm Advanced Materials Co.Ltd(600206) independent director and Henan Kedi dairy independent director. From May 2013 to September 2021, he served as Avic Heavy Machinery Co.Ltd(600765) independent director. He is no longer an independent director of the company.
2、 Performance of the audit and risk control committee of the board of directors of the company
(I) review of the company's 2020 Annual Report
During the reporting period, the audit and risk control committee of the board of directors of the company was responsible for the supervision, verification and communication of the company's internal and external audit in accordance with the provisions of relevant laws and regulations and the relevant requirements of securities regulatory authorities, focusing on the audit of the company's 2020 annual report. During the preparation of the 2020 annual report, the audit and risk control committee earnestly performed its duties, reviewed the audit plan, management opinions and other materials in 2020, held a meeting on March 10, 2021, and fully and carefully communicated with the accounting firm on the relevant situation of the company. It also put forward the professional opinions of the Audit Committee on the 2020 financial report prepared by the company, timely issued the audit supervision letter, and issued the written review opinions on the 2020 financial statements, which played the supervisory role of the audit committee.
The related party transactions of the company were predicted and disclosed in strict accordance with the requirements of the CSRC. The review procedures of related party transactions were legal and effective, and the transaction pricing was fair and reasonable. During the reporting period, the audit and risk control committee reviewed the daily related party transactions and the related party transactions that planned to increase the capital of aviation industry Anji precision casting company through public delisting The related party transactions of capital increase in the same proportion to AVIC special materials industry (Xi'an) Co., Ltd. have not occurred insider trading, damaged the shareholders' rights and interests or caused the loss of the company's assets, and did not damage the interests of the company and non related party shareholders.
(III) evaluation of the effectiveness of the company's internal control
During the reporting period, the company continued to deepen and improve the construction of the internal control system, establish and improve the internal control system, and strengthen the implementation, implementation and supervision of the internal control system in accordance with the basic norms of enterprise internal control jointly issued by the Ministry of finance, the CSRC and other departments and the guidelines on internal control of listed companies issued by Shanghai Stock Exchange. The company's internal control complies with the relevant laws and regulations of China and the requirements of the securities regulatory authorities, and there are no major defects.
(IV) guide the company's internal audit
During the reporting period, the company's in-service audit and risk control committee carefully reviewed the company's internal audit work plan, urged the company's internal audit institutions to strictly implement the audit plan, and put forward guiding opinions on the problems of internal audit.
(V) supervise the appointment of accounting firms
In 2021, supervise the appointment of accounting firms in accordance with the relevant provisions of the Ministry of finance of the people's Republic of China and the state owned assets supervision and Administration Commission of the State Council on the audit of the financial final accounts of central enterprises undertaken by accounting firms, On August 27, 2021, the company appointed Dahua Certified Public Accountants (special general partnership) (hereinafter referred to as "Dahua") as the financial and internal control audit institution of the company in 2021.
Dahua has the audit qualification of securities and futures related businesses, has many years of experience and ability to provide audit services for listed companies, and can meet the requirements of the company's financial audit and internal control audit in 2021.
(VI) summary of the audit work of the accounting firm in 2021
1. Basic information of audit work
(1) Before the certified public accountant entered the site, he carefully listened to and reviewed the work plan of Dahua firm for the audit of the company's annual report, and negotiated and determined the audit schedule together. (2) Reviewed the 2020 annual financial statements prepared by the company and agreed to submit them to Dahua for audit.
(3) During the mobilization audit, the audit and risk control committee fully communicated with Dahua and urged it to submit the audit report within the agreed time limit. According to the requirements of relevant regulations, after Dahua issued the preliminary audit opinion of the 2020 annual audit report, reviewed the 2020 annual financial and accounting statements prepared by Dahua and expressed opinions on relevant issues.
(4) According to the audit schedule, Dahua submitted a standard unqualified audit report to the audit and risk control committee. The audit and risk control committee has no objection to the 2020 audit report issued by it and agrees to submit it to the board of directors of the company for review.
2. Evaluation of audit work in 2021
The accountants who carried out the annual audit performed their duties in the audit process of the company's 2020 annual report, followed the professional standards, adhered to the independent audit with a fair and objective attitude, showed good professional ethics and professional quality, and well fulfilled their due responsibilities and obligations.
Dahua implemented proper and reasonable audit procedures in this audit, and completed the company's 2020 audit on time; The audit report issued truly, objectively and fairly reflects the financial situation of the company in 2020.
In conclusion, the members of the audit and risk control committee of the board of directors have fulfilled their duties, followed the professional standards of independence, objectivity and impartiality, and completed the relevant work of the audit committee. In the new year, the audit and risk control committee of the board of directors of the company will continue to perform its duties with due diligence Avic Heavy Machinery Co.Ltd(600765) board of directors March 14, 2022
