Sinomag Technology Co.Ltd(300835)
Self evaluation report on internal control in 2021
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 normative system"), combined with the internal control system and evaluation methods of Sinomag Technology Co.Ltd(300835) (hereinafter referred to as the "company"), 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 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, due to changes in the situation, the company's internal control system may become inappropriate, or the degree of compliance with control policies and procedures may be reduced. It is risky to speculate the effectiveness of internal control in the future according to the internal control evaluation results.
2、 Internal control evaluation conclusion
According to the identification of major defects in the company's internal control over financial reporting, on the benchmark date of the internal control evaluation report, the company has no major defects in the internal control over financial reporting. 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, based on the benchmark date of the internal control evaluation report, the company has not found any major defects in the internal control over non-financial reports.
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) evaluation scope of internal control
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. The main units included in the evaluation scope include the company and its subsidiaries. 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 main operations and matters included in the scope of evaluation include:
(1) Corporate governance, development strategy, organizational structure, human resources, corporate culture, professional ethics and professional competence, information and communication, internal supervision and other processes involved in company level control in the company's internal control management manual and relevant implementation rules;
(2) Purchase management, sales management, financial management, related party transactions, external guarantee, raised funds, external investment, information disclosure and other processes involved in business level control. The high-risk areas of focus mainly include: procurement management, sales management, financial management, related party transactions, fund-raising, information disclosure, etc. The above 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.
（2） Internal control evaluation basis and internal control defect identification standard
The company organizes and carries out internal control evaluation according to the requirements of enterprise internal control standard system. 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 studied and determined the specific identification standards of internal control defects applicable to the company for internal control over financial reports and internal control over non-financial reports.
1. Identification standard of internal control defects in financial reporting
Defect grade identification standard
Quantitative and qualitative criteria
1. Fraud by directors, supervisors and senior managers;
1. The amount of misstatement in the balance sheet ≥ 2. 5% of the total amount of errors due to major errors in the announced financial report; Positive;
Major defects 2. The amount of misstatement in the income statement is greater than or equal to the total revenue 3. There are major errors in the current financial report, which accounts for 6% in the operation of internal control. The error is not found;
4. The audit committee and Audit Department of the company have ineffective supervision on the internal control of financial reports.
1. 2% of total assets ≤ balance sheet 1. No anti fraud procedures and control measures have been established;
The amount of misstatement is less than 5% of the total assets; 2. For the accounting treatment of unconventional or special transactions, there is no corresponding mechanism to control important defects. 2. 3% of the total revenue ≤ the misstatement mechanism of the income statement;
Amount ＜ 6% of total income. 3. For one or more defects in the preparation of financial reports, it is impossible to ensure that the prepared financial statements achieve the goal of authenticity and accuracy.
1. Balance sheet misstatement amount ＜ assets
2% of the total amount of general defects; It refers to other control defects except major defects and important defects.
2. Amount of misstatement in income statement ＜ total income
3% of the total.
2. Identification standard of internal control defects in non-financial reporting
Defect grade identification standard
Quantitative and qualitative criteria
1. The company's business activities violate national laws and regulations;
The amount of direct or indirect asset loss is RMB 3 million. 2. The frequent exposure of negative news in the media has a significant impact on the company's reputation; Major defects are more than yuan.
3. Serious loss of senior managers and core technicians;
4. Lack of institutional control or systematic failure of important business;
5. Major defects in internal control have not been rectified.
1. The company's activities in violation of national laws and regulations are subject to minor punishment;
Amount of direct or indirect asset loss due to major defects 2. Negative news in the media has an impact on the company's reputation;
1-3 million yuan (including 3 million yuan). 3. Serious loss of personnel in key positions;
4. Important defects in internal control have not been rectified.
The amount of direct or indirect asset loss of general defects is less than that of other control defects except major defects and important defects.
1 million yuan (including 1 million yuan).
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reporting
According to the above identification standards of internal control defects in financial reporting, the company has no major defects and important defects in internal control of financial reporting during the reporting period.
2. Identification and rectification of internal control defects in non-financial reports
According to the above identification standards of internal control defects in non-financial reports, no major defects or important defects in the company's internal control over non-financial reports were found during the reporting period.
4、 Description of other major matters related to internal control
During the reporting period, the company's current internal control system covered all aspects of the company's production and operation activities and had no major defects in integrity, rationality and effectiveness.
At the same time, the company will continue to strengthen the construction of internal control, improve the internal control system suitable for the company's business scale, business scope, competition and risk level, timely adjust and standardize with the changes of business conditions, strengthen the supervision and inspection of internal control, and promote the healthy and sustainable development of the company.
Sinomag Technology Co.Ltd(300835) board of directors March 14, 2022
