Zhejiang Taitan Co.Ltd(003036)
Self evaluation report on internal control in 2021
Zhejiang Taitan Co.Ltd(003036) 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 normative system"), combined with Zhejiang Taitan Co.Ltd(003036) (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 results, 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、 Internal control evaluation conclusion
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) 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 scope of evaluation include:
S / N main unit remarks
1 Zhejiang Taitan Co.Ltd(003036) parent company
2. Wholly owned subsidiary of Xinchang Shanghai Titan Scientific Co.Ltd(688133) Co., Ltd
3. Wholly owned subsidiary of Xinchang aidas dyeing and finishing equipment Co., Ltd
4. Holding subsidiary of Zhejiang Rongjun Technology Co., Ltd
5. Holding subsidiary of Aksu PuMei Textile 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 main operations and matters included in the scope of evaluation include:
S / N business and event category business and event
A. Governance structure
B. Organizational structure
1. Internal environment C. internal audit
D. Human resources
E. Corporate culture
A. Financial activities
B. Procurement business
C. Production management
D. Asset management
2. Control activities E. sales business
F. Foreign investment
G. Related party transactions
H. Guarantee business
1. Financial Report
3. Control means A. contract management
B. Internal information transmission
C. Information system
The high-risk areas of focus mainly include capital activities, procurement business, asset management, sales business, guarantee business, etc.
The above units, businesses and matters included in the evaluation scope and high-risk areas cover all major aspects of the company's operation and management, and there are no major omissions.
(II) self evaluation basis of internal control and identification standard of internal control defects
The company organizes and carries out internal control evaluation in accordance with relevant laws, regulations, rules and regulations as well as the company's internal control system, the Shenzhen Stock Exchange Stock Listing Rules, the basic norms of enterprise internal control, the Shenzhen Stock Exchange self regulatory guidelines for listed companies No. 1 - standardized operation of listed companies on the main board, and other relevant laws, regulations and rules.
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. The identification standards of internal control defects determined by the company are as follows: 1. Identification standards of internal control defects in financial reports:
(1) The quantitative criteria for internal control deficiencies in financial reporting are as follows:
Major defect important defect general defect
A. The amount of misstatement in the financial report ≥ 1.5% of the total assets of a 1% of the total assets of a 1.5% of the total financial assets; Or the amount of misstatement in financial report ≥ the amount of misstatement in asset report, or;
B. The amount of misstatement in the financial report is ≥ 1% of the total amount, or; B. 3% of total profit 5% of total financial profit B. 5% of total profit amount of misstatement in financial report
Reported misstatement amount ≥ total profit
3% of the amount
(2) The qualitative criteria for the defects of internal control over financial reporting are as follows:
Major defect important defect general defect
A. Invalid control environment; A. The non management of the company has serious and important defects. B. the directors, supervisors and senior management of the company have serious fraud; Control defects other than
Management fraud and giving to enterprise B. the company fails to comply with generally accepted accounting
Causing significant losses and adverse effects on the selection and application of accounting standards
Ring; Policy, its severity is not as serious as major
C. The certified public accountant finds defects in the current period; There is a major misstatement in the financial report. C. The company's accounting policies and internal control are not in line with the company's accounting system in the operation process, and the misstatement is not found; Degree; D. D. for the financial statements that the company has reported to the outside world, D. there are major misstatements in the unconventional or special financial statements, and the accounting treatment of Yingyi has not established the authenticity, integrity, publicity or implemented the corresponding control mechanism,
Permissibility; And there is no corresponding compensatory control
E. Audit Committee and internal system of the company; E. the audit institution of the Department has made an audit on the internal control. For the financial report at the end of the period
Invalid supervision; One or more items exist in the process control
F. There are major deficiencies in the evaluation of internal control, which can not reasonably ensure that the financial statements that have not been prepared within a reasonable time are true
Achieve the goal of complete rectification;
F. Important defects in internal control not found
Rectification
2. Identification standard of internal control defects in non-financial reporting
(1) The quantitative criteria for internal control deficiencies in non-financial reporting are as follows:
Major defect important defect general defect
1% of the total operating income due to internal control during the evaluation period.
>The consolidated financial statements have imperfect business income accounting or non-standard operation. During the evaluation period, 0.5% of the total amount of internal control during the evaluation period and other factors lead to imperfect direct property net accounting or non-standard operation. The total loss of direct property net or non-standard operation caused by imperfect internal control design ≥ the consolidated financial statements and other factors lead to 1% of the total loss of total business income Amount ≥ 0.5% of the total operating income in the total direct property net loss statement of the consolidated financial statements
(2) The qualitative criteria for the defects of internal control over non-financial reporting are as follows:
Major defect important defect general defect
A. The lack of internal control leads to general problems in A. decision-making procedures, and the efficiency of A. decision-making procedures is not high;
The behavior of the battalion is in serious violation of the state law and makes mistakes; B. Prohibitive provisions of general business system or system laws and regulations, B. defects in important business system or system;
Major leakage cases and defects in receipt; C. C. severe loss of key personnel or serious loss of key posts;
Large property losses; Heavy; D. General defects have not been rectified; B. Lack of institutional control of important businesses D. results of internal control evaluation E. lack of effective compensatory control in other situations that have caused considerable or systematic failure to the company, especially when important defects have not been negatively affected; Rectification; C. Results of internal control evaluation E. rectification of other situations that have a great impact on the company, especially major defects that have not been negatively affected; D. When negative news spreads, the government or regulatory agencies conduct investigations, which attract public attention and cause a large loss of customers, or it needs to be published in the newspaper
(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 did not have 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 and 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 did not explain other major matters related to internal control.
Zhejiang Taitan Co.Ltd(003036) board of directors
