Annual audit report
Zhejiang Taitan Co.Ltd(003036)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Table of contents page
1、 Audit report 1-5 II. Financial statements
Consolidated balance sheet and parent company balance sheet 1-4 consolidated income statement and parent company income statement 5-6 consolidated cash flow statement and parent company cash flow statement 7-8 consolidated statement of changes in owner's equity and parent company statement of changes in owner's equity 9-12 financial statements attached Note 1-96
Audit report
Xin Hui Shi Bao Zi [2022] No. zf1012 Zhejiang Taitan Co.Ltd(003036) all shareholders:
1、 Audit opinion
We have audited the financial statements of Zhejiang Taitan Co.Ltd(003036) (hereinafter referred to as " Zhejiang Taitan Co.Ltd(003036) " or "the company"), including the consolidated and parent company's balance sheet as of December 31, 2021, the consolidated and parent company's income statement, consolidated and parent company's cash flow statement, consolidated and parent company's statement of changes in owner's equity and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements are prepared in accordance with the provisions of the accounting standards for business enterprises in all material aspects, and fairly reflect the consolidated and parent company's financial position as of December 31, 2021 and the consolidated and parent company's operating results and cash flow in 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. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of Zhejiang Taitan Co.Ltd(003036) , 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、 Key audit matters
Key audit matters are the most important matters that we consider to be the audit of the current financial statements according to our professional judgment. The response to these matters is based on the overall audit of the financial statements and the formation of audit opinions. We will not express separate opinions on these matters.
The key audit matters identified in our audit are summarized as follows:
Key audit matters and audit response
1. Recognition of sales revenue
Our main audit procedures for the recognition of Zhejiang Taitan Co.Ltd(003036) sales revenue include: Zhejiang Taitan Co.Ltd(003036) mainly engaged in the R & D and production of textile machinery (1) understand and test Zhejiang Taitan Co.Ltd(003036) internal control system, property and sales business related to sales and collection, and the design and Implementation of main business accounting system in 2021; The input is 124142530000 yuan, because the income is one of the key performance indicators of Titan (2) to distinguish the sales category, implement the analytical review procedure in combination with the contract and order, so it is reasonable to manage the change of sales income and gross profit; The management manipulates in order to achieve specific goals or expectations. (3) perform detailed tests, check the inherent risks of invoices, sales contracts, delivery orders, commissioning orders and revenue recognition time points, and we will confirm the revenue amount in the reporting period by letter with Titan customs clearance, so as to verify the authenticity of sales revenue; The revenue recognition of shares is recognized as a key audit event. (4) Perform a cut-off test on the sales revenue recognized before and after the balance sheet date to evaluate whether the sales revenue is recognized in an appropriate period.
2. Provision for bad debt of accounts receivable
The main audit procedures we performed for the bad debt provision of Zhejiang Taitan Co.Ltd(003036) accounts receivable include: (1) understanding the management's internal control over key financial reports related to credit control, account recovery and evaluation of the provision for impairment of accounts receivable Zhejiang Taitan Co.Ltd(003036) accounts receivable on December 31, 2021, And evaluate the effectiveness of the design and operation balance of these internal controls, which is 6272951 million yuan, and the provision for bad debts; 1051265 million yuan. According to accounts receivable (2), the management considers whether the management's bad debt policy for the current period is consistent, and evaluates the accuracy of the methods, input data and assumptions used by the management in calculating the aging and customer credit conditions and reducing the provision for impairment of accounts receivable. Determine the bad debt reserves of accounts receivable and review whether the provision for bad debt reserves is sufficient; The amount of provision needs the management to consider the customer's credit. (3) according to the sampling principle, check the sales contract, sales risk, historical payment records, existing disputes and other invoices, sales delivery orders, commissioning orders and customs declarations related to the balance of accounts receivable, and make major judgments and estimates after evaluating the total withdrawal of bad debts according to the aging group. Therefore, whether the aging range of accounts receivable prepared by me is appropriate; We list the bad debt provision of accounts receivable as the key review. (4) test the collection received after the balance sheet date;
Count items. (5) Select samples according to the sampling principle to implement accounts receivable correspondence;
(6) Analyze accounts receivable that cannot be recovered and require individual provision for bad debts;
(7) Focus on the recovery of accounts receivable balance of litigation customers.
4、 Other information
Zhejiang Taitan Co.Ltd(003036) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in the annual report of Zhejiang Taitan Co.Ltd(003036) 2021, but does not include the financial statements and our audit report.
Our audit opinion on the financial statements does not cover other information, and we will not issue any form of assurance conclusion on other information.
In combination with our audit of the financial statements, our responsibility is to read other information and consider whether other information is materially inconsistent with the financial statements or the information we have learned in the audit process, or there seems to be material misstatement.
Based on the work we have performed, if we determine that there is a material misstatement in other information, we should report that fact. In this regard, we have nothing to report.
5、 Responsibilities of management and governance for financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of 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 caused by fraud or error.
When preparing the financial statements, the management is responsible for evaluating Zhejiang Taitan Co.Ltd(003036) the ability of going concern, disclosing matters related to going concern (if applicable), and applying the assumption of going concern, unless liquidation is planned, operation is terminated or there is no other realistic choice.
The management is responsible for supervising the financial reporting process of Zhejiang Taitan Co.Ltd(003036) .
6、 Responsibilities of certified public accountants for the audit of financial statements
Our goal is to obtain reasonable assurance on whether the financial statements as a whole are free from material misstatement due to fraud or error, and issue an audit report containing audit opinions. Reasonable assurance is a high-level assurance, but it does not guarantee that the audit performed in accordance with the audit standards will 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 carrying out the audit work in accordance with the 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. Since fraud may involve collusion, forgery, intentional omission, misrepresentation or override of internal control, the risk of failing to find major misstatement caused by fraud is higher than that caused by error.
(II) understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express opinions on the effectiveness of internal control.
(III) evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(IV) draw a conclusion on the appropriateness of the management's use of the going concern assumption. At the same time, according to the audit evidence obtained, draw a conclusion on whether there are major uncertainties in the matters or circumstances that may lead to major doubts about Zhejiang Taitan Co.Ltd(003036) going concern ability. If we conclude that there is significant uncertainty, the auditing standards require us to draw the attention of statement users to the relevant disclosures in the financial statements in the audit report; 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 result in Zhejiang Taitan Co.Ltd(003036) inability to continue as a going concern.
(V) evaluate the overall presentation (including disclosure), structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(VI) obtain sufficient and appropriate audit evidence on the financial information of the entity or business activities in Zhejiang Taitan Co.Ltd(003036) to express an audit opinion on the consolidated financial statements. We are responsible for guiding, supervising and implementing the group audit, and take full responsibility for the audit opinions.
We communicated with the management on the planned audit scope, schedule and major audit findings, including the internal control defects that we 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 the most important for the audit of the current financial statements, thus constituting 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.
Chinese certified public accountant of Lixin certified public accountants: Guo Xianming (special general partnership) (project partner)
Chinese certified public accountant: Liu Zhiyong Chinese certified public accountant: Cao Libin Shanghai, China March 15, 2002
Zhejiang Taitan Co.Ltd(003036)
Consolidated balance sheet
December 31, 2021
(unless otherwise specified, the monetary unit is RMB)
Note V closing balance of assets closing balance of last year
Current assets:
Monetary capital (I) 4693089424251802724929
Provision for settlement
Lending funds
Trading financial assets (II) 15209931177 1,290000.00
Derivative financial assets
Notes receivable (III) 3224054909318055164811
Accounts receivable (IV) 52216865208346724311 sixty-seven
Receivables financing
Prepayment (V) 1982881248 12,753858. ninety
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables
