Company code: Guangdong Dcenti Auto-Parts Stock Limited Company(603335) company abbreviation: Guangdong Dcenti Auto-Parts Stock Limited Company(603335)
Guangdong Dcenti Auto-Parts Stock Limited Company(603335)
Internal control evaluation report in 2021
Guangdong Dcenti Auto-Parts Stock Limited Company(603335) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements (hereinafter referred to as the enterprise internal control standard system), combined with the company’s (hereinafter referred to as the company’s) 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 on December 31, 2021 (the benchmark date of the internal control evaluation report). I 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. II Internal control evaluation conclusion 1 On the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting
□ yes √ no
2. Evaluation conclusion of internal control over financial reporting
√ valid □ invalid
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. 3. Whether major defects in internal control over non-financial reporting are found
□ yes √ no
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. 4. Factors affecting the evaluation conclusion of internal control effectiveness from the base date of internal control evaluation report to the date of issuance of 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. 5. Whether the internal control audit opinion is consistent with the company’s evaluation conclusion on the effectiveness of internal control over financial reporting
√ yes □ No 6 Whether the disclosure of major defects in internal control of non-financial reports in the internal control audit report is consistent with the disclosure of the company’s internal control evaluation report √ yes □ no III Internal control evaluation (I) 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 high-risk areas. 1. The main units included in the evaluation scope include: Guangdong Dcenti Auto-Parts Stock Limited Company(603335) and its subsidiaries Huahong Group Co., Ltd., dcentire, Inc., wheel Mart Canada wholesale Inc, Guangdong dcenti (Brasil) autopecas LTDA, Taishan Junli Commercial Investment Co., Ltd., Taishan Junyi Commercial Investment Co., Ltd., Guangdong Weima new material technology Co., Ltd Guangzhou Guangdong Dcenti Auto-Parts Stock Limited Company(603335) Investment Co., Ltd., Guangdong Guangdong Dcenti Auto-Parts Stock Limited Company(603335) Green Food Co., Ltd., Taishan Guangdong Dcenti Auto-Parts Stock Limited Company(603335) steam turbine Intelligent Manufacturing Co., Ltd. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The ratio of the total assets of the units included in the evaluation scope to the total assets of the company’s consolidated financial statements 100
The total operating income of the units included in the evaluation scope accounts for 100% of the total operating income in the company’s consolidated financial statements
3. The main operations and matters included in the scope of evaluation include:
Organizational structure, development strategy, social responsibility, corporate culture, information transmission, human resources, capital activities, investment and M & A, procurement activities, asset management, sales business, research and development, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management, security management, information system, etc. 4. Key areas of focus include:
Market competition risk, accounts receivable management risk, macro business environment risk, inventory risk, etc. 5. 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. Is there any major omission □ yes √ No 6 Is there a statutory exemption
□ yes √ No 7 Other explanatory matters
（2） Basis of internal control evaluation and identification standard of internal control defects
The company organizes the internal control evaluation according to the enterprise internal control standard system and Guangdong Dcenti Auto-Parts Stock Limited Company(603335) internal control evaluation system. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
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. 2. Identification standard of internal control defects in financial reporting
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Misstatement of operating revenue ≥ 1% of operating revenue 1% of operating revenue misstatement ≥ misstatement 0.5% of operating revenue 0.5% of operating revenue
Misstatement of total assets ≥ 1% of total assets misstatement ≥ misstatement 0.5% of total assets 0.5% of total assets
Description: None
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major defect refers to the combination of one or more control defects that may cause the enterprise to seriously deviate from the control objectives, including but not limited to: (1) the fraud of directors, supervisors and senior managers of the company causes major losses; (2) There is a material misstatement in the current financial report, but the internal control fails to find the misstatement in the operation process; (3) The supervision of the company’s audit committee and internal audit institutions on internal control is invalid.
Important defects (1) the anti fraud procedures and control measures are not effectively implemented; (2) There are important misstatements in the current financial report, but the internal control fails to find such misstatements in the operation process; (3) There are misstatements in the current financial report. Although it does not reach or exceed the important degree of misstatement, from the nature, it should still attract the attention of the board of directors and management.
General defects refer to other control defects except major defects and important defects.
Note: none 3 Identification standard of internal control defects in non-financial reporting
The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Direct property loss when one or a group of internal control defects, when one or a group of internal control defects do not constitute major defects and significant amount, there is a reasonable possibility to lead to the existence, and there is a reasonable possibility to become other defects other than defects, It will cause the direct property loss of the company, and the direct property loss of the company exceeding that is regarded as a general defect
More than 10 million yuan and 5 million yuan, but not up to
10 million yuan
Description: none.
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major defect the combination of one or more control defects may cause the enterprise to seriously deviate from the control objectives, including but not limited to: (1) lack of democratic decision-making procedures; (2) Decision making procedures lead to major mistakes; (3) Violation of national laws and regulations and punishment; (4) Serious loss of middle and senior managers and senior technicians; (5) Negative news frequently appears in the media, involving a wide range; (6) Lack of system control or failure of system for important business; (7) Major or important defects in internal control have not been rectified.
Important defect is a combination of one or more control defects whose severity and economic consequences are lower than those of major defects, but it may still lead to the deviation of the enterprise from the control objectives. Including but not limited to: (1) democratic decision-making procedures exist but are not perfect; (2) General mistakes caused by decision-making procedures; (3) Violation of internal rules and regulations of the enterprise, resulting in losses; (4) Serious loss of key business personnel; (5) Negative news in the media, affecting local areas; (6) Defects in important business systems or systems; (7) Important defects in internal control have not been rectified.
General defects are other control defects except major defects and important defects. Including but not limited to: (1) the efficiency of decision-making procedure is not high; (2) Violation of internal regulations without loss; (3) Serious loss of business personnel in general posts; (4) Negative news appears in the media, but the impact is small; (5) Defects in general business system or system; (6) General defects have not been rectified; (7) There are other defects.
Note: none (III) Identification and rectification of internal control defects 1 Identification and rectification of internal control defects in financial reporting 1.1 Major defects
Whether the company has major defects in internal control over financial reporting during the reporting period □ yes √ no 1.2 Important defects
Whether the company has significant defects in internal control over financial reporting during the reporting period □ yes √ no 1.3 General defect
The general defects of internal control found in the internal control evaluation of the company have been rectified within the reporting period, and the defects will not affect the realization of the internal control objectives of the company’s financial reporting. 1.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting that have not been rectified □ yes √ no 1.5 √ the company’s internal control report has not been rectified on the benchmark date √ yes, the company’s internal control report has not been rectified Identification and rectification of internal control defects in non-financial reporting 2.1 Major defects
Whether the company found any major defects in internal control over non-financial reporting during the reporting period
□ yes √ no 2.2 Important defects
Whether the company found any significant defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.3 General defect
The general defects of internal control found in the internal control evaluation of the company have been rectified within the reporting period, and the defects will not affect the realization of the internal control objectives of the company’s financial reporting. 2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the non-financial reporting internal control that have not been rectified □ yes √ no 2.5 After the above rectification, on the benchmark date of the internal control evaluation report, whether the company finds any important defects in non-financial reporting internal control that have not been rectified □ yes √ no IV Description of other major matters related to internal control 1 Rectification of internal control defects in the previous year □ applicable √ not applicable 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
The company has established and effectively implemented internal control over the businesses and matters included in the evaluation scope. The information disclosure and financial report are true and reliable, the assets are safe, the business is legal and compliant, and the goal of the company’s internal control has been achieved. There are no major deficiencies in the design or implementation of internal control, which can reasonably ensure the achievement of the goal of internal control. At the same time, the company revised and compiled the basic system and relevant management measures, and strengthened the system construction.
Next year’s improvement direction: the company will continue to improve the internal control system, standardize the implementation of the internal control system, strengthen the supervision and inspection of internal control, optimize the internal control environment, improve the level of internal control management, and strengthen the internal control management through pre prevention, in-process control, post supervision and feedback correction of risks
