Wuhan Tianyuan environmental protection Co., Ltd
Self evaluation report on internal control in 2021
All shareholders of Wuhan Tianyuan environmental protection Co., Ltd.:
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 standard system), combined with the internal control system and evaluation methods of Wuhan Tianyuan environmental protection Co., Ltd. (hereinafter referred to as "the company" and "Tianyuan environmental protection"), 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.
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 self-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 the situation 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 results of internal control self-evaluation.
2、 Conclusion of internal control self-evaluation
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 self-evaluation report on internal control. 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 self-evaluation report.
There are no factors affecting the evaluation conclusion of the effectiveness of internal control from the benchmark date of the self-evaluation report of internal control to the date of issuance of the self-evaluation report of internal control.
3、 Self evaluation of internal control
(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: Wuhan Tianyuan environmental protection Co., Ltd. and its subsidiaries Tangyin yuyuanqing sewage treatment Co., Ltd., Tangyin yongxingyuan sewage purification Co., Ltd., Huangshan yongxingyuan sewage purification Co., Ltd., Bengbu Kaiyuan environmental protection Co., Ltd., Sheqi yongxingyuan sewage purification Co., Ltd., Deyang yongxingyuan environmental protection Co., Ltd Hubei Kaiyuan environmental protection Co., Ltd., Xifeng Kaiyuan environmental protection Co., Ltd., Hubei Kaiyuan environmental protection Co., Ltd., Yuyuan teyu environmental protection Co., Ltd., Hubei Kaiyuan environmental protection Co., Ltd Chongqing Heyuan environmental protection Co., Ltd., Chongqing Kunyuan environmental protection Co., Ltd., Xihua Huayuan sewage purification Co., Ltd., Anyang yongxingyuan sewage purification Co., Ltd., Yibin tianbai Sewage Treatment Engineering Construction Management Co., Ltd., Wuhan Guanzhong Environmental Protection Engineering Technology Co., Ltd., Wuhan Tianyuan environmental protection equipment manufacturing Co., Ltd., Mengzhou Guanzhong environmental protection energy Co., Ltd Anhui Qingyuan Huitong Technology Co., Ltd. and Yibin Cuiyuan sewage treatment 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 businesses and matters included in the evaluation scope include: organizational structure, development strategy, human resources, social responsibility, corporate culture, capital activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management, internal information transmission and information system Supervision of subsidiaries; The high-risk areas of focus mainly include: capital activities, sales business, procurement business, financial reporting and contract management.
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, and there are no major omissions.
The internal control construction and implementation of the main businesses and matters included in the evaluation scope in the current period are as follows:
1. Organizational structure
In strict accordance with the requirements of the company law, the securities law and other laws and regulations and the provisions of the articles of association, the company has established a corporate governance structure and standardized rules of procedure and decision-making procedures based on the general meeting of shareholders, the board of directors and the special committees under the board of directors, the board of supervisors and the management, and defined the responsibilities and authorities in decision-making, implementation and supervision, A scientific and effective division of labor and responsibilities has been formed.
The general meeting of shareholders enjoys the legal rights stipulated in laws and regulations and the articles of association, and exercises the decision-making power on major matters such as the company's business policy, investment, financing and profit distribution according to law. The board of directors shall be responsible to the general meeting of shareholders and exercise its business decision-making power within the scope authorized by the articles of association and the general meeting of shareholders. The board of directors has four professional committees: Strategy Committee, audit committee, salary and assessment committee and nomination committee to improve operation efficiency. Among the nine directors of the board of directors, there are three independent directors. The independent directors act as the convener of various professional committees (except the strategy committee). Matters involving professional fields must be submitted to the board of directors after being reviewed by the professional committee, so as to facilitate the independent directors to better play their role. The board of supervisors is responsible for the general meeting of shareholders. In addition to inspecting and supervising the performance of the company's finance and senior executives, it also strengthens the business supervision of subsidiaries by organizing inspections of subsidiaries. According to the authorization of the board of directors, the management is responsible for organizing and implementing the resolutions of the general meeting of shareholders and the board of directors, and presiding over the daily operation and management of the enterprise. During the reporting period, the rights and responsibilities of each institution were clear, independent, balanced and standardized.
The company has established an organizational structure suitable for business, each department has clear management responsibilities and authorities, and a clear division of responsibilities and reporting system have been established among departments. Internally, a production and operation quality management system with "quality management norms" as the core has been formed; Human resource management system with performance management as the core; Safety production management system with safety (fire) production leading group as the core; All functional departments and subsidiaries of the company can operate in accordance with the management system formulated by the company, forming an effective business operation mode suitable for the actual situation of the company, with clear division of labor and sound and clear functions.
2. Development strategy
The company will continue to take leachate treatment as its core business, firmly grasp the policy opportunity of the country to fight a tough battle for environmental protection, earnestly practice the development concept of "green water and green mountains are golden mountains and silver mountains", focus on the comprehensive services of landfill leachate, sewage leachate and highly difficult sewage and wastewater treatment, and continue to develop and grow into a company that provides customers with process design, equipment processing, equipment integration It is a high-tech enterprise with integrated solutions such as engineering construction and operation services.
The company will continue to maintain its dominant position in the field of landfill leachate treatment, improve the technology R & D level and high-end equipment manufacturing capacity in the field of sewage treatment, especially in the production of integrated modular equipment, and form industrialization and scale; Focus on the full quantitative treatment and resource utilization of waste leachate, give full play to the advantages of technology and experience, and maintain the company's leading position in the industry; Continue to make use of operation and management experience and technical advantages, vigorously develop third-party operation and maintenance services, become an all-round and whole industry chain professional service provider in the field of comprehensive treatment of leachate and water environment, and improve the long-term stable income of the company.
3. Human resource management
The company pursues the talent concept of "people do their duty and make the best use of their talents". It has established a relatively complete management system in the employment, training, dismissal and resignation of human resources, salary and welfare, assessment, promotion, reward and punishment, career planning and other aspects, and paid social insurance and other benefits to employees in accordance with national regulations. The company strengthens the construction of management echelon, focuses on building a young backbone team, ensures the vitality of the enterprise, stimulates the work enthusiasm of employees, ensures the realization of the company's business objectives and employees' personal development, and lays the foundation for the sustainable development of the company.
4. Social responsibility
The company attaches importance to the performance of social responsibilities, achieves the coordination of economic and social benefits, short-term and long-term interests, self-development and social development, and realizes the healthy and harmonious development of the enterprise and employees, the enterprise and society, and the enterprise and the environment.
The company has established a perfect safety production management system and emergency plan for safety accidents, attached importance to employee labor protection, regularly carried out safety production training, and implemented safety measures in place.
The company strictly implements the environmental protection policy, establishes the environmental protection system, and strives to reduce the pollutant emission level through technological innovation, so as to achieve the standard emission.
The company strictly implements the quality management regulations, takes the quality management specification as the guide, formulates a complete production quality management system and workflow, defines the internal control procedures and measures of production, quality assurance, logistics, warehousing and other business links, and realizes the risk control of the main business links of production and operation, It ensures the compliance, legality and efficiency of production and operation business. The quality control center is responsible for the quality supervision and quality control of the whole process of product production, and inspect all raw materials, auxiliary materials, semi-finished products and finished products; Responsible for supplier audit, product complaints and adverse reactions, product recall; Responsible for verification and quality inspection, and formulated management documents such as quality management system, material quality standard and inspection operation procedures to minimize the quality risk of products.
5. Corporate culture
1) Tianyuan culture
Basic expression: Letter: letter based; Honesty: honesty first; And: and symbiosis.
Core values: faith-based and win-win;
Enterprise policy: longitude and latitude, vertical and horizontal, quality-oriented, integrity first;
Enterprise philosophy: create brilliance with strength and win the market with integrity;
Corporate style: commitment must be fulfilled and mission must be achieved. Efficiency is action to ensure the excellent quality of each project from construction, operation to submission;
Enterprise tenet: promote environmental protection and return to nature.
2) Tianyuan spirit
Loyal, honest, professional and enterprising.
Loyalty - loyalty to the lofty cause of environmental protection, loyalty to the values of Tianyuan, loyalty to their own ideals, loyalty to their own struggle and the present;
Integrity - justice, decency and integrity. Can adhere to the right path, have the courage to admit mistakes, and have the courage to adhere to their beliefs; Professional - have exquisite professional ability, assiduously study business knowledge, and must have a skill;
Enterprising - Tianyuan people must be self-motivated, self-improvement, continuous enterprising, continuous learning and innovation.
3) Tianyuan people's commitment
Tianyuan environmental protection will take a responsible, honest and pragmatic attitude, use Chengre technology and excellent service to do every job for every customer, regard the quality of every product and every project as life, and ensure 100% success and meet national standards!
6. Financial activities
In terms of fund-raising, the company has formulated the articles of association, financial management system, fund-raising management system and other systems to make detailed provisions on the storage, use, change, management, supervision and information disclosure of the special account for fund-raising, strengthen the internal control of fund-raising activities and standardize the management of fund-raising and use, Ensure the legitimacy and effectiveness of fund-raising activities. During the reporting period, the company strictly followed the company's relevant systems and did not raise funds in violation of regulations.
In terms of investment, the board of directors of the company reviewed and approved the management system for foreign investment, which strictly stipulates the approval authority and procedures, risk control measures, information disclosure and accountability, standardizes the investment behavior of the management company and its holding subsidiaries, establishes an effective risk prevention mechanism, and realizes the scientization and standardization of securities investment decisions. During the reporting period, the company found no illegal investment.
In terms of capital operation, the company strengthens the management of the whole process of capital operation by formulating financial management system, capital management measures and other systems, coordinates the capital needs of internal institutions in the process of production and operation, and improves the efficiency of capital operation; Through the formulation of financial expenditure approval system, expense reimbursement management system and other systems, strengthen the accounting system control of working capital, and strictly standardize the revenue and expenditure conditions, procedures and approval authority of funds. During the reporting period, the opening, cancellation and use of bank accounts of the company and its branches and holding companies were strictly managed by the company's financial management department and fund management department, with complete approval procedures and standardized and complete data, so as to ensure the efficient and safe management of bank accounts. The Finance Department of the company and its branches and holding companies is responsible for the settlement of relevant business receipts and payments of the company, with strict control levels, clear rights and responsibilities and perfect authorized accounting procedures.
7. Procurement business
The company has formulated a series of control systems such as procurement management system, bidding management system and supplier audit management system, established supplier evaluation and access processes, and established a supplier audit committee composed of personnel from quality control center, audit department, equipment manufacturing department, procurement management center and other departments Packaging material manufacturers conduct qualification audit and determine the list of qualified suppliers, so as to standardize the company's material procurement behavior, strengthen the company's material procurement management, reduce procurement costs, and improve the transparency of material procurement and capital use efficiency. Through in-depth market analysis and material cost structure analysis, the company makes inquiry and price comparison analysis on each cost composition to obtain the most reasonable purchase price and purchase quality.
The company strictly implements the purchase requisition, procurement, acceptance, audit and payment processes of materials, engineering projects and equipment to prevent capital loss and credit loss.
8. Production management
1) Production management of equipment manufacturing department
Row. Meanwhile, for the main products with large sales volume, the equipment manufacturing department shall reasonably arrange production and ensure reasonable inventory according to historical experience and market demand.
The equipment manufacturing department shall follow the manufacturing and production management system, workshop health management system, production equipment management system and semi-finished product / finished product management system, including the management of production plan, operation procedures of process, health management of workshop, use and maintenance of production equipment, process inspection of semi-finished products / finished products in the process of production and processing Specific requirements are made for warehousing management, responsible for the production process management of specific products and supervising safe production, responsible for the production quality management of the Department, and check the implementation of the plan. According to the safety production and quality management system, the safety and quality management center covers a series of quality management, such as production process monitoring, deviation, verification, change and so on
