Internal control evaluation report in 2021
Tangshan Jidong Equipment And Engineering Co.Ltd(000856) all shareholders:
According to 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 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.
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 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.
2、 Internal control evaluation conclusion
1. Does the company have any major defects in internal control over financial reporting on the benchmark date of internal control evaluation report
□ 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 there are significant defects in internal control over non-financial reporting
□ 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
\uf0a3 applicable □ not applicable
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
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.
1. The units included in the evaluation scope include Tangshan Jidong Equipment And Engineering Co.Ltd(000856) and five subordinate secondary companies and five tertiary companies. 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.
2. The main businesses and matters included in the evaluation scope include: various elements involved in the company level control in the company's internal control manual and enterprise implementation rules; the business level control involves capital activities, material procurement management, asset management, sales management, research and development, engineering projects, guarantee business, financial report, comprehensive budget, contract management, human resources, cost management, product quality management, information system management Information disclosure and other internal control processes.
3. The key high-risk areas included in the evaluation scope include: sales management, quality management, fund management, customer management, human resource management, technology management, material procurement management, safety management, strategic planning management, contract management, etc.
4. 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.
(II) internal control evaluation basis and internal control defect identification standard the company organizes and carries out internal control evaluation according to the enterprise internal control standard system and the company's internal control manual, internal control management measures and internal control evaluation measures.
1. Whether the specific identification standard of internal control defects is adjusted from previous years □ yes □ no
The board of directors of the company distinguished the internal control of financial report from the internal control of non-financial report according to the identification requirements for major defects, important defects and general defects of the enterprise internal control standard system, combined with the factors such as the company's size, industry characteristics, risk preference and risk tolerance, and studied and determined the specific identification standards of internal control defects applicable to the company, which are consistent with the previous years.
2. Identification standard of internal control defects in financial reporting
(1) The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Quantitative standard of defect properties
Direct property loss caused by potential loss or misstatement of major defects is more than 50 million yuan
Direct property loss caused by potential loss or misstatement of important defects is more than 20-50 million yuan
The direct property loss caused by potential loss or misstatement of general defects shall not exceed 20 million yuan
(2) 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
1. Causing significant operational inefficiency or failure
2. There are major hidden dangers in the safety of important assets or directly lead to major defects and losses of major assets
3. There are major hidden dangers in information system security
4. Causing systematic errors in important subjects of financial report
5. Negative news spreads throughout the business area
6. Or be concerned by national media and public media
7. Causing significant damage to the reputation of the enterprise
8. Violation of laws and regulations, resulting in the punishment of government departments or regulatory agencies, and the amount is huge; Huge amount of compensation and major commercial disputes
1. Have an important impact on the efficiency and effect of daily business
2. Lack of important system or process guidance or lack of regular systematic evaluation 3 There are major hidden dangers in the safety of important assets or indirectly lead to major defects and losses of assets
4. Finding fraud of non management
5. Direct or indirect impact on corporate reputation
1. It has little impact on the efficiency and effect of daily business
General defects 2 Control defects other than major defects and important defects
3. Identification standard of internal control defects in non-financial reporting
(1) The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Quantitative standard of defect properties
Direct property loss due to major defects 50 million yuan
Major defects 20 million yuan direct property loss ≤ 50 million yuan
Direct property loss due to general defects ≤ 20 million yuan
(2) 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 defects 1 The company's important business lacks system control or the system fails
2. Major defects in internal control evaluation have not been rectified
Important defects 1 The general business of the company lacks system control or the system fails
2. Important defects in internal control evaluation have not been rectified
General defects and other internal control defects that do not constitute major defects and important defect standards
(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 any major defects in internal control over financial reporting during the reporting period
\uf0a3 yes □√ no
1.2. Important defects
Whether the company has any significant defects in internal control over financial reporting during the reporting period
□ yes □√ no
1.3. General defect
There may be general defects in the internal control process in the daily operation, but the risk is controllable and has no impact on the company's financial report.
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. After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any important defects in the internal control of financial reporting that have not been rectified
□ yes □√ no
2. Identification and rectification of internal control defects in non-financial reports
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 the internal control of non-financial reporting during the reporting period. □ yes □√ no
2.3. General defect
There may be general defects in the internal control process in the daily operation, but the risk is controllable and has no impact on the company's non-financial report.
2.4. After the above rectification, on the benchmark date of the internal control evaluation report, whether the company has found any major defects in the internal control of non-financial reporting that have not been rectified.
□ yes □√ no
2.5. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any important defects in the internal control of non-financial reporting that have not been rectified
□ yes □√ no
4、 Description of other important matters related to internal control
1. Operation of internal control
Since the company carried out the construction of internal control, the company and its subsidiaries have established a more scientific and perfect internal control system and operated in strict accordance with the requirements of the enterprise's internal control standard system. Through self-evaluation, the company has maintained effective internal control in all major aspects in accordance with the requirements of the enterprise's internal control standard system and relevant regulations, and no major and important defects have been found.
2. Improvement direction of internal control
With the adjustment of the management structure, the company will continue to improve and optimize the internal control system, establish and strengthen the institutionalization and institutionalization of management, give full play to the efficiency of internal control, and lay a solid foundation for enterprises to improve the ability of major risk prevention and control. At the same time, strengthen the supervision and evaluation of internal control, strengthen the work on the scientificity of the design of internal control system and the effectiveness of operation, focus on the supervision of key businesses, key areas of reform and important links of state-owned capital operation, strengthen the authorization management and power balance of important posts, and ensure the legal compliance of the company's operation and management, asset safety, financial reports and relevant information are true and complete, so as to improve the operation efficiency and effect, Promote enterprises to realize their development strategy.
3. Description of other major events
□ applicable □ not applicable
Chairman: Wang Xiangdong Tangshan Jidong Equipment And Engineering Co.Ltd(000856) board of directors March 16, 2022
