Beijing Urban-Rural Commercial (Group) Co.Ltd(600861) commercial (Group) Co., Ltd
Internal control evaluation report in 2021
All shareholders of Beijing Urban-Rural Commercial (Group) Co.Ltd(600861) commercial (Group) 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 normative system), combined with the company's (hereinafter referred to as the company's) internal control system and evaluation methods, and 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 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 benchmark date of internal control evaluation report to the date of issuance of internal control evaluation report □ applicable √ not applicable
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: the headquarters of the company, Beijing Guosheng Xingye Investment Co., Ltd., Beijing Urban-Rural Commercial (Group) Co.Ltd(600861) Century Enterprise Service Management Co., Ltd., Beijing Urban-Rural Commercial (Group) Co.Ltd(600861) 118shenghui Supermarket Co., Ltd., Beijing Urban-Rural Commercial (Group) Co.Ltd(600861) times Investment Co., Ltd., Beijing Huawen Xingsheng Enterprise Management Service Co., Ltd., Beijing Urban-Rural Commercial (Group) Co.Ltd(600861) Yanxing Trade Co., Ltd., Beijing Urban-Rural Commercial (Group) Co.Ltd(600861) Huangsi Commercial Building 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 is 98.33
The total operating income of the units included in the evaluation accounted for 87.07% 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:
According to the basic norms of enterprise internal control and its supporting guidelines, the company included the 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 report, comprehensive budget, contract management, internal information transmission and information system into the overall evaluation scope. 4. High risk areas of focus mainly include:
Combined with the operating characteristics of the company in 2021, we focused on the inspection and evaluation of securities affairs management, administrative management, human resources management, financial management, legal affairs management, security management, strategic investment management, operation management and market development management. 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
None (II) Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system and the company's internal control system and evaluation methods. 1. Whether the specific identification standard of internal control defects is adjusted with that of 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
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
Pre tax profit 10% ≤ misstatement 5% ≤ misstatement ＜ 10% misstatement ＜ 5%
Total operating income 1% ≤ misstatement 0.5% ≤ misstatement ＜ 1% misstatement ＜ 0.5%
Total assets 1% ≤ misstatement 0.5% ≤ misstatement ＜ 1% misstatement ＜ 0.5%
Net assets 2% ≤ misstatement 1% ≤ misstatement ＜ 2% misstatement ＜ 1%
Description: None
The qualitative evaluation criteria of the company's internal financial control report are as follows:
Qualitative standard of defect nature
Major defects (1) bring significant financial losses to the company;
(2) Causing major errors and omissions in the company's financial statements;
(3) The negative impact caused by it affects a wide range and attracts public attention, bringing irreparable damage to the company's reputation.
Important defects (1) bring certain financial losses to the company;
(2) Causing moderate misstatement and understatement of the company's financial statements;
(3) The negative impact has a wide range and brought great damage to the company's reputation in some areas.
General defects and other situations.
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 of more than 10 million yuan (inclusive), more than 5 million yuan (inclusive), more than 10 million yuan (inclusive), less than 5 million yuan and less than 10 million yuan
Significant negative impact has been officially disclosed to the public and has caused or been punished by the national government department or by the provincial (including provincial) regular report of the company, but has not caused the government department punishment on the company's regular report, but has not had a negative impact on the company's regular report disclosure
Surface influence
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 defects (1) serious lack of "three important and one big" decision-making procedures, undemocratic decision-making process, resulting in serious mistakes in decision-making;
(2) Serious violation of relevant laws and regulations of the state;
(3) Massive loss of management or technical personnel;
(4) The results of internal control evaluation, especially major defects, have not been rectified;
(5) Lack of institutional control or systematic failure of important business;
(6) The negative impact caused by it affects a wide range and attracts public attention, causing irreparable damage to the company's reputation;
(7) The government or regulatory authorities have investigated the relevant aspects.
Important defects: (1) lack of "three important and one big" decision-making procedures, undemocratic decision-making process, resulting in decision-making mistakes;
(2) The business operation violates the relevant laws and regulations of the state;
(3) Partial loss of management or technical personnel;
(4) The results of internal control evaluation, especially the important defects, have not been rectified;
(5) Lack of institutional control or systematic failure of general business;
(6) The negative impact has a wide range and brought great damage to the company's reputation in some areas.
General defects and other situations.
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
None 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 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
According to the internal control system and evaluation methods, the company organizes and carries out internal control evaluation. For the identified general defects of internal control in non-financial reporting, the possible risks are within the controllable range, which will not have a material impact on the realization of the company's internal control objectives, and the rectification has been completed or is being implemented. 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 defects in the previous year
√ applicable □ not applicable
Aiming at the general defects of internal control in the previous year, the company has organized and carried out tracking test on the rectification, and the rectification has been completed. The company will continue to improve its internal control system, further standardize the implementation of internal control and strengthen internal control supervision. 2. Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
In 2021, the company maintained effective internal control in all major aspects in accordance with the requirements of the enterprise internal control standard system and relevant regulations. No major defects and important defects are found. For the general defects found in the evaluation process, the company has taken corresponding rectification measures or formulated corresponding rectification plans to actively carry out defect rectification. In 2022, the company will continue to carry out the construction, optimization and improvement of internal control, strengthen the implementation of internal control, strengthen the supervision of internal control and the application of results, effectively protect the rights and interests of shareholders and promote the healthy and sustainable development of the company. 3. Description of other major events
□ applicable √ not applicable
