Zhejiang Renzhi Co.Ltd(002629)
Internal control assurance report
Dahuhezi [2022] 003343
Dahua Certified Public Accountants (special general partnership)
DaHuaCertifiedPublicAccountants（SpecialGeneralPartnership）
Zhejiang Renzhi Co.Ltd(002629)
Internal control assurance report
(as of December 31, 2021)
Table of contents page 1, internal control assurance report 1-2, II, Zhejiang Renzhi Co.Ltd(002629) internal control evaluation report 1-9
Dahua Certified Public Accountants (special general partnership) 12 / F, building 7, No. 16 courtyard, Middle West Fourth Ring Road, Haidian District, Beijing [100039] Tel: 86 (10) 58350011 Fax: 86 (10) 58350006 www.dahua-cpa com. Internal control assurance report
Dahuhezi [2022] 003343 Zhejiang Renzhi Co.Ltd(002629) all shareholders:
We have accepted the entrustment to verify the confirmation of the effectiveness of internal control related to the financial statements on December 31, 2021 involved in the attached internal control evaluation report prepared by the management of Zhejiang Renzhi Co.Ltd(002629) (hereinafter referred to as Renzhi shares).
1、 Responsibilities of management
The management of Renzhi is responsible for establishing and improving internal control and maintaining its effectiveness in accordance with the basic norms of enterprise internal control and relevant regulations, and ensuring that the internal control evaluation report truly and completely reflects the internal control related to the financial statements of Renzhi on December 31, 2021.
2、 Responsibilities of Certified Public Accountants
Our responsibility is to express an assurance opinion on the effectiveness of Renzhi's internal control related to the financial statements as of December 31, 2021. We have carried out the assurance business in accordance with the provisions of other assurance business standards for Chinese certified public accountants No. 3101 - assurance business other than audit or review of historical financial information. The standard requires us to plan and perform assurance work to obtain reasonable assurance on whether Renzhi has maintained effective internal control related to the financial statements in all material aspects. In the process of assurance, we have implemented other procedures including understanding, testing and evaluating the integrity, rationality and effectiveness of the internal control system design related to the financial statements, as well as other procedures that we consider necessary. We believe that our assurance work provides a reasonable basis for expressing opinions.
Dahuhezi [2022] 003343 internal control assurance report
3、 Inherent limitations of internal control
Internal control has inherent limitations, and there is the possibility of misstatement and undetected due to error or fraud. In addition, due to the change of circumstances, the internal control may become inappropriate, or the compliance with control policies and procedures may be reduced. According to the internal control evaluation results, it is speculated that there are certain risks in the effectiveness of internal control in the future.
4、 Assurance opinion
We believe that Renzhi has maintained effective internal control related to the financial statements in all major aspects as of December 31, 2021 in accordance with the basic norms of enterprise internal control and relevant regulations.
5、 Restrictions on the users and purposes of the report
This report is only used when Renzhi shares disclose the annual report, and shall not be used for any other purpose. The consequences caused by improper use have nothing to do with the certified public accountants and accounting firms performing the business. We agree that this report, as a necessary document for the 2021 annual report of Renzhi Co., Ltd., shall be submitted together with other materials and disclosed to the public. Dahua Certified Public Accountants (special general partnership) Chinese certified public accountant:
Chen Yong, Beijing, China
Chinese certified public accountant:
Lin Wanxun March 18, 2002
Zhejiang Renzhi Co.Ltd(002629)
Internal control evaluation report
Zhejiang Renzhi Co.Ltd(002629) 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 as of December 31, 2021 (benchmark date of internal control evaluation report).
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
The board of Directors believes that the company has established a relatively complete, reasonable and effective internal control system, which meets the requirements of relevant laws and regulations and regulatory authorities, can basically meet the needs of the company's current management and development, plays a positive role in the company's standardized operation, strengthening management, improving efficiency, preventing business risks and the company's long-term development, and effectively protects the interests of the company and investors. The board of Directors believes that the company's internal control can not achieve the internal control objectives reasonably or effectively.
According to the identification of major defects in the internal control of the company's financial report, on the benchmark date of the internal control evaluation report, the company's internal control in the management of non operating capital transactions of related parties, external financial assistance, income and related business contracts has been strengthened and improved, the relevant internal control links have been operated effectively, and there are no major defects in the internal control of financial 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.
According to the identification of major defects in the company's internal control over non-financial reports, there are no major defects in the internal control over non-financial reports on the benchmark date of the 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.
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. The main units included in the evaluation scope include: the company and its holding subsidiaries. Namely Zhejiang Renzhi Co.Ltd(002629) , Sichuan Renzhi Petrochemical Technology Co., Ltd., Mianyang Renzhi Industrial Development Co., Ltd., Shanghai HENGDU Industrial Co., Ltd., Sichuan Renzhi New Material Technology Co., Ltd., Sichuan Renxin Energy Development Co., Ltd., Mianyang Renzhi Tianneng Petroleum Technology Co., Ltd., Wenzhou Hengli New Material Co., Ltd., Renxun industry (Shenzhen) Co., Ltd. and Sichuan Renzhi Jiemai Petroleum Technology Co., Ltd.
The main businesses and matters included in the evaluation scope include: governance structure, corporate culture, risk evaluation, fund management, procurement management, production and storage management, sales and collection management, safety and environmental protection management, quality management, raised funds management, fixed assets management, investment management, related party transaction management, external guarantee management, management of subsidiaries, R & D management, personnel management, preparation of financial statements Information disclosure and management, internal supervision and other businesses.
1. Governance structure
According to the provisions of the company law, the articles of association and other relevant laws and regulations, the company has established a corporate governance structure of "three meetings and one layer" at the general meeting of shareholders, the board of directors, the board of supervisors and the president level. The "three meetings and one layer" perform their respective duties and operate in a standardized manner, forming a scientific and effective division of responsibilities and check and balance mechanism; The board of directors of the company has four special committees: Strategy Committee, nomination committee, audit committee and salary and assessment committee to further improve the governance structure; Strictly implement the working system of independent directors. The number and qualifications of independent directors comply with the provisions of relevant laws, regulations and the articles of association. Independent directors have played an active role in improving corporate governance, making the decision-making of the board of directors more scientific and democratic, so as to effectively safeguard the interests of minority shareholders. At the same time, the company establishes a hierarchical authorization system. According to the authorization management system, the authorization at all levels is appropriate and the responsibilities are clear, and the dynamic management of authorization is gradually realized; By establishing an effective evaluation and feedback mechanism, the inapplicable authorization can be modified or cancelled in time.
2. Corporate culture
In the process of development, the company has formed and established the enterprise tenet of "benevolent people love others and wise people help others"; The enterprise mission of "creating first-class technical services and promoting the development of energy industry"; Renzhi enterprise culture system with the enterprise spirit of "endless dedication and eternal efforts" and the enterprise vision of "striving to be the first-class in the industry and building a harmonious Renzhi" as the core value.
The company is committed to the common development of society, shareholders, enterprises and employees. Take the "three grades" work and "three bases" work with the characteristics of Renzhi as the effective carrier, unify ideas, standardize the behavior of enterprises and employees, condense the will of employees, establish an efficient work style and first-class service level, create a good working environment and harmonious working atmosphere, shape a good corporate image and build the brand of Renzhi Co., Ltd.
3. Risk assessment
The company has gradually improved the construction of internal control system based on the principle of risk orientation. On the one hand, collect and study internal risk factors through daily management and supervision, internal and external audit, dynamically carry out risk identification and risk analysis, and timely conduct risk assessment by combining quantitative and qualitative methods, so as to provide basis for the management to formulate risk response strategies; On the other hand, when designing business processes and formulating management systems, the company lists specific risk points in detail, and formulates corresponding control procedures and Countermeasures to prevent the occurrence of various risks.
4. Fund management
The company strictly implements the fund management measures, strengthens the control of fund plans, and strictly standardizes the authorization and approval procedures for the revenue and expenditure of monetary funds and custody business. By implementing the incompatible post separation for handling monetary funds, the three-level operator system of online banking management, regular cash inventory, bank deposit checking at the end of the period and preparing the balance adjustment table, the company's fund management has been more standardized, effectively prevented the risk of capital activities and improved the fund efficiency.
5. Procurement management
The company strictly implements the regulations of material procurement management measures, bidding management measures, supplier management measures and fixed assets procurement management measures, and controls the procurement source and supplier selection through strict screening of suppliers. For the procurement of class a materials and fixed assets, centralized purchase organization, unified bidding and negotiation procurement shall be implemented to ensure that the procurement behavior complies with the procedures and reduce the procurement risk by strictly controlling the key nodes. Implement the sampling inspection system for each batch of materials, publish the sampling inspection results on a monthly basis, and check the entrance; In addition to clarifying the supervision responsibility, the procurement of fixed assets has further implemented the acceptance and approval procedures and the receiving and storage procedures, which are implemented in strict accordance with the principle that the person who receives and keeps the assets, the person who takes the assets and the handover of the assets, so as to ensure that there are no major loopholes in the management and control of fixed assets.
6. Production and storage management
In order to organize the production and operation, the company continues to prepare and decompose the production plan, prepare the material inventory limit quarterly according to the production needs, and issue the material procurement task monthly; In terms of warehouse management, increase the regular inventory and irregular random inspection of on-site materials. At the same time, relevant functional departments carry out regular analysis activities to timely respond to the warehouse supply and coordinate relevant parties to do a good job of materials in advance
