Zhejiang Renzhi Co.Ltd(002629)
Self evaluation report on internal control in 2021
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 of the company believes that the company's internal control is effective, there are no major defects in the design or implementation of internal control, and can reasonably ensure the achievement of internal control objectives.
According to the identification of major defects in the internal control of the company's financial report, the company shall, on the benchmark date of the internal control evaluation report
The internal control over the non operating capital transactions of related parties, external financial assistance, income and related business contract management has been strengthened and improved, the relevant internal control links have been effectively operated, and there are no major defects in the internal control of financial reporting. 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 is no impact on internal control from the base date of the internal control evaluation report to the date of issuance of the internal control evaluation report
Factors of effectiveness evaluation conclusion.
Internal control evaluation 3 scope of internal control evaluation
1.3 determine the scope of high-risk items and high-risk units according to the company's business orientation and evaluation principles. 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 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.
3.1.1 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, and the number and qualification of independent directors meet the provisions of relevant laws, regulations and the articles of association, so as to improve corporate governance
Independent directors have played an active role in 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. 3.1.2 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. 3.1.3 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.
3.1.4 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. 3.1.5 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. 3.1.6 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 storage and supply situation, and coordinate relevant parties to do a good job in material reserve and production and operation organization in advance. 3.1.7 sales and collection management
The rights and obligations of both parties are clarified by strictly signing the project service contract or product sales contract; Ensure the effective performance of the contract by ensuring the service quality of the project and reducing the sales risk caused by project quality and other problems; By implementing the marketing incentive management measures, the incentive and performance evaluation measures of sales personnel in the process of sales and collection are implemented to ensure the synchronous implementation of sales and collection. At the same time, the financial management department and the marketing department keep close contact with the project owner and Party A, and actively collect the project progress payment, project settlement payment and product sales payment, so that each payment can be seen, controlled and safe. 3.1.8 safety and environmental protection management
All employees of the company adhere to the safe production policy of "safety first, prevention first and comprehensive treatment", carefully study, implement and implement the guiding spirit of the safety and environmental protection work of the group company, and take the scientific outlook on development as the guide. Establish the concepts of "safety is above all else and life is the most precious" and "advance first in safety management". Establish and improve the safety production responsibility system and safety production rules and regulations, promote the standardization of safety production, improve the level of safety production and ensure safety production. There were no major accidents, major environmental pollution liability accidents and occupational disease accidents in the whole year, which realized the stable operation of safe production and ensured the normal operation of production and operation. 3.1.9 quality management
The company starts from the source, strictly implements the quality control procedure documents, strengthens the inspection of internal control quality management, and achieves inspection, notification, rectification and treatment at the same time. Formulate supporting measures and Implementation Rules for the problems existing in weak links and key parts, and do a good job of information feedback. Strengthen the quality control of purchased materials in drilling fluid, oil and gas production increase and other businesses, strengthen the implementation of technical specifications for product production and on-site technical services, so as to ensure the production of high-quality products and provide high-quality technical services. 3.1.10 management of raised funds
Strictly implement the management system of raised funds and the system, and specify the storage, approval, use, change, management and supervision of raised funds, so as to eliminate the deviation of the company's raised funds from the original plan; In the course of the company's operation, if the fund-raising project needs to be changed, it must be deliberated and approved by the company's board of directors and general meeting of shareholders to ensure its legality and effectiveness. The raised funds of the company have been used up, and there are no raised funds during the reporting period. 3.1.11 fixed assets management
The company has established the fixed assets management system, which has made specific provisions on the acquisition, valuation, custody and disposal of assets; At the same time, through regular asset inventory and irregular sampling, the use status of fixed assets is monitored in real time, and the inventory and potential safety hazards are evaluated in time to ensure the safe operation of assets. 3.1.12 investment management
According to the requirements of the company law of the people's Republic of China, the securities law of the people's Republic of China, the Listing Rules of Shenzhen Stock Exchange and other laws, regulations and normative documents, the company has strictly standardized the procedures and approval authority of foreign investment and asset disposal within the scope of authorization in strict accordance with the relevant provisions of the authorization management system and the foreign investment management system, so as to ensure the effective and reasonable use of funds. 3.1.13 related party transaction management
In accordance with the company law of the people's Republic of China, the securities law of the people's Republic of China, the Listing Rules of Shenzhen Stock Exchange, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 - standardized operation of listed companies on the main board and other relevant laws, regulations and normative documents, the company strictly abides by the relevant provisions of the articles of association and the decision-making system for connected transactions, Ensure that the related party transactions concluded between the company and related parties comply with the principles of fairness, impartiality and openness, and ensure that the related party transactions of the company do not harm the interests of the company and all shareholders. 3.1.14 external guarantee management
In accordance with relevant laws, regulations and normative documents such as the civil code of the people's Republic of China, the stock listing rules of Shenzhen Stock Exchange, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 - standardized operation of listed companies on the main board, the company strictly abides by the relevant provisions of the articles of association and the external guarantee management system, and implements unified management of guarantees. It is clearly stipulated that branches shall not provide external guarantees; Without the approval of the company, subsidiaries shall not provide external guarantee, mutual guarantee or invite other units to provide guarantee for them, strictly control the guarantee risk and ensure the safety of the company's assets. 3.1.15 management of subsidiaries
In accordance with the requirements of the company law, the Listing Rules of Shenzhen Stock Exchange, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 - standardized operation of listed companies on the main board, and the articles of association and the foreign investment management system, the company fully implements the subsidiary management system. Effective internal inspection, special supervision and other means of subsidiaries; The subsidiary is controlled by exercising shareholders' rights at the shareholders' meeting of the subsidiary, and the office of the board of directors is responsible for managing the daily equity and investment of the subsidiary. The major business and financial matters of each subsidiary shall be submitted to the parent company at the specified first time, and the financial reports shall be submitted regularly. At the same time, the company established a performance appraisal mechanism and strengthened the appraisal of the personnel of its subsidiaries. For subsidiaries without substantive business, necessary cancellation shall be carried out after reporting to the company for approval according to the requirements of internal control management. 3.1.16 R & D management
The company strictly implements the regulations of relevant scientific research project management systems such as R & D expense accounting management measures and budget management measures; At the same time, the management measures for scientific research projects was revised and improved, and the project initiation, project budget, project R & D, project site implementation and project benefit evaluation were standardized and managed in strict accordance with the company's rules and regulations, ensuring the rational use of R & D activities and promoting R & D activities
