Yunnan Wenshan Electric Power Co.Ltd(600995)
Internal control evaluation report in 2021
Yunnan Wenshan Electric Power Co.Ltd(600995) all shareholders:
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 scope of evaluation include: Yunnan Wenshan Electric Power Co.Ltd(600995) 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 99
The total operating income of the units included in the evaluation scope accounts for 98% of the total operating income in the company's consolidated financial statements
The total net profit of the units included in the evaluation scope accounts for 98% of the total net profit in the company's consolidated financial statements
3. The main operations and matters included in the scope of evaluation include:
Organizational structure, development strategy, human resources, social responsibility, corporate culture, anti fraud, risk assessment, comprehensive plan management, comprehensive budget, capital operation, financing management, investment management, procurement management, asset management, power marketing, research and development, engineering projects, guarantee business, connected transaction management, financial report, contract management, internal information transmission, information system, external disclosure, internal audit Internal control supervision. 4. High risk areas of focus mainly include:
Capital operation, procurement management, asset management, power marketing, engineering projects and financial reports, etc. 6. Whether the above-mentioned items are included in the business scope of the company or not, and whether the above-mentioned items are included in the business scope of the company or not 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 internal control management manual and internal control evaluation manual formulated by the company.
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
Financial loss or statement 1 More than 4% of operating profit; 1. 2% - 4% of operating profit; 1. Error less than or equal to operating profit 2 2. It is larger than the business process involved 2% of the business income involved in the business process;
4% of industry income. 2% - 4% of input. 2. Less than or equal to 2% of the operating revenue involved in the business process.
The loss of fraud greater than 5 ‰ of the company's profit is less than or equal to 5 ‰ of the company's profit
Loss of
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
Major defects lead to major financial losses, which cannot be recovered for a long time, or major financial losses have threatened the survival of the company; The goal of maintaining and increasing the value of state-owned assets has been hit hard, and state-owned assets have been seriously lost.
It has a partial negative impact on the authenticity of basic financial data, and leads to the fact that the financial report cannot reflect the actual situation of some main businesses or non main businesses with large amount; The financial reports submitted to SASAC, taxation and other government departments do not meet the requirements.
Major defects lead to serious financial losses, which cannot be recovered for a long time, or major financial losses have a serious negative impact on the normal operation of the company; The goal of maintaining and increasing the value of state-owned assets is difficult to achieve, and state-owned assets are lost; Negative impact on the authenticity of basic financial data to some extent;
General defects lead to a certain degree of financial loss, and the financial loss cannot be recovered within a period of time, or the financial loss has a certain negative impact on the normal operation of the company; The goal of maintaining and increasing the value of state-owned assets will be affected in the short term; Slight negative impact on the authenticity of basic financial data;
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
Financial loss or statement 1 More than 4% of operating profit; 1. 2% - 4% of operating profit; 1. Error less than or equal to operating profit 2 2. It is larger than the business process involved 2% of the business income involved in the business process;
4% of industry income. 2% - 4% of input. 2. Less than or equal to 2% of the operating revenue involved in the business process.
The loss of fraud greater than 5 ‰ of the company's profit. Less than or equal to 5 ‰ of the company's profit
Loss of.
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
The key control of repeated major defects is not up to standard.
The general control or key control of repeated important defects is not up to standard.
If the general defects do not occur repeatedly, the general control is not up to standard.
（3） 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, whether the company has 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
For the general defects of internal control of non-financial report found in the internal control evaluation of the company this year, relevant units with internal control defects have been arranged to implement rectification in combination with their own actual situation to make the risk controllable. 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, does the company find 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 control defects in the previous year □ applicable √ not applicable 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
The company will strengthen the internal control of the general operation of the company's internal reporting system and ensure the effective implementation of the company's internal control of the non-standard operation of the company's internal reporting system. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Jiang Hongdong Yunnan Wenshan Electric Power Co.Ltd(600995) March 22, 2022
