China Petroleum & Chemical Corporation(600028) Shanghai Petrochemical Co., Ltd
Performance report of the audit committee of the board of directors in 2021
The board of directors of the company has established an audit committee in accordance with the standards for the governance of listed companies issued by the CSRC and the corporate governance code issued by the stock exchange of Hong Kong. The audit committee is mainly responsible for proposing to the board of directors to hire or replace the external audit institution; Supervise the company’s internal control system and its implementation; Review the company’s financial information and its disclosure, including checking the integrity of the company’s financial statements and the company’s annual report, interim report and quarterly report, and reviewing the major opinions on financial reporting contained in the statements and reports; Review the company’s financial control, internal control and risk management system, and review major related party transactions. The rules of procedure of the audit committee have been published on the designated website of the company’s information disclosure.
According to the rules of procedure, the audit committee shall meet at least twice a year. In 2021, the audit committee held four meetings, and the attendance of the meetings were as follows:
Attendance of audit committee members in person and attendance rate of entrusted attendance
Li Yuanqin 4 0 100%
Tang Song 4 0 100%
Chen Haifeng 4 0 100%
The third meeting of the audit committee of the 10th board of directors held on March 23, 2021 made four resolutions: first, the company’s 2020 annual report was reviewed and approved; Second, the proposal on appointing KPMG Huazhen Certified Public Accountants (special general partnership) as the domestic auditor of the company in 2021 and KPMG certified public accountants as the overseas auditor of the company in 2021 was reviewed and approved, and it was suggested that the board of directors be authorized to determine its remuneration; Third, review and approve the company’s internal control evaluation report in 2020; Fourth, the company’s internal control manual (2021 version) was reviewed and approved.
The fourth meeting of the audit committee of the 10th board of directors held on April 28, 2021 made a resolution: the amendment to the rules of procedure of the audit committee of the company was deliberated and adopted.
At the fifth meeting of the audit committee of the 10th board of directors held on July 9, 2021, a resolution was made: the proposal on jointly reducing the capital of the joint venture with related parties was deliberated and adopted.
The sixth meeting of the audit committee of the 10th board of directors held on August 24, 2021 made three resolutions: first, the company’s 2021 semi annual report was reviewed and approved; Second, the proposal on joint investment and establishment of joint venture with related parties was deliberated and adopted; Third, the work report of the company’s internal control system for the half year of 2021 was reviewed and approved.
In the first quarter of 2021, the audit committee of the board of directors of the company communicated with and determined the “audit arrangement and scope of work of 2020 annual financial report” of the company before the external auditor entered the site to audit the 2020 annual report in accordance with the relevant requirements of Chinese regulators and the relevant provisions of the rules of procedure. The members of the Committee reviewed the financial and accounting statements (balance sheet, income statement and cash flow statement) prepared by the company before the external auditor entered the site; After the annual audit CPA issued the preliminary audit opinion, he reviewed the company’s financial statements again, and deliberated and voted on the annual financial report. By March 22, 2022, the audit committee of the board of directors had reviewed the accounting principles and standards adopted by the company with the management, and discussed audit, internal control and financial reporting, including reviewing the audited annual report for the year ended December 31, 2021.
The above is the report on the performance of the audit committee of the board of directors of the company in 2021.
