China Suntien Green Energy Corporation Limited(600956)
Internal control evaluation report in 2021
China Suntien Green Energy Corporation Limited(600956) 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 the headquarters and its subsidiaries. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The total assets of the units included in the evaluation scope accounted for 93.93% of the total assets in the company's consolidated financial statements
The total operating income of the units included in the evaluation scope accounted for 92.13% of the total operating income in the company's consolidated financial statements, accounting for 3.5% The main operations and matters included in the scope of evaluation include:
Organizational structure, development strategy, social responsibility, corporate culture, risk assessment, information and communication, internal supervision, investment management, engineering projects, fixed assets management, intangible assets management, inventory management, procurement and payment management, sales and collection management, production and operation management, human resources management, fund management, tax management, financial report and information disclosure, comprehensive budget management, contract management Information system management, etc. 4. High risk areas of focus mainly include:
Focus on high-risk areas such as fixed asset management, sales and collection management, fund management, financial report and information disclosure, procurement and payment management, information system management and so on. 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
This year, according to Article 4 of the answers to the regulatory questions on the implementation of enterprise internal control standard system by listed companies (issue 1 of 2011) issued by the CSRC, "if the company has merger and acquisition transactions in the reporting year, the evaluation of the effectiveness of the internal control over the financial report of the merged enterprise in this year can be exempted." Xingtai tianhongxiang Gas Co., Ltd., which was acquired this year, was not included in the scope of internal control evaluation. 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, the company's internal control manual and relevant internal management systems. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with the company's scale, industry characteristics, risk preference, risk tolerance and other factors, the board of directors of the company distinguished the internal control of financial reports from the internal control of non-financial reports, and studied and determined the specific identification standards of internal control defects applicable to the company. 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
The internal control defect of pre tax profit leads to potential internal control defect, which leads to potential misstatement amount greater than pre tax profit, misstatement amount greater than pre tax profit, misstatement amount less than (including) 5% of pre tax profit, but less than (including) 5% of pre tax profit
10% of profit
Description: None
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 1) involving fraud of directors, supervisors and senior managers; 2) The supervision of internal control by the internal supervision organization is invalid; 3) The company corrects the published financial report, and the information before correction has affected the report users to make correct judgment; 4) The certified public accountant found that there was a material misstatement in the current financial report, but the internal control failed to find the misstatement in the operation process.
Significant defects 1) significant misstatement of financial statements due to management errors, and the control activities failed to prevent such errors; 2) Although the amount of financial misstatement does not meet or exceed the quantitative standard of important defects, it should still attract the attention of the board of directors and management in terms of nature.
General defects other internal control defects in financial reporting except the above major defects and important defects.
Description: 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
Pre tax profit internal control defect causes direct internal control defect causes direct internal control defect causes direct property loss amount greater than pre tax property loss amount less than (including)
10% of profit, 5% of profit, but less than (including) 5% of profit before tax
10% of profit before tax
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 violation of national laws and regulations; 2) Massive loss of key management personnel or important talents; 3) Frequent negative news in the media; 3) Major defects in internal control evaluation have not been rectified; 4) Lack of system control or systematic failure of important business, resulting in heavy losses to the company; 4) The lack of democratic decision-making procedures, such as the lack of decision-making procedures for major decisions, important personnel appointment and removal, major project arrangement and large amount of fund operation (three important and one large), has caused great losses to the company.
Important defects 1) important property losses caused by management errors, and the control activities failed to prevent such errors; 2) Although the amount of property loss does not meet or exceed the quantitative standard of important defects, it should still attract the attention of the board of directors and management in terms of nature.
General defects other internal control defects of non-financial reporting except the above major defects and important defects.
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
The company found a small number of general defects in the process of organizing and implementing internal control evaluation, but the general defects found do not affect the realization of the company's overall objectives. For general defects, the company has formulated practical rectification measures and actively implemented them. 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
The company found a small number of general defects in the process of organizing and implementing internal control evaluation, and the general defects have been rectified. 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 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
This year, focusing on the strategic deployment, the company steadily promoted the continuous optimization of the internal control system of all departments and subsidiaries, promoted the high-quality and efficient internal control environment and ensured the effective operation of the company's internal control system. In 2022, the company will continue to improve and optimize the internal control system, promote the improvement and renewal iteration of internal control system and internal control process, strengthen system implementation, prevent business risks and ensure the realization of the company's business objectives. 3. Description of other major events
□ applicable √ not applicable
nothing
Chairman (authorized by the board of directors): Cao Xin China Suntien Green Energy Corporation Limited(600956) March 23, 2022
