Maanshan Iron & Steel Company Limited(600808)
Internal control evaluation report in 2021
Maanshan Iron & Steel Company Limited(600808) 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 evaluation scope include: functional departments and institutions directly under Ma’anshan Iron and Steel Co., Ltd., Anhui Changjiang iron and Steel Co., Ltd. and its subsidiaries, Maanshan Iron and steel (Hefei) sector Co., Ltd., Maanshan Iron and steel rail transit Material Technology Co., Ltd. and its subsidiaries, escote Steel Co., Ltd., Anhui Maanshan Iron and steel Heling Industrial Co., Ltd., Maanshan Iron and steel (Hong Kong) Co., Ltd There are 14 processing companies and regional sales companies, including mg Trading Development Co., Ltd., Masteel America Co., Ltd., Masteel (Middle East) Co., Ltd., Masteel Hongfei power energy Co., Ltd. and Masteel (Hefei) steel processing Co., Ltd.
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 100
The total operating income of the units included in the evaluation scope accounts for 100% of the total operating income 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, internal information transmission, capital activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management and information system. 4. High risk areas of focus mainly include:
Epidemic prevention and operation risk, environmental protection risk, safety risk, cash flow and two gold risks, market price fluctuation and procurement and sales coordination risk. 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 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 company’s internal control manual. 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
The amount of financial report and related potential loss is greater than or equal to the amount of potential loss is less than 200 million, the amount of potential loss is less than 4000, and the information is true and complete, 200 million yuan. But more than 40 million yuan. Ten thousand yuan.
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 belong to the lack of internal control activities and there is no compensatory control, which has a wide impact on all businesses / subsidiaries of the company.
Important defects are the lack of internal control activities and there is no compensatory control, and only have a limited impact on a business / subsidiary of the company.
General defects: lack of internal control activities, but there are some compensatory control activities or only a limited impact on a business / subsidiary.
Note: in case of the following circumstances (including but not limited to), the rating shall be considered as major defect: restate the financial statements to reflect the correction of major misstatement; Certified public accountants have identified that there are significant misstatements in the current financial statements, which cannot be found by the enterprise’s internal control. 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
The potential loss amount of legal compliance is greater than or equal to the potential loss amount less than 200 million, and the potential loss amount is less than 400.2 billion yuan. But more than 40 million yuan. Ten thousand yuan.
The potential loss amount of asset safety is greater than or equal to the potential loss amount less than 200 million, and the potential loss amount is less than 400.2 billion yuan. But more than 40 million yuan. Ten thousand yuan.
explain:
nothing
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 belong to the lack of internal control activities and there is no compensatory control, which has a wide impact on all businesses / subsidiaries of the company.
Important defects are the lack of internal control activities and there is no compensatory control, and only have a limited impact on a business / subsidiary of the company.
General defects: lack of internal control activities, but there are some compensatory control activities or only a limited impact on a business / subsidiary.
Note: in case of the following situations (including but not limited to), the rating shall be considered as major defect: fraud of senior management personnel is found; The supervision of the Audit Committee on the enterprise’s financial report and internal control is invalid. （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
01.4. 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
48 items. The company has actively implemented rectification for the general defects of internal control over non-financial reporting found during the reporting period. 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 3 Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Ding Yi Maanshan Iron & Steel Company Limited(600808) March 23, 2022
