Everbright Securities Company Limited(601788)
Report on the performance of the audit and Audit Committee of the board of directors in 2021
In accordance with the guidelines for self-regulation of listed companies on Shanghai Stock Exchange No. 1 – standardized operation, the articles of association, the rules of procedure of the audit and audit committee and other relevant provisions, the audit and Audit Committee of the board of directors of the company earnestly performs its duties in accordance with the principle of diligence. Now, the performance of the audit and Audit Committee of the board of directors in 2021 is reported as follows:
1、 Basic information of members of the audit and Audit Committee of the board of directors
The audit and Audit Committee of the 6th board of directors of the company is composed of 5 directors, including 3 independent directors, and the convener is Mr. Yin Junming, an independent director with professional accounting qualification, which meets the regulatory requirements and the relevant provisions of the articles of association. List of members of the audit and Audit Committee of the board of directors
Audit of the 6th board of directors Yin Junming (convener), Fu Jianping, Chen Mingjian, Pu Weiguang (independent director), Ren Yongping and Audit Committee (independent director)
2、 Meetings of the audit and Audit Committee of the board of directors
In 2021, the audit and Audit Committee of the board of directors held five meetings, as follows:
On January 26, 2021, the first meeting of the audit and Audit Committee of the sixth board of directors was held, which deliberated and approved the proposal on the provision for estimated liabilities and asset impairment, reviewed the unaudited financial statements of the company in 2020, and listened to the 2020 audit plan and audit focus of external audit institutions.
On March 12, 2021, the second audit and audit committee meeting of the sixth board of directors was held to communicate with the annual audit accountant on site about the financial statements and internal control in 2020, and reviewed the proposal of the company’s financial report in 2020, the proposal of the company’s internal control evaluation report in 2020, the proposal of the company’s internal control audit report in 2020 and the proposal of the company’s expected daily connected transactions in 2021, Listened to the performance report of the audit and Audit Committee of the board of directors in 2020 and the internal audit report of the company in 2020.
On March 25, 2021, the third meeting of the audit and Audit Committee of the sixth board of directors was held, which considered and approved the proposal of the company’s 2020 financial report, the proposal of the company’s 2020 internal control evaluation report, the proposal of the company’s expected daily connected transactions in 2021, reviewed the proposal of the company’s 2020 internal control audit report, and listened to the 2020 performance report of the audit and Audit Committee of the board of directors 2020 internal audit report of the company.
On August 27, 2021, the fourth meeting of the audit and Audit Committee of the sixth board of directors was held, which considered and passed the proposal on the renewal of the external audit institution in 2021, the proposal on the company’s 2021 semi annual financial report, the proposal on signing the framework agreement on daily connected (connected) transactions with China Everbright Group Corporation, and listened to the company’s 2021 semi annual internal audit report.
On October 27, 2021, the fifth meeting of the audit and Audit Committee of the sixth board of directors was held, and the proposal on the third quarter report of the company in 2021 was considered and adopted.
3、 Performance of the audit and Audit Committee of the board of directors
1. Pay attention to the provision for estimated liabilities and asset impairment
During the reporting period, in order to more truly and fairly reflect the company’s financial status and operating results, the audit and Audit Committee of the board of directors urged the company to withdraw estimated liabilities for risk events of subsidiaries in accordance with the relevant provisions of the accounting standards for business enterprises and accounting policies, carefully evaluate the business conditions such as margin trading, and withdraw asset impairment reserves for other receivables and financed funds. The audit and Audit Committee of the board of directors carefully considered the relevant proposals, and the relevant provisions were in line with the accounting standards for business enterprises and the company’s accounting policies, and there was no situation that harmed the interests of the company and all shareholders, especially small and medium-sized shareholders.
2. Focus on annual audit related work
In the audit of the company’s 2020 annual report, the audit and Audit Committee of the board of directors carried out its work in strict accordance with the relevant requirements of the CSRC and the company’s annual report working system. All members of the audit committee of the board of directors listened to the 2020 audit plan and focus of the external audit institution Ernst & Young Huaming Certified Public Accountants (special general partnership), discussed with the accountants on the audit work arrangement of the annual report, and put forward relevant work suggestions. After the accounting firm issues the preliminary audit opinion, timely communicate the annual report audit with the annual audit accountant, and urge the annual audit accountant to complete the annual report audit in time according to the work progress.
3. Consideration of matters related to the annual report
On March 25, 2021, the third meeting of the audit and Audit Committee of the sixth board of directors reviewed the company’s 2020 financial report. The company’s annual financial report is prepared in accordance with the provisions of the accounting standards for business enterprises, and the content of the company’s financial and accounting statements is objective, true and accurate. At the same time, the proposal on the company’s expected daily connected transactions in 2021 was reviewed, and the contents involved met the relevant provisions.
4. Guide internal audit and internal control evaluation
During the reporting period, the audit and Audit Committee of the board of directors listened to the report of the company’s internal audit department on internal audit work from time to time, promoted the continuous improvement and effective implementation of the company’s internal audit work, and agreed to submit it to the board of directors for deliberation after carefully reviewing the company’s 2020 internal control evaluation report.
5. Focus on basis trade
During the reporting period, the audit and Audit Committee of the board of directors focused on the accounting treatment of the company’s basis trade, and put forward a series of opinions and suggestions on the development of basis trade business and risk prevention and control.
In 2021, the audit and Audit Committee of the board of directors ensured sufficient time and energy to complete its duties, better fulfilled the responsibilities and obligations of the audit committee, effectively supervised the company’s audit work, and played a positive role in promoting the company’s internal control management.
In 2022, the audit and Audit Committee of the board of directors will be more conscientious, effectively supervise the company’s external audit, guide the company’s internal audit, promote the company to further establish an effective internal control system and provide true, accurate and complete financial reports, and give full play to the role of the audit and Audit Committee of the board of directors.
Everbright Securities Company Limited(601788) board of directors audit and audit committee March 2022
