Xinjiang Goldwind Science And Technology Co.Ltd(002202) internal control evaluation report in 2021
Xinjiang Goldwind Science And Technology Co.Ltd(002202) 2021 annual internal control evaluation report
Xinjiang Goldwind Science And Technology Co.Ltd(002202) 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 as of December 31, 2021.
1、 Statement of responsibility of the board of directors
The board of directors and all directors 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 liabilities for the authenticity, accuracy and completeness of the contents of the report.
It is the responsibility of the board of directors of the company to establish, improve and effectively implement internal control and evaluate its effectiveness in accordance with the provisions of the enterprise’s internal control standard system.
2、 Internal control evaluation conclusion
The board of directors considered that the company’s internal control system was not effective in accordance with the provisions of the company’s internal control standards on the basis of the company’s internal financial reporting, and that there were significant defects in the company’s internal control system on the date of evaluation.
According to the identification of major defects in the company’s internal control over non-financial reports, the company has no major defects in the company’s internal control over non-financial reports on the benchmark date of the internal control evaluation report.
There is no significant change in internal control that has a substantial impact on the evaluation conclusion of internal control between the benchmark date of the internal control evaluation report and the date of issuance of the internal control evaluation report.
3、 Internal control evaluation
(I) evaluation scope of internal control
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. The main units included in the scope of evaluation include:
1. Functional departments of the group headquarters: Group Strategic Management Center, group operation management center, group digital center
2. Business units: wind power industry group (China Marketing Center, offshore business unit product and Solution Center, R & D center, supply chain center, manufacturing center, quality management center, strategic operation center, financial center, Human Resource Center), financial business unit (Tianxin leasing, tianxinhui, finance company), Tianyuan scientific innovation, Tiancheng Tongchuang, Tianrun Xinneng, Jinfeng international, Jinfeng environmental protection, Jinfeng Huineng.
The units included in the evaluation scope account for 100% of the company’s total consolidated assets, and the total operating revenue accounts for 100% of the total consolidated operating revenue. The main businesses and matters included in the evaluation scope include: manufacturing and sales of fans and electronic control parts, supply chain procurement, fan product research and development, wind farm operation and maintenance services, wind farm investment, project development, company organizational structure, development strategy, human resources, capital activities, asset management, guarantee business, comprehensive budget, contract management, information system, etc; The high-risk areas mainly include: sales revenue recognition, guarantee business, estimated liabilities, control links related to the provision for impairment, etc.
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, and there are no major omissions.
（2） 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 board of directors of the company studied and determined the specific identification standards of internal control defects applicable to the company according to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, combined with the factors such as the company’s size, industry characteristics, risk preference and risk tolerance, respectively. The identification standards of internal control defects determined by the company are as follows:
1. 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:
(1) Major defect: the defect will lead to misstatement in the financial report, and the amount of misstatement will exceed 5% of the total assets or 5% of the total profits;
(2) Important defect: the defect will lead to misstatement in the financial report, and the amount of misstatement will exceed 2% of the total assets or 2% of the total profits;
(3) General defects: defects will lead to misstatement in the financial report, but the amount of misstatement will not exceed 2% of the total assets or 2% of the total profits.
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
(1) Major defects: defects will cause the enterprise to seriously deviate from the control objectives. When the company shows the following signs, it will be considered that the company has major defects in financial reporting: ① fraud by senior managers of the company; ② The company corrects the published financial report; ③ The certified public accountant finds that there is a material misstatement in the current financial report, but the internal control fails to find the misstatement in the operation process; ④ The company’s supervision of internal control is invalid.
(2) Important defect: the defect will cause the enterprise to deviate from the control goal, but its severity and economic consequences are lower than those of major defects. When the company shows the following signs, it will be considered that the company has important defects in financial reporting: ① failing to select and apply accounting policies in accordance with generally accepted accounting standards, and failing to establish anti fraud procedures and control measures; ② No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions, and there is no corresponding compensatory control; ③ There are one or more defects in the control of the financial reporting process at the end of the period, and it can not reasonably ensure that the prepared financial statements achieve the goal of authenticity and accuracy. (3) General defects: control defects other than the above major defects and important defects.
2. 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:
(1) Major defect: the direct property loss caused by the defect will exceed 10 million yuan;
(2) Important defect: the direct property loss caused by the defect is 1 million yuan (including 1 million yuan) ~ 10 million yuan;
(3) General defect: the direct property loss caused by the defect shall not exceed 1 million yuan.
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
(1) Major defect: ① the defect has existed in the early stage and has been identified as a major defect before; ② The possibility of the defect is high, and will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, or seriously deviate from the control goal; ③ The defect occurs frequently and belongs to the focus of supervision in that year, or the relevant problems cannot be rectified for a long time after being checked out, or they are repeatedly investigated and committed; ④ This defect may cause or has caused other major control defects.
(2) Important defect: ① the defect has existed in the early stage and has been identified as an important defect before; ② The possible impact of this defect is lower than that of major defects, but it may still lead to deviation from control objectives;
(3) General defects: control defects other than the above major defects and important defects.
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reporting
According to the above identification standards of internal control defects in financial reporting, the company has no major defects and important defects in internal control of financial reporting during the reporting period.
2. Identification and rectification of internal control defects in non-financial reports
According to the above identification standards of internal control defects in non-financial reports, the company has no major defects and important defects in internal control of non-financial reports during the reporting period.
4、 Description of other major matters related to internal control
During the reporting period, the company has no other internal control information that may have a significant impact on investors’ understanding of the internal control evaluation report, evaluation of internal control or investment decisions.
Chairman (authorized by the board of directors): WISCO Xinjiang Goldwind Science And Technology Co.Ltd(002202) March 25, 2022
