China Railway Signal & Communication Corporation Limited(688009)
Performance report of audit and risk management committee in 2021
In 2021, the audit and Risk Management Committee of China Railway Signal & Communication Corporation Limited(688009) (hereinafter referred to as "the company") was composed of external directors Mr. Chen Jiaqiang, Mr. Chen JINEN and Mr. Guo Yonghong. Among them, Mr. Chen Jiaqiang has rich professional knowledge and experience in accounting, qualified as a certified public accountant and served as the chairman of the audit and risk management committee. During the reporting period, all members of the Committee strictly complied with the provisions of the articles of association, the detailed rules for the work of the audit and Risk Management Committee of the board of directors and other systems, scrupulously performed their duties, earnestly performed the duties entrusted by the board of directors, and attended the meetings of the board of directors and various special committees on time in accordance with the requirements of regulatory authorities and the company. Before attending the meeting, fully understand each proposal in advance, carefully read the meeting materials, and learn about the proposal from relevant personnel and intermediaries of the company when necessary. During the meeting, actively participate in the discussion and deliberation of matters, pay attention to the meeting procedures and fully express their opinions. The following tasks will be completed in 2021:
1、 Meeting of audit and risk committee
During the reporting period, China Railway Signal & Communication Corporation Limited(688009) the audit and Risk Management Committee of the third board of directors held four meetings, The proposal on employing external auditors in 2021, internal audit report in 2020, internal control evaluation report in 2020, compliance management report in 2020, major risk assessment report in 2021, internal control system work report in 2020, first quarter report in 2021, interim review results report in 2021, semi annual report in 2021 and third quarter report in 2021 were reviewed and approved A total of 10 motions. Listened to the special report of the risk control center (legal compliance department and audit department) for 3 times. The attendance of each member director is as follows:
Name of directors number of meetings attendance rate
Chen Jiaqiang 4 100%
Chen JINEN 4 100%
Guo Yonghong 4 100%
The audit and risk management committee made a number of suggestions to the board of directors on the review and audit of the company's financial statements, operating cash flow management, accounts receivable and asset liability ratio control, which were accepted by the board of directors.
2、 Review the company's financial information and its disclosure
The audit and risk management committee has considered a number of financial report proposals such as the company's 2020 annual report, the first quarter report of 2021, the semi annual report of 2021 and the third quarter report of 2021, carefully studied the contents of the proposals, repeatedly inspected and studied the financial information disclosed in the company's reports and financial statements, and recommended that external accounting firms refine the analysis indicators in combination with the characteristics of different industries, Classify and analyze the rationality of changes in asset liability ratio, gross profit margin, accounts receivable and other indicators of each sector. Fully communicated with the annual audit accounting firm on the company's 2021 external audit work plan and schedule, whether the impairment provision is sufficient, the progress and payment collection of high-risk projects, the reasons for the increase of asset liability ratio, and the recognition of construction contract revenue, cost and profit.
Put forward three matters that need the company's key attention: first, strengthen the market development in relevant diversified fields, optimize the relevant diversified business structure, and increase the support for the main business. Second, strengthen cost control, take effective measures, vigorously carry out "two gold" pressure drop, deeply analyze the reasons and take targeted measures. Third, pay attention to the identification of major risks, always take safety risks as the first place of risk prevention, and increase the chain reaction caused by epidemic risks. In addition, we should also pay attention to the risk of technology elimination brought by scientific and technological progress, constantly strengthen scientific and technological innovation and consolidate the leading edge of technology.
3、 Guide audit, internal control and comprehensive risk management
The audit and Risk Management Committee regularly listens to the risk control center (legal compliance department and audit department) on the major risk assessment report and the report on the implementation of internal control compliance, reviews the 2020 internal control evaluation report and the 2020 internal audit work report, and regularly listens to the report on the implementation of internal audit projects. Put forward many constructive suggestions on the implementation of internal audit plan and key audit tasks, how to carry out information audit under the epidemic situation, strengthen the implementation of audit rectification, improve audit procedures, improve audit efficiency and strengthen internal coordination of risk control center.
In terms of internal control and comprehensive risk management, the audit and risk management committee communicated with the management on the problems and risks existing in the enterprise's internal control, giving full play to the supervision and guidance role of the audit and risk Committee on the enterprise's internal control and risk management. Guidance was given on strengthening compliance management and guiding subordinate enterprises to carry out business.
In 2022, the audit and Risk Management Committee of the board of directors will continue to be conscientious, diligent and faithful in strict accordance with the self regulatory guidelines No. 1 - standardized operation of companies listed on the science and Innovation Board of Shanghai Stock Exchange, the corporate governance code and corporate governance report of the stock exchange of Hong Kong, as well as the articles of association and the working rules of the audit and Risk Management Committee of the board of directors Fully perform their duties, give full play to the functions of financial monitoring, risk management and internal control, provide effective advice and suggestions for relevant decisions of the board of directors, contribute to the sustainable, stable and healthy development of the company, and earnestly safeguard the common interests of the company and all shareholders.
China Railway Signal & Communication Corporation Limited(688009) board of directors audit and risk management committee March 25, 2022
