Sichuan Road & Bridge Co.Ltd(600039)
Internal control evaluation report in 2021
Sichuan Road & Bridge Co.Ltd(600039) 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: Sichuan Road & Bridge Co.Ltd(600039) all departments, all departments of Sichuan highway and Bridge Construction Group Co., Ltd., affiliated subsidiary organs, project management department and project division. 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 90
The ratio of the total operating income of the units included in the evaluation scope to the total operating income of the company’s consolidated financial statements 92
3. The main operations and matters included in the scope of evaluation include:
Engineering construction, engineering construction services (survey, design, consultation, supervision, detection and test), expressway operation management, PPP project investment, operation and maintenance services, hydropower and energy operation management, logistics trade, leasing business, new urbanization construction, lithium battery material production and sales, hotel catering services, insurance agents, etc; Management matters include: corporate governance, development strategy, corporate culture, human resources, social responsibility, budget management, fund management, project management, procurement management, business contracting management, contract management, investment management, financial management, asset management, research and development, information system, information transmission, internal supervision and audit, internal control risk and compliance, financial report, etc. 4. High risk areas of focus mainly include:
Macroeconomic risk, industrial competition risk, financial risk, overseas market risk, management and talent reserve risk, cost control risk, safety production risk, environmental protection risk, etc.
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 relevant laws and regulations, the company did not include new mergers and acquisitions at the end of 2021 into 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, enterprise internal control evaluation guidelines and relevant internal control manuals. 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 pre tax profit index (the single impact level reaches or exceeds the assessment impact level, which is lower than the company’s impact level in the assessment year and lower than the defect in the assessment year) is 5% of the pre tax profit of the company’s consolidated statements in the assessment year, but 5% of the pre tax profit of the company’s consolidated statements is 0.5% reaching or exceeding 0.5%
Pre tax profit index (the impact level after impact summary reaches the impact level after summary, which is lower than the impact level after evaluation summary, which is lower than the pre tax profit of the same important accounting section or more than 5% of the pre tax profit of the consolidated statements of the company in the evaluation year, but reaches or exceeds 0.5% of the pre tax profit
Summary of defects) 0.5%
The impact level of main business income / assets reaches or exceeds the impact level of the evaluation year, the impact level of the company is lower than that of the evaluation year, and the impact level of the company is lower than the total index (single defect) price of the evaluation year. The main business income in the consolidated statement of the company / the main business income in the consolidated statement of the invested company / 0.5% of the total assets of the main business income / assets in the consolidated statement of the invested company, However, it reaches or exceeds 0.05% 0.05% of the total revenue / assets
The impact level of main business income / assets after summary is lower than that after evaluation, and lower than the total index (affecting 0.5% of the total amount of main business income / income / assets in the company’s consolidated statements in the same or more than the evaluation year, but 0.5% of the total amount of multiple missing assets in the disclosure of main business income / assets is 0.05% of the amount reaching or exceeding 0.05%)
Description: the classification and identification of various defects can be classified into relevant types only if one of the above conditions is met, and strict standards are followed.
For example, if the evaluation result of a defect is that it affects the misstatement of 5% of total profits and 0.3% of total assets, it is a major defect.
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) any degree of fraud found by the company’s management; (2) Major internal control deficiencies that have been found and reported to the management have not been corrected after a reasonable time; (3) Invalid control environment; (4) Defects affecting income trend; (5) Defects affecting the total amount of connected transactions exceeding the amount of connected transactions approved by shareholders; (6) The major misstatement found in the external audit was not first discovered by the company; (7) Other defects that may affect the correct judgment of report users.
Significant defects (1) failure to select and apply accounting policies in accordance with generally accepted accounting standards; (2) Failure to establish anti fraud procedures and control measures; (3) 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; (4) 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 true and accurate objectives.
General defects refer to other control defects other than the above major defects and important defects.
Note: other internal control defects in financial reports shall be identified according to the risk control link in the internal control manual. 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
Direct property loss of 30 million yuan and above, 6 million yuan (inclusive) ～ 30 million yuan, 100000 yuan (inclusive) ～ 6 million yuan (RMB)
Note: the above standards are identified according to each accident. If there are multiple major accidents and events, the defect level shall be determined according to the direct property loss caused by each and its impact degree. Within the amount of direct property loss, the amount determined by external audit / internal control inspection of the unit / self inspection of the unit / self-evaluation of the unit shall prevail; If there is no treatment conclusion, it shall be determined by the internal and external audit unit / internal control inspection team / internal control office / internal control working group on site.
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 have been officially disclosed to the public and have a negative impact on the disclosure of the company’s periodic reports
Important defects were punished by national government departments, but did not have a negative impact on the disclosure of the company’s periodic reports
General defects were punished by government departments below the provincial level (including the provincial level), but did not have a negative impact on the disclosure of the company’s periodic reports
Note: other internal control defects in non-financial reports shall be identified according to the risk control link in the internal control manual. （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 any major defects in internal control over financial reporting during the reporting period
□ yes √ no
1.2. Important defects
Whether the company has any significant defects in internal control over financial reporting during the reporting period
□ yes √ no 1.3 General defect
According to relevant regulations, general defects have been rectified on time. 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, does the company have 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
According to relevant regulations, general defects have been rectified on time After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in 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, does the company find any important defects in the internal control of non-financial reporting 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
