Shanghai Smith Adhesive New Material Co.Ltd(603683)
Internal control evaluation report in 2021
Shanghai Smith Adhesive New Material Co.Ltd(603683) 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. Internal control report conclusion
√ 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: parent company, Guangdong Jinghua Technology Co., Ltd., Jiangsu Shanghai Smith Adhesive New Material Co.Ltd(603683) Material Technology Co., Ltd., Zhejiang Jingxin Special Paper Co., Ltd., Hong Kong Jinghua Investment Co., Ltd., Hong Kong Jinhua Holding Co., Ltd., Kunshan Jinghua Xingye Electronic Materials Co., Ltd., Chengdu Jinghua adhesive new materials Co., Ltd., Suzhou Baili Hengyuan Adhesive Products Co., Ltd Anhui Shanghai Smith Adhesive New Material Co.Ltd(603683) Material Technology Co., Ltd. and Qingdao Jinghua Electronic Material Co., Ltd. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The total assets of the units included in the evaluation scope account for 100% of the total assets in the company's consolidated financial statements
The total operating income of the units included in the evaluation scope accounts for 99.98% of the total operating income in the company's consolidated financial statements, accounting for 3.5% The main operations and matters included in the scope of evaluation include:
Human resources, development strategy, internal supervision, risk assessment, internal information transmission, sales business, procurement business, asset management, production management, fixed asset management, financial report, fund management, investment and financing management, etc. 4. High risk areas of focus mainly include:
Sales and collection, purchase and payment, cost control, asset management, investment and financing management, 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 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 business process operation system. 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
Direct loss amount of total assets ≥ 0.5% of total assets ≤ direct loss amount ＜ 1% of total assets loss amount ＜ 0.5% of total assets
1%
Absolute value of total profit direct loss amount ≥ 0.5% of the total consolidated assets ≤ direct loss amount ＜ 10% of the absolute value of total profit in the consolidated statements loss amount ＜ 5% 1% of the absolute value of total profit in the consolidated statements of total assets
Note: (1) the importance level of parent company and subsidiary company is calculated based on the data of consolidated statement; (2) Multiple defects that affect the same accounting subject or disclosed event shall be identified according to the impact level of a single event.
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 the company's directors, supervisors and senior managers are found guilty of fraud related to financial reporting; ② Make significant corrections to the published financial reports; ③ Invalid control environment; ④ Major defects are not rectified within a reasonable period; ⑤ The certified public accountant finds that there is a material misstatement in the current financial statements, but the internal control fails to find the misstatement in the operation process; ⑥ Lack of institutional control or systematic failure of important business.
Important defects: ① the control and implementation of accounting standard selection and accounting policy application are not in place; ② The implementation of anti fraud procedures and controls is not in place; ③ The control of unconventional transactions is not implemented in place; ④ The control related to the financial reporting process at the end of the period is not implemented in place.
General defects other internal control defects of financial reporting except the above major defects and important defects
Description: None
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Direct property loss amount: ≥ 2 million yuan, 1 million yuan ≤ direct loss amount, direct loss amount ＜ 1 million yuan ＜ 2 million yuan
Note: (1) the amount of direct property loss shall be subject to the amount recognized by the external audit, relevant government departments and the inspected unit; (2) Multiple defects affecting colleague items shall be identified based on the impact level of a single defect.
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 ① violation of national laws and regulations or normative documents, unscientific major decision-making procedures and lack of system may lead to systematic failure, and major or important defects cannot be rectified; ② Serious violations of national laws and regulations occurred this year; ③ Negative news spreads in the whole business field (including extending to the industrial chain), or is concerned by national media and public media, causing significant damage to the enterprise reputation, and the negative impact can not be eliminated; ④ The loss of middle and senior managers and senior technicians is serious.
Important defects: ① democratic decision-making procedure exists but is not perfect; ② General mistakes caused by decision-making procedures; ③ Violation of internal rules and regulations of the enterprise, resulting in losses; ④ Serious loss of business personnel in key positions; ⑤ Negative news in the media, affecting local areas; ⑥ Defects in important business systems or systems; ⑦ Important defects in internal control have not been rectified.
General defects: ① the efficiency of decision-making procedure is not high; ② Violation of internal regulations without loss; ③ Serious loss of business personnel in general posts; ④ Negative news appears in the media, but the impact is small; ⑤ Defects in general business system or system; ⑥ General defects have not been rectified; ⑦ There are other defects.
Description: none (III) 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
According to the above identification standards for defects in internal control over financial reporting, the company did not have general defects in internal control over financial reporting during the reporting period. 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
In the process of self-evaluation, the company found that there are still some general defects in the internal control of non-financial reporting
Includes:
① There are some production material staging in the hot melt workshop. The creator and approver are the same. Improvement measures: improve according to the ERP operation process, strictly separate the preparer from the reviewer, and the internal auditor will recheck and supervise from time to time.
② On June 15, 2021, after monitoring, the water sample at the main rainwater outlet of Jiangsu Shanghai Smith Adhesive New Material Co.Ltd(603683) Material Technology Co., Ltd. (hereinafter referred to as "Jiangsu Jinghua") was polluted, violating the provisions of Article 10 of the law of the people's Republic of China on the prevention and control of water pollution. Improvement measures: Jiangsu Jinghua has completed relevant rectification work and passed the on-site inspection and confirmation of Suzhou ecological environment bureau.
③ On April 16, 2021, the law enforcement personnel of Suzhou Ecological Environment Bureau conducted an on-site inspection on Jiangsu Jinghua and found that Jiangsu Jinghua had built a hazardous waste warehouse, but a large number of waste packaging barrels were not stored in the warehouse, but stored in a temporary storage place in the reserved area outside the enclosure on the north side of the plant. The place was built with a mobile telescopic canopy and did not store hazardous waste in accordance with the national environmental protection standards, It violates the provisions of Article 79 of the law of the people's Republic of China on the prevention and control of environmental pollution by solid waste. Improvement measures: Jiangsu Jinghua has completed the cleaning of waste packaging barrels in the temporary storage yard and passed the on-site inspection and confirmation of Suzhou ecological environment bureau. 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
During the reporting period, the company's businesses and matters included in the evaluation scope have established internal control and operated effectively, the information disclosure and financial report are true and reliable, the assets are safe, the business is legal and compliant, and the goal of the company's internal control has been achieved; twenty
