Company code: Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) company abbreviation: Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526)
Internal control evaluation report in 2021
Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) 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 base date of internal control evaluation report to the date of issuance of internal control evaluation report
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 scope of evaluation include Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) and its subsidiaries within the scope of consolidated statements. 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 100
The total operating income of the units included in the evaluation scope accounts for 100% of the total operating income in the company's consolidated financial statements
3. The main operations and matters included in the scope of evaluation include:
Organizational structure, human resources, social responsibility, corporate culture, fund management, production management, product quality management, procurement and payment business, asset management, sales collection business, engineering projects, financial reports, investment activities, contract management, hazardous chemicals management, subcontractor and supplier management, information system, information and communication, internal supervision. 4. High risk areas of focus mainly include:
Post investment management, contract management, fund management, purchase and payment management, inventory management, sales and collection management, project 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. （2） Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation in accordance with the enterprise internal control standard system and the relevant provisions of the company's internal control evaluation methods. 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
Total profit misstatement ≥ 10% 5% ≤ misstatement ＜ 10% misstatement ＜ 5%
Total operating revenue misstatement ≥ 3% 2% ≤ misstatement ＜ 3% misstatement ＜ 2%
Total assets misstatement ≥ 3% 2% ≤ misstatement ＜ 3% misstatement ＜ 2%
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 internal control defects alone or together with other defects may lead to the failure to prevent, detect and correct major misstatements in the financial statements in a timely manner.
Including: the fraud of the current directors, supervisors and management that has a significant impact on the financial report; Correction of published financial reports; The major defects reported to the management and the board of directors have not been corrected after a reasonable time; The supervision of the audit committee and internal audit institutions on internal control is invalid; wait.
Important defects internal control defects alone or together with other defects may lead to the failure to prevent, find and correct the misstatement in the financial report that should be paid attention to by the board of directors and the management although it does not meet the recognition standard of major defects. Including: failure to establish anti fraud procedures and control measures; 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; There are one or more defects in the information system and information communication, and it can not reasonably ensure that the prepared financial statements achieve the goal of authenticity and accuracy; wait.
General defects and other internal control defects of financial reporting that do not constitute major defects and important defect standards.
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
Directly causing property loss, loss amount ≥ 20 million yuan, loss amount ≤ 10 million yuan, loss amount 20 million yuan, loss amount 10 million yuan
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 and decision-making procedures lead to major mistakes; Lack of institutional control or systematic failure of important business, and lack of effective compensatory control; Major penalties imposed by government regulatory authorities; Other situations that have a significant negative impact on the company.
General mistakes caused by important defects and decision-making procedures; Defects in important business systems or systems; Serious loss of business personnel in key positions; The results of internal control evaluation, especially the important defects, have not been rectified; Other situations that have a great negative impact on the company.
The efficiency of general defect decision-making procedure is not high; Defects in general business system or system; Serious loss of business personnel in general posts; And other non-financial reporting internal control defects that do not constitute major defects and important defect standards.
（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
During the reporting period, there were some general defects such as non-standard value-added tax invoices and fund centralized management to be further strengthened. As of the benchmark date of the internal control evaluation report, the rectification has been completed. 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
During the reporting period, there were general defects such as insufficient informatization of project contract management and overstaffing of some organizations. As of the benchmark date of the internal control evaluation report, the rectification has been completed. 2.4. 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 √ not applicable
Chairman (authorized by the board of directors): Wu Dongming Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) March 30, 2022
