Company code: Ningbo Fubang Jingye Group Co.Ltd(600768) company abbreviation: Ningbo Fubang Jingye Group Co.Ltd(600768)
Ningbo Fubang Jingye Group Co.Ltd(600768)
Internal control evaluation report in 2021
Ningbo Fubang Jingye Group Co.Ltd(600768) 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 evaluation scope include: the company and its subsidiaries 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 The main operations and matters included in the scope of evaluation include:
Organizational structure, development strategy, human resources, social responsibility, corporate culture, financing management, investment management, working capital management, procurement management, inventory management, fixed assets, intangible assets, sales business, research and development, engineering project, guarantee management, business outsourcing, financial report, comprehensive budget, contract management, internal information transmission, information system, file management, subsidiary management Internal audit and other processes. 4. High risk areas of focus mainly include:
Sales risk, procurement risk, information management risk, capital risk, inventory management risk, policy risk, investment decision-making and implementation risk. 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 the internal control evaluation according to the enterprise internal control standard system and Ningbo Fubang Jingye Group Co.Ltd(600768) internal control manual and other relevant documents. 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
If the potential misstatement of net profit before tax ≥ the total net profit before tax meets one of the following conditions, it can be misstated 20% of the total net profit before tax and greater than RMB 500, which is recognized as an important defect: financial 5%, or the potential misstatement amount of RMB 1 million is between
Of general defects and major defects
Room.
If the potential misstatement of total assets is ≥ 5% of total assets and meets one of the following conditions, it can be misstated 2% of total assets
Identified as an important defect: financial
The amount of potential misstatement in the report is between
Of general defects and major defects
between
If the potential misstatement of operating revenue is ≥ 2% of the total operating revenue and meets one of the following conditions, it can be misstated 1% of operating revenue
Identified as an important defect: financial
The amount of potential misstatement in the report is between
Of general defects and major defects
between
If the direct property loss is 10 million yuan or more and meets one of the following conditions, it can be recognized as an important defect: financial 5 million yuan
The amount of potential misstatement in the report is between
Of general defects and major defects
between
Note: not applicable
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
If there are major defects, including but not limited to the following problems, consider whether there are major defects in the internal control of financial reporting: 1 Fraud by directors, supervisors and senior managers; 2. The qualification or competence of key financial personnel is obviously insufficient. 3 The enterprise corrects the published or reported financial report; 4. 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; The supervision of the enterprise audit committee and internal audit institutions on internal control is invalid.
Important defects internal control defects involving the following fields shall be recognized as "important defects" at least: 1 Anti fraud procedures and controls; 2. Internal control over unconventional or unsystematic transactions; 3. Selection and application of accounting policies against GAAP
Department control; 4. Internal control over the financial reporting process at the end of the period.
General defects general defects refer to other control defects other than the above major defects and important defects.
Note: not applicable 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 RMB 10 million and above RMB 5 million (including less than RMB 5 million)
Amount (RMB 10000) - RMB 10 million
Major negative impact major media negative news appeared in the major media of the year, which was frequently appeared in government departments below the provincial level. Negative news. Punishment, but did not have a negative impact on the disclosure of the company's periodic reports.
Note: not applicable
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
If there are major defects, including but not limited to the following problems, consider whether there are major defects in non-financial reporting internal control: 1 Enterprises lack democratic decision-making procedures, such as "three important and one large" decision-making procedures; 2. The decision-making procedure of the enterprise is unscientific. For example, the decision-making error leads to the unsuccessful merger and acquisition and great losses; 3. Violation of national laws and regulations, such as environmental pollution, failure to report or disclose information according to regulations, etc; 4. Loss of managers or technicians; 5. Negative news from major media frequently appeared in a year and had a significant impact; 6. Major or important defects evaluated last year have not been rectified; 7. Lack of system control or systematic failure of important businesses such as procurement, inventory, sales, salary and fixed assets; 8. The main business management or operation personnel are obviously incompetent.
If there are important defects, including but not limited to the following problems, consider whether there are important defects in non-financial reporting internal control: 1 Middle management fraud; 2. Negative news appeared in the main media that year and had a certain impact; 3. The general defects evaluated last year have not been rectified or reasonably explained; 4. Some managers or operators are not competent enough.
If there are general defects, including but not limited to the following problems, consider whether there are general defects in non-financial reporting internal control: 1 General staff fraud; 2. The general defects evaluated last year have not been rectified; 3. Being punished by government departments below the provincial level (including the provincial level), but not having a negative impact on the disclosure of the company's periodic reports.
Note: not applicable 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
