Internal control evaluation report in 2021
Ife Elevators Co.Ltd(002774) all shareholders:
In order to further strengthen and standardize the company's internal control, improve the company's management level and risk prevention ability, promote the company's standardized operation and healthy and sustainable development, protect the legitimate rights and interests of investors and ensure the safety of the company's assets, according to the requirements of laws and regulations such as the basic norms of enterprise internal control, the guidelines for the evaluation of enterprise internal control and the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange, In combination with the internal control system and evaluation methods of Ife Elevators Co.Ltd(002774) (hereinafter referred to as " Ife Elevators Co.Ltd(002774) " or "the company"), and on the basis of daily and special supervision of internal control, we conducted a self-evaluation on the effectiveness of the company's internal control as of December 31, 2021 (the benchmark date of internal control evaluation report).
1、 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.
2、 Internal control evaluation conclusion
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.
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.
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.
3、 Internal control evaluation
(I) evaluation organization mode
The board of directors of the company authorizes the audit committee to be responsible for the organization and implementation of internal control evaluation. The audit department takes the lead in organizing functional departments to establish investigation and evaluation teams to carry out investigation and evaluation according to the centralized business and conduct internal control evaluation.
(II) evaluation procedures and methods
The internal control evaluation shall be carried out in strict accordance with the procedures specified in the basic norms and evaluation guidelines. The main procedures include: formulating the evaluation work plan, forming the evaluation working group, implementing on-site testing, identifying control defects, summarizing the evaluation results, preparing the evaluation report and so on.
In the evaluation process, the methods of individual interview, investigation, review, walk through test, field inspection and sampling are adopted to widely collect the evidence of whether the company's internal control design and operation are effective, and analyze and identify the defects of internal control.
(III) evaluation basis
The company organizes and carries out internal control evaluation according to the requirements of relevant laws, regulations, rules and regulations such as the enterprise internal control standard system, the stock listing rules of Shenzhen Stock Exchange, the basic norms of enterprise internal control and its supporting guidelines. (IV) scope of evaluation unit
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. The main units included in the evaluation scope include the parent company and all holding subsidiaries.
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, and the total operating revenue accounts for 100% of the total operating revenue in the company's consolidated financial statements.
(V) the main businesses and matters included in the scope of evaluation include
1. Corporate governance
In strict accordance with the requirements of relevant laws and regulations such as the company law, the guidelines for the governance of listed companies and the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange, the company has established and improved the organizational structure according to its own characteristics and the needs of future development, continuously improved the corporate governance structure, improved the internal control system, clarified the responsibilities and authorities in decision-making, implementation and supervision, and formed a complete set of complete, compliant The effective system ensures the legal compliance and effective operation of the general meeting of shareholders, the board of directors, the board of supervisors and other institutions, provides a good internal environment for the formulation and operation of the company's internal control system, effectively prevents and resolves various risks in the operation process, and ensures the orderly progress of the company's production and operation activities.
2. Internal system construction
In accordance with the company law, the guidelines for the governance of listed companies and other relevant provisions, in combination with its own business development needs, and in view of the professional characteristics and business development needs of each functional department, the company timely formulated and revised the management system of relevant departments, clarified the division of responsibilities of each department and post, and strive to form a working organization with clear responsibilities, mutual restriction and effective operation, so as to ensure the board of directors Strictly implement the resolutions and decisions of the management.
3. Development strategy
According to the articles of association, the board of directors of the company has a strategy committee, which is responsible for studying and making suggestions on the company's development strategy and major investment decisions. Submit the proposed research report on the company's development strategy and the proposal report on major investment to the board of directors. Review the company's medium-term and long-term development plan (Draft), development strategy and major investment projects. Discuss and review the development plan, development strategy and major investment projects adopted at the company's office meeting, form resolutions and submit them to the board of directors; Guide the management to make strategic planning and set strategic objectives.
4. Internal audit
According to the working rules of the audit committee of the board of directors, the internal audit system and other relevant systems, an audit department is set up under the audit committee of the board of directors, equipped with full-time auditors to conduct internal audit on the operation of the internal control, the storage and use of raised funds and the financial status of the company and its holding subsidiaries through the combination of continuous supervision and inspection and special supervision and inspection, Timely find the problems existing in business activities, put forward rectification suggestions, implement rectification measures, and effectively prevent business risks and financial risks.
5. Human resources
In strict accordance with the requirements of the labor law and relevant laws and regulations, the company has established a relatively complete management system in the allocation of human resources, recruitment, salary and welfare, training, performance appraisal, promotion, career planning and other aspects. According to the annual development plan and annual production and operation plan, the company formulates a reasonable employment plan and employee training plan to continuously improve the professional competence of employees and strengthen their professional ethics.
Through the implementation of corporate culture and diversified and sustainable long-term incentive system, it has stimulated the work enthusiasm of employees, effectively strengthened the cohesion of core employees, ensured the realization of the company's business objectives and employees' personal development, and laid the foundation for the sustainable development of the company.
6. Corporate culture
The company has been focusing on establishing a corporate culture system that can adapt to the company's development strategic planning and support the realization of the strategy. Corporate culture needs cohesion, guidance and standardization. Corporate culture is an important basis for enterprises to establish and improve internal control. After years of development and precipitation, the company has built a set of corporate culture system in line with its own development. The company insists on the concept of "customer-oriented, customer-oriented, service-oriented, customer-oriented, customer-oriented, service-oriented, customer-oriented, customer-oriented, and service-oriented, and always adheres to the concept of" quality, customer-oriented, service-oriented, and service-oriented ", and always pursues the" customer-oriented, intelligent, and customer-oriented "business philosophy, To realize the company vision of "being a globally trusted elevator brand".
The company integrates the internal control culture into the whole process of corporate culture construction. The company's senior managers play an exemplary role in inheriting and carrying forward the internal control culture, and the middle managers play a backbone role in inheriting and carrying forward the internal control culture. By establishing and disseminating the correct internal control management concept, enhance the awareness of law-abiding and integrity, transform the awareness of internal control into the common understanding and conscious action of employees, improve the awareness of risk and internal control of all employees, and enhance the sense of mission and responsibility of employees, so as to form a huge driving force to promote the development of enterprises.
7. Social responsibility
In the process of operation and development, the company has always attached importance to and actively fulfilled its social responsibilities and obligations to promote comprehensive, coordinated and sustainable development with society and environment. The company mainly promotes and standardizes the company's social responsibility from the aspects of safe production, product quality, environmental protection, resource conservation, employment promotion and employee protection; The company earnestly implements the national macroeconomic policies and consciously maintains the market economic order; Through joint investment with the controlling shareholder Dongguan Kuaiyi Equity Investment Co., Ltd., the company initiated the establishment of "Dongguan Kuaiyi public welfare foundation", actively participated in social public welfare undertakings and contributed to the construction of a harmonious society.
8. Information system and information communication
In order to promote the effective implementation of internal control, improve the modern management level of the enterprise and reduce human manipulation factors, the company has established an effective information and communication mechanism. The company has set up an information management department, equipped with professionals for information system management, and established Oracle system and OA collaborative office system. Each system operates normally and the process is standardized. At the same time, the company strictly controls external personnel to log in to the company's internal website by combining employees, computers and IP. The use rights of the company's Oracle system and OA are also divided and set in strict accordance with the responsibilities of each user, so as to eliminate the system information risk caused by the confusion of use rights. The company uniformly installs anti-virus software and firewall to ensure that the information system is not attacked by foreign viruses. The company has formulated various internal management systems such as information security management system and information system data standard management measures, reasonably determined the division of responsibilities of the company's information system, ensured the safe operation of key information equipment such as servers, and provided an effective guarantee for the information input and output of financial system and non-financial system.
The company uses MES platform to control the whole production process, making the information more transparent, and then improving the company's production efficiency; Using the elevator Internet of things system, through the use of big data technology, make appropriate and timely maintenance measures for the early-warning parts in advance, so that the potential safety hazards can be eliminated before the accident and ensure the long-term and stable operation of the elevator.
9. Purchase and payment business
In order to standardize procurement, expense reimbursement and payment activities, the company has formulated supplier management procedures, procurement material management procedures, procurement management measures, purchase order approval process, outsourcing processing management methods, budget management measures, financial expenditure management measures, financial management system and other relevant management systems, and reasonably set up institutions and posts for procurement and payment business, Established and improved the control procedures of procurement and payment, defined the responsibilities and approval authority for purchase requisition, approval, procurement, acceptance, payment and other links, achieved quality and price comparison procurement, transparent procurement decision-making, and established a price supervision mechanism to plug the loopholes in the procurement link as much as possible. The payment of accounts payable and prepayments by the company can only be made after the relevant procedures are completed. In terms of payment, try to make payment on a monthly basis as planned. In terms of payment method control, in addition to purchasing goods from individuals who cannot transfer and paying cash if the transfer amount is less than the starting point, the payment for goods is generally settled by bank transfer or bank acceptance bill. The finance department regularly checks the data with the procurement department to ensure the accuracy of accounts payable data.
10. Collection business and sales
In order to promote the stable growth of the company's sales, expand market share, standardize sales behavior and prevent sales risks, the company has formulated relevant management systems such as the marketing incentive policy of the operation center, the marketing policy of partners, the annual assessment index and salary reward system for the heads of branches, the management regulations on accounts receivable of the marketing center, and the agent management system. The relevant contents such as sales policy, pricing principle, credit standard and credit conditions, collection method and the responsibilities and authorities of sales personnel are clearly stipulated to ensure the authenticity and legitimacy of sales and collection. The company has standardized a series of work from accepting customer orders to arranging and organizing production, delivery, confirming revenue and managing accounts receivable. The company takes the recovery of sales payment as one of the important assessment indicators to ensure the normal development of the company's sales business and the timely and safe recovery of payment.
11. Fixed assets management
The company has formulated the financial management system, standardized the management of fixed assets, and made clear provisions on the purchase, acceptance, use, maintenance, scrapping and other related processes of fixed assets. The purchase of fixed assets shall be applied for by the demand department and approved level by level. For the purchase of fixed assets with different amounts, the corresponding approvers are authorized respectively, and the final supplier is determined according to the inquiry or bidding results. In accordance with the principle of centralized management, the principle of division of responsibilities among the user department, financial department and administrative department shall be implemented. The user department and administrative department shall be directly responsible for the management of physical objects, and the financial department shall be responsible for accounting, supervision, assessment and inspection. According to the principle of post separation, the physical management of fixed assets is separated from the bookkeeping post. Fixed assets are pasted with fixed asset labels. According to the system, strengthen the physical management of fixed assets, and conduct inventory at least once a year to ensure the consistency of accounts, cards and materials, so as to ensure the safety and integrity of assets and the consistency of accounts and facts. Through the above control procedures, the ultra vires approval, over budget procurement and physical management of fixed assets procurement have been eliminated, and the responsibility has been assigned to people and centralized management has been achieved, so as to effectively prevent asset damage and major loss and ensure the safety of the company's property.
12. Financial Report
The company has formulated financial management system, accountability system for major errors in annual report information disclosure, information disclosure management system and other systems. In order to standardize the company's accounting and information disclosure, improve the quality of accounting information, ensure the legal compliance, authenticity and integrity of financial reports, and protect the legitimate rights and interests of investors, creditors and other stakeholders, the company has reasonably set up departments and posts related to financial reports, Clarify the responsibilities and authorities, and clarify the control procedures and division of responsibilities for accounting, report preparation, review and approval. Since its listing, the company has continuously improved the quality and effect of financial analysis, combed, summarized and analyzed the financial reports of previous years, and continuously improved the level of financial management.
13. Related party transactions
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