About Jiangsu Chinagreen Biological Technology Co.Ltd(300970)
Self evaluation report on internal control in 2021
According to the basic norms of enterprise internal control, combined with the internal control system and evaluation methods of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) (hereinafter referred to as "the company"), the effectiveness of the company's internal control on December 31, 2021 (the benchmark date of internal control self-evaluation report) is evaluated on the basis of daily and special supervision of internal control.
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 manager is responsible for organizing and leading the daily operation of the enterprise's internal control. All personnel of the board of directors, the board of supervisors and the directors and supervisors 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 purpose of the company's internal control is to reasonably ensure the legal compliance of enterprise operation and management, asset safety, authenticity and integrity of financial reports and relevant information, improve operation efficiency and effect, and promote the strategic development of the enterprise. Internal control has inherent limitations, and there is the possibility that misstatement may occur and not be found due to error or fraud. In addition, due to changes in circumstances that may lead to inappropriate internal control or reduce the degree of 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, 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 is no significant change in internal control that has a substantial impact on the evaluation conclusion of internal control between the benchmark date of the internal control evaluation report and the date of issuance of the internal control evaluation report.
3、 Internal control evaluation
(I) evaluation scope of the company's internal control
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: Jiangsu Chinagreen Biological Technology Co.Ltd(300970) , Siyang Huamao Agricultural Development Co., Ltd., Siyang Huasheng Biotechnology Co., Ltd., Chongqing Jiangsu Chinagreen Biological Technology Co.Ltd(300970) Co., Ltd., Jiangsu Huajun Biotechnology Co., Ltd., Jiangsu Huamu Agricultural Development Co., Ltd., Suqian huazhizhen Shenzhen Agricultural Products Group Co.Ltd(000061) Co., Ltd., Chongqing Nanchuan Jiangsu Chinagreen Biological Technology Co.Ltd(300970) Technology Co., Ltd., chongqinghua lvbeicao Biotechnology Co., Ltd Hebei hualvzhizhen Biotechnology Co., Ltd.
The main businesses and matters included in the evaluation scope include: business philosophy and corporate culture, corporate governance structure, organizational structure, institutional setting, accounting management system, independent inspection and control, human resources policies, administrative management ideas, risk assessment, control activities, fund management, asset management, procurement business, sales business, production and product quality management, engineering project management, information system, etc.
(II) overall situation of internal control system
1. Internal control environment
(1) Business philosophy and corporate culture
In the production, operation and management, the company always advocates the company's cultural concept of "respect to the top, kindness to the bottom, harmony to people and truth to things". By establishing a healthy and good corporate culture and business philosophy, the company has cultivated employees' positive values and sense of social responsibility, enhanced cohesion, practiced the modern management concept, guided the company to improve its governance level and established a good brand image.
(2) Corporate governance structure and organizational structure
According to the rules of procedure of the board of directors, the rules of procedure of the board of supervisors and the rules of procedure of the general meeting of shareholders, there are four special committees under the general meeting of shareholders, including the rules of procedure of the board of directors, the rules of procedure of the board of directors, the rules of procedure of the board of supervisors and the rules of procedure of the general meeting of shareholders The nomination committee and the remuneration and assessment committee have formulated the working rules of the audit committee of the board of directors, the working rules of the strategy committee of the board of directors, the working rules of the nomination committee of the board of directors and the working rules of the remuneration and assessment committee of the board of directors respectively. As the highest authority of the company, the general meeting of shareholders operates according to law, ensures that all shareholders exercise their rights equally and fully in accordance with the principle of equal shares and rights, and manages and supervises the company through the board of directors.
As the company's operation decision-making body, the board of directors is responsible for the general meeting of shareholders, implements various resolutions of the general meeting of shareholders, and is fully responsible for the company's operation and management activities. The special committees under the board of directors operate in strict accordance with the rules of procedure of the special committees, which improves the professional ability and comprehensive strength of the board of directors.
As the company's permanent supervision organization, the board of supervisors is responsible for the general meeting of shareholders, supervising and inspecting the behavior of directors, general managers and other senior managers and the financial status of subsidiaries, so as to promote the improvement and improvement of the company's internal control.
As the main body of the company's operation and management, the management is responsible for organizing and implementing the resolutions of the general meeting of shareholders and the board of directors, directing, coordinating, managing and supervising the daily operation and operation of various departments and subsidiaries.
(3) Institutional setting
According to the needs of operation and production, the company has set up technical management department, production base, administrative management department, human resources department, information management department, financial management department, procurement management department, marketing management department, quality management department and other departments after reasonably setting and dividing the posts, responsibilities and authorities. The division of labor between departments and posts is clear and interrelated, ensuring the division of labor, cooperation, mutual restriction and mutual supervision among institutions.
The company adopts a strategic management mode. The headquarters is responsible for the company's finance, asset operation and the overall strategic planning of the group. Each factory and functional department formulates its own business indicators and budgets, which are implemented after being reviewed and approved by the headquarters. The headquarters performs the functions of supervision, inspection and balancing the resource needs of each factory.
(4) Accounting management system
The company has established an accounting management system, set up a financial management department, equipped with full-time personnel, responsible for the company's fund management, financial accounting, risk management and data monitoring, established an independent accounting system and financial management system, and made independent financial decisions. The company opened an independent bank account and did not share the bank account with the shareholder unit or any other unit or individual.
(5) Independent audit control
The company has set up a special internal audit department to inspect and evaluate the internal control contents such as monetary capital, material procurement, construction in progress, project final accounts, property and materials, system and process, take risk as the guidance, control as the main line, governance as the goal and value-added as the purpose, strengthen the coverage of audit and supervision of the company, and ensure that everything is supervised and evaluated everywhere.
(6) Human resources policy
The company adheres to the strategy of "strengthening the enterprise with talents", according to the labor contract law and relevant laws and regulations, and in combination with the actual situation of the company, It has formulated a series of personnel management systems for employment, training, job rotation, assessment, reward and punishment, promotion and elimination, such as the management regulations on recruitment, job transfer and resignation, the management regulations on training of reserve cadres, the management regulations on attendance and leave, the management regulations on rewards and punishment, the management system of the company's regular meetings, the management regulations on employee relations and the management regulations on personnel files, Ensure the stable development of the company's human resources.
(7) Administrative management ideas
Based on the administrative management idea of "ensuring safety, promoting production and creating environment", the company has formulated a series of administrative management systems, such as security operation instructions, safety production management measures, employee dormitory management system, public area health management operation instructions and company greening operation instructions, which not only ensures the normal production and operation order of the enterprise on the basis of employee safety and production safety, It also creates a good working and living environment for employees.
2. Risk assessment
The company has established a good risk assessment system and risk control system. Through the establishment of internal control system, internal audit system and financial management system, the company standardizes various processes of the company's daily operation, improves the safety of various work and effectively reduces the internal risk of the company's operation.
3. Control activities
(1) Responsibility division control
When setting the organization and posts, the company comprehensively and systematically analyzed and combed the company's business processes, implemented corresponding separation measures for incompatible posts, and formed a working mechanism of performing their respective duties and mutual restriction. (2) Authorization approval control
The company operates in strict accordance with the corporate governance structure and defines the powers and authorization methods of the general meeting of shareholders, the board of directors and the management. The company has established standardized approval authority and approval process for the daily and major matters of the company's operation, and adopted the cascade approval system for major matters to effectively clarify the rights and responsibilities of each post.
(3) Accounting control system
The company strictly implements the accounting standards for business enterprises and has established Kingdee and OA systems. In accordance with the accounting standards for business enterprises, accounting law, tax law and other relevant laws and regulations, the company has established financial management system, financial computerized accounting system, financial accounting system, R & D investment accounting system, expense management system, travel expense reimbursement management measures, maintenance expense management system, etc., and improved the preparation, internal audit, audit, analysis and utilization of financial reports, Improve the data audit mechanism and strengthen fund management, which provides necessary data support for the decision-making level of the company to make decisions.
(4) Property protection control
The company has formulated management systems for fixed assets, accounts receivable and inventory, and defined the work flow and operation rules. In addition, the company will dispose of the scrapped assets according to the asset disposal procedures. All subsidiaries have formulated property management systems and procedures to actively strengthen the management of fixed assets, accounts receivable, inventory and other assets to ensure property safety.
(5) Budget control
The company implements comprehensive budget management, defines the responsibilities and authorities of each department in budget management, standardizes the procedures for budget preparation, approval, issuance and implementation, and strengthens budget constraints.
(6) Operation analysis control
By strengthening the collection, analysis and research of market and competitor information, the company modifies its own strategies and action plans according to the changing trend, actively avoids risks, reduces losses caused by risks and increases profits.
(7) Performance appraisal control
The company has formulated and fully implemented the performance appraisal management regulations. Objectively evaluate the responsible units and employees of subsidiaries, management areas and personnel according to the regulations on performance appraisal management, promote the responsible units and employees to establish clear goals, reflect the operation and management status and problems of the company according to the evaluation results, and provide basis for the company to formulate development strategies, develop strengths and avoid weaknesses, and determine employee salary and job promotion.
4. Implementation of major internal controls of the company
The company comprehensively applies the above control measures in the following main business activities to effectively control various businesses and matters and promote the effective operation of internal control.
(1) Fund management
The company has formulated the fund management system to clarify the fund management mode and fund flow process, improve the safety of fund management, strengthen the internal control and management of the company's funds, ensure the safety of funds and improve the use efficiency of funds.
(2) Asset management
The company has formulated systems such as fixed assets management system, raw and auxiliary materials management system, raw material warehouse operation process, packaging material warehouse operation process, hardware equipment, labor protection auxiliary materials warehouse operation process, finished product warehouse operation process and management regulations on disposal of scrapped articles to standardize the management of the company's assets. Strictly restrict the direct contact of unauthorized personnel with property, and take a series of measures such as property records, account verification and property insurance to ensure the safety and integrity of all kinds of property.
The company has established a post responsibility system for the management of physical assets to control the key links such as acceptance and warehousing, receiving and issuing, storage and disposal of physical assets, and has taken measures such as division of responsibilities, regular physical inventory, property records, account and actual verification, property insurance, which can effectively prevent the theft, damage and major loss of various physical assets.
(3) Procurement business
The company has formulated procurement management measures, supplier management procedures and other systems to ensure that the price of purchased goods is reasonable, the production plan matches the actual consumption, and standardize the procurement business of the company. The company has established a procurement mechanism for direct materials, and formulates the procurement plan according to the consumption quantity, storage quantity, the best batch, the best procurement time and the calculation results of safety stock determined in the production plan.
According to the content requirements of the procurement plan and the market situation, based on the market investigation and comparative analysis of "shopping around", the company signs the procurement contract with the supplier, handles the ordering matters, and establishes the procurement system including pre inquiry and post price analysis.
The company has established a procurement acceptance mechanism. After the arrival of the procurement, it shall be sent to the warehouse acceptance personnel for acceptance in time. The name, specification, quantity and quality of each kind of goods shall be strictly checked, and the goods shall be warehoused on the basis of ensuring correct consistency.
The company strictly manages the purchase payment, formulates a clear purchase payment process, and handles the payment procedures after the purchase contract and relevant documents are reviewed by the corresponding approvers.
(4) Sales business
The company has formulated such systems as sales management system, sales price management system, sales order management system, dealer management system and management specification for the use of batch number of packaged finished products to comprehensively sort out the sales business process and improve the management system related to sales business, including market research, pricing, credit policy, sales contract, invoice, management of accounts receivable and after-sales service.
The company is equipped with sales personnel to collect the market demand and timely report it to the company headquarters in combination with the business negotiation with dealers. The company analyzes the report and formulates reasonable and market-oriented price information, so as to form a good price mechanism with fast market response and accurate price positioning.
The company delivers goods according to the approved sales order to ensure the safe delivery of goods.
The company strengthens the management of accounts receivable, and achieves pre control, in-process prevention and post supervision for the management of accounts receivable. Establish the relevant systems of accounts receivable management, clarify the trustworthiness, collection, reward and punishment and reconciliation, and effectively ensure the recovery of accounts receivable.
