Company code: China Hainan Rubber Industry Group Co.Ltd(601118) company abbreviation: China Hainan Rubber Industry Group Co.Ltd(601118)
China Hainan Rubber Industry Group Co.Ltd(601118)
Internal control evaluation report in 2021
China Hainan Rubber Industry Group Co.Ltd(601118) 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: China Hainan Rubber Industry Group Co.Ltd(601118) parent company and subsidiaries whose assets and operating income account for a large proportion of the company, including R1 International PTE. Ltd., Yunnan Haijiao Rubber Industry Co., Ltd., Shanghai Longxiang International Trade Co., Ltd., Dongxiang investment holding (Shanghai) Co., Ltd., Hainan Nongken Modern Logistics Group Co., Ltd., Hainan natural rubber industry group golden Rubber Co., Ltd Hainan Nongken Baoxiang Forest Products Group Co., Ltd., Hainan Ruixiang tropical Economic Investment Group Co., Ltd., Hainan Haixiang international health culture and Tourism Investment Co., Ltd., Hainan China Rubber Technology Co., Ltd., China rubber resources (Hainan) Co., Ltd., Yunnan Feixiang Logistics Co., Ltd., Jiangsu adefu latex products Co., Ltd., Hainan dongkun Equity Investment Fund Management Co., Ltd Hainan Haiken Wangfujing daily duty-free goods management Co., Ltd. 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 is 99.16
The total operating income of the units included in the evaluation scope accounted for 98.28% of the total operating income in the company's consolidated financial statements
3. The main business scope of evaluation includes:
Corporate governance, organizational structure, development strategy, human resources, capital activities, investment management, engineering projects, financial derivatives, procurement business, sales business, asset management, financial reporting, budget management, legal affairs, contract management, internal supervision, environmental safety, key businesses and matters related to the main business of each subsidiary company, etc. 4. High risk areas of focus mainly include:
Corporate governance, external equity investment, asset investment, external guarantee, related party transactions, procurement and sales management, futures hedging, 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 in accordance with the enterprise's internal control standard system, the company's internal control evaluation system, the 2021 internal control self-evaluation work plan and other relevant regulations. 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
Potential misstatement of balance sheet potential misstatement of balance sheet ≥ 0.5% of total assets ≤ potential misstatement of negative balance sheet 1% of total assets
1% of
Potential misstatement of income statement potential misstatement of income statement ≥ 0.5% of total operating income ≤ potential misstatement of income statement 1% of total operating income potential misstatement of income statement 0.5% of total operating income
1% of total
Note: all indicators are based on the audited financial statement data of the previous year.
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 Preparation of financial statements: the preparation of financial reports violates accounting laws and regulations and national unified accounting standards, causing the company to bear major legal responsibilities and seriously damage its reputation;
2. Disclosure of financial reports: providing false financial reports, interfering with market order, and there are major misstatements in the current financial reports found by certified public accountants but not identified by the company's internal control;
3. Risk out of control: failure to make effective use of financial reports and failure to find major problems in operation and management in time, resulting in major financial and operational risks out of control.
Important defects 1 The company's reputation is seriously damaged by the preparation of national accounting standards and financial regulations, so that the company will bear important responsibilities for the preparation of financial statements in violation of national laws and regulations;
2. Disclosure of financial report: the company fails to find important financial misstatements in time, and there are important misstatements in the current financial report found by certified public accountants but not identified by the company's internal control;
3. Risk out of control: failure to make effective use of financial reports and failure to find important problems in operation and management in time, resulting in important financial and operational risks out of control.
General defects are other control defects other than the above major defects and important defects.
Description: None
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 loss caused by defects ≥ 1% of total assets and 0.5% of total assets, operating income loss 0.5% of total assets and 1% of total operating income of property loss, whichever is lower, 0.5% of total income ≤ 0.5% of total operating income, whichever is lower, loss 1% of total assets and 1% of total operating income
1% of total operating income, whichever is lower
Note: all indicators are based on the audited financial statement data of the previous year.
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 Compliance operation: serious violation of national laws and regulations, resulting in serious damage to the company's reputation;
2. System design and Implementation: the lack of key internal control of important business or systematic failure of internal control seriously affects the realization of internal control objectives;
3. Rectification of internal control defects: major defects found in internal control evaluation have not been rectified within a reasonable time limit;
4. Strategic risk: the company lacks a clear development strategy or the development direction of key business seriously deviates from the company's strategy, which seriously affects the company's resource allocation and the realization of strategic objectives.
Important defects 1 Compliant operation: it obviously violates national laws and regulations, resulting in a great impact on the company's reputation;
2. System design and Implementation: there are important design or implementation defects in key internal control links of important businesses, which have an important impact on the realization of internal control objectives;
3. Rectification of internal control defects: the important defects found in the internal control evaluation have not been rectified within a reasonable time limit;
4. Strategic risk: the development direction of key business obviously deviates from the company's strategy, which has an important negative impact on the achievement of the company's phased strategic objectives.
General defects 1 Compliant operation: it violates national laws and regulations and has no or minor impact on the company's reputation;
2. System design and Implementation: there are slight design or implementation defects in the internal control management system or system, which has a slight impact on the internal control objectives;
3. Internal control defects: the general defects found in the internal control evaluation have not been rectified within a reasonable time limit;
4. Strategic risk: the development direction of key business slightly deviates from the company's strategy, which does not affect the achievement of the company's strategic objectives or has a slight impact.
Note: 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 any significant defects in internal control over financial reporting during the reporting period □ yes √ no
1.3. General defect
Through self-evaluation, the general defects of the company will not affect the realization of control objectives. The company has required relevant units to rectify and implement the general defects of internal control found. 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, whether the company has 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
Company during the reporting period
