Company code: Sumec Corporation Limited(600710) company abbreviation: Sumec Corporation Limited(600710) su Guangdong Xinhui Meida Nylon Co.Ltd(000782) Co., Ltd
Internal control evaluation report in 2021
All shareholders of su Guangdong Xinhui Meida Nylon Co.Ltd(000782) Co., Ltd.:
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 standard system"), combined with the internal control system and evaluation methods of su Guangdong Xinhui Meida Nylon Co.Ltd(000782) Co., Ltd. (hereinafter referred to as the "company"), 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 the 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
The board of directors considered that the company's internal control system was not effective in accordance with the provisions of the company's internal financial reporting standards, and that there were significant defects in the company's internal control system on the date of internal financial reporting. 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 benchmark date of internal control evaluation report to the date of issuance of internal control evaluation report □ applicable √ not applicable
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 assessment include: Jiangsu's Sumec Corporation Limited(600710) Sumec Corporation Limited(600710) lighttextile International Trade Co., Ltd., Jiangsu Sumec Corporation Limited(600710) Household Textile Co., Ltd Jiangsu Sumec Corporation Limited(600710) Eaton Kidd Management Consulting Co., Ltd., Jiangsu Sumec Corporation Limited(600710) Energy Holding Co., Ltd. and other 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
3. The main operations and matters included in the scope of evaluation include:
Organizational structure, development strategy, human resources, social responsibility, corporate culture, capital activities, financial reports, asset management, China trade, international trade, engineering projects, related party transactions, guarantee business, contract management, internal information transmission and other business matters. 4. High risk areas of focus mainly include:
Capital activities, financial reports, engineering projects, related party transactions, guarantee business, overseas financial 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 (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 the internal control evaluation management measures. 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 has studied and determined the specific identification standards of internal control defects applicable to the company according to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, combined with the factors such as the company's size, industry characteristics, risk preference and risk tolerance, and distinguished the internal control of financial reports from the internal control of non-financial reports, Compared with the previous years, the adjustment is as follows: the quantitative standard of internal control defect evaluation is adjusted to fixed amount and total profit as the reference basis at the same time.
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 5% misstatement amount
The amount of internal control defects that can be misstated ≥ 5% of the total profit ≥ 3% of the total profit, and the amount of misstatement 3% of the total profit, which can lead to financial reports or misstatements ≥ 250 million yuan or 250 million yuan the amount of misstatement ≥ or the amount of misstatement 50 million yuan, and the importance of misstatement (whichever is less) 50 million yuan (whichever is less)
(whichever is smaller)
Description: None
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
1. Directors, supervisors and senior managers have major fraud, which seriously affects the accuracy of financial reports;
2. The company's audit and risk control committee and internal control management department have no effect on the internal control supervision of financial reports;
Major defects 3 Major disclosure of financial report before formal disclosure;
4. The external audit found that there was a material misstatement in the current financial report, but the internal control failed to find the misstatement in the operation process.
1. Internal constraints are imposed on the fraud of directors, supervisors and senior managers, but the internal control measures are incomplete, or the internal control system can be found in time but can not be stopped in time;
2. Some information is leaked before the formal disclosure of the financial report;
3. When the audit and risk control committee and the internal control management department of the company find that there are misstatements in the financial report, but they fail to correct and important defects;
4. Failure to select and apply accounting policies in accordance with generally accepted accounting standards;
5. 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;
6. There are one or more defects in the control of the financial reporting process at the end of the period, and it can not reasonably ensure that the prepared financial statements achieve the goal of authenticity and accuracy.
General defects and other internal control defects that do not constitute major defects or important defects
Note: none 3 Standard for identifying defects in internal control over 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
Total profit 5% loss amount loss amount total profit 3%, internal control defect loss amount ≥ 5% of total profit ≥ 3% of total profit or loss amount 50 million yuan can lead to property loss or loss amount ≥ 250 million yuan or 250 million yuan loss amount ≥ 50 million yuan (whichever is smaller)
The smaller value is 50 million yuan
(whichever is smaller)
Description: None
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
1. Major punishment for violation of national laws, regulations or normative documents;
Major defects 2 The company has no clear strategic objectives and strategic management system;
3. Lack of democratic decision-making procedures or exist in name only, such as the lack of "three important and one large" decision-making procedures;
4. Lack of institutional control or systematic failure of many important businesses;
5. Major defects in internal control evaluation have not been rectified;
6. The company's image is negatively affected by overseas trade control or international trade organization;
7. Serious loss of middle and senior managers and senior technicians;
8. Negative news frequently appears in the media, covering a wide range.
1. Being punished by the regulatory authority for minor violations;
2. The company's strategic objectives and strategic plans are not clear;
3. Although democratic decision-making has been made, there are violations of the resolution in the implementation;
Important defects 4 The system control of some important businesses is not perfect or the system design is unreasonable;
5. The company frequently has large litigation cases;
6. Serious loss of business personnel in key positions;
7. Negative news in the media has spread to some regions;
8. Major defects in internal control have not been rectified.
General defects and other internal control defects that do not constitute major defects or important defects
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 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 evaluation, the company found that there were general defects in the internal control of individual financial reports, but the risks that may be caused by such defects were within the controllable range, which did not have a material impact on the company's financial reports, and the company had implemented rectification or taken corresponding rectification measures, which did not affect the evaluation conclusion of the effectiveness of the company's internal control. 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
2.3. General defect
During the evaluation, the company found that there were some general defects in the internal control of non-financial reporting, but the risks that may be caused by such defects are within the scope of possibility
