Company code: Zhejiang Supcon Technology Co.Ltd(688777) company abbreviation: Zhejiang Supcon Technology Co.Ltd(688777)
Zhejiang Supcon Technology Co.Ltd(688777)
Internal control evaluation report in 2021
Zhejiang Supcon Technology Co.Ltd(688777) 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
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 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 scope of evaluation include: the company and its subsidiaries included in the scope of consolidated statements 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:
Corporate governance, management structure, development strategy, human resources, administration, information communication, corporate culture, risk management, internal supervision, budget management, fund management, financial reporting, accounting, asset management, related party transactions, financial management, procurement management, sales management, engineering management, production and operation management, quality management, safety and environmental protection, investment and M & A, guarantee business, legal affairs, research and development Information system, etc. 4. High risk areas of focus mainly include:
Sales management, procurement management, production and operation management, R & D and development management, fund management, investment management, etc 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 according to the enterprise internal control standard system and other internal control supervision requirements. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
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
The amount of misrepresentation of operating revenue ≥ 1% of operating revenue the amount of misrepresentation ≥ the amount of misrepresentation of operating revenue 0.5% of 1% of operating revenue
Total assets misstatement amount ≥ 1% of total assets misstatement amount ≥ total assets misstatement amount 0.5% of 1% of total assets
explain:
The loss that may be caused by the defect in the internal control of the income statement; The losses that may be caused or caused by internal control defects are related to the balance sheet, which shall be measured by the total assets index.
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, alone or together with other defects, lead to the failure to prevent or detect and correct major misstatement in the financial report in time, including but not limited to: 1. Ineffective control environment; 2. Fraud of directors, supervisors and senior managers of the company; 3. The company substantially corrects the published financial report; 4. Material misstatement in the current financial report found by the certified public accountant but not identified by the company's internal control; 5. The supervision of the audit committee and the internal audit department on the internal control of the company's financial report is invalid.
Important defects, alone or in combination with other defects, cause failure to timely prevent, detect and correct misstatements in the financial report that do not constitute major misstatements but need the attention of the management, including but not limited to: 1. Failure to select and apply accounting policies in accordance with generally accepted accounting standards; 2. Failure to establish anti fraud procedures and control measures; 3. 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; 4. 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 true and complete goal.
General defects other control defects besides the above major defects and 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
Direct loss of business income ≥ 5.0% of direct loss of property 1.0% of direct loss of business income
Total assets direct property loss ≥ 1% of total assets direct property loss ≥ assets direct property loss 1% of total assets 0.5% of total assets 0.5%
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
If the possibility of major defects is high, it will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, or make it seriously deviate from the expected goal, which is a major defect, including but not limited to: 1. The company's decision-making process is unscientific and unreasonable, resulting in serious deviation from the strategic goal and major mistakes; 2. Violation of national laws and regulations; 3. Loss of management personnel or key technical personnel; 4. Frequent negative news in the media; 5. The results of internal control evaluation, especially major or important defects, have not been rectified; 6. Lack of institutional control or systematic failure of important business.
If the possibility of important defects is high, it will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, or make it significantly deviate from the expected goal.
General defect if the possibility of defect occurrence is small, it will reduce the work efficiency or effect, or increase the uncertainty of the effect, or make it deviate from the expected goal.
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
None 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
□ yes √ no
2.3. General defect
None 2.4 After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in non-financial reporting internal control that have not been rectified
□ yes √ no 2.5 After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any important defects in the internal control of non-financial reporting that have not been rectified
□ yes √ no IV Description of other major matters related to internal control 1 Rectification of internal control defects in the previous year □ applicable √ not applicable 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
In 2021, the company's internal control was implemented effectively, and no major defects or important defects were found in the financial report and non-financial report. The financial report was true and reliable, the assets were safe, and the business compliance was legal, reaching the goal of internal control.
In 2022, the company will further strengthen the awareness of internal control, continue to deepen the construction of internal control system, continue to standardize the implementation of the company's internal control system, strengthen the supervision and inspection of internal control, improve the management level of internal control and ensure the long-term and healthy development of the company Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Cui Shan Zhejiang Supcon Technology Co.Ltd(688777) April 9, 2022
