Zhejiang Yinlun Machinery Co.Ltd(002126) audit report and financial statements for the year 2021
Zhejiang Yinlun Machinery Co.Ltd(002126)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Table of contents page
1、 Audit report 1-x II. Financial statements
Consolidated balance sheet and parent company balance sheet 1-4 consolidated income statement and parent company income statement 5-6 consolidated cash flow statement and parent company cash flow statement 7-8 consolidated statement of changes in owner's equity and parent company statement of changes in owner's equity 9-12 notes to financial statements 1-xx
audit report
Xin Hui Shi Bao Zi [2022] No. zf10303 Zhejiang Yinlun Machinery Co.Ltd(002126) all shareholders:
1、 Audit opinion
We have audited the financial statements of Zhejiang Yinlun Machinery Co.Ltd(002126) (hereinafter referred to as Zhejiang Yinlun Machinery Co.Ltd(002126) ), including the consolidated and parent company's balance sheet as of December 31, 2021, the consolidated and parent company's income statement, consolidated and parent company's cash flow statement, consolidated and parent company's statement of changes in owner's equity and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements are prepared in accordance with the accounting standards for business enterprises in all material aspects, and fairly reflect the financial position of Zhejiang Yinlun Machinery Co.Ltd(002126) the consolidated and parent company as of December 31, 2021, and the consolidated and parent company's operating results and cash flow in 2021.
2、 Basis for forming audit opinions
We conducted our audit in accordance with the auditing standards for Chinese certified public accountants. The "responsibilities of certified public accountants for the audit of financial statements" in the audit report further expounds our responsibilities under these standards. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of Zhejiang Yinlun Machinery Co.Ltd(002126) , and have fulfilled other responsibilities in terms of professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate, which provides a basis for our audit opinion.
3、 Key audit matters
The key audit matters are the most important matters that we consider to audit the current financial statements according to our professional judgment. The response to these matters is based on the overall audit of the financial statements and the formation of audit opinions. We will not express separate opinions on these matters.
The key audit matters identified in our audit are summarized as follows:
Key audit matters how to deal with them in the audit
(I) revenue recognition
For details of accounting policies for revenue recognition and analysis of revenue, please refer to our main audit procedures for revenue recognition, including:
And notes to the financial statements "III. important accounting policies and accounting estimates" (1) test and evaluate the key internal control related to revenue recognition
The accounting policies described in note (XXV) and "v. the effectiveness of the design and operation of consolidated finance";
Notes to "notes to statement items" (45). (2) Select samples to check the sales contracts, identify that the sales revenue of commodity ownership Zhejiang Yinlun Machinery Co.Ltd(002126) mainly comes from the contract terms and conditions related to the transfer of control to automobile manufacturers, and evaluate whether the sales of automobile parts and other products meet the requirements of accounting standards for business enterprises at the time of recognition of sales revenue in 2021;
RMB 781641593090. (3) Analyze the income and gross profit in combination with the product type. Since the income is one of the key performance indicators of Zhejiang Yinlun Machinery Co.Ltd(002126) and judge whether there are abnormal fluctuations in the income and gross profit margin in the current period, the management manipulates the income accuracy in order to achieve specific goals or expectations; The audit records of the year will be selected as the key points for the recognition of the risks inherent in the invoice. Sales contracts, delivery orders and invoicing notices, etc., and evaluate whether the relevant revenue recognition complies with the accounting policies of the company for revenue recognition; The export revenue has obtained the certificate of Customs statistical amount, and checked the invoice, sales contract, delivery form, customs declaration form, bill of lading, etc;
(5) Select a sample of revenue transactions recorded before and after the balance sheet date, and check the invoice notice and other supporting documents to evaluate whether the revenue is recorded in the appropriate accounting period;
(6) Implement the letter confirmation procedure: confirm the annual sales amount and the amount not yet collected at the end of the year by letter to the customer.
(II) goodwill impairment test for details and analysis of accounting policies for goodwill impairment, please refer to consolidated financial statements. The main audit procedures for the notes to "III. important accounting policies and accounting estimates" of the statement for key audit matters related to goodwill impairment test are as follows: (XIX) the accounting policies and "v. consolidated financial statements (1) obtain and understand Zhejiang Yinlun Machinery Co.Ltd(002126) management's impairment assessment and notes to evaluation items" Notes (XIX).
As of December 31, 2021, Zhejiang Yinlun Machinery Co.Ltd(002126) the rationality of the key assumptions in the original book forecast of Zhejiang Yinlun Machinery Co.Ltd(002126) goodwill, by comparing the revenue growth rate and value of 23343208772 yuan, the corresponding key input values such as the sustainable growth rate of impairment provision and cost rise with the past business
The balance is 6757609268 yuan. Compare the performance, management budget and forecast and Industry Report, and review the management's annual assessment of the possible impairment of goodwill. The key assumptions and estimates used in the preparation of discounted cash flow forecast are the judgment of estimating Goodwill Based on the prepared discounted cash flow forecast; Use value. The preparation of discounted cash flow forecast involves the use of significant judgments (2) based on the market data of comparable companies in the same industry and the calculation and estimation of the management, especially the determination of income growth rate, sustainable growth rate, the discount rate used in calculating the present value of estimated future cash flow, the increase of cost compared with the discount rate, and the determination of the applied risk adjusted discount rate, There is inherent uncertainty and may be affected by the preference of the management when calculating the present value of the estimated future cash flow. The rationality of the discount rate; As the impairment prediction and discounted future cash flow of goodwill involve solid (3) there is uncertainty about the management used in the goodwill impairment test of the previous year, and the management may conduct a retrospective test when selecting assumptions and estimates to verify the actual risk of preference in 2021, we will evaluate the impairment of goodwill as whether there is a significant deviation between the bank round and the predicted data, And this deviation is the key audit matter of the shares. No means that the management's prediction method needs to be further revised;
(4) Consult valuation experts to review the conformity of value types and valuation methods
Rationality, discount rate and other evaluation parameters.
(III) inventory falling price reserves. For the accounting policies related to the provision of inventory falling price reserves, see note III. our implementation of key audit matters related to inventory falling price reserves (XI); For details of the provision for inventory falling price reserves, see note v. the main audit procedures are as follows:
(Ⅷ)。 (1) Test and evaluate the management's relationship with the provision for inventory falling price reserves
As of December 31, 2021, Zhejiang Yinlun Machinery Co.Ltd(002126) inventory book balance key internal control design and operation effectiveness;
The amount is 154756374500 yuan, and the inventory falling price reserve is 6621187475. (2) obtain the calculation table of the company's inventory falling price reserve, and the inventory is variable yuan. Inventories of the company are measured at the lower of cost and net realizable value. The net cash value and the amount of inventory impairment provision shall be reviewed and managed
The estimated selling price, selling expenses, etc. when the net realizable value is determined by subtracting the estimated selling price of the inventory from the estimated layer
Check the actual amount to evaluate the management's determination of inventory
The amount of sales expenses and relevant taxes shall be determined to determine its variable net cash
Whether the judgment made at the time of net realizable value is reasonable;
Value; For the material inventory that needs to be processed, during normal production and operation, (3) check the quantity and status of the inventory in combination with the inventory supervision procedure. In the process, subtract the estimated selling price of the finished products to the completion, and focus on the inspection of the long-lived inventory. For the inventory with impairment signs, estimate the cost to be incurred, estimated sales expenses and relevant taxes, analyze the adequacy of the provision for depreciation reserves; The net realizable value is determined based on the amount of the. When determining the realizability of inventories (4) checking the net value of inventory falling price reserves accrued in previous years in the current period, the management is involved in using major accounting estimates and judgments, and analyzing the rationality of changes in inventory falling price reserves. The provision for inventory falling price reserves is important to the consolidated financial statements, so we identify the provision for inventory falling price reserves as a key audit event.
4、 Other information
Zhejiang Yinlun Machinery Co.Ltd(002126) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in the annual report of Zhejiang Yinlun Machinery Co.Ltd(002126) 2021, but does not include the financial statements and our audit report.
Our audit opinion on the financial statements does not cover other information, and we will not issue any form of assurance conclusion on other information.
It seems that we are responsible for reading the financial statements in combination with other information, or whether there is a material error in the process of our audit.
Based on the work we have performed, if we determine that there is a material misstatement in other information, we should report that fact. In this regard, we have nothing to report.
5、 Responsibilities of management and governance for financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of the accounting standards for business enterprises to achieve a fair reflection, and designing, implementing and maintaining necessary internal control so that the financial statements are free from material misstatement caused by fraud or error.
When preparing the financial statements, the management is responsible for evaluating the going concern ability of Zhejiang Yinlun Machinery Co.Ltd(002126) the company, disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless it plans to liquidate, terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Zhejiang Yinlun Machinery Co.Ltd(002126) .
6、 Responsibilities of certified public accountants for the audit of financial statements
Our goal is to obtain reasonable assurance on whether the financial statements as a whole are free from material misstatement due to fraud or error, and issue an audit report containing audit opinions. Reasonable assurance is a high-level assurance, but it does not guarantee that the audit performed in accordance with the audit standards will always be found when a major misstatement exists. Misstatement may be caused by fraud or error. If it is reasonably expected that the misstatement alone or in summary may affect the economic decisions made by the users of the financial statements based on the financial statements, the misstatement is generally considered to be significant.
In the process of carrying out the audit work in accordance with the audit standards, we use professional judgment and maintain professional doubt. At the same time, we also carry out the following work:
(I) identify and assess the risks of material misstatement of financial statements due to fraud or error, design and implement audit procedures to deal with these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions. Since fraud may involve collusion, forgery, intentional omission, misrepresentation or override of internal control, the risk of failing to find major misstatement caused by fraud is higher than that caused by error.
(II) understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to the effectiveness of internal control
