Cccg Real Estate Corporation Limited(000736)
Self evaluation report on internal control in 2021
Cccg Real Estate Corporation Limited(000736) directors:
In accordance with the provisions and requirements of the basic norms of enterprise internal control and its supporting guidelines, combined with the internal control system and evaluation methods of Cccg Real Estate Corporation Limited(000736) (hereinafter referred to as "the company"), on the basis of daily and special supervision of internal control, we have self evaluated the effectiveness of the company's internal control as of December 31, 2021.
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 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.
2、 Internal control evaluation conclusion
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.
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 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.
3、 Internal control evaluation
(I) evaluation scope of 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 scope of evaluation include Cccg Real Estate Corporation Limited(000736) headquarters and subordinate holding subsidiaries. The total assets of the units included in the evaluation scope account for 63.63% of the total assets in the company's financial statements, and the total operating revenue accounts for 84.28% of the total operating revenue in the company's financial statements.
The main businesses and matters included in the evaluation scope include: fund management, sales business, project development business, guarantee business, contract management, property management and comprehensive budget.
The high-risk areas of focus mainly include fund management, sales business, project development business, guarantee business, contract management and comprehensive budget.
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, and there are no major omissions.
（2） 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. 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. The identification standards of internal control defects determined by the company are as follows:
1. Identification criteria for defects in internal control over financial reporting
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
When identifying defects at the company level, quantitative judgment is made based on the company's pre tax profit. The importance level is 5% of the company's pre tax profit and the general level is 1%.
When identifying the defects of subsidiaries, the base of quantitative judgment is the total assets or sales revenue of subsidiaries, the importance level is 1.5% of the sales revenue or total assets of subsidiaries, and the general level is 0.3%.
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
① Any of the following circumstances can be regarded as the judgment standard of major defects:
Identify any degree of fraud in senior management. Any degree of fraud by senior management personnel related to financial reporting will cause major defects. Senior management personnel include relevant personnel specified in the articles of association, general managers of subsidiaries, deputy general managers in charge of finance or chief accountants, etc.
Make corrections to the published financial reports. After the company publishes the financial report (including annual report and semi annual report) within the specified period, if the company resubmits the financial report to correct the misstatement in the financial report, including correcting the misstatement in the financial report of the reporting year and correcting the misstatement in the previous reporting year in the financial report of the current year, such circumstances can be deemed to have major defects.
The certified public accountant found that there was a material misstatement in the current financial report (temporarily greater than 3% of the pre tax profit), but the internal control failed to find the misstatement in the operation process.
The supervision of the company's audit committee and risk control functional department on internal control is invalid. If the audit committee cannot perform effective supervision on the company's external financial report and internal control of financial report, or does not have the qualification and ability to supervise the accuracy of financial report, it can be confirmed that the supervision of the audit committee is invalid.
② Any of the following circumstances can be regarded as the judgment standard of important defects:
Major defects after communication are not corrected within a reasonable period; Invalid control environment; The company's internal audit function and risk assessment function are invalid; Ineffective control over the selection and application of accounting policies in accordance with generally accepted principles; Invalid anti fraud procedures and controls; Invalid for the closing financial reporting process.
2. Identification standard of internal control defects in non-financial reporting
The identification of internal control defects in non-financial reports shall refer to the identification standards of internal control defects in financial reports.
In addition, the following signs usually indicate that there may be major defects in the internal control of non-financial reporting: the company's decision-making procedures are unscientific, such as decision-making mistakes, resulting in the failure to achieve the expected objectives after M & A; Violation of national laws and regulations, such as unqualified product quality; Loss of management personnel or key technical personnel; Frequent negative news in the media; The results of internal control evaluation, especially major or important defects, have not been rectified; Lack of institutional control or systematic failure of important business.
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reporting
According to the above identification standards of internal control defects in financial reporting, the company has no major defects and important defects in internal control of financial reporting during the reporting period.
2. Identification and rectification of internal control defects in non-financial reports
According to the above identification standards of internal control defects in non-financial reports, no major defects and important defects in the company's internal control over non-financial reports were found during the reporting period.
4、 Description of other major matters related to internal control
None.
Cccg Real Estate Corporation Limited(000736) April 14, 2022
