Company code: Shanghai Construction Group Co.Ltd(600170) company abbreviation: Shanghai Construction Group Co.Ltd(600170)
Shanghai Construction Group Co.Ltd(600170)
Internal control evaluation report in 2021
Shanghai Construction Group Co.Ltd(600170) 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 significant 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
The company determines the main units, businesses and matters as well as high-risk areas included in the evaluation scope according to the risk oriented principle. The scope of the group's general contracting business department and its subsidiaries (including 17 general contracting business departments and 17 sub business units: included in the evaluation of the group's general contracting business department) subsidiary ( Shanghai Construction Group Co.Ltd(600170) First Construction Group Co., Ltd. Shanghai Construction Group Co.Ltd(600170) Second Construction Group Co., Ltd. Shanghai Construction Group Co.Ltd(600170) Fourth Construction Group Co., Ltd. Shanghai Construction Group Co.Ltd(600170) Fifth Construction Group Co., Ltd. Shanghai Construction Group Co.Ltd(600170) seventh Construction Group Co., Ltd., Shanghai Architectural Decoration Engineering Group Co., Ltd., Shanghai Construction Engineering Design and Research Institute Co., Ltd., Shanghai Installation Engineering Group Co., Ltd., Shanghai Mechanical Construction Group Co., Ltd., Shanghai Foundation Basic Engineering Group Co., Ltd., Shanghai Huadong Construction Machinery Factory Co., Ltd., Shanghai Construction Group Co.Ltd(600170) Real Estate Co., Ltd., Shanghai Garden (Group) Co., Ltd., Shanghai Municipal Engineering Design and Research Institute (Group) Co., Ltd., Shanghai Foreign Economic Group Holding Co., Ltd., Shanghai Construction Group Co.Ltd(600170) Building Materials Technology Group Co., Ltd., Shanghai Construction Group Co.Ltd(600170) Group Investment 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 84.57
The total operating income of the units included in the evaluation scope accounts for 95.68% 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:
Remarks on level test scope
At the company level, the company's risk control matrix lists their evaluation units, including all key control activities of organizational structure, development strategy, social responsibility and corporate culture. Standardization, risk assessment, control activities, information and communication, internal supervision.
At the IT level, the company's risk control matrix lists their evaluation units, including it control environment, information construction and implementation, and all key control activities of the information system. System operation and maintenance.
At the process level, the company's risk control matrix lists all key control activities including procurement management, inventory management, sales management, business outsourcing, engineering projects and. Real estate development, design consulting projects, scientific research management, fixed assets, real estate, intangible assets, construction projects, investment management, financing management, external guarantee, related party transactions, income and cost management, human resources and remuneration, expense management, tax management, fund management, accounting and financial report Available for sale financial assets, comprehensive budget, contract management, file management and control over subsidiaries.
4. High risk areas of focus mainly include:
Development strategy, capital activities, procurement business, business outsourcing, asset management, engineering projects, guarantee business, financial reporting, contract management, revenue and cost management, tax management, related party transactions and control over subsidiaries. 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 according to the enterprise internal control standard system, the company's internal control manual and the requirements of Shanghai Construction Group Co.Ltd(600170) notice on the implementation of internal control self-evaluation. 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
Possible misstatement of profits ≥ 10% of total profits ≤ 1% of total profits misstatement of profits 1% of total profits
10% of total misstatement profit
Or may lead to misstatement of income ≥ 1% of the total income, 0.1% of the total income ≤ misstatement misstatement 0.1% of the total income, and 1% of the total income
Or it may lead to asset misstatement ≥ 1% of total assets, 0.1% of total assets ≤ misstatement misstatement 0.1% of total assets, and 1% of total assets
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
Major defect (1) the defect involves any fraud of senior management; (2) the defect indicates that there is no internal supervision organization or the internal supervision organization does not perform its basic functions; (3) there are major misstatements identified in the current financial report according to the above quantitative standards, and the control activities fail to identify the misstatement or need to correct the published financial report.
(1) the probability that the internal control cannot prevent, discover and correct the misstatement of financial statements in time due to the defect; (2) the amount of potential misstatement that may be caused by the defect alone or together with other defects. If the probability is greater than the small possibility (almost impossible), and the amount that may lead to misstatement exceeds the importance level, it indicates that the defect is
important.
General defects general defects refer to other control defects other than the above major defects and important defects.
Note: 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
If it causes direct property loss ≥ 50 million yuan, 5 million yuan ≤ loss 50 million yuan, loss 5 million yuan
amount of damages
Or have a negative impact, or have been officially disclosed to the public and punished by national government departments, but have been subject to provincial (including provincial) Due to the disclosure of the company's periodic report, there was no government punishment for the disclosure of the company's periodic report, but there was no negative impact on the disclosure of the company's periodic report
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
Major defects ⑴ lack of democratic decision-making procedures, such as decision-making on major issues, decision-making on appointment and dismissal of personnel at important posts, decision-making on investment of major projects, and decision-making procedures for the use of large amounts of funds (three important and one large); (2) unscientific decision-making procedures, such as major decision-making mistakes, causing heavy losses of more than 50 million yuan to the company; (3) serious violation of national laws and regulations; (4) massive loss of key management personnel or important talents; (5) frequent negative news in the media; (6) major defects in internal control evaluation have not been rectified; (7) lack of system control or systematic failure of important business.
(1) the probability that the defect may cause the company's internal control to fail to achieve strategic objectives, asset safety, business objectives, compliance and other objectives and the degree of impact on the control objectives; (2) the amount of property loss of the company caused by the defect alone or together with other defects. If the probability is greater than the small possibility (almost impossible), and the amount that may cause the enterprise to lose exceeds the importance level, it indicates that the defect is important.
General defects are other defects except major defects and 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 major defects in internal control over financial reporting during the reporting period □ yes √ no 1.2 Important defects
Whether the company has significant defects in internal control over financial reporting during the reporting period □ yes √ no 1.3 General defect
During the reporting period, the general internal control design defects found in the company's internal control self-assessment and special audit have been properly improved; The defects found in the implementation of general internal control will be focused on in the implementation of internal control in the next year.
Defect □ 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
