Self evaluation report on internal control in 2021
Jsti Group(300284) all shareholders:
In order to strengthen and standardize the enterprise’s internal control, improve the enterprise’s operation and management level and risk prevention ability, promote the sustainable development of the enterprise and safeguard the legitimate rights and interests of shareholders, in accordance with the provisions of the basic norms of enterprise internal control and its supporting guidelines and the relevant requirements of the guidelines on internal control of companies listed on Shenzhen Stock Exchange, and in combination with the internal control system and evaluation methods of Jsti Group(300284) (hereinafter referred to as “the company” or ” Jsti Group(300284) “), 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.
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, due to environmental changes that 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 between the benchmark date of the internal control evaluation report and the 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 scope of this internal control evaluation includes the parent company Jsti Group(300284) and its subsidiaries. The total assets of the unit included in the evaluation scope account for 100% of the total assets of the company’s consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue of the company’s consolidated financial statements. The main businesses and matters included in the evaluation scope include: governance structure, organization, human resources, corporate culture, capital activities, asset management, sales business, engineering projects, guarantee business, financial report, budget management, contract management, information disclosure, related party transactions, etc. The high-risk areas of focus mainly include: corporate governance risk, marketing risk, main business operation risk, investment management risk, financial management risk, human resources risk, 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, and there are no major omissions.
(II) basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation in accordance with the basic norms of enterprise internal control, guidelines for the application of enterprise internal control, guidelines for the evaluation of enterprise internal control and the company’s internal control 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 standards of internal control defects in financial reports
Internal control defects in financial reporting can be divided into major defects, important defects and general defects. The recognition standard adopted depends on the importance of potential misstatement of financial reporting caused by the existence of internal control defects. This degree of importance mainly depends on two factors: (1) whether the defect has a reasonable possibility to lead to the failure of the enterprise’s internal control to prevent or detect and correct the potential misstatement of the financial statements in time; (2) The amount of potential misstatement that may be caused by the defect alone or in combination with other defects.
The quantitative and qualitative standards for the identification of internal control defects in the company’s financial reports shall be determined in accordance with the following indicators and principles. The details are shown in the table below:
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
General defect important defect major defect
Misstatement ＜ 3% of operating profit or 3% of operating profit or 5 million yuan ≤
Misstatement ≥ 5% or 1000% of operating profit
5 million yuan misstatement ＜ 5% of operating profit or
Ten thousand yuan
10 million yuan
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
General defect important defect major defect
Failure to select and apply accounting control environment in accordance with GAAP is invalid; Audit Committee and audit policy. The supervision of the accounting department on internal control is invalid.
Directors, supervisors and senior managers fail to establish anti fraud procedures and control measures, or employees collude in fraud and cause losses or adverse effects to the company.
For other internal control problems that do not belong to the financial reporting process at the end of the period, correct the published financial report of the company; Note: the judgment of important defects is based on the control of the process of the financial report at the end of the period. There is a Book of defects found by the accountant within the standard scope of the current financial report. One or more defects and can not reasonably guarantee the authenticity and accuracy of the financial statements prepared in the process of material misstatement and internal control. Could not be found in.
For the accounting treatment of unconventional or special transactions, the major defects after communication have not been corrected within a reasonable time, no corresponding control mechanism has been established or no real time.
Implement corresponding compensatory control.
2. Identification standard of internal control defects in non-financial reporting
According to its actual situation, management status and development requirements, the company has reasonably determined the qualitative and quantitative standards of internal control defects in non-financial reports on the basis of referring to the internal control defects in financial reports, and identified them as general defects, important defects and major defects according to their impact on the realization of internal control objectives. Where: quantitative standard, i.e. the amount involved, is formulated according to the absolute amount of direct property loss; Qualitative criteria, that is, the severity of the nature of the business involved, shall be determined according to the nature and scope of its direct or potential negative impact.
The quantitative and qualitative standards for the identification of internal control defects in non-financial reports of the company shall be determined in accordance with the following indicators and principles. The details are shown in the table below:
The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
General defect important defect major defect
Direct property loss of less than 5 million yuan, direct property loss of 5 million yuan, direct property loss of 10 million yuan (inclusive) to more than 10 million yuan (inclusive)
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
General defect important defect major defect
There are loopholes in project management, resulting in illegal operation of projects, major quality, poor management of large projects and general problems
Project delay is serious or there is a certain quality accident, resulting in major economic losses or heavy quality accidents, resulting in economic losses
Quantity and potential safety hazards, causing minor casualties of the owner, and causing written complaints from the government and the owner.
Full regulatory investigation or litigation.
Violation of the company’s internal rules and regulations does not result in the company’s violation of national laws and regulations and serious losses caused by the company’s business activities. Minor punishment. laws and regulations.
General business system, process or system, important business system, process or system, lack of system for important business, and defects in process control. In defects. Or system failure.
General defects of internal control have not been rectified, important defects of internal control have not been rectified, and major or important defects of internal control have not been corrected. Change. Rectified.
The turnover of business personnel in general positions is frequent, and the loss of middle and senior managers and business personnel in senior technical key positions is serious.
Numerous. Serious loss of personnel.
There are negative news in the media, but the negative news affecting the media appears, affecting local media. The negative news is frequently exposed, which is not good for the public. Area. The company’s reputation has been seriously damaged.
(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 reports, the company has no major defects and important defects in internal control related to financial reports 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, there were no major defects and important defects in the company’s internal control related to non-financial reports during the reporting period.
4、 Description of other major matters related to internal control
The company has no explanation of other major matters related to internal control.
Jsti Group(300284) April 17, 2022
