Company code: Zhejiang Provincial New Energy Investment Group Co.Ltd(600032) company abbreviation: Zhejiang Provincial New Energy Investment Group Co.Ltd(600032) Zhejiang Provincial New Energy Investment Group Co.Ltd(600032)
Internal control evaluation report in 2021
Zhejiang Provincial New Energy Investment Group Co.Ltd(600032) 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 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 headquarters of the company and 74 subsidiaries (of which 2 subsidiaries cancelled in the current period are not included in the scope of evaluation). 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 100.00
The total operating income of the units included in the evaluation scope accounts for 100.00% 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:
Organizational structure, development strategy, human resources, social responsibility, corporate culture, capital activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management, internal information transmission, information system, etc. 4. High risk areas of focus mainly include:
Fund activities, sales business, procurement business, asset management, related party transactions and investment management. 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
nothing
（2） Basis of internal control evaluation and identification standard of internal control defects
The company organizes the evaluation of internal control in accordance with the standard system of enterprise internal control, the company law, the accounting law, the accounting standards for business enterprises, the basic norms of enterprise internal control, the guidelines for the application of enterprise internal control and other laws and regulations, as well as the company’s internal control system, processes and relevant regulations. 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
The net profit misstated accounts for 5% of the company’s recent net profit ≤ the proportion of the misstated net profit does not constitute a major defect, and there is a significant lack of other defects other than the audited net profit of the company in the latest fiscal year
More than 10% of profit, and the proportion of absolute gold net profit is less than 10%,
The amount exceeds 5 million yuan. And the absolute amount is ＞ 3 million yuan
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 the combination of one or more general defects may seriously affect the effectiveness of the overall internal control, which may lead to the failure of the enterprise to prevent or find serious deviations from the overall control objectives in time: (1) fraud by the company’s directors, supervisors and senior managers; (2) The certified public accountant finds that there is a material misstatement in the current financial report, but the internal control fails to find the misstatement in the operation process; (3) The supervision of the company’s audit and risk management committee and the internal audit department on internal control is invalid; (4) Other defects that may affect the correct judgment of report users.
Important defect is a combination of one or more general defects, whose severity is lower than that of major defects, but the severity of the deviation from the overall control goal that the enterprise cannot prevent or find in time is still significant, which must be paid attention to by the enterprise management.
General defects are other control defects except 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
The loss amount of the company’s property loss accounts for 5% of the company’s recent one ≤ the loss amount accounts for other defects other than the audited net profit of the company in the recent fiscal year that does not constitute a major defect and an important deficiency.
More than 10%, and the proportion of absolute amount exceeding profit is less than 10%
Five million yuan. For the amount ＞ 3 million yuan.
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: (1) the enterprise lacks democratic decision-making procedures, such as “three important and one large” decision-making procedures; (2) Unscientific decision-making procedures of enterprises, such as decision-making mistakes; (3) Violation of national laws and regulations, such as environmental pollution; (4) Loss of managers or technicians; (5) Frequent negative news in the media; (6) The results of internal control evaluation, especially major or important defects, have not been rectified; (7) Lack of institutional control or systematic failure of important business.
Important defects: (1) general mistakes caused by decision-making procedures; (2) Serious loss of business personnel in key positions;
(3) Defects in important business systems or systems; (4) The important defects found in the internal control evaluation have not been rectified.
General defects are other control 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 company had no general defects in internal control over financial reporting. 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, whether the company has 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
During the reporting period, the company has no general defects in internal control over non-financial reporting.
2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the 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, whether the company finds any important defects in non-financial reporting internal control 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
No major defects are found in this evaluation, but the company attaches great importance to the continuous improvement and improvement of the construction of internal control system.
In 2021, the company further strengthened the independent director system. The company has established an effective independent director system, appointed independent directors with corresponding professional ability, and played the role of independent directors in the operation of the company. In addition, the company further gives play to the role of the internal audit department (Discipline Inspection and audit risk control (comprehensive supervision) room) in internal supervision, and carries out daily supervision and special supervision activities in important subsidiaries and important business activities.
According to the identification of major defects in the company’s internal control, there were no major defects and important defects in the company’s internal control over financial reports and non-financial reports in 2021. Through the operation, analysis and evaluation of the internal control system, the company has effectively prevented risks in operation and management and promoted the realization of internal control objectives. In the follow-up, the company will further optimize the internal control system, continuously improve the internal control system and ensure the effective implementation of the internal control system with the change of the business environment faced by the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Wu Ronghui Zhejiang Provincial New Energy Investment Group Co.Ltd(600032) April 19, 2022
