Report on the performance of the audit committee of the board of directors in 2021, members:
In accordance with the relevant provisions of the guidelines for the operation of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange, the working rules of the audit committee of the board of directors of the company and the working procedures for the annual report of the audit committee of the board of directors of the company, the audit committee of the board of directors of the company evaluates and supervises the financial and accounting reporting process and internal control on behalf of the board of directors on the principle of diligence, and now reports the performance of the audit committee in 2021 as follows:
1、 Basic information of the audit committee
The audit committee of the 7th board of directors of the company (term of office expires on May 28, 2021) is composed of three directors: Chen Zhenting, Pang Shoulin and he Yaping. The chairman is Chen Zhenting, an independent director with professional accounting qualification. The audit committee of the eighth session of the board of directors (with a term of office from May 28, 2021) is composed of Dai Xinmiao, Hu Yuechuan and Zhang Jieyuan, and the chairman is Dai Xinmiao, an independent director with professional accounting qualification. On December 28, 2021, after Dai Xinmiao’s resignation took effect, Li Bingxin, who also has professional accounting qualification, served as the director of the audit committee.
All members of the audit committee of the 7th and 8th board of directors of the company have professional knowledge and business experience competent for the duties of the audit committee. As senior accounting professionals in China, Chen Zhenting, Dai Xinmiao and Li Bingxin have professional knowledge related to accounting and financial management. The audit committee is independent of the company’s daily operation and management affairs and performs the responsibility of supervising the company’s external audit.
2、 Meetings held
1. According to the requirements of the notice on disclosure of 2020 annual report of listed companies and relevant work memorandum of Shanghai Stock Exchange, the audit committee of the seventh board of directors held its sixth to eighth meetings on January 21, March 19 and April 16, 2021 respectively to supervise the preparation and review of the company’s 2020 annual financial report: carefully reviewed the company’s audit work plan; Before the annual audit, the certified public accountant reviewed the financial statements prepared by the company and checked the company’s accounting policies, financial status and financial reporting procedures. After deliberation, the Audit Committee believes that the company’s financial and accounting statements can fully reflect the company’s financial status and operating results; It also communicated with the auditors of the company’s external audit institutions and actively carried out the annual report, ensuring the smooth completion of the preparation and disclosure of the company’s 2020 annual report.
2. On December 8, 2021, the audit committee of the eighth board of directors held its first meeting, deliberated and adopted the proposal on the renewal of the company’s audit institution in 2021, and agreed to submit it to the board of directors and the general meeting of shareholders for deliberation.
3、 Performance of duties
(I) supervise the company’s external audit
During the reporting period, the audit committee of the 7th board of directors of the company conscientiously performed its duties and was mainly responsible for the supervision, verification and communication of the company’s external audit in accordance with the relevant provisions of the China Securities Regulatory Commission and the Shanghai Stock Exchange and the working rules of the company’s audit Committee, as well as the requirements of the notice on doing a good job in the 2020 annual report of listed companies issued by the Shanghai Stock Exchange, Focused on the audit of the company’s 2020 annual report.
1. Before the certified public accountants enter the site, they carefully listened to and reviewed the work plan and relevant materials of Zhonghua Certified Public Accountants (special general partnership) for the audit of the company’s annual report, put forward specific opinions and requirements on the overall strategy of the audit, and negotiated the relevant schedule together.
3. During the audit process of the annual audit certified public accountants, the audit committee supervised the audit work and fully communicated and exchanged with the annual audit Certified Public Accountants on the problems found in the audit process.
4. Listen to the audit work summary of 2020 and give opinions: agree that the accounting treatment of the company recognized by Zhonghua certified public accountants has been prepared in accordance with the provisions of the accounting standards for business enterprises, which fairly reflects the financial status, operating results and cash flow of the company in 2020 in all major aspects, and have no objection to the audit opinions on the financial and accounting statements of the company in 2020 issued by certified public accountants, It is agreed to submit the 2020 annual financial statements audited by Zhonghua Certified Public Accountants (special general partnership) to the board of directors for deliberation.
5. The audit committee of the 8th board of directors of the company submitted a proposal to the board of directors to renew the appointment of Zhonghua Certified Public Accountants (special general partnership), believing that the Zhonghua Certified Public Accountants (special general partnership) hired by the company can abide by their due diligence and follow the independent, objective and fair practice standards in providing audit services for the company. Therefore, it is proposed to renew the appointment of Zhonghua certified public accountants as the audit institution of the company’s annual report in 2021.
(II) effectiveness evaluation of the company’s internal control
During the reporting period, the audit committee of the 78th and 8th board of directors gave full play to the role of professional committees, actively promoted the construction of the company’s internal control system, strengthened and improved the evaluation management of the company’s internal control, supervised and guided the company’s internal control center to complete the self-evaluation of internal control, and carefully reviewed the company’s internal control evaluation report and the internal control audit report issued by the external audit institution.
(III) review of related party transactions of the company
Reviewed major related party transactions during the year and issued relevant resolutions.
4、 Overall evaluation
During the reporting period, the seventh and eighth audit committees of the board of directors of the company, in accordance with relevant regulations, were diligent and conscientious, and used their own professional experience in accounting and financial management to supervise the company’s external audit, guide the internal control work, maintain the independence of the audit, strengthen the authenticity and reliability of the company’s financial report information, promote the company to improve the governance structure and better perform various responsibilities.
It is hereby summarized.
Tibet Summit Resources Co.Ltd(600338)
Audit Committee of the board of directors
April 20, 2022
