Company code: Xinjiang Korla Pear Co.Ltd(600506) company abbreviation: Xiangli Co., Ltd
Xinjiang Korla Pear Co.Ltd(600506)
Internal control evaluation report in 2021
Xinjiang Korla Pear Co.Ltd(600506) 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 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
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 evaluation scope include: all departments of the company 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 100
The total operating income of the units included in the evaluation scope accounts for 100% 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, internal audit, human resources, social responsibility, corporate culture, capital activities, asset management, procurement business, sales business, contract management, financial report, budget management, information disclosure, internal information transmission, information system, etc. 4. High risk areas of focus mainly include:
Purchase business, asset management, sales business, inventory management, fund management, etc. 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
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, internal control system and evaluation methods. 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
Total assets misstatement ＞ = 5% 5% ＞ misstatement ＞ 1% misstatement ＜ = 1%
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
① Any fraud of directors, supervisors and senior managers of the company;
② The company corrects the published financial statements to correct the material misstatement or material defect caused by fraud or error;
③ The certified public accountant finds that there is a material misstatement in the current financial statements, but the internal control fails to find the misstatement in the operation process;
④ The supervision of the company's audit committee and internal audit institutions on internal control is invalid.
The severity of major defects is lower than that of major defects alone or in combination with other defects, but it may still cause the company to deviate from the control objectives.
General defects and other internal control defects that do not constitute major defects or important defects.
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
Total assets property loss ＞ = 2% ＞ property loss ＞ 0.5% property loss ＜ = 0.5%
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
① The implementation of important operating objectives or key performance indicators is unreasonable, seriously deviates from and has wrong direction, which has a serious negative impact on the company's operation;
② The overall capital operation or capital allocation efficiency of the company is greatly reduced;
Major defects ③ significant decline in daily business operation efficiency;
④ Corporate governance structure is missing, and the function of power check and balance mechanism does not exist;
⑤ The scientific effectiveness of decision-making causes extreme negative effects, and the decision-making results completely deviate from the expected objectives;
⑥ Lack of understanding of internal control;
⑦ Resulting in the overall lack of internal control system and the lack of information communication system;
⑧ The negative news spread all over the country, causing the attention and investigation of government departments or regulators. The negative impact on enterprises cannot be eliminated for a long time.
① The implementation of important operating objectives or key performance indicators is unreasonable and deviates seriously, which has an obvious negative effect on the company's operation;
② The overall capital operation or capital allocation efficiency of the company is greatly affected;
③ The efficiency of daily business operation has decreased to a great extent;
Important defects ④ there are serious defects in the corporate governance structure, and the power check and balance mechanism has been seriously negatively affected; ⑤ It has a serious negative impact on the scientific effectiveness of decision-making, and there is a significant gap between the decision-making results and the expected objectives;
⑥ Serious lack of understanding of internal control;
⑦ There are serious defects in internal communication system and internal control system;
⑧ The national media reported the negative news, which seriously damaged the enterprise's reputation.
① The implementation of important operating objectives or key performance indicators is unreasonable in a small range, and the objective deviates, which has a slight impact on the operation;
② The overall capital operation or capital allocation efficiency of the company is affected to a certain extent;
③ The daily business operation efficiency is reduced to a certain extent;
④ There are some defects in the corporate governance structure, and the power check and balance mechanism has been negatively affected to a medium extent;
General defects ⑤ have a moderate negative impact on the scientific effectiveness of decision-making, and there is a certain gap between the decision-making results and the expected objectives;
⑥ Have a certain understanding of internal control, but not comprehensive;
⑦ The internal control system is complete and the information communication system is in place, but the daily business operation still needs to be further improved;
⑧ The negative news attracted the attention of the local media where the enterprise is located, but it was not reported publicly, and the enterprise's reputation was slightly damaged.
（3） 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 any major defects in internal control over financial reporting during the reporting period
□ yes √ no
1.2. Important defects
Whether the company has any significant defects in internal control over financial reporting during the reporting period
□ yes √ no
1.3. General defect
During the reporting period, the company has no general defects in internal control over financial reporting 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, does the company have 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 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
After the internal control evaluation of this year, the overall operation of the company's internal control in this year is good.
In 2022, the company will further strengthen the implementation of internal control norms, further improve and improve the company's ability to prevent various risks, and ensure the long-term operation of the internal control management mechanism. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Zhou Enhong Xinjiang Korla Pear Co.Ltd(600506) April 19, 2022
