Xiongan Kerong Environment Technology Co.Ltd(300152)
Self evaluation report on internal control in 2021
Xiongan Kerong Environment Technology Co.Ltd(300152) all shareholders:
According to 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 internal control system and evaluation methods, and based on the daily supervision and special supervision of internal control, we evaluated the effectiveness of the company's internal control as of December 31, 2021 (the benchmark date of internal control evaluation report).
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, 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. 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 from the base date of the internal control evaluation report to the date of issuance of the internal control evaluation report. 3、 Internal control evaluation
(I) main units included in the scope of evaluation include
The subsidiaries included in the consolidated statements of this year include Xuzhou Combustion Control Research Institute Co., Ltd. (hereinafter referred to as "Combustion Control Institute"), Xuzhou Kerong science and Technology Park Development Co., Ltd. (hereinafter referred to as "Kerong science and Technology Park"), Zhucheng Baoyuan new energy power generation Co., Ltd. (hereinafter referred to as "Zhucheng Baoyuan"), xiong'an Kerong Intelligent Environmental Protection Technology Development Co., Ltd. (hereinafter referred to as "Kerong intelligent environmental protection") Kerong (Nanjing) Ecological Resources Development Co., Ltd. (hereinafter referred to as "Kerong ecological resources"), Beijing Kerong New Ecological Technology Co., Ltd. (hereinafter referred to as "Kerong new ecology"), Henan Kerong Quanzhi Technology Co., Ltd. (hereinafter referred to as "Kerong Quanzhi"), Xuzhou Kerong energy saving Technology Service Co., Ltd. (hereinafter referred to as "Kerong energy saving") Kerong Nengke (Shenzhen) Technology Co., Ltd. (hereinafter referred to as "Nengke Shenzhen", newly established in 2021, business has not been carried out), Kerong Nengke (Chongqing) Technology Co., Ltd. (hereinafter referred to as "Nengke Chongqing", newly established in 2021, business has not been carried out), Beijing Kerong huayangfeng Technology Co., Ltd. (hereinafter referred to as "huayangfeng", newly established in 2021) Puyi Shijiazhuang equity investment fund management center (limited partnership) (hereinafter referred to as "Puyi partnership") and other 12 subsidiaries.
(II) proportion of units included in the scope of evaluation
The total assets of the units included in the evaluation scope account for 100% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue in the company's consolidated financial statements.
(III) the main businesses and matters included in the scope of evaluation include
Combined with the actual situation of the company's existing business, the business processes and matters included in the evaluation scope mainly include: organizational structure, strategic management, human resources, corporate culture, social responsibility, capital activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, financial report, budget management, contract management, internal information transmission, information system, information disclosure, internal supervision, etc.
(IV) the high-risk areas of focus mainly include
The high-risk areas of focus mainly include: strategic management risk, human management risk, safety and environmental protection risk, external guarantee risk, investment risk, cash flow risk and major decision-making legal risk.
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.
(V) basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation according to the requirements of enterprise internal control standard system and relevant systems of the company. 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 standard of internal control defects in financial reporting
(1) The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
① If one of the following conditions is met, it can be recognized as a major defect:
Impact of project defects
Potential misstatement of operating revenue 1% of total operating revenue ≤ misstatement amount
Total profit potential misstatement 1% of total profit ≤ misstatement amount
Potential misstatement of total assets 1% of total assets ≤ misstatement amount
Potential misstatement of owner's equity 1% of owner's equity ≤ misstatement amount
② If one of the following conditions is met, it can be recognized as an important defect:
Impact of project defects
Potential misstatement of operating revenue 0.5% of total operating revenue ≤ misstatement ＜ 1% of total operating revenue
Total profit potential misstatement 0.5% of total profit ≤ misstatement ＜ 1% of total profit
Potential misstatement of total assets 0.5% of total assets ≤ misstatement ＜ 1% of total assets
Potential misstatement of owner's equity 0.5% of owner's equity ≤ misstatement amount ＜ 1% of owner's equity
③ If one of the following conditions is met, it can be recognized as a general defect:
Impact of project defects
Potential misstatement of operating revenue ＜ 0.5% of total operating revenue
Potential misstatement of total profit ＜ 0.5% of total profit
Potential misstatement of total assets ＜ 0.5% of total assets
Potential misstatement of owner's equity ＜ 0.5% of owner's equity
(2) The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
① Major defects: abuse of power and fraud by directors, supervisors and senior managers; The enterprise corrects the published financial report; 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; The supervision of the enterprise audit committee and internal audit institutions on internal control is invalid.
② Significant deficiencies: failure to select and apply accounting policies in accordance with GAAP; Failure to establish anti fraud procedures and control measures; No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions, and there is no corresponding compensatory control; There are one or more defects in the control of the financial reporting process at the end of the period, and it can not reasonably ensure that the prepared financial statements achieve the goal of authenticity and accuracy.
③ General defects: other internal control defects that do not constitute major defects or important defects.
2. Identification standard of internal control defects in non-financial reporting
(1) The quantitative standard of internal control defect evaluation of non-financial report determined by the company is consistent with the quantitative standard of internal control defect evaluation of financial report determined by the company. See the quantitative standard of internal control defect evaluation of financial report mentioned above.
(2) The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
① Identification standard of major defects: serious violation of laws and regulations; Decision making procedures lead to major mistakes and sustainable operation is challenged; Lack of institutional control or systematic failure of important business, and lack of effective compensatory control; Serious loss of middle and senior managers and senior technicians; The results of internal control evaluation, especially major defects, have not been rectified; Other situations that have a significant negative impact on the company.
② Identification criteria of important defects: General mistakes caused by decision-making procedures; Defects in important business systems or systems; Serious loss of business personnel in key positions; The results of internal control evaluation, especially the important defects, have not been rectified; Other situations that have a great negative impact on the company.
③ The identification standard of general defects: the efficiency of decision-making procedure is not high; Defects in general business system or system; Serious loss of business personnel in general posts; General defects have not been rectified.
(VI) 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 reporting, the company has no major defects and important defects in internal control of financial reporting 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, no major defects and important defects in the company's internal control over non-financial reports were found during the reporting period.
4、 Description of other major matters related to internal control
nothing
Xiongan Kerong Environment Technology Co.Ltd(300152) Chairman: Mao Junliang April 19, 2002
