Bank Of Shanghai Co.Ltd(601229)
Internal control evaluation report in 2021
Bank Of Shanghai Co.Ltd(601229) 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: Bank Of Shanghai Co.Ltd(601229) and its subsidiaries (Shanghai Minhang Shangyin Village Bank Co., Ltd., Zhejiang Quzhou Qujiang Shangyin Village Bank Co., Ltd., Jiangsu Jiangning Shangyin Village Bank Co., Ltd., Chongzhou Shangyin Village Bank Co., Ltd., Bank Of Shanghai Co.Ltd(601229) (Hong Kong) Co., Ltd., Shanghai Bank International Co., Ltd. and Shanghai Bank Fund Management Co., Ltd.). 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:
It covers internal environment, risk assessment, control activities, information and communication, internal supervision, etc., including corporate credit, trade financing and international settlement, bill business, financial sales, agency business, entrusted loan, asset management business, custody business, retail credit, bank card business, e-banking, interbank financing, interbank investment, payment and settlement, account management, procurement management, information disclosure, human resources, financial report Information technology and other business areas. 4. High risk areas of focus mainly include:
On the basis of comprehensive evaluation, the company focused on the risks of credit business, financial management and sales, account management, financial reporting, information technology and other aspects under the complex business environment. 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
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 and the company's 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 profit financial statement misstatement ≥ 2.5% of total profit ≤ financial statement misstatement 5% of total profit statement misstatement 2.5% of total profit
5%
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
A defect in internal control that, alone or in combination with other defects, has a reasonable possibility to prevent, detect and correct major errors in the accounting statements in a timely manner.
Important defect an internal control defect, alone or together with other defects, has a reasonable possibility to prevent, detect and correct the misstatement in the accounting statements in time. Although it does not reach or exceed the importance level, it should still attract the attention of the board of directors and management.
General defects are internal control defects in financial reporting that do not constitute 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
Loss caused by total profit ≥ 2.5% of total profit ≤ loss caused 5% of total profit 2.5% of total profit
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 are found in key areas and there are major potential risks. It is suggested that the management should immediately pay attention to solving relevant problems.
It is suggested that the management should pay attention as soon as possible to avoid the problem from becoming more serious.
It is suggested that the management should consider the effectiveness of the overall control in these areas.
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
The risks that may arise from the general defects of internal control over financial reporting are within the controllable range, and the rectification has been or is being implemented, which will not have a material impact on the realization of the company's internal control objectives. 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
The risks that may arise from the general defects of internal control over non-financial reporting are within the controllable range, and the rectification has been or is being implemented, which will not have a material impact on the realization of the company's internal control objectives.
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
During the reporting period, the company has maintained effective internal control in all major aspects in accordance with the requirements of the enterprise's internal control standard system and relevant regulations. The overall operation of internal control is good, and meets the relevant requirements of information disclosure of listed companies. No major defects or important defects in the internal control of financial report / non-financial report are found; The company has taken positive measures to rectify the general internal control defects found in the internal control evaluation.
Next year, the company will continue to deepen the construction of internal control system, improve the off-site risk monitoring system, improve the system's early warning ability for business risks, improve the internal control system and authorization system, strengthen internal control measures in key business areas, strengthen the process management, evaluation and verification of problem rectification, and promote the sustainable and steady development of the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Jin Yu Bank Of Shanghai Co.Ltd(601229) April 22, 2022
