Unittec Co.Ltd(000925) 2021 annual internal control evaluation report
April 22, 2022
Unittec Co.Ltd(000925) all shareholders:
In accordance with the rules for the preparation and reporting of information disclosure of companies offering securities to the public No. 21 - General Provisions on annual internal control evaluation report, 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 standard system"), in combination with Unittec Co.Ltd(000925) (hereinafter referred to as the "company") internal control system and evaluation measures, 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. 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, continuously improve and improve the internal control management system and operation mechanism, improve operation efficiency and effect, and promote the realization of development strategy and business objectives. 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) evaluation scope of internal control
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. In 2021, the company continued to strengthen the three-level evaluation system covering the headquarters, subsidiaries and business departments; The main units included in the evaluation scope include the parent company and main subsidiaries of the listed company, Zhejiang Insigma Technology Co.Ltd(600797) Zhonghe Rail Transit Engineering Co., Ltd., Zhejiang Haina Semiconductor Co., Ltd., Sichuan Zhonghe Intelligent Control Technology Co., Ltd., Tianjin Zhonghe Intelligent Control Technology Co., Ltd., Zhejiang Wangxin central control information technology Co., Ltd., Zhejiang Wangxin Intelligent Technology Co., Ltd., Guoke Zhonghe Innovation Group Co., Ltd Hangzhou wangxinzhilin Technology Development Co., Ltd. and other major businesses and matters, the total assets of the units included in the evaluation scope account for 100% of the total assets of the company's consolidated financial statements, and the total operating income of the units included in the evaluation scope account for 100% of the total operating income of the company's consolidated financial statements.
The main businesses included in the evaluation scope include: internal environment, risk assessment, control activities, information and communication, and internal supervision. The main items include organizational structure, development strategy, human resources, social responsibility, fund management, asset management, investment management, procurement and payment, engineering projects, sales and collection, research and development, guarantee business, financial report, comprehensive budget, contract management, internal information transmission, information system, etc.
The high-risk areas of focus mainly include: Sales and collection management, asset management, procurement and payment management, fund management, engineering project management, contract management, management of subsidiaries, related party transactions and external guarantee, etc.
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.
（2） Basis of internal control evaluation and identification standard of internal control defects
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with factors such as the company's size, industry characteristics, risk preference and risk tolerance, the board of directors of the company distinguished internal control over financial reports from internal control over non-financial reports, studied and determined specific identification standards for internal control defects applicable to the company, which were consistent with those in previous years. The identification standards of internal control defects determined by the company are as follows:
(I) identification criteria for internal control defects in financial reports
1. Quantitative standard
(1) If one of the following conditions is met, it can be recognized as a major defect:
Impact of project defects
The amount of potential misstatement in the income statement ≥ 1% of the operating income in the company's consolidated statements in the latest fiscal year or RMB 20 million
The amount of potential misstatement in the balance sheet ≥ 1% of the total assets in the company's consolidated statements in the latest fiscal year or RMB 20 million
(2) If one of the following conditions is met, it can be recognized as an important defect:
Impact of project defects
0.5% of the operating income of the company's consolidated statements in the latest fiscal year or RMB 10 million ≤ the amount of misstatement in the income statement is less than 1% of the operating income of the company's consolidated statements in the latest fiscal year or RMB 20 million
Assets and liabilities 0.5% of the total assets of the company's consolidated statements in the latest fiscal year or RMB 10 million ≤ the amount of misstatement ＜ 1% of the total assets of the company's consolidated statements in the latest fiscal year or RMB 20 million
(3) If one of the following conditions is met, it can be recognized as a general defect:
Impact of project defects
The amount of potential misstatement in the income statement is less than 0.5% of the company's consolidated statement operating income in the latest fiscal year or RMB 10 million
The amount of potential misstatement in the balance sheet is less than 0.5% of the total assets in the consolidated statements of the company in the latest fiscal year or RMB 10 million
2. Qualitative criteria
(1) The company stipulates that internal control defects involving the following fields shall be recognized as "important defects" at least:
Anti fraud procedures and controls;
Internal control over unconventional or unsystematic transactions;
Internal control over the selection and application of accounting policies against GAAP;
Internal control over the financial reporting process at the end of the period.
