China National Complete Plant Import And Export Co.Ltd(000151)
Internal control evaluation report in 2021
China National Complete Plant Import And Export Co.Ltd(000151) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements (hereinafter referred to as the "enterprise internal control standard system"), combined with China National Complete Plant Import And Export Co.Ltd(000151) (hereinafter referred to as the "company") internal control system and evaluation methods, on the basis of daily and special supervision of internal control, We evaluated the effectiveness of the company's internal control as of December 31, 2021 (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, on the benchmark date of the internal control evaluation report, the company has no major defects in the internal control over financial reporting. 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 has no major defects in the company's internal control over non-financial reports on the benchmark date of the internal control evaluation report.
The company has no 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. 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. The scope of evaluation in 2021 includes: the headquarters of the company and its subsidiaries.
The units included in the evaluation scope account for 88% of the total consolidated assets of the company, and the total operating revenue accounts for 98% of the total consolidated operating revenue; The main businesses included in the evaluation scope include the development and implementation of complete sets of projects and industrial solid waste projects. The matters included in the evaluation scope include the company's organizational structure, development strategy, human resources, corporate culture, social responsibility, risk management, procurement management, asset management, fund management, comprehensive budget management, information system and internal supervision, international contracted project management, etc. The high-risk areas of focus mainly include fund management and procurement, international contracting project management and so on.
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.
(II) internal control evaluation basis and internal control defect identification standard the company organizes and carries out internal control evaluation according to the enterprise internal control standard system. In 2021, zhongxinghua Certified Public Accountants (special general partnership) was hired to conduct independent audit on the company's internal control.
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
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows: the quantitative criteria for determining internal control defects in financial reporting determined by the company are: the amount of financial reporting misstatement that cannot be prevented, found and corrected in time due to the combination of one or more control defects:
Major defects: the amount of misstatement ≥ 1% of the total assets.
Important defect: 0.5% of total assets ≤ misstatement amount ＜ 1% of total assets. General defect: the amount of misstatement is less than 0.5% of the total assets.
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
The company determines according to the causes (sources) of internal control defects. When the combination of one or more control defects shows the following signs, it may cause the company to seriously deviate from the control objectives, indicating that there are major defects in the internal control of financial reporting: (1) fraud by the company's directors, supervisors and senior managers;
(2) The company corrects the published financial report;
(3) 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;
(4) The supervision of the board of directors, its audit committee and the audit department on internal control is invalid.
When the severity of one or more control defects is lower than that of major defects, but it may still cause the company to deviate from the control objectives, it is recognized as an important defect. Its severity is lower than that of major defects, which will not seriously endanger the overall effectiveness of internal control, but it should also attract the full attention of the board of directors and management.
Control defects other than major defects and important defects can be recognized as general defects.
2. 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:
Referring to the quantitative standard of internal control defects in financial reports, the company determines that the quantitative standard of internal control defects in non-financial reports is: divided according to the relative amount of direct economic losses that cannot be prevented, found and avoided in time directly caused by a single defect or a combination of multiple defects:
Major defect: loss amount ≥ 1% of total assets
Important defect: 0.5% of total assets ≤ loss amount ＜ 1% of total assets.
General defect: the loss amount is less than 0.5% of the total assets.
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
When the company's other control objectives other than financial reporting objectives show the following signs, resulting in direct economic losses or negative effects to varying degrees:
(1) The company lacks democratic decision-making procedures, and the decision-making procedures are unscientific;
(2) Violation of national laws and regulations;
(3) Frequent negative news in the media;
(4) Lack of institutional control or systematic failure of important business;
(5) The results of internal control evaluation, especially major or important defects, have not been rectified.
The above-mentioned defect, alone or together with other defects, has a reasonable possibility to prevent, detect and correct the material misstatement in the financial report in time, which is recognized as a material defect.
If a defect, alone or in combination with other defects, has a reasonable possibility to prevent, detect and correct the misstatement in the financial report that does not reach or exceed the importance level, but should still attract the attention of the board of directors and management, it is recognized as an important defect.
Internal control defects that do not constitute major defects and important defects are recognized as general defects.
(III) identification and rectification of internal control defects
1. Identification and rectification of defects in financial report
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 for internal control defects in non-financial reporting, the company has no major defects and important defects in internal control over non-financial reporting during the reporting period. 4、 Description of other major matters related to internal control
There is no description of other major matters related to internal control.
China National Complete Plant Import And Export Co.Ltd(000151) board of directors April 22, 2002
