Suzhou Chunxing Precision Mechanical Co.Ltd(002547)
Self evaluation report on internal control in 2021
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) 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 Suzhou Chunxing Precision Mechanical Co.Ltd(002547) (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 found a major defect 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. The main units included in the evaluation scope include Suzhou Chunxing Precision Mechanical Co.Ltd(002547) and holding subsidiaries. The total assets of the units included in the evaluation scope account for 99.90% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 99.92% of the total operating revenue in the company's consolidated financial statements.
The main businesses and matters included in the evaluation scope include: internal environment, risk assessment, control activities, information and communication, supervision of control, organizational structure, development strategy, human resource management, fund management, foreign investment, procurement management, fixed assets and intangible assets management, sales management, R & D management, engineering project management, financial report, comprehensive budget, contract management, internal information transmission Information system management, etc. The high-risk areas of focus mainly include: subsidiary management, related party transaction management, external guarantee management, major investment management, information disclosure management, 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.
(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.
According to the identification requirements for major defects, important defects and general defects in the enterprise internal control standard system, and in combination with the company's scale, industry characteristics, risk preference, risk tolerance and other factors, the board of directors distinguished internal control over financial reports from internal control over non-financial reports, studied and determined the 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:
1. Identification standard of internal control defects in financial reporting
The company determines major defects, important defects and general defects according to quantitative standards and qualitative standards respectively.
(1) The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Based on the consolidated statement data of 2021, the quantitative standard for determining the importance of misstatement (including omission) in the consolidated statements of listed companies is determined.
Major defect: misstatement amount = 0.5% of operating revenue
Important defect: 0.3% of operating revenue = misstatement amount 0.5% of operating revenue
General defect: misstatement amount 0.3% of operating revenue
(2) The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Major defects: major misstatements in financial reports that cannot be prevented, discovered and corrected in time due to individual defects or other defects. It mainly includes:
1) Violation of national laws and regulations or normative documents
2) External institutions find that there are significant misstatements in the financial report
3) The supervision of the audit committee and the audit department on the company's external financial report and internal control of financial report is invalid
Important defect: the misstatement in the financial report that cannot be prevented, found and corrected in time due to individual defects or other defects, although it does not reach or exceed the importance level, which should still attract the attention of the management.
General defects: control defects other than the above major defects and important defects.
2. Identification standard of internal control defects in non-financial reporting
The company determines major defects, important defects and general defects according to quantitative standards and qualitative standards respectively.
(1) The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Major defect: misstatement amount = 0.5% of operating revenue
Important defect: 0.3% of operating revenue = misstatement amount 0.5% of operating revenue
General defect: misstatement amount 0.3% of operating revenue
(2) The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Under the following circumstances, it is recognized as a major defect, which mainly includes:
1) Violation of national laws and regulations or normative documents
2) Unscientific major decision-making procedures
3) Lack of system may lead to systematic failure
4) Major or important defects cannot be rectified
5) Other situations that have a significant negative impact on the company and other situations that have a significant negative impact on the company
Other situations are identified as important defects or general defects according to the degree of influence.
(III) 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 reporting, a major defect in internal control of non-financial reporting was found during the reporting period, as follows:
In 2020, the company purchased 306123% equity of Xianyou Derun Investment Co., Ltd. (hereinafter referred to as Derun investment) with 150 million yuan, and the equity proportion was adjusted to 561417% in 2021 to obtain the control right of Derun investment company.
The above transactions have not been audited and evaluated by qualified intermediaries, the pricing basis of equity transactions is insufficient, and there are defects in the internal control related to investment.
In view of the above identified major defects in non-financial reporting internal control, the company has implemented or plans to implement the following rectification measures:
1) Improve the internal control system of foreign investment;
2) Strengthen the training of foreign investment related systems;
3) Strictly follow the scientific investment decision-making procedures;
4) Strengthen the risk management and control before, during and after foreign investment with the help of external intermediaries.
4、 Description of other major matters related to internal control
During the reporting period, the company has no other internal control information that may have a significant impact on investors' understanding of the internal control evaluation report, evaluation of internal control or investment decisions.
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) April 24, 2002
