Guangdong Enpack Packaging Co.Ltd(002846)
Self evaluation report on internal control in 2021
Guangdong Enpack Packaging Co.Ltd(002846) 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 standard system), combined with the internal control system and evaluation methods of Guangdong Enpack Packaging Co.Ltd(002846) (hereinafter referred to as "the company" or "the company"), on the basis of daily and special supervision of internal control, we evaluated the effectiveness of the company's internal control in 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, 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) 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 scope of evaluation are the company and its subsidiaries within the scope of merger.
The main businesses and matters included in the evaluation scope determined by the company according to the risk-oriented principle include: governance structure, organizational structure, internal audit, human resources, corporate culture, capital activities, procurement business, production management, asset management, sales business, foreign investment, related transactions, guarantee business, financial report, information and communication, etc, The evaluation scope covers the core business processes and main professional modules of the company and its subsidiaries. The specific contents are as follows:
1. Governance structure
In accordance with the provisions of the company law, the securities law, the articles of association and relevant laws and regulations, the company has established and improved the working system of the general meeting of shareholders, the board of directors, the board of supervisors, independent directors and the Secretary of the board of directors, and formulated various rules of procedure. The organizational structure is independent of each other, with clear rights and responsibilities and mutual supervision, which effectively ensures the standardized operation of the company and the orderly progress of various production and business activities. The general meeting of shareholders, the board of directors, the board of supervisors and the management of the company perform their respective duties and operate in a standardized manner.
In order to effectively improve the scientificity of the decision-making of the board of directors, the board of directors of the company has four special committees responsible for special work: (1) the strategy committee is responsible for studying and making suggestions on the company's long-term development strategy and major investment decisions; (2) The audit committee is responsible for the communication, supervision and verification of internal and external audit of the company; (3) The nomination committee is responsible for selecting and making suggestions on the candidates, selection criteria and procedures of directors and managers of the company; (4) The remuneration and assessment committee is responsible for formulating and assessing the assessment standards of the company's directors and managers, and formulating and reviewing the remuneration policies and precautions of the company's directors and managers.
2. Organization
According to its own production and operation characteristics and requirements, the company has established functional departments matching the management framework and system structure, clearly defined the main responsibilities of each department, restrained each other, and played a vital role in organizing production, expanding scale, improving quality, increasing efficiency and ensuring safety. The company performs necessary supervision on the operation, capital, personnel, finance and other major aspects of the wholly-owned subsidiary through rigorous institutional arrangements in accordance with the provisions of laws and regulations and the articles of association.
3. Internal audit
The company has formulated the internal audit system and other internal control rules and regulations. The board of directors has an audit committee. The Audit Department of the company independently carries out the company's audit and supervision under the direct leadership of the audit committee and is directly responsible to the board of directors. The audit department has three full-time personnel to audit and verify the financial revenue and expenditure and production and operation activities of various internal departments of the company, make reasonable evaluation on the authenticity, legitimacy and rationality of economic benefits, and supervise and inspect the internal management system of the company and the internal control system of various departments.
4. Human resources
The company advocates unity and fraternity, honest life, serious work and dare to take responsibility; Adhere to the principle of being a man and doing things in good faith. The company adheres to the talent concept of "people-oriented and simultaneous development of morality and talent", and employees are the most precious wealth of the company. The company respects the value of every employee, cares about the improvement of employees' professional ability, the growth of employees in the organization and the quality of employees' work and life, and provides satisfactory returns and broad career development space for employees. The company attaches importance to the construction and training of talent team, realizes the common progress of the enterprise and employees, establishes a perfect employee training system, and formulates a detailed employee training plan according to the needs of employee career development. The company has successively formulated a number of systematic and scientific human resource management systems such as employee manual, salary management measures and personnel management system, which have detailed provisions on personnel employment, training, dismissal and resignation, salary, welfare guarantee, performance appraisal, internal transfer, position promotion and vacation. The whole staff assessment system has been established to evaluate the ability, attitude and performance of employees, and the assessment results are linked to personal salary.
5. Corporate culture
The company adheres to the core values of "keep improving, stop at perfection", adheres to the business philosophy of "customer first, quality first", outputs high-quality products through scientific management and advanced equipment, adopts leading technology, and strives to become the benchmark and leading enterprise in the industry, the preferred supplier for customers, the ideal employer for employees and the company with a sense of social responsibility. While achieving good economic benefits, Make positive contributions to the country's economic construction and social stability.
6. Financial activities
According to the company's monetary fund revenue and expenditure, fund operation management and other specific conditions, a series of norms and systems have been formulated. Through the company's office system, strict authorization and approval procedures have been established for the revenue and expenditure business of monetary funds, and incompatible posts are independent and restrict each other.
In terms of fund management, the company is equipped with a fund management department to make reasonable plans for fund use and financing, reduce capital costs and control financial risks.
7. Procurement business
The company makes reasonable planning for the procurement of raw materials, office supplies and other materials, defines the rights and responsibilities of relevant departments and personnel and the procedures of requisition, approval, procurement, acceptance and payment, and implements the separation, restriction and supervision of incompatible posts. Strictly control the purchase quantity and quality, reduce the inventory cost, speed up the inventory turnover and reduce the purchase risk. 8. Production management
The company formulates corresponding post responsibility system and safety production management system according to the actual production situation, and defines the production operation procedures, main contents, responsibilities of production cooperation departments, etc. In terms of daily monitoring of product quality, the company has specially formulated the quality manual to implement a strict quality inspection system in the on-site production process. The company's production links are checked layer by layer, and the safety responsibility is implemented to ensure that the company's safe production has no accidents.
9. Asset management
According to the fixed assets management system formulated by the company, the company implements strict authorization and approval procedures for the purchase of fixed assets and project management, and establishes the maintenance system of daily maintenance and regular overhaul of fixed assets, the budget management system of projects under construction, the final account review, completion acceptance and assessment management system of engineering projects, so as to clarify the responsibilities of relevant departments and personnel and ensure the safety and integrity of fixed assets.
10. Sales business
The company's sales management takes contract management, customer management and sales staff incentive as the core, and has formulated and implemented business operation norms and guidelines such as management regulations on major contract review in combination with actual needs. In order to arouse the enthusiasm of sales personnel, the quality of customer service, timeliness and safety of payment recovery are directly linked to the performance of sales personnel to avoid the risk of bad debts to the greatest extent.
11. Foreign investment
The finance department and Securities Affairs Department of the company are fully responsible for the feasibility study and evaluation of the company's investment projects, and supervise the progress and implementation of the investment projects. In order to ensure the compliance, safety and efficiency of the internal control of the company's investment management, the company has formulated the measures for the management of major investment.
12. Related party transactions
In accordance with the relevant provisions of the Listing Rules of Shenzhen Stock Exchange, the company has formulated the measures for the administration of connected transactions, defined the contents and pricing principles of connected transactions, standardized the decision-making procedures, approval authority and information disclosure requirements of connected transactions, and ensured the legitimate rights and interests of the company and shareholders.
13. Guarantee business
The company has formulated the measures for the administration of external guarantees, which strictly stipulates the approval procedures and authority of external guarantees to ensure effective control of financial risks caused by guarantees. So far, the company has not committed any illegal guarantee.
14. Financial Report
The company has established an independent accounting system and set up an accounting department to be responsible for the preparation of financial reports and accounting treatment. In accordance with accounting laws and regulations and the national unified accounting standards system, the company defines relevant work processes and requirements and implements the responsibility system. The internal audit department and the audit committee of the board of directors conduct internal supervision and audit on the effectiveness of financial reports and internal control, and evaluate the professional competence, audit work, audit opinions and reports of the audit institution, so as to ensure the legality, compliance, authenticity and completeness of financial reports.
15. Information and communication
The company has formulated the internal reporting system of major information to clarify the procedures for the collection, processing and transmission of information related to internal control, ensure the timely communication of information and promote the effective operation of internal control. All kinds of internal and external information collected shall be submitted to each functional department for screening, checking and sorting according to the type of information, and necessary communication and feedback shall be carried out according to the source of information, so as to improve the reliability and usefulness of information; Timely deliver important information to the board of directors, the board of supervisors and the management of the company; The problems found in the process of information communication shall be handled in time. The company is equipped with professional technicians to control the development and maintenance, access and change, data input and output, document storage and custody, network security and other aspects of the information system, so as to ensure the safe and stable operation of the information system.
The high-risk areas of focus include capital activities, procurement business, sales business, etc.
The above-mentioned units, businesses and matters included in the scope of evaluation and price 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 in accordance with the basic norms of enterprise internal control, guidelines for the evaluation of enterprise internal control, guidelines for the application of enterprise internal control, internal control and relevant systems and evaluation methods formulated by the enterprise.
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 standards of internal control defects in financial reports
(1) Quantitative standard
The standard adopted by the company directly depends on the property loss caused by the internal control defect, and the ratio of the loss to the total amount of potential misstatement items in the company's consolidated statements of the previous year is taken as the judgment standard.
Potential misstatement project major defects important defects general defects
Potential misstatement ≥ 2% of total operating revenue ≤ potential misstatement 5% of total operating revenue; misstatement 2% of total revenue
5%
Potential misstatement of total profits ≥ 3% of total profits ≤ potential misstatement 5% of total profits 3% of total profits
Potential misstatement of total assets ≥ 1% of total assets ≤ potential misstatement 2.5% of total assets 1% of 2.5% of total assets
When a potential misstatement caused by an internal control defect affects multiple indicators, the nature of the defect shall be determined according to the lower principle. (2) The qualitative criteria for the evaluation of defects in internal control over financial reporting determined by the company are as follows: ① there are major defects in internal control over financial reporting:
The supervision of the company's audit committee and internal audit institutions on internal control is invalid;
The defect found that the directors, supervisors and senior managers committed major fraud;
The company makes significant corrections to the published financial statements;
The certified public accountant finds that there is a material misstatement in the current financial statements, but the internal control fails to find the misstatement in the operation process;
Major defects that have been found and reported to the management have not been corrected within a reasonable time;
Other defects that may affect the correct judgment of report users.
② There are important defects in the internal control of financial reporting:
The severity of individual defects or combined with other defects is lower than that of major defects, but it may still cause the company to deviate from the control objectives.
③ General defects:
Other internal control deficiencies that do not constitute major defects and important defect standards
