Shenzhen Sea Star Technology Co.Ltd(002137)
Self evaluation report on internal control in 2021
Shenzhen Sea Star Technology Co.Ltd(002137) 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 the company's (hereinafter referred to as the company's) 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 company'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, no major defects in the company's internal control over financial reporting were found on the benchmark date of the internal control evaluation report. The board of Directors considers that the company has maintained effective internal control in all aspects in accordance with the relevant provisions of the company's internal control system.
According to the identification of major defects in the company's internal control over non-financial reports, no major defects in the company's internal control over non-financial reports were found 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 the company and its holding enterprises. The total assets of the units included in the evaluation scope account for 71.69% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 99.53% of the total operating revenue in the company's consolidated financial statements; The main businesses and matters included in the evaluation scope include: development strategy, human resources, corporate culture, social responsibility, sales business, procurement business, asset management, capital activities, financial report, contract management, etc; The high-risk areas of focus mainly include: sales business, procurement business, contract management, major investment and financial reporting.
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 relevant internal rules and regulations of the company.
The board of directors of the company studied and determined the specific identification standards of internal control defects applicable to the company for the internal control of financial reports and non-financial reports respectively according to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, combined with the factors such as the company's size, industry characteristics, risk preference and risk tolerance, and kept 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
1) The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
If the loss that may be caused or caused by the defect of internal control is related to the income statement, it shall be measured by the operating revenue index:
Defect classification defect influence
The amount of misstatement in the financial report with major defects 2% of the operating revenue
1% of the operating income of major defects the amount of misstatement in the financial report ≤ 2% of the operating income
The amount of misstatement in the general defect financial report ≤ 1% of the operating revenue
If the loss that may be caused or caused by internal control defect is related to asset management, it shall be measured by the total asset index:
Defect classification defect influence
The amount of misstatement in the financial report of major defects 1% of the total assets
0.5% of the total amount of important defective assets the amount of misstatement in the financial report ≤ 1% of the total assets
Amount of misstatement in general defect financial report ≤ 0.5% of total assets
2) The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Signs of major defects in internal control over financial reporting include: fraud by directors, supervisors and senior managers of the company and causing significant financial losses to the company; The certified public accountant finds that there are significant misstatements in the current financial statements, but the internal control fails to find misstatements in the operation process; The supervision of the board of directors or its authorized institution and internal audit department on the company's internal control is invalid.
Signs of significant deficiencies in internal control over financial reporting include: failure to select and apply accounting policies in accordance with generally accepted accounting standards; Failure to establish anti fraud procedures and control measures; No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions, and there is no corresponding compensatory control; There are one or more defects in the control of the financial reporting process at the end of the period, and it can not reasonably ensure that the prepared financial statements achieve the true and complete goal.
General defects in internal control over financial reporting refer to other defects in internal control over financial reporting that do not constitute major defects and important defects.
2. Identification standard of internal control defects in non-financial reporting
1) The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
The quantitative standard for the evaluation of internal control defects in non-financial reports shall be implemented with reference to the quantitative standard for the evaluation of internal control defects in financial reports.
2) The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
The identification of defects in non-financial reports is mainly based on the impact of defects on business processes and the possibility of occurrence.
If the possibility of defects is small, it will reduce the work efficiency or effect, or increase the uncertainty of the effect, or make it deviate from the expected goal, which is a general defect;
If the possibility of defects is high, it will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, or make it significantly deviate from the expected goal as an important defect;
If the possibility of defects is high, it will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, or make it seriously deviate from the expected goal, which is a major defect.
(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, no major defects and important defects in the company's internal control over financial reporting were found 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, no major defects and important defects in the company's internal control in non-financial reporting were found during the reporting period.
4、 Description of other major matters related to internal control
The internal control shall adapt to the company's business scale, business scope, competition and risk level, and shall be adjusted in time with the changes of the situation. In actual work, there will be some internal control system updates or control links that are not implemented in place. The company will continue to widely publicize the internal control system, strengthen training, improve the internal control awareness of employees, and promote their better implementation in operation, management and daily work. In the future, the company will continue to improve the governance mechanism and effective corporate governance structure, improve the internal control system, standardize the implementation of the internal control system, and strengthen the supervision and inspection of internal control, so as to promote the healthy and sustainable development of the company.
Shenzhen Sea Star Technology Co.Ltd(002137) board of directors
April 22, 2022
