Nanning Sugar Industry Co., Ltd. n a n i n g s u g a r i n d u s t r y c o, L T D .
Nanning Sugar Industry Co.Ltd(000911)
Internal control evaluation report in 2021
Nanning Sugar Industry Co.Ltd(000911) board of directors:
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 on December 31, 2021 (the benchmark date of the 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 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. We believe 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, it shall be reported in the internal control evaluation report
Nanning Sugar Industry Co., Ltd. n a n i n g s u g a r i n d u s t r y c o, L T D .
On the benchmark date, the company found no significant defects in the internal control of non-financial reporting.
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) scope of internal control evaluation
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: sugar branch directly under the company; Paper products and its subsidiaries. The total assets of the units included in the evaluation scope account for 82.08% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 75.18% of the total operating revenue in the company's consolidated financial statements.
The businesses and matters included in the evaluation scope mainly include: governance structure, organizational structure, development strategy, human resources, corporate culture, social responsibility, internal audit, capital activities, procurement business, asset management, sales business, engineering project, guarantee business, business outsourcing, financial report, comprehensive budget, contract management, internal information transmission, information system, control over subsidiaries, related party transactions, use of raised funds Information disclosure, major investment, etc. Focus on the following high-risk areas: natural disaster risk, price fluctuation risk, strategic goal setting risk, market development risk, competitor risk, scale risk (operation utilization rate), human resources risk, procurement management risk, safety and environmental protection risk, assessment and incentive risk, etc.
The internal control of the above businesses and matters covers the main aspects of the company's operation and management, and there is no major omission.
（2） 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.
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 criteria for defects in internal control over financial reporting
Nanning Sugar Industry Co., Ltd. n a n i n g s u g a r i n d u s t r y c o, L T D .
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 operating results, the quantitative judgment shall be based on the operating revenue. If the amount of misstatement in the financial report that may be caused by the defect alone or together with other defects is less than 0.5% of the operating revenue, it shall be recognized as a general defect; If it exceeds 0.5% but less than 1% of the operating revenue, it is an important defect; If it exceeds 1% of the operating revenue, it is recognized as a major defect.
If the loss that may be caused or caused by the defect of internal control is related to the financial situation, the quantitative judgment shall be based on the total assets. If the amount of misstatement in the financial report that may be caused by the defect alone or together with other defects is less than 0.5% of the total assets, it shall be recognized as a general defect; If it exceeds 0.5% but less than 1% of the total assets, it is recognized as an important defect; If it exceeds 1% of the total assets, it is recognized as a major defect. 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 financial reports include: fraud by directors, supervisors and senior managers of the company; The company corrects the published financial report; Material misstatement in the current financial report found by the certified public accountant but not identified by the company's internal control; The supervision of the audit committee and the audit department on the company's external financial report and internal control over financial report is invalid.
Signs of significant deficiencies in 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 refer to other control defects other than the above major defects and important defects.
2. Identification standard of internal control defects in non-financial reporting
According to the impact on the realization of internal control objectives, the internal control defects of non-financial reports are divided into general defects, important defects and major defects.
The quantitative standard for the evaluation of internal control defects in non-financial reports shall refer to the identification standard of internal control defects in financial reports.
The qualitative criteria for the evaluation of internal control defects in non-financial reports are as follows:
The identification of non-financial report defects is mainly based on the impact and occurrence of defects on the effectiveness of business processes
Nanning Sugar Industry Co., Ltd. n a n i n g s u g a r i n d u s t r y c o, L T D .
Determine the possibility of. 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) rectification of internal control defects in 2020
In 2020, during the reporting period, the company had one important defect in the internal control of financial reporting. After communicating with the accounting firm and implementing rectification measures, the defect had been rectified before December 31, 2020.
(IV) identification and rectification of internal control defects in 2021
1. Identification and rectification of internal control defects in financial reports according to the above identification standards of internal control defects in financial reports, the company had 0 major defects and 0 important defects in internal control of financial reports 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 reports, 0 major defects and 0 important defects in the company's internal control in non-financial reports were found during the reporting period.
Chairman (authorized by the board of directors): moffi city Nanning Sugar Industry Co.Ltd(000911)
April 27, 2022
