Zhejiang Kanglongda Special Protection Technology Co.Ltd(603665)
Performance report of the audit committee of the board of directors in 2021
In accordance with the company law, the standards for corporate governance of listed companies, the basic norms of enterprise internal control, the self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 1 – standardized operation, the articles of association and other laws and regulations and relevant provisions, as a member of the audit committee of the board of directors of Zhejiang Kanglongda Special Protection Technology Co.Ltd(603665) (hereinafter referred to as the “company”), we report on the performance of our duties in 2021 (hereinafter referred to as the “reporting period”):
1、 Basic information of the audit committee
The audit committee of the Fourth Board of directors of the company is composed of three directors: independent director Ms. Cai Haijing, independent director Mr. Zhu Guangxin and director Ms. Chen Weili, of which Ms. Cai Haijing is the chairman. The three members of the audit committee have professional knowledge and business experience and are competent for their duties.
2、 Meetings of the audit committee
During the reporting period, the audit committee held 3 meetings, and all members attended the meeting. The details of the meeting are as follows:
1. On April 26, 2021, the second meeting of the audit committee of the fourth session of the board of directors was held to review and approve the full text and summary of the company’s 2020 annual report, the company’s 2020 financial final account report, the proposal on the company’s 2020 audit institution fees and the renewal of the company’s 2021 audit institution, and the proposal on the company’s 2021 daily connected transactions Proposals such as the full text of the company’s first quarter report in 2021 and the text of the report.
2. On August 25, 2021, the third meeting of the audit committee of the Fourth Board of directors was held to consider and approve the company’s 2021 semi annual financial report and the proposal on the provision for asset impairment.
3. On October 19, 2021, the fourth meeting of the audit committee of the fourth session of the board of directors was held to review and approve the company’s financial report for the third quarter of 2021. It is considered that the company can prepare the company’s report for the third quarter of 2021 based on the basic financial data of the report.
3、 Performance of duties of the audit committee
During the reporting period, the audit committee mainly performed the following duties:
1. Supervise and evaluate the work of external audit institutions
During the annual audit, the audit committee of the board of directors fully communicated with the certified public accountants on the audit work arrangement and urged them to carry out the audit work according to the audit plan. After the annual audit accountant issued the preliminary audit opinion, he held a communication meeting with him to fully communicate with him on Relevant Issues in the annual audit.
The audit committee of the board of directors objectively assessed the independence and professionalism of Zhonghui Certified Public Accountants (special general partnership) and considered that as an external audit institution appointed by the company, it is qualified to engage in securities related businesses. Since the appointment, the Institute has been able to carry out the audit work in strict accordance with relevant laws and regulations and the practice norms of certified public accountants, be diligent and responsible, follow the independent, objective and fair practice standards, the audit opinions issued are objective, and the audit conclusions are in line with the actual situation of the company.
Therefore, it is suggested to the company to renew the appointment of Zhonghui Certified Public Accountants (special general partnership) as the audit institution of the company’s 2021 financial report and internal control audit institution.
2. Guide internal audit
During the reporting period, we earnestly urged and guided the company’s internal auditors to actively carry out relevant work, implement the requirements of the internal audit system and internal audit plan, and put forward guiding opinions on the problems arising from internal audit to ensure the orderly development of the company’s business activities.
3. Review the financial reports of listed companies and express opinions on them
During the reporting period, the audit committee of the board of directors carefully reviewed the company’s financial report for the first quarter of 2021, the financial report for the half year of 2021, the financial report for the third quarter of 2021 and other reports, supervised the preparation of the above reports in the whole process, and issued opinions: we believe that the company’s financial report is true, accurate and complete, and the above reports reflect the company’s operating results and financial status.
4. Evaluate the effectiveness of internal control
During the reporting period, we tracked and supervised the construction of the company’s internal control management system in accordance with the relevant provisions of the guidelines for self discipline supervision of listed companies of Shanghai Stock Exchange No. 1 – standardized operation. In 2021, the company closely focused on the construction requirements of the internal control management system, established and improved the internal control management system and improved the company’s rules and regulations. At the same time, the company carried out internal control self-examination, and we put forward corresponding guidance for the problems in the self-examination. We believe that the company has established a relatively perfect internal control management system, and various internal control management systems have been effectively implemented.
5. Coordinate the communication between management, internal audit department and relevant departments and external audit institutions
The audit committee of the board of directors actively coordinates the company to coordinate the communication and exchange between the management, internal audit department, finance department and other relevant departments and accounting firms through regular meetings, irregular meetings or other communication methods, cooperate with the work of accounting firms, improve audit efficiency, effectively promote the optimization of internal audit work and give full play to the function of supervision.
4、 Overall evaluation
During the reporting period, in the spirit of being responsible to the company and all shareholders, we performed our duties in strict accordance with the guidelines for self regulatory supervision of listed companies on Shanghai Stock Exchange No. 1 – standardized operation, the articles of association, the working rules of the audit committee of the board of directors and other relevant provisions, made full use of our professional knowledge, effectively supervised the external audit of listed companies, guided and supervised the internal audit of the company, Improve the company’s internal control system and ensure the authenticity, accuracy and integrity of financial reports.
Looking forward to 2022, we will continue to do a good job in the work of the audit committee, give full play to the supervision function, continue to supervise the company’s financial report audit, internal control system improvement and internal control inspection, strengthen communication with the company’s management, promote the stable and healthy operation and standardized operation of the company, and earnestly safeguard the common interests of the company and all shareholders.
It is hereby reported.
Zhejiang Kanglongda Special Protection Technology Co.Ltd(603665) board of directors audit committee April 28, 2022
