Company code: Shanghai Tianyong Engineering Co.Ltd(603895) company abbreviation: Shanghai Tianyong Engineering Co.Ltd(603895)
Shanghai Tianyong Engineering Co.Ltd(603895)
Internal control evaluation report in 2021
Shanghai Tianyong Engineering Co.Ltd(603895) 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 the company’s (hereinafter referred to as the company’s) internal control system and evaluation methods, and 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 internal control evaluation report). I 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. II Internal control evaluation conclusion 1 On the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting
□ yes √ no
2. Evaluation conclusion of internal control over financial reporting
√ valid □ invalid
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. 3. Whether major defects in internal control over non-financial reporting are found
□ yes √ no
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. 4. Factors affecting the evaluation conclusion of internal control effectiveness from the base date of internal control evaluation report to the date of issuance of 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. 5. Whether the internal control audit opinion is consistent with the company’s evaluation conclusion on the effectiveness of internal control over financial reporting
√ yes □ No 6 Whether the disclosure of major defects in internal control of non-financial reports in the internal control audit report is consistent with the disclosure of the company’s internal control evaluation report √ yes □ no III 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. 1. The main units included in the evaluation scope include: Shanghai Tianyong Engineering Co.Ltd(603895) , Shanghai tianruilange Power Machinery Testing Technology Co., Ltd., Tianyong lithium Technology (Taicang) Co., Ltd., Shanghai Rongyin Intelligent Technology Co., Ltd., Shanghai Zhongke Shanghai Tianyong Engineering Co.Ltd(603895) Technology Co., Ltd., Tianyong lithium Technology (Dongguan) Co., Ltd., Jiangsu Shanghai Tianyong Engineering Co.Ltd(603895) Engineering Co., Ltd., Guangzhou Tianyong Chenwei Intelligent Equipment Co., Ltd Guangzhou Lange Intelligent Equipment Co., Ltd. and Jiangsu Tianyong angyi Intelligent Engineering Co., Ltd. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The ratio of the total assets of the units included in the evaluation scope to the total assets of the company’s consolidated financial statements 100
The total operating income of the units included in the evaluation scope accounts for 100% of the total operating income in the company’s consolidated financial statements
3. The main operations and matters included in the scope of evaluation include:
Including but not limited to: organizational structure,, development strategy, corporate culture and human resource management, fund activity management, procurement business management, asset management, sales business management, engineering project management, guarantee business management, contract management, production management, information system, financial report management and other main business processes. 4. High risk areas of focus mainly include:
Market risk, project construction risk, technological innovation risk, cost control risk, accounts receivable management risk, sales strategy risk and internal control system construction risk. 5. 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. Is there any major omission □ yes √ No 6 Is there a statutory exemption
□ yes √ no
7. Other explanatory matters
None (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 internal control system. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
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. 2. Identification standard of internal control defects in financial reporting
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Total profit misstatement ≥ 5% of total profit, 3% of total profit ≤ misstatement profit misstatement 3% of total profit
Total 5%
Potential misstatement of total assets ≥ 8% of total assets ≤ 5% of total assets misstatement of assets 5% of total assets
Total reported 8%
Potential misstatement of operating income ≥ 1% of total operating income, 0.5% of total operating income ≤ misstatement 0.5% of total operating income, misstatement 1% of total operating income
Description: None
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major defects 1. Ineffective control environment 2. Fraud by directors, supervisors and senior managers of the company and causing important losses and adverse effects to the enterprise 3. Major misstatements found in external audit were not first found by the company 4. Ineffective supervision of the company’s internal control by the board of directors or its authorized institutions and internal audit departments “
Significant defects 1. Failure to select and apply accounting policies in accordance with GAAP 2. Failure to establish anti fraud procedures and control measures 3. Failure to establish corresponding control mechanism or implement and no corresponding compensatory control over the accounting treatment of unconventional or special transactions 4 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 guarantee that the prepared financial statements achieve the goal of authenticity and accuracy “
General defects and other internal control defects that do not constitute major defects and important defect standards
Note: none 3 Identification standard of internal control defects in non-financial reporting
The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Direct property loss amount ≥ RMB 10 million yuan ≤ loss amount RMB 5 million yuan RMB 10 million yuan
Description: None
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major defects 1. Major mistakes caused by decision-making procedures 2. Lack of institutional control or systematic failure of important businesses and lack of effective compensatory control 3. Serious loss of middle and senior managers and senior technicians 4. Results of internal control evaluation, especially major defects have not been rectified 5. Other situations that have a significant negative impact on the company “
Important defects 1. General mistakes caused by decision-making procedures 2. Defects in important business systems or systems 3. Serious loss of business personnel in key positions 4. The results of internal control evaluation, especially important defects, have not been rectified 5. Other situations that have a great negative impact on the company “
General defects 1. Inefficient decision-making procedure 2. Defects in general business system or system 3. Serious loss of business personnel in general posts 4. General defects have not been rectified “
Note: none (III) Identification and rectification of internal control defects 1 Identification and rectification of internal control defects in financial reporting 1.1 Major defects
Whether the company has major defects in internal control over financial reporting during the reporting period □ yes √ no 1.2 Important defects
Whether the company has significant defects in internal control over financial reporting during the reporting period □ yes √ no 1.3 General defect
None 1.4 After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting that have not been rectified □ yes √ no 1.5 After the above rectification, on the benchmark date of the internal control evaluation report, whether the company has any important defects in the internal control of financial reporting that have not been rectified □ yes √ No 2 Identification and rectification of internal control defects in non-financial reporting 2.1 Major defects
Whether the company found any major defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.2 Important defects
□ yes √ no 2.3 General defect
There are general defects in the internal control process of non-financial report in the daily operation. Since the company’s internal control has established a dual supervision mechanism of self-evaluation and internal audit, corrective measures shall be taken once the defects are found and confirmed to make the risk controllable and have no material impact on the operation of the company’s internal control system.
2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the non-financial reporting internal control that have not been rectified □ yes √ no 2.5 After the above rectification, on the benchmark date of the internal control evaluation report, whether the company finds any important defects in non-financial reporting internal control that have not been rectified □ yes √ no IV Description of other major matters related to internal control 1 Rectification of internal control defects in the previous year □ applicable √ not applicable 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
According to the identification of major and important defects in the internal control of the company’s financial report and non-financial report in 2020, there are no major and important defects in the internal control of financial report and non-financial report on the benchmark date of the internal control evaluation report. In 2020, the company’s internal control system operated well, the information disclosure and financial report were true and reliable, the assets were safe, the business was legal and compliant, and the goal of the company’s internal control was achieved. There were no major defects in the design or implementation of internal control, which could reasonably ensure the achievement of the goal of internal control. In 2021, the company will continue to improve the construction of internal control system, sort out and optimize business execution processes, improve the level of internal control management, effectively prevent various risks and promote the healthy and sustainable development of the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Rong Junlin Shanghai Tianyong Engineering Co.Ltd(603895) April 29, 2022
