Nafine Chemical Industry Group Co.Ltd(000737) proposed special audit report on profit and loss during asset delivery and transition period from September 2020 to October 2021
Xksbz [2021] No. zg11970
Nafine Chemical Industry Group Co.Ltd(000737)
Proposed asset audit report and simulated financial statements
(from September 1, 2020 to October 31, 2021)
Table of contents page
Audit report 1-5 two, simulated financial statements
Proposed assets consolidated balance sheet and parent company balance sheet 1-4 proposed assets transition period consolidated income statement and parent company income statement 5-6 notes to financial statements 1-102
audit report
Xin Hui Shi Bao Zi [2021] No. zg11970 Nafine Chemical Industry Group Co.Ltd(000737) all shareholders:
1、 Audit opinion
We have audited Nafine Chemical Industry Group Co.Ltd(000737) (hereinafter referred to as Nafine Chemical Industry Group Co.Ltd(000737) ) the proposed simulated financial statements of assets (hereinafter referred to as the simulated financial statements) prepared on the basis of preparation described in Note 2 to the simulated financial statements, including the consolidated and parent company’s simulated balance sheets as of October 31, 2021, Consolidated and parent company’s simulated income statement and notes to relevant simulated financial statements from September 2020 to October 2021.
In our opinion, the attached simulated financial statements are prepared on the basis described in Note 2 to the simulated financial statements in all material aspects, and fairly reflect the consolidated and simulated financial position of the parent company as of October 31, 2021 and the consolidated and simulated operating results of the parent company from September 2020 to October 2021.
2、 Basis for forming audit opinions
We conducted our audit in accordance with the auditing standards for Chinese certified public accountants. The “responsibilities of certified public accountants for the audit of simulated financial statements” in the audit report further expounds our responsibilities under these standards. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of Nafine Chemical Industry Group Co.Ltd(000737) and have fulfilled other responsibilities in terms of professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate, which provides a basis for our audit opinion. 3、 Key audit matters
Key audit matters are the most important matters we believe to audit the simulated financial statements according to our professional judgment. The response to these matters is based on the overall audit of the simulated financial statements and the formation of audit opinions. We will not express separate opinions on these matters.
The key audit matters identified in our audit are summarized as follows:
Key audit matters how to deal with them in the audit
For the accounting policy of revenue recognition, see “note III. (XXV) revenue in the audit process of revenue recognition”, The following procedures have been implemented for the collection: for the disclosure of classification, see “note v. (III) (1) understand and test the sales and collection cycle x) operating revenue and operating cost, the control department has note XIII for the design and operation of internal control, (V) segment information and effectiveness evaluation; note XIV, (V) operating revenue and (2) Combined with the sales and operating costs of various businesses or products of the company “. The main terms of the sales contract, review the management’s evaluation of the time point and amount of revenue recognition, and check the product categories reported to the company for sales, including the adequacy and completeness of the relevant disclosures in the table; (3) implement substantive procedures for sodium sulphate, barium sulfate, alkali sulfide, etc. (3) check the sales contracts of important chemical products, sulfonic acid, AES and other materials, as well as the corresponding receipt and shipment list products, the sales destination, including documents such as China and invoices, analyze the contract terms, and inspect and export them abroad. Check whether the conditions for revenue recognition are met and whether the time point for revenue recognition, such as the notes to the simulated consolidated financial statements, is correct;
From September 2020 to 2021 (4), analyze the composition of major customers, pay attention to the main business income or abnormal customers in major October, and analyze the reasonable transaction amount of RMB 1299700900. And necessity, implement interview procedures to understand the authenticity and rationality of the transaction;
Revenue is one of the key performance indicators of the company (5). Revenue recognition is one of the transactions recorded before and after the balance sheet. It is easy to simulate finance. Select samples and have a significant impact according to relevant transaction contracts and statements. There are sales invoices, shipping documents The customer’s receipt or the management manipulated the line comparison of the revenue recognition time point in order to achieve the specific objectives or the expectations of the details of relevant documents such as transport documents, so as to assess whether the relevant revenue has been rooted in the inherent risk. We recorded the agreement of the company’s receipt contract terms in the appropriate revenue recognition as the key audit matter. Financial reporting period.
4、 Responsibilities of management and governance for simulated financial statements
Nafine Chemical Industry Group Co.Ltd(000737) the management (hereinafter referred to as the management) is responsible for preparing the simulated financial statements in accordance with the accounting standards for business enterprises to achieve a fair reflection, and designing, implementing and maintaining necessary internal control so that the simulated financial statements are free from major misstatement caused by fraud or error.
When preparing the simulated financial statements, the management is responsible for assessing the going concern ability of Nafine Chemical Industry Group Co.Ltd(000737) , disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless it plans to liquidate, terminate operation or has no other realistic choice.
The governance layer is responsible for supervising the simulated financial reporting process of Nafine Chemical Industry Group Co.Ltd(000737) .
5、 Responsibilities of certified public accountants for the audit of simulated financial statements
Our goal is to obtain reasonable assurance on whether the simulated financial statements are free from material misstatement due to fraud or error, and issue an audit report containing audit opinions. Reasonable assurance is a high-level assurance, but it does not guarantee that an audit performed in accordance with audit standards can always be found when a major misstatement exists. Misstatement may be caused by fraud or error. If it is reasonably expected that the misstatement alone or in summary may affect the economic decisions made by the users of the simulated financial statements based on the simulated financial statements, the misstatement is generally considered to be significant.
In the process of performing audit work in accordance with audit standards, we use professional judgment and maintain professional doubt. At the same time, we also carry out the following work:
(I) identify and assess the risks of material misstatement of simulated financial statements caused by fraud or error, design and implement audit procedures to deal with these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions. As fraud may involve collusion, forgery, intentional omission, misrepresentation or override of internal control, the risk of failure to find material misstatement caused by fraud is higher than that caused by error. (II) understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express opinions on the effectiveness of internal control.
(III) evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(IV) draw a conclusion on the appropriateness of the management’s use of the going concern assumption. At the same time, according to the audit evidence obtained, draw a conclusion on whether there is significant uncertainty in the matters or circumstances that may lead to major doubts about Nafine Chemical Industry Group Co.Ltd(000737) going concern ability. If we conclude that there is significant uncertainty, the auditing standards require us to draw the attention of statement users to the relevant disclosures in the simulated financial statements in the audit report; If the disclosure is insufficient, we should express a non unqualified opinion. Our conclusions are based on the information available as of the date of the audit report. However, future events or circumstances may result in Nafine Chemical Industry Group Co.Ltd(000737) being unable to continue as a going concern.
(V) evaluate the overall presentation (including disclosure), structure and content of the simulated financial statements, and evaluate whether the simulated financial statements fairly reflect relevant transactions and events.
(VI) obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Nafine Chemical Industry Group Co.Ltd(000737) to express an audit opinion on the simulated consolidated financial statements. We are responsible for guiding, supervising and implementing the group audit, and assume full responsibility for the audit opinion.
We communicated with the management on the planned audit scope, schedule and major audit findings, including the internal control defects that we identified in the audit.
We also provide a statement to the management that we have complied with the professional ethics requirements related to independence, and communicate with the management all relationships and other matters that may reasonably be considered to affect our independence, as well as relevant preventive measures (if applicable).
From the matters communicated with the management, we determine which matters are most important for the audit of simulated financial statements, thus constituting key audit matters. We describe these matters in the audit report, unless laws and regulations prohibit the public disclosure of these matters, or in rare cases, if the negative consequences of communicating a matter in the audit report are reasonably expected to exceed the benefits in the public interest, we determine that we should not communicate the matter in the audit report.
6、 Preparation basis and restrictions on distribution and use
We remind users of the simulated financial statements to pay attention to the description of the preparation basis of note 2 to the simulated financial statements. This report is only for the purpose of Nafine Chemical Industry Group Co.Ltd(000737) major asset replacement and is not applicable to other purposes. The consequences caused by improper use have nothing to do with the certified public accountants and accounting firms performing the audit business. The contents of this paragraph shall not affect the issued audit opinion.
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China certified public accountant of Lixin certified public accountants: Zhang Junshu
(special general partnership)
Chinese certified public accountant: Zhang Jiahui
Shanghai, China December 15, 2021
Nafine Chemical Industry Group Co.Ltd(000737)
The proposed assets simulate the consolidated balance sheet
(unless otherwise specified, the monetary unit is RMB)
Note V assets October 31, 2021 August 31, 2020
Current assets:
Monetary capital (I) 195072261.17 203174487.30
Settlement provision
Lending funds
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable (II) 87226870 39 112,582,706. fifty-six
Accounts receivable financing (III) 16523123.49 24147362 08
Prepayment (IV) 34799958.63 32117326.68
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables (V) 9779302.63 11334318.45
Purchase of resale financial assets
Inventory (VI) 118609200 50 100,360,609.03
Contract assets
Assets held for sale
Non current assets due within one year
Other current assets (VII) 7049287.60 3849238.34
Total current assets 469060004.41 487566048.44
Non current assets:
Loans and advances
Debt investment
Other debt investment
long-term receivables
Long term equity investment (Ⅷ) 10309905.93 8406728.18
Investment in other equity instruments (IX) 127117200.00 129100718.03
Other non current financial assets
Investment real estate (x) 3
