Important Statement
According to the provisions of the enterprise internal control standard system, establishing, improving, and effectively implementing internal controls, evaluating their effectiveness, and truthfully disclosing the internal control evaluation report is the responsibility of the company's board of directors. The audit committee supervises the establishment and implementation of internal controls by the board. The management is responsible for organizing and leading the daily operation of internal controls. The company's directors and senior management guarantee that the content of this report does not contain any false records, misleading statements, or significant omissions, and bear individual and joint legal responsibility for the truthfulness, accuracy, and completeness of the report's content. The goal of the company's internal controls is to reasonably ensure that business management is legal and compliant, assets are secure, financial reporting and related information are true and complete, operational efficiency and effectiveness are improved, and the development strategy is promoted. Due to the inherent limitations of internal controls, they can only provide reasonable assurance of achieving the above objectives. Additionally, changes in circumstances may render internal controls inappropriate or reduce compliance with control policies and procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.
Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in financial reporting internal controls, as of the internal control evaluation report benchmark date, there are no significant deficiencies in financial reporting internal controls. The board believes that the company has maintained effective financial reporting internal controls in all material respects in accordance with the requirements of the enterprise internal control standard system and related regulations. Based on the identification of significant deficiencies in non-financial reporting internal controls, as of the internal control evaluation report benchmark date, the company has not identified any significant deficiencies in non-financial reporting internal controls. No factors affecting the evaluation conclusion of internal control effectiveness have occurred between the internal control evaluation report benchmark date and the issuance date of the internal control evaluation report.
Internal Control Evaluation Work Situation
(1) Scope of Internal Control Evaluation
Chongqing International Composite Materials Co., Ltd. determines the main units, businesses, and high-risk areas included in the evaluation scope based on a risk-oriented principle. The total assets of the units included in the evaluation scope account for 100% of the total assets in the company's consolidated financial statements, and the total operating income accounts for 100% of the total operating income in the company's consolidated financial statements. The main matters included in the evaluation scope include: corporate governance structure, internal organizational structure, incompatible duty separation controls, authorization and approval controls, accounting system controls, asset protection controls, budget controls, operational analysis controls, performance evaluation controls, and information and communication controls. The main businesses included in the evaluation scope are: sales and collections, procurement and payments, inventory management, fixed asset management, fund management, investment and financing management, human resource management, information system management, and information disclosure management. The high-risk areas focused on include inventory management, asset management, tax management, accounts receivable collection, and information disclosure. The above-mentioned units, businesses, matters, and high-risk areas included in the evaluation scope cover the main aspects of the company's operational management, with no significant omissions.