China Real Estate Giants Evergrande Group released internal control evaluation and other results, emphasizing that there are no major issues and found internal control systems and procedures that have not found in the company's financial reports and information disclosure.
According to Observer.com, China Evergrande issued an announcement on Monday (August 21) to report the main results of the internal control evaluation and the review of certain issues raised by the former auditors.
Announcement shows that on August 30, 2022, the Hong Kong Exchange issued an additional re -trading guidelines on Evergrande's exchanges.Procedures to fulfill the responsibilities under the listing rules.
On January 16, 2023, Evergrande issued an announcement saying that the company replaced the nuclear division and resigned as the Hong Kong PricewaterhouseCopheron Accounting Firm.The announcement of the Hong Kong Stock Exchange's additional trading guidance appointed Roshen Mei Consulting Consultant Co., Ltd. (referred to as Luoshenmei) to review the internal control system and procedures of Evergrande, as well as the Guohao Hua (Hong Kong) Risk Management Co., Ltd. (Guofu Hao for shortHua) review certain issues raised by the former auditor.
The announcement disclosed that the problems found about Roshenmei for the evaluation of the internal control system include: Evergrande has not established a conflict of interest in interest to regulate the moral behavior process of employees, management and directors;And the management system, monitoring Evergrande's observance of corporate governance rules and relevant regulations under the rules of the listing, including inside information, major information, transactions that must be announced, related transactions, and other information recognition of disclosure transactions, Monitoring and disclosure procedures; no board nomination policies have been established to regulate the internal monitoring environment of enterprises such as nominations and selection directors.
According to the announcement, the evaluation did not find major problems in the company's financial reporting and information disclosure internal control system and procedures.
The control of the process level, Luoshenmei pointed out that Evergrande has not established a written policy to regulate the evaluation process of new tenants;The collection process, but the commercial group has not established a ledger for recording the progress and situation of the arrears of the arrears.
The announcement stated that Evergrande has established the management measures of the group headquarters and the project company management measures, which includes the disposal process, approval authority and land contract performance process of project companies, project plots, but do not include non -real estate typesThe investment project management system; at present, Evergrande's funding center will organize the regional company's funding department and the marketing brand department to meet the expected new financing and mortgage funds in the next month, but it has not been managed by mobile funds.Develop a written policy.
In response to the above problems and the corresponding suggestions, Evergrande responded one by one in the announcement, and said that it would rectify accordingly according to the suggestions, such as funds, cash, and financing management.Evergrande said that before the company had the problem of capital liquidity, the financial center and fund centers would coordinate the cash flow balance prediction forms of weekly or monthly.At the same time, the Group issues the funds payment plan every month, statistics and management of the financial center, funding center and comprehensive management center, and follow up the implementation of the plan.At present, the funds of companies in various regional companies are generally managed and coordinated by the government, and they are fully cooperated with the related work of the insurance delivery building.
The announcement also mentioned that Evergrande will formulate the cash flow budget and execution management measures according to the suggestion, requiring regional companies and subsidiaries to formulate annual cash flow forecasting forms each year, and report to the financial center and fund centers.Form the annual cash flow forecasting meter.The summary form must be submitted to the board of directors for review and decision -making after review by Evergrande's executive president.In addition, the capital center also needs to compare the annual cash flow prediction form and actual implementation data as a regular basis, and analyze the differences.The analysis of differences will be reported to the CEO for review, and the board of directors will be submitted to the board of directors for review and decision -making.
