沙隆达B：2010年年度报告(英文版) 2011-03-18(16)

沙隆达B：2010年年度报告(英文版) 2011-03-18

purchasing and sales system and operated independently. The affiliated transactions between them are legal, transparent and fair, and the transaction price was reasonable. 2. Independence of the Company’s personnel: The Company has established independent systems of labor, personnel and wage. The procedure that Senior Executives of the controlling shareholder concurrently act as Directors of the Company is legal. General Managers and other senior executives drew salary from the Company, and they didn’t hold any post of administrative management in controlling shareholder.

3. Independence of the Company’s assets: The Company possesses independent production system, auxiliary production system and supporting facilities. Industrial property, trademark as well as non-patent technology related with the operation all belongs to the Company. The assets of the Company and controlling shareholders are definite, and there was no free occupy or use.

4. Independence of the Company’s organization: The Company has independent site for production and operations as well as independent offices.

5. Independence of the Company’s finance: The Company has established independent financial and accounting department, normative and independent accounting system and financial management system, and it possesses independent bank account and pays tax independently. Accountant doesn’t have con-current jobs in controlling shareholders’ companies.

IV. Establishment and Improvement of Internal Control System of the Company 1. Report on Self-Appraisal of Internal Control System

The 5th Session of the 6th Board of Directors reviewed and approved Report on Self-Appraisal of Internal Control System of the Company 2010. Report on Self-Appraisal of Internal Control System of the Company was published in detail on at the same day.

2. Opinions on the Self-Appraisal

(1) Opinion of the Supervisory Committee Concerning Self-Appraisal of Internal Control

In accordance with relevant provisions stipulated by China Securities Regulatory Commission and Shenzhen Stock Exchange and based on the actuality, the Company followed the basic principles of internal control, established and improved the internal control system covering all sections of the Company, guaranteed normal production and operation of the Company and protected security and integrity of the Company’s assets; the Company set up internal audit department and ensured effective implement of internal control activity. During the reporting period, there was no breach of relevant statutes concerning internal control or internal control system of the Company.

The Supervisory Committee believed that Self-Appraisal Report on Internal Control for 2010 authentically, factually and objectively reflected actuality of internal control of the Company.

(2) Opinion of the Independent Directors Concerning Self-Appraisal of Internal Control

The independent directors of the Company believed that preparation format and content of Self-Appraisal Report on Internal Control for 2010 are in line with requirements of documents and authentically and accurately reflected actuality of internal control of the Company. Internal control system, which has been set up by the