The standards aim at improving management efficiency of the TATNEFT Group's property complex and ensuring transparency of and control over asset transactions and real property businesses:
Standard for property leasing
The standard ensures a uniform policy for leasing relations within the TATNEFT Group in terms of determination of basic rates of payments for the leased property, which allows a significant reduction in expenses for upkeep of the Group’s property complex and obtaining additional profit from the property leasing.
Standard for property sales
The standard ensures the sequence and transparency of procedures for realization of non-used property, as well as control over alienation of assets of the TATNEFT Group.
Standard for property conservation
The standard ensures consistency and transparency of the procedures for the preservation of unused property, as well as control over the movement of the TATNEFT Group’s assets.
Establishment of centers for conservation of equipment and vehicles allowed considerable minimization of expenses for non-used property and creation of additional investment reserves.
Standard of methods for establishing normative values for critical circulating funds
The standard defines a uniform procedure for formation, correction, and evaluation of fulfillment of the normative value for critical circulating funds (CCF) in the structural subdivisions and affiliate companies of the TATNEFT Group.
The objective of the normative value establishment is to reduce risks for inventory management, i.e.: reduction in diversion of funds to inventory, prevention of formation of unclaimed and non-marketable residues of inventory items, increase in the assets profitability, and, subsequently, financial sustainability of the Company.
Control over fulfillment of the Standard is ensured by the Economic Department together with the Norms Analyzing Center of PJSC TATNEFT
The normative value of critical circulating funds in PJSC TATNEFT is established on a quarterly basis and represents the planned residues of inventory items (feedstock and materials, non-completed construction, finished products) as of the reported date in accordance with the accounting balance-sheet.
During the quarter, the financial and economic services and material support subdivisions monitor fulfillment of the normative value. In case of objective reasons (change in the planned scope of works, structural transformations of the enterprise, etc.), an up or down correction of the normative value is possible.
Evaluation of actual fulfillment of the normative value for critical circulating funds is performed quarterly after submission of accounting balance-sheets. In case of exceeding the normative value or significant saving (including that with respect to separate elements of the normative value), the companies submit explanations for reasons of deviation.
The normative value of critical circulating funds is one of the main indicators of Order No. 1; accountability for its fulfillment is regulated by section "Disciplinary & material responsibility for violations of executive discipline in the area of finance" of the Corporate Code of PJSC TATNEFT and the "Standard for corporate relations of PJSC TATNEFT and its affiliates and associated companies in the area of finance".
The Standard introduction resulted in reduction of PJSC TATNEFT’s stock reserves.
The work for introduction of the Standard for material support and the Standard for centralized delivery of materials in structural divisions and affiliate companies by the Tatneftesnab Department also contributed to reduction of stock reserves.