DEPARTMENT OF INVESTMENT PLANNING

head of department - 1 pc. units

chief specialist - 1 pc. units

senior economist - 1 pc. units

economist - 1 pc. units

Head of Investment Planning Department:

The duties of the head of the department include:

• 1. Organization and control of preparation of the investment budget of the Company.
• 2. Development and formation of the Business plan and strategy of the Company.
• 3. Preparation of a forecast of the financial and economic condition of the Company.
• 4. Protection of the investment budget of the Company.
• 5. Analysis and decision-making on the economic feasibility and efficiency of any specific types of work and services, procurement of materials, if necessary, drawing up the necessary verification calculations of economic efficiency.
• 6. Coordination of tenders and contracts, control and verification for compliance with the approved annual budget, terms of reference, in order to make a decision on the approval of the tender or contracts.
• 7. Analysis of the structure and value of the Company's investment costs, development of proposals for their optimization.
• 8. Development of a unified budget model in accordance with the requirements and recommendations of the Participants.
• 9. Analysis of the efficiency / sensitivity of projects, analysis of investment projects for compliance with certain strategic goals of the Company;
• 10. Development, approval of regulatory and methodological documentation for planning and budgeting, control over the fulfillment of the requirements of the NMD.
• 11. Methodological support and organization of work on accounting, development and control over the implementation of plans, development of rational forms of accounting documentation for the department and consolidation of the investment budget.
• 12. Development of financial analytics for management cost accounting.
• 13. Timely and high-quality reporting for management, Participants and regulatory authorities.
• 14. Timely and high-quality registration of IMS documentation at the entrusted site.
• 15. Organization and control of office work in the department.
• 16. Timely achievement of the planned results of tasks, where the head of the department is responsible in the SUNA (oil asset management system), in compliance with the deadlines and budget of the tasks.
• 17. Timely input of up-to-date information on the status of the execution of the schedule tasks into the SUNA Information System (IS).

Chief Specialist of the Investment Planning Department:

The duties of the chief specialist include:

• 1. Control over the development of short-term (monthly, quarterly), medium-term (for a year) comprehensive plans and budgets for the production, financial and commercial activities of the Company, coordination and mutual coordination of all their sections;
• 2. Analysis and decision-making on the economic feasibility and efficiency of any specific types of work and services, procurement of materials, if necessary, drawing up the necessary verification calculations of economic efficiency;
• 3. Consideration of tenders and contracts for compliance with the approved annual budget, terms of reference in order to make a decision on the approval of the tender or contracts.
• 4. Adjustment of short-term (monthly, quarterly), medium-term (annual) comprehensive plans and budgets of production, financial and commercial activities of the Company, taking into account the monitoring of the use of budgetary funds for the actually worked period.
• 5. Development of proposals for optimizing the structure and values ​​based on cost analyzes.
• 6. Conducting a comprehensive economic analysis of all types of activities of the enterprise and the development of measures for the effective use of material, labor and financial resources.
• 7. Analysis of the effectiveness / sensitivity of projects, analysis of investment projects for compliance with certain strategic goals of the Company.
• 8. Financial assessment of commercial proposals of potential suppliers of services and goods of the Company, financial accreditation of potential suppliers for compliance with the requirements of the Company.
• 9. Development of instructions for the preparation of the Company's budget, determination of the sequence of processes and development of forms of basic applications.
• 10. Methodological support and organization of work on accounting, control over the implementation of plans and budgets, analysis of the results of production and economic activities, development of rational forms of accounting documentation for the department.
• 11. Ensuring timely and quality reporting for management, Participants and regulatory authorities.

Senior Economist, Investment Planning Department:

The duties of a senior financier include:

• 1. development and consolidation of short-term (monthly, quarterly), medium-term (for a year) comprehensive plans and budgets for the production, financial and commercial activities of the Company, coordination and mutual coordination of all their sections;
• 2. analysis in comparison with the corresponding planned and actual indicators of the previous periods;
• 3. control over the calculation of costs, including compliance with the principles of management accounting, verification of the correctness and reliability of calculations, the application of approved standards and tariffs;
• 4. analysis and decision-making on the financial feasibility and efficiency of any specific types of work and services, procurement of materials, if necessary, drawing up the necessary verification calculations of economic efficiency;
• 5. detailed analysis of changes in production, financial, economic and specific indicators over time, in structure and distribution, providing a complete and reliable explanation of the reasons and results of these changes;
• 6. adjustment of short-term (monthly, quarterly), medium-term (annual) comprehensive plans and budgets for the production, financial and commercial activities of the Company, taking into account the monitoring of the use of budgetary funds for the actually worked period;
• 7. consideration of tender assignments and contracts (prior to their signing) for compliance with the approved annual budget, terms of reference in order to make a decision on the approval of the tender assignment or contracts;
• 8. Conducting a comprehensive economic analysis of all types of enterprise activities and developing measures for the effective use of material, labor and financial resources;
• 9. analysis of the effectiveness / sensitivity of projects, analysis of investment projects for compliance with certain strategic goals of the Company;
• 10.financial assessment of commercial offers of potential suppliers of services and goods of the Company, financial accreditation of potential suppliers for compliance with the requirements of the Company
• 11. Ensuring timely and high-quality reporting for management, Participants and regulatory bodies.

Financier of the Investment Planning Department

The duties of the financier include (for projects: drilling, workover, development of the Alibekmola and Kozhasai fields):

• 1. development of short-term (monthly, quarterly), medium-term (for a year) comprehensive plans and budgets for the production, financial and commercial activities of the Company, coordination and mutual coordination of all their sections;
• 2. analysis of incoming information for compliance with the plans of the Company;
• 3. analysis in comparison with the corresponding planned and actual indicators of the past periods;
• 4.Monitoring the execution of Contracts (disbursement of funds and comparison for compliance with the schedule of work performance)
• 5. analysis of the calculation of costs, including compliance with the principles of management accounting, verification of the correctness and reliability of calculations, the application of approved standards and tariffs;
• 6. analysis of the cost formation for the purchase of equipment and services offered by potential contractors;
• 7. analysis and decision-making on the financial feasibility and efficiency of any specific types of work and services, procurement of materials, if necessary, drawing up the necessary verification calculations of economic efficiency;
• 8. adjustment of short-term (monthly, quarterly), medium-term (annual) comprehensive plans and budgets for the production, financial and commercial activities of the Company, taking into account the monitoring of the use of budgetary funds for the actually worked period;
• 9. Monitoring "Budget - Contract - Actual Execution" for the capital budget and the Work Program, in case of problematic issues 2.3 Location,

in the process of monitoring contracts (payment of bills) - notification of the supervising management about the need for a transfer procedure;

10. Ensuring timely and quality reporting for management, Participants and regulatory authorities.

Finding investors is the main task of enterprises engaged in the production of a certain type of product. In order to competently implement all financial investments in the company, a special authorized body is used - the investment committee.

What is an investment committee

The Investment Committee is a special body, the functional direction of which is high-quality development, management, study of declarations, analysis and implementation of the main financial processes of the current economic entity of the Russian Federation.

Such committees, as a rule, have a rather narrow specialization - actions are aimed at searching, as well as a qualitative assessment of all possible objects for profitable investments. Also, this structure has organized a complete investment process and additional supervision over the implementation of this process.

The state committee can be single-level and multi-level - it depends on the detailed number of constituent entities. Also, the number of levels may depend directly on the wishes of investors, who are part of the main structure of the investment cabinet. The structure of the investment committee is formed on the basis of the current line of business of the company and the total number of incoming representatives.

Some committees have a multi-level structure with a dedicated department that independently proposes pre-approved ideas and working plans. Additional activities are carried out by the department of the department, which analyzes all areas and puts forward its own approval of the most effective programs.

Formed investment cabinet is the most important part of any successful company and is a kind of financial fund of any system. The authorized structure includes only professional specialists who have already dealt with a competent investment. They are the ones who are able to study in detail all information resources on the possible benefits of investments - all this protects companies from possible financial risks. Thanks to the activities of authorized persons, a reliable financial fund is formed, depending on the level of the company's income.

Investment committee composition

First of all, the committee includes a pre-authorized chairman of the commission, who is appointed only from among those who have been active in the financing system for a long time. In this case, the standard term of office of this person is at least 1 year. Also, the committee includes directly authorized representatives of the main members of the committee, who can replace representatives at main meetings, perform voting and other functions related to investment activities.

The cabinet may include members of the commission involved in legal activities. They decide the legal aspects of the investment committee's activities and monitor the quality of the performance of obligations in accordance with the contractual terms, as well as the timing of major decisions.

Additionally, the membership includes members who are engaged in financial and administrative work, including the preparation of basic documentation and the direct attraction of investors. The members of the commission are looking for possible investors and analyze all the provisions put forward for consideration and subsequent approval by the chairman.

Functions and tasks

Each investment cabinet has its own powers and functions:

• detailed analysis and determination of profitable solutions for financial investments;
• analysis and detailed design of the current strategic plan for the qualitative distribution of all proposed investments in the selected territorial district of the Russian Federation;
• discussion and further development of special government regulations that can attract investors of any level;
• creation and high-quality registration of the basic requirements for projects being developed that are fully funded by the state treasury;
• development and creation of master plans for the construction of innovative investment facilities, as well as infrastructure;
• detailed consideration of the effective improvement of the selected region;
• high-quality control of the timely implementation of projects with the help of a specially organized commission (special attention is paid to the most significant objects of the selected region);
• detailed collection of all financial information on ongoing projects in a specific area;
• work to improve the competitiveness of the selected region;
• preparation of annual reports on the activities of the council, as well as on the results of the development of the competitive environment of an individual entity.

Among the main tasks of the cabinet, the following areas can be distinguished:

• search for the main sources of funding;
• high-quality development of a general strategy for the development of the investment policy of an individual company;
• timely control over the implementation of general investment activities.

Thanks to the effective work of authorized specialists, the standard percentage of implementation of basic plans related to financial investments is significantly increased.

The committee does not directly allocate all proposed investments - this is the main difference from the existing council. The main part of the committee's activities is the direct approval of projects with the interaction of the legislative and executive authorities.

The committee ensures and controls the implementation of the main federal programs in a particular region, and also coordinates the activities of all authorized enterprises. Additionally, the functional responsibilities may include the creation of new investment objects. Also, the committee can deal with the presentation of a certain region or region abroad, significantly increasing the interest of foreign investors.

The committee organizes various exhibitions and conferences, presents significant projects. It is he who plays a peculiar role of an intermediary between investors and the executive company. Thus, it is a kind of management body.

The Investment Council, on the contrary, is the executive body and deals with the implementation of all approved projects after receiving the investment. The committee pre-legalizes all investments, and the council fully distributes them in accordance with the needs of the selected territorial region.

How to regulate the work of the investment committee

For the qualitative regulation of all investment departments, a special document has been developed - "Regulations on the Investment Department". It reflects the main structure of the selected division, a detailed procedure for the general interaction of employees in the internal organization, as well as the procedure for their activities with related services.

A separate job description for employees and management is preliminarily formed, where all the main functional duties are outlined in stages, as well as the responsibility borne by employees of the entire department.

Separately, a general regulation for managing all investments of the enterprise is being developed, which reflects the main aspects of working with major financial projects. Also, all formats and templates of documents (special reports and questionnaires) are prepared in advance, as well as detailed instructions for working with this documentation.

The regulations of the investment committee operate in accordance with the regulation, which approves the next procedure for holding and scheduling meetings, and also draws up an individual schedule for each company.

The standard schedule can be approved for a period of up to 12 months and is certified directly by the chairman of the commission. In some cases, extraordinary meetings may be held, about which the chairman notifies all members of the investment cabinet 10 working days before the meeting.

At regular meetings, regulated by the regulation, issues are resolved that are related to the determination of the main guidelines for the future volumes of financing of the company, as well as the choice of priority activities to increase the total number of investors. The commission also deals with the consideration of new investment projects, their subsequent implementation, as well as amendments made to the general register of investment projects of an existing company. The implementation of the project approved program is closely monitored by authorized persons of the committee.

The main task of the committee is to fully design and describe the process of creating an active investment project. At the same time, the exact payback period, as well as control over the further flow of financial investments, must be indicated.

The investment office is of particular importance for the competent distribution and implementation of financial investments. It allows not only to make a competent investment of funds and ensure an increase in the efficiency of any enterprise, but also to competently organize the work of employees to form the company's investments.

The financial management system has undergone significant changes over the past few decades, and this is largely due to the increase in the complexity of the process of managing the assets of enterprises in a modern market economy. An organization's investment management today plays a critical role in commercial success.

1 Principles of investment management in the enterprise

A market economy implies the use of the assets of an enterprise for continuous economic growth. Lack of growth due to the impact of discount rates, inflation and other economic factors leads to lower margins. Competition in the market has led to the most severe diversification of marketing, investment, promotion of goods and services, which in turn has led to the emergence of a completely new direction in economic management - investment.

What is meant by the term "investment management"? This is a set of management functions aimed at the formation of effective investments and their management to improve the financial performance of the enterprise. The investment capital of an enterprise includes two types of assets: monetary and non-monetary.

These funds are formed specifically for investing in certain areas of activity in order to maximize profits, increase profitability, increase sales or modernize production. The main task of the enterprise is to create optimal conditions for high-quality management of these funds. In this case, one should distinguish between financial management and investment management.

The structure of investments does not include the current assets of the enterprise, and therefore in the last few decades a new trend has emerged: enterprises are trying to create new structural divisions that are fully and completely responsible for the management of non-current assets mobilized for the implementation of investment activities.

The investment management department should be established in such a way that it can manage investments without any problems, guided by the following principles:

• Continuity is the continuous implementation of management to achieve the set goals and create new goals and objectives.
• Flexibility - the ability to make changes to investment projects on the fly.
• Versatility - providing opportunities for finding alternative investment instruments.

The structure of the structural unit must include not only professionals in the field of financial management, but also experienced analysts. One of the main problems in enterprise investment management is the impossibility of accurate forecasting of efficiency, close to objective results of introspective analysis are possible only when using complex methods of investment assessment. The complexity of the appraisal process is also one of the reasons requiring the creation of a separate structural unit within the enterprise.

2 Stages of investment management

Regardless of our beliefs about the knowledge-intensiveness of financial management, each manager creates his own management technology, guided by his economic instinct and experience. Investment activity has always been highly dependent on the human factor, and investment management in any enterprise also depends on the decisions of individual people.

On the other hand, modern methods of forming structural units make it possible to share responsibility for making decisions, apply the latest methods of assessing these decisions and distribute functions among several specialists of a narrow profile. In this case, much depends on the general management strategy at the enterprise.

Many experts agree that the investment management process should be divided into certain stages, each of which requires coordination within the management vertical. The investment management structural unit provides analytical data, results of appraisal activities and other information. In the course of a joint discussion of the investment strategy, based on the consultations of the department specialists, top managers make certain decisions.

The step-by-step management of the investment process in such conditions looks like the best solution. Investment management technology and investment activity distinguishes 6 main stages of work:

1. formation of your own investment fund;
2. determination of investment directions within the enterprise;
3. determination of investment directions outside the enterprise;
4. assessment, forecasting and selection of the best investment directions;
5. formation of a borrowed or attracted investment fund;
6. control and accounting of investment activities.

The modern commercial organization is simply obliged to invest. At the same time, the company's activities to raise funds from outside play an important role. The borrowed capital is much cheaper than its own, and therefore provides maximum efficiency from investments.

Many modern companies are engaged not only in investing in their own authorized capital, technological modernization, optimization of commodity and transport infrastructure and marketing. An important role is played by the placement of part of the capital in non-current assets that can bring profit in the long term. Many enterprises with voluminous financial resources are engaged in portfolio investment, placing money on high-yield deposits, sometimes even venture investment.

3 Formation of an investment fund

Financial investment management of any enterprise is impossible without sufficient financial resources. The monetary and non-monetary assets of the enterprise are often not sufficient for the effective growth of the enterprise, even without taking into account external investment directions. In this case, attraction of investments from outside is required.

In the article, we have already said that the investment capital of an enterprise is formed by mobilizing its own funds and attracting capital from external sources. Sources of financing for enterprise investments should be divided into three main types:

• Own - part of current and non-current assets, depreciation costs, part of net profit.
• Attracted - sale of shares, investment contributions from shareholders, grants and subsidies, targeted gratuitous financing.
• Borrowed - sale of bonds, loans, leasing.

By actively raising funds from a variety of sources, the company forms large capital, sufficient to ensure stable and effective growth of the company. If the company is not involved in raising funds, then due to the increase in depreciation costs over time, at some point it will become unprofitable. A well-planned investment activity guarantees the company's management the ability to constantly keep the company in the profitability zone.

The formed investment fund is distributed according to the chosen areas of investment. In this case, the placement of capital should correspond to a predetermined strategy and be based on well-considered decisions. Improper investment of financial resources can turn into a crisis situation.

5 Methodology for assessing the effectiveness of investments

In a separate article, we talked about how many methods there are for analyzing the performance of investment activities. In most cases, dynamic methods for evaluating an investment project allow predicting the potential return on investment, while static methods for evaluating an investment project summarize previous results.

Comparative analysis plays a key role in the formation of the optimal set of investment objects. Specialists of the relevant structural unit must identify the main pros and cons of capital allocation, identify priority objects, highlight the best options for short-term, medium-term and long-term investment.

Investment appraisal is a much more complicated process than it seems to the average person. When analyzing an investment project, it is necessary to take into account a huge number of factors:

1. profitability;
2. risk;
3. discount rates;
4. the impact of inflation;
5. duration.

In this case, points 2 and 4 are directly related. Increasing the duration of the project almost always leads to increased risks. The longer it takes a project to get out of the project phase, the more likely it is that something will happen that can critically affect the project's results.

If we talk about internal investments, then imagine that an investment project to create a new product takes 1 year to implement. Within one year, the risk will be small. If the process takes 2-3 years, then the risks increase, there is a likelihood of increased competition, corporate sabotage, the risk of an increase in the processes of legalizing a new product, etc. The yield and discounting of funds are also interrelated. The average person thinks that profitability can be easily estimated using the ROI (Return on investment) formula, but this is far from the case.

The point is that the value of money today is much lower than the value of money in 3-4 years. Due to inflationary processes, increased competition, changes in the market environment and other economic factors, the assets of the enterprise are constantly depreciating. That is why complex dynamic methods are used in the assessment. The results of the appraisal activity are then subjected to comparative analysis. The best investment projects are then offered to the company's management.

6 Monitoring investment activity

If the management process consisted only in choosing investment objects and investing money in them, then the need to create a separate structural unit at the enterprise would disappear by itself. The management process, however, is much more complex and requires regular adjustments or even a complete revision of the set of investment instruments in the arsenal of the enterprise.

It is much easier for companies that are not interested in creating highly profitable non-current assets by placing money outside the fixed capital. For them, the investment process is quite simple in nature. After determining the main directions of investment within the enterprise, they are no longer able to radically change their strategy.

Cancellation of a lease agreement, refusal to purchase new equipment or marketing services is costly. The company is forced to follow the chosen strategy until the end of the period of its full implementation. This is fundamentally contrary to the principles of investment management, which we defined at the very beginning of the article. The capital of an enterprise must be flexible and alternative. If you choose only domestic objects for investment, then the strategy will be ineffective.

Diversification of investments requires regular revision of the invested capital and their success. An investment portfolio, for example, needs to be regularly analyzed, instruments with decreasing profitability or increased risk should be withdrawn from it in time, and replaced with more acceptable options. Real investment in fixed assets of other companies will require active participation in their production and marketing activities. Venture investments require constant attention from the investor.

There are people who are convinced that venture capital investments work on a "pan-or-go" basis, but this is not the case. Venture capital investment is divided into several stages. Each of them undergoes a thorough analysis, on the basis of which the investor decides whether to continue financing the project or abandon it.

Each option for capital allocation requires special management and monitoring methods, and therefore the process of ongoing investment management is also very important. This process cannot be interrupted, it must be carried out throughout the entire life of the company.

7 Application of investment management principles in private equity

The above principles and stages of investment management are, to one degree or another, applicable to investments of a private capitalist. The ordinary holder of capital in our time is an active participant in the market economy. Even 10,000 rubles can become part of external financing for an enterprise or help an innovative technology completely turn the world upside down.

• definition of equity capital;
• selection of the best companies to place funds;
• selection of optimal PAMM accounts;
• analysis and comparison of selected PAMM accounts;
• placement of funds;
• continuous monitoring and portfolio management.

As you can see, the methods and principles of management remain the same as at the level of a large enterprise with a diversified investment fund, only the scale changes.