AFTON CHEMICAL LIMITED

A payment policy is published internally for raw materials which seeks to maximize payment terms within all contracts, targeting payment days equivalent to 60 days net of invoice date. These terms are not limiting and a final agreed term is reached by negotiation and agreement with each supplier on a case by case basis. For vendors of Indirect materials and services (non-raw materials), standard payment terms are 60 days from date or invoice.

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General business practice is as follows:
• Purchase Orders or similar alternative methods of instruction are issued to suppliers reflecting agreed pricing and payment terms. Goods or services are received by Afton.
• Invoices are received by our Finance Department and matched to the values established above.
• Where the Finance department does not have a Purchase Order or other information with which to stablish match then internal approval will be sought.
• Payments are made in accordance with he agreed payment terms measured from invoice date unless otherwise agreed.
Disputes arise in the following circumstances:
• Payment terms shown on the invoice vary from that which has been agreed.
• The price quoted on the invoice varies from that contained on the Purchase Order or other form of instruction.
• The quantity or volume invoiced varies from our receiving records by a degree greater than an internal tolerance.
• Internal approval of the goods or services received is awaited.
Resolution process:
• The Finance Department will alert the Procurement Department, Receiving Department or internal approver of the dispute.
• The alerted Department will review each on a case by case basis and then either;
a) make adjustments to the records in order to allow a match to be made,
b) give approval for payment to be made,
c) raise a dispute with the supplier.
In the case of (a) and (b) above then payment will proceed per general business practice shown above. In the case of (c) above then the invoice will be placed on payment hold awaiting either a credit note to resolve the variance or justification from the supplier with which Afton agrees, following which payment will proceed per general business practice by policy Afton seeks to pay in accordance with agreed terms and to resolve disputes as quickly as possible to minimize the likelihood of disruption to supplies. Suppliers may raise enquiries or concerns regarding payments directly with our Finance Department by phone or email.