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Auditee : Pretty Sweaters Ltd.

Audit Date From : 18/05/2017

Audit Date To : 18/05/2017

Expiry Date of the Audit : Please refer to the producer profile in the BSCI platform

Auditing Company : TUEV Rheinland

Auditors Name(s) : Md. Asifur Rahman(Lead)

Auditing Branch (if applicable) : TUV Rheinl. Bangladesh

This is an extract of the on line Audit Report.The complete report is available in the BSCI Platform. Access www.bsciplatform.org, for entitled users only.

All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted, in any form or by any, means electronic, mechanical, photocopying, recording or otherwise, be lent, re-sold, hired out or otherwise circulated without the FTAs consent.

This is an extract of the BSCI Audit Report, which is available in the BSCI Platform. Foreign Trade Association (FTA), 2013 - The English version is the legally binding One.

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Producer : Pretty Sweaters Ltd.DBID : 344663 and Audit Id : 80254 Audit Date : 18/05/2017

Audit Type : Follow-up Audit

Page 1/26

Rating Definitions




Page 2/26

Main Auditee Information

Name of producer : Pretty Sweaters Ltd.

DBID number : 344663

Audit ID : 80254

Address : Holding # 222, Chaydana, National University, Gazipur Sadar Gazipur

Province : Dhaka Country : Bangladesh

Management Representative : Mr. Md. Ali Hossain- General Manager-Admin, HR & Compliance

Contact person: Mr. Md. Ali Hossain Sector : Non-Food

Industry Type : Textiles, clothing, leather Product group : Apparel

Product Type : Sweater Items




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Audit Details

Audit Range : Full Audit Follow-up Audit

Audit Scope : Main Auditee Main Auditee & Farms

Audit Environment : Industrial Agricultural

Audit Announcement : Fully-Announced Fully-Unannounced Semi-Announced

Random Unannounced Check (RUC) : No

Audit extent (if applicable) : none

Audit interferences or contingencies (if applicable) : none

Overall rating : C

Need of follow-up : Yes If YES, by : 18/05/2018

Rating per Performance Area (PA)

PA 1 PA 2 PA 3 PA 4 PA 5 PA 6 PA 7 PA 8 PA 9 PA 10 PA 11 PA 12 PA 13

D A A A A C A A A A A A A

Executive summary of audit report

Pretty Sweaters Ltd. is a proprietorship company which is established in 2014 and started its operations since 2014 at current location Holding # 222,Chaydana, National University, Gazipur Sadar, Gazipur, Dhaka, Bangladesh. The Company engaged in the manufacturing of ready-made sweater (knitgarments). The main production processes are listed as follows: Winding > Knitting (Jacquard) > Linking > Trimming > Mending > Washing > Sewing >Finishing (Iron, Quality & packing). Facility runs production process in own 08 storied building. There is no other facility available in the factory building. Total floor area of the factory is 263,493square feet. The details information given in below:

Facility uses an 8 storied industrial building & one shed for its overall production process. Building description is given below: Basement is used as car parking area, general store, fire pump room, generator room, training room, workers & staff dining and canteen. Ground floor is usedas medical room, C-TPAT (Customs-Trade Partnership Against Terrorism) area, fabrics store, winding section, boiler room, transformer room, compressorroom, fire control panel room, child care room & chemical store. 1st floor is used as jacquard section, sample room & office. 2nd floor is used as packingsection, get up section, quality checking area, iron section, sewing section, linking section, washing section. 3rd floor is used as jacquard section, linkingsection. 4th floor is used as packing section, get up section, quality checking area, iron section, sewing section, linking section, washing section. 5th floor isused as jacquard section, linking section. 6th floor is packing, get up, quality checking, iron section, sewing, linking section and washing section. 7th floor isused as jacquard section and linking section. 35% area of roof top is used for under yarn store and laboratory and rest of other area is fully vacant.

Shed-1 is used as ETP (Effluent Treatment Plant).

Audit Process: The audit was conducted in one day as per audit plan. On the day 1 auditor arrived in the factory at 10:15 am on 18 May 2017 and an openingmeeting was held immediately after the auditors arrival with the factory management. During opening meeting auditor explained about the audit scope &process and a short presentation about the BSCI, its upgrade system and auditing approach. Immediately after the opening meeting a floor visit was conductedwith factory management. Document list was provided and supplied documents were reviewed. For workers interview, the auditors selected workers fromdifferent production processes and different age groups. The workers were comfortable with the management and with the working environment reported asgood.

Closing meeting: At the end of the audit process, a closing meeting was held to discuss all the issues raised in the CAP with the factory management Mr. Md.Ali Hossain- General Manager- Admin, HR & Compliance was responsible for the CAP. Onsite CAP issued in Local & English language and both thelanguages are familiar to factory management. During the closing, they agreed with all the findings and signed the CAP.




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Ratings Summary

Auditee's background information

Auditee's name : Pretty Sweaters Ltd. Legal status : Private Limited Company

Local Name : : Year in which the auditee was founded : 2014

Address : Holding # 222, Chaydana, NationalUniversity, Gazipur Sadar

Contact person (please select) : Mr. Md. Ali Hossain

Province : Dhaka Contact's Email : [email protected]

City : Gazipur Auditees official language(s) for writtencommunications :

Bangla

Region : South Asia Other relevant languages for the auditee :

English

Country : Bangladesh Website of auditee (if applicable) : www.prettygroupbd.com

GPS coordinates : N23.95755409 E90.38084705 Total turnover (in Euros) : 71436170.00

Sector : Non-Food Of which exports % : 100.00

Industry : Textiles, clothing, leather Of which domestic market % : 0.00

If other, please specify : Sweater Production volume : 10,00,000 pieces per month.

Product Group : Apparel Production cost calculation : Yes

If other, please specify : Sweater Lost time injury calculation cost : Yes

Product Type : Sweater Items

Auditee's employment structure at the time of the audit

Total number of workers : 4524 Total number of workers in the production unit to be monitored (if applicable) : 0

MALE WORKERS FEMALE WORKERS

Permanent workers 2480 1680

Temporary workers 0 0

In management positions 6 2

Apprentices 0 0

On probation 234 130

With disabilities 0 0

Migrants (national citizens) 0 0

Migrants (foreign citizens) 0 0

Workers on the permanent payroll 2714 1810

Production based workers 1085 724

With shifts at night 450 107

Unionised 0 0

Pregnant - 15

On maternity leave - 10




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Finding Report




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Performance Area 1 : Social Management System and Cascade Effect

2- Followup Audit [Audit Id - 80254] Audit Date: 18/05/2017 PA Score: D Deadline date:30/04/2018

GOOD PRACTICES:Nil

AREAS OF IMPROVEMENT:Factory management does not developed effective Social Management System to integrate the BSCI new code in day to day business practice andto contribute customers and stakeholders in possible continuous improvement of the facility. Factory management has engaged a Senior LevelManagement person to look after and the implement the code in the factory. Factory management has posted BSCI New Version Code inside theproduction floor. However, gaps have been identified in implementation:

1.1 - The Company did not implement appropriate management system to integrate the BSCI codes in day-to-day business. Still some gap has beenfound on implementation like grievance handling procedure, number trained fighter, respective worker health check-up etc.

1.4 - Facility has not developed reliable methodology to reduce the unnecessary overtime. Management also not aware of how much overtime premiumwould be added to cost in case it needed to match a delivery time. So that factory has to request the workers to do overtime in regular basis. ,

Remarks from Auditee:

1- Followup Audit [Audit Id - 49896] Audit Date: 25/05/2016 PA Score: B Deadline date:25/06/2016Good practices

No good practice found on the day of audit.Areas of improvement

During audit it was observed that, the auditee partially fulfill the requirements of this performance area. Factory management has engaged a SeniorLevel Management person to look after and the implement the code in the factory. Factory management yet not developed effective SocialManagement System to integrate the BSCI new code in day to day business practice (refer 1.1). Factory management has already communicated theBSCI Code to their supplier and factory management has monitoring that supplier through internal audit. Factory management has contingency planwhich will not fulfill to meet the dead line of the shipment if any emergency arise (refer 1.4). Factory management has significant supplier selectionprocedure.

1.1 - Based on the satisfactory evidence it was noted that the auditee has corrected the previous issue as the auditee has develop stakeholder mapping,supply chain mapping. Also the long-term goal has been identified to protect workers and training provided to the workers representatives, all workers,managers and others decision makers regarding BSCI code of conduct.

1.2 - Based on the satisfactory evidence it was noted that auditee has corrected the previous issue. Facility has nominated Ms. Farjana Akter Tithi- Asst.Manager (Compliance) as a responsible person for implementing BSCI code of conduct as previous and also formed a team comprising staffs ofdifferent sections assigning their responsibility for proper implementation of BSCI Code in every function.

1.3 - Based on the satisfactory evidence it was noted that the auditee has corrected the previous issue as the auditee has developed a selection procedure for business partner and mechanism forfinding out significant business partner as well as overview on them and their level of alignment with BSCI code of Conduct.

1.4 - In accordance with BSCI questionnaire point 1.4: Finding: Based on satisfactory evidence, the facility management has not done Capacity planning in aproper way like no contingency plan (in case something slows down or interrupts production) has been included in Capacity Planning . For thisreason facility has to do some extra overtime and weekly day working in the sampled months.

,

Remarks from Auditee

We would take corrective actions for all the above mentioned points.

Full Audit [Audit Id - 41957] Audit Date: 27/12/2015 PA Score: D Deadline date:30/06/2016Good practices

NilAreas of improvement

Based on satisfactory evidence it was noted that the main auditee partially respects this principle / Performance Area-1 (Social Management Systemand Cascade Effect) because- 1.1: The auditee is in process to implement the BSCI Code of Conduct into day-to-day business practices, currentlyfacility did not have stakeholder mapping, supply chain mapping, no long-term goal was defined to protect workers, no training provided to the workersrepresentatives, all workers, managers and others decision makers regarding BSCI code of conduct. 1.2: Facility has nominated Ms. Farjana AkterTithi- Asst. Manager (Compliance) as a responsible person for implementing BSCI code of conduct but no formal team was formed comprising staffs ofdifferent sections assigning their responsibility for proper implementation of BSCI Code in every function. 1.3: Factory has no selection procedure forbusiness partner and did not find out significant business partner hence no overview on them and their level of alignment with BSCI code of Conduct.1.4: Factory did not have contingency plan in case if something slows down or interrupts production.




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Performance Area 2 : Workers Involvement and Protection

2- Followup Audit [Audit Id - 80254] Audit Date: 18/05/2017 PA Score: A Deadline date:

GOOD PRACTICES:Nil

AREAS OF IMPROVEMENT:Not audited.


1- Followup Audit [Audit Id - 49896] Audit Date: 25/05/2016 PA Score: A Deadline date:Good practices

No good practice was found on the day of audit.Areas of improvement

Overall comments: During audit it was observed that, the auditee fulfills the requirements of this performance area. Factory management has formedPC (Participation Committee) through election. Previous issue of the participation committee was found corrected during the current audit. Factorymanagement has formed health and safety committee in combination of worker and management and the meeting has conducted in regular basis.Factory management has developed a grievance procedure to handle the grievances. There is a long term goal of the factory by which it will reflect astep-by-step approach toward sustainable improvement. Factory management is providing the training on companys rules, legal rights and other safetyissues during orientation program. The workers are found aware about their legal rights. Factory management has posted BSCI New Version Codeinside the production floor. Factory management has grievance policy and procedure for the entire employee and workers are aware about theprocedure. Factory management is recording the written grievances if any in a register book which is send by the worker via grievance box.

BSCI questionnaire point 2.3 marked as a Not rated as it is follow-up audit

2.1 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as the Workers Participation Committee has been formedby election process. The election was conducted on April 10, 2016 where total members of the committee noted 19 (12 from worker side, 7 frommanagement side).

2.2 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as the facility has developed a written long-term goal comprising vision, mission and objectives ofthe company in line with the BSCI values and principles to protect workers and sustainable improvements.

2.4 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as factory is providing training to workers representatives;all workers, managers and others decision makers in terms of BSCI code of conduct on a regular basis.

2.5 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as facility has developed grievance mechanism for itsemployees which define how to deal with potential conflict of interest and no procedure for conducting satisfaction survey on grievance procedure.Grievance mechanism system found in place for the communities.


Nil

Full Audit [Audit Id - 41957] Audit Date: 27/12/2015 PA Score: C Deadline date:30/06/2016Good practices


Based on satisfactory evidence it was noted that the main auditee partially respects this principle / Performance Area-2 (Workers Involvement andProtection) because- 2.1: Formation procedures of Workers Participation Committee (WPC) was selected by the management instead of elected by theworkers. 2.2: The facility did not have a written long-term goal comprising vision, mission and objectives of the company in line with the BSCI valuesand principles to protect workers and sustainable improvements. 2.4: Factory did not provide training to workers representatives; all workers, managersand others decision makers in terms of BSCI code of conduct. 2.5: Facility has developed grievance mechanism for its employees but it does not definehow to deal with potential conflict of interest and no procedure for conducting satisfaction survey on grievance procedure. Moreover, no grievancemechanism system is in place for the communities.





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Performance Area 3 : The rights of Freedom of Association and Collective Bargaining


GOOD PRACTICES:NA





Entire performance area has marked as "Not rated" as no non compliance had identified in last initial audit. Besides According to local legalrequirements any union or collective bargaining is not mandatory to form. According to local legal requirements any union or collective bargaining is notmandatory to form. No trade union or workers association is available in the factory and there is no restriction imposed by the factory management.


Nil

Full Audit [Audit Id - 41957] Audit Date: 27/12/2015 PA Score: A Deadline date:Good practices


Based on satisfactory evidence it was noted that the main auditee entirely respects this principle /performance area. Note: Based on workers interviewit is demonstrated that workers are not restrained to establish trade union though they didn't form trade union yet. However, as per documentaryevidence, workers' interview, workers representatives' interview and site observation it is evident that auditee has full respect to form trade union andbargain collectively.





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Performance Area 4 : No Discrimination


GOOD PRACTICES:NA





During audit it was observed that, the auditee fulfills the requirements of this performance area. During close door interview no complain ondiscrimination revealed from workers. No discrimination on hiring which was evident by reviewing the documentation. Also interviewed workersinformed that they are not discriminated in terms of race, caste, religion, age, gender or marital status. Workers are equally treated in the factory incase of promotion, benefits etc. Overtime opportunity for all workers is equal. Factory management has separate policy on discrimination. Factory hasposted that policy in different prominent places i.e. notice board and inside the production floor. Workers are free to raise and inform their grievance tothe management directly or through the members of PC (Participation Committee). Members of PC (Participation Committee) also informed that theyare not discriminated from any benefits or free movements in workplace. Factory management has detailed disciplinary procedure.

4.2 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as the auditee has start surveys of no grievancesatisfaction on the grievance mechanism conducted.


Nil

Full Audit [Audit Id - 41957] Audit Date: 27/12/2015 PA Score: B Deadline date:31/03/2016Good practices


Based on satisfactory evidence it was noted that the main auditee partially respects this principle / Performance Area-4 (No Discrimination) because-4.2: The facility has policy and procedure to avoid discrimination and communicated this policy to workers but no grievance satisfaction surveys on thegrievance mechanism conducted.





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Performance Area 5 : Fair Remuneration


GOOD PRACTICES:NA





Overall comments: During audit it was observed that, the auditee fulfills the requirements of this performance area. During audit, auditors has checked payroll records randomly anddifferent production record and register from production floor. Minimum wage is ensured for all workers as per their designation and grade. Payment is provided within 7th working dayafter completion of each wage period (1st to 30th or 31st). During workers interview session workers confirmed and expressed their satisfaction for timely payment. Casual, annual andsick leave are provided to all the workers. Factory management has provision to provide Maternity leave and benefits. Factory management is providing all benefits to resigned workers asper law. No illegal deduction was observed from the audit process. Factory management has group insurance policy for the workers. Besides workers are also getting increment as perlocal law.

5.1 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue. Facility provided the salary record, time record, overtime record ofDecember 2015 to April 2016. All the sampled workers time record and payment record found matching with each other. Legal minimum wage found ensured forall worker, deduction (if any) found within the legal limit.

5.4 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as they have calculated the Basic Need wage for the workersappropriately. Calculated amount of Basic Need Wage of auditee is BDT. 7700 whereas through survey on randomly selected 20 employee of different job categorythey have found that they are paying on average BDT. 9096 in each month which is more than calculated BNW. So after verifying the overall calculation it seemsto auditor that, calculation of BNW has done perfectly.

5.5 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue. Facility provided the policy for leave provision for the piece rated workers. Relateddocuments and worker interview also ensured that leave for piece rated workers are given.


Nil

Full Audit [Audit Id - 41957] Audit Date: 27/12/2015 PA Score: E Deadline date:29/02/2016Good practices

The main auditee exceeds expectations with respect to this principle / Performance Area-5 (Fair Remuneration) because: 1)Facility provides attendance bonusto all employees, 2) Production incentives to piece rated workers & 3) Facility arranges annual picnic and providing 150 taka per workers.Areas of improvement

Based on satisfactory evidence it was noted that the main auditee partially respects this principle / Performance Area-5 (Fair Remuneration) because-5.1 & 5.5: Actual working hour and wages could not be verified as factorys production report and input register of sewing and linking section showedthat workers had worked on November 20, 27; October 16; September 11; and August 14, 21 of 2015 which were factorys weekly holidays for sewingand linking section (Friday) but no reflection was found for working on those days in the workers time card and salary sheet. However, concernedmanagement representatives were joined in this factory recently and they were not aware about the records of extra working hours. 5.4: The facility didnot estimate the living standard in the region calculating their living wage properly to determine a potential gap between present local minimum wageand living wage and so no action plan is in place to fill the gaps. However, as per the SGS calculation living wage for this region would be BDT. 7080though declared minimum wages was is BDT. 5300. 5.5: No leave provision was established for the piece rated workers, noted through workers andmanagement interview. Moreover, no documents/records of leave for piece rated workers were maintained.





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Performance Area 6 : Decent Working Hours

2- Followup Audit [Audit Id - 80254] Audit Date: 18/05/2017 PA Score: C Deadline date:30/11/2017

GOOD PRACTICES:Nil

AREAS OF IMPROVEMENT:The overall observation shows that factory has a policy to follow the working hours as per law. Factory provided sufficient rest days to the employees.Factory did not excessive work in regular working day and they do not open the factory for weekend work or rest day work. Workers are getting oneday off in every seven days. Facility runs in one general shift from 8:00 am to 5:00 pm, and separate 2 different working shift for jacquard and windingsection including one hour personal break. Auditors reviewed the working hour in randomly selected three (3) months. Auditors selected 10 samplesfrom different areas of the facility and reviewed working hours including overtime hours. Overtime is voluntery. Questionier 6.4 corrected: No weeklyholiday work found in the 3 out of 3 random sample month. However, gaps have been identified in implementation: ,

6.2 - Facility has not developed reliable methodology to reduce the unnecessary overtime. Management also not aware of how much overtime premiumwould be added to cost in case it needed to match a delivery time. So that factory has to request the workers to do overtime in regular basis.As aresult facility has no effective management system to control the overtime which could not ensure the overtime meet the local laws requirement infuture. ,


1- Followup Audit [Audit Id - 49896] Audit Date: 25/05/2016 PA Score: D Deadline date:25/08/2016Good practices

No good practice was found on the day of audit.

Areas of improvement

During audit it was observed that, the auditee partially fulfill the requirements of this performance area. The factory has displayed notice regarding theworking hours, overtime hours, lunch breaks, weekly and festival holidays on notice boards. Regular working hour of the factory is 08 hours and alsoensures 01 hour lunch / rest break for all. During randomly checked sample months working hour analysis it was observed that daily overtime hour hasexceeds the legal limit. Friday is declared as weekly holiday for all employees. There are two working shifts for Jacquard section (08:00 a.m. to 5:00p.m. and 08:00 p.m. to 5:00 a.m.) and only one working shift for all other section (08:00 a.m. to 5:00 p.m.) of the factory. Overtime work is volunteer inthe factory. Factory management has policy on working hour.

6.1 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue. Facility provided the salary record, time record, overtimerecord of January 2016 to April 2016. All the sampled workers time record and payment record found matching with each other. Legal minimum wagefound ensured for all worker, deduction (if any) found within the legal limit.


However, In accordance with BSCI Audit Questionnaire 6.2 and as per notification 40.00.0000. 016.32.009.11 (Part-01)-125, published on September23, 2014 and No. - 40.00.0000. 016.32.009.11 (Part-01)-44, published on April 16, 2015 and No. - 40.00.0000. 016.32.009.11.103, published onOctober 22, 2015, published on April 16, 2015 and No. - 40.00.0000. 016.32.009.11-47, published on March 30, 2016: 4 hours/24 hours/104 hours in aday/week/month respectively: Finding: It was noted through documents review, workers and management interview that the working hours of the sampled workers in differentsection of the factory has exceeded the legal limits in the all random sample months March 2016, April 2016 and May 2016. Daily overtime hours hasexceeded in finishing section worker 05 out of 26 sampled workers in the month of April 2016; 05 out of 10 sampled workers in the month of March2016; 05 out of 10 sampled workers in the month of February 2016.


6.4 - In accordance with Bangladesh Labour Law 2006, section 103: An adult worker employed in an establishment-Which is a shop or commercial establishment, or industrial establishment, shall be allowed in each week one and half days holiday and in factory andestablishment one day in a week;

In according with BSCI Questionnaire Point 6.4: Finding: Based on the satisfactory evidence It was noted through workers interview, documents reviewand management interview that the randomly checked 05 out 26 sampled workers of the factory has worked in weekly holidays in the sample month ofApril 01 and 29, 2016. However factory management provided overtime payment for that day work.


Full Audit [Audit Id - 41957] Audit Date: 27/12/2015 PA Score: E Deadline date:30/06/2016Good practices

Nil




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Areas of improvement

Based on satisfactory evidence it was noted that the main auditee partially respects this principle / Performance Area-6 (Decent Working Hour)because- 6.1: a) Factory did not provides overtime payment to the piece rated workers though they are working 11 hours per day,[as per Bangladeshlabor law 2006, section-100 & 108]. b) Actual working hour and wages could not be verified as factorys production report and input register of sewingand linking section showed that workers had worked on November 20, 27; October 16; September 11; and August 14, 21 of 2015 which were factorysweekly holidays for sewing and linking section (Friday) but no reflection was found for working on those days in the workers time card and salary sheet.However, concerned management representatives were joined in this factory recently and they were not aware about the records of extra workinghours. 6.2, 6.3, 6.4: Actual working hour and wages could not be verified as factorys production report and input register of sewing and linking sectionshowed that workers had worked on November 20, 27; October 16; September 11; and August 14, 21 of 2015 which were factorys weekly holidays forsewing and linking section (Friday) but no reflection was found for working on those days in the workers time card and salary sheet. However,concerned management representatives were joined in this factory recently and they were not aware about the records of extra working hours.





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Performance Area 7 : Occupational Health and Safety

2- Followup Audit [Audit Id - 80254] Audit Date: 18/05/2017 PA Score: A Deadline date:30/04/2018

GOOD PRACTICES:Nil

AREAS OF IMPROVEMENT:The overall observation shows that factorys health and safety condition is favorable. It is well-lightened and well ventilated. Existing toilets aresufficient in number and are hygienic. All exit doors are clearly marked with emergency light and are easily accessible. There is floor mark and aislesare found unobstructed along with posted evacuation plot plan. Adequate number of first aid trained person and fire fighter team is available infactory. Machinery is found well maintained with safety devices. Factory has sufficient well trained mechanics that back up smooth production andthey have periodically maintenance schedule for each machine and keeping record accordingly. Employees are provided personal protectiveequipment (PPE). There is a doctor room for employees health care in this factory. Remark: Questionnaire point 7.23 and 7.24 marked as NA asfacility does not provide any transport and dormitory facility to the workers. Questioner 7.2 Corrected: It was noted that factory starts maintainingrecords for occupational accidents and investigation procedure is in place to find out the root cause. Moreover, regular training to the workers andmid-level management was also provided to make them aware about the way to avoid accidents and minimize the impacts. Questioner 7.10Corrected: It was noted that factory has reporting system for accident, injuries & near misses. Note that, during audit scope, there is no near missesissues happened in the factory. Questioner 7.11 Corrected: It was noted through documents review that factory has valid generator license which isvalid till January 14, 2018. Questioner 7.14 Corrected: It was noted through plant tour that, automated smoke detection system found functional inoverall the factory. Questioner 7.21 Corrected: It was noted through plant tour and worker interview that, the seating capacity of the dining hall foundwithin legal limit considering the existing manpower. However, gaps have been identified in implementation: , ,

7.5 - It was noted through documents review and management interview that, factory has 638 trained fire fighters from Fire Service & Civil Defence andBGMEA. But per law, factory should have 814 trained fire fighters through concern authority considering current manpower 4524. Bangladesh LabourRules 2015, Rules-55 (10).

7.19 - It was noted through management interview that there is no emergency procedure deal with trauma & serious illness and as per management &worker interview, factory did not provide any training to the workers on the emergency procedure of trauma & serious illness.

Remarks from Auditee:Comments for 7.19: Fire Service & Civil Defence do not provide the training at a time not more than 40 person. Besides, it is difficult to get the trainingschedule from them as lot of factory is applying for the training. So it will take time to arrange the training through the concern authority as per law requirement.

1- Followup Audit [Audit Id - 49896] Audit Date: 25/05/2016 PA Score: D Deadline date:30/06/2016Good practices


During audit it was observed that, the auditee partially fulfill the requirements of this performance area. During audit it was observed that, factory management is trying to develop their health and safetycondition. Factory management has a policy on health & safety. Workers of factory are free to move during any evacuation without seeking any permission. Factory management has providing the trainingon different types of topics i.e. health & safety, use of PPE, fire drill, fire fighting, first aide, machine safety, chemical handling and waste management, transmittable and non transmittable diseases etc.Factory management is conducting fire drill in regular basis. Factory management is recording all injury history in the injury register. Also factory management has developed Accident procedure and thereis a regular Medical Officer available in the factory. Factory management is report the major injury record to respective authority as per law but Factory management is not done properly the injury analysis.BSCI questionnaire points 7.23, 7.24 and 7.25 has been marked as "Not rated" as facility management did not have any transportation and housing for workers.

7.2 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as factory starts maintaining records for occupationalaccidents and investigation procedure is in place to find out the root cause. Moreover, regular training to the workers and mid-level management wasalso provided to make them aware about the way to avoid accidents and minimize the impacts.

7.3 - This question was marked partially in previous report however, there was no non-compliance statement. So, the question is marked as not rated. 7.4 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as the factory management developed a written

procedure to assess health and safety risks. Besides the factory management also involve workers representatives to assess the risks.

7.6 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue. Factory tested the noise level at the jacquard section andthe noise level observed within the acceptable limit. As such there is no requirement for earplug at jacquard section.

7.10 - Based on the satisfactory evidence it was noted that the previous findings was not corrected as the auditee has no reporting system for near misses. However, facility has reporting system for accident andinjuries.

.

7.11 - Based on the satisfactory evidence it was noted that the issue is remaining same as before as factory did not have waiver certificate for 2 (400kw & 360kw) out of 4 power generators and facility has applied tothe concerned authority on August 26, 2014. Moreover, the factory waiver certificate for 4.125 MW captive power plant has been expired on January 14, 2016. However, facility has applied for the renewal ondated January 7, 2016. However both boilers certificate found updated and the trade license was also found updated and valid till June 30, 2017

.

7.14 - Based on the satisfactory evidence it was noted that the previous issue is remaining the same as smoke detector connected with fire alarm system was notinstalled from the 4th floor to 8th floor (top floor). However, facility has provided the purchase order for the smoke detector which will be installed at thementioned area.




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7.17 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as during plant tour all randomly checked sewingmachines found equipped with Needle guards at the appropriate position.

7.21 - Based on the satisfactory evidence from plant tour it was noted that the previous finding has not corrected fully as the facility provided only 406 seatingcapacity in the dining area where as the requirement is 595 for total 3972 numbers of worker. However, facility is in process of purchasing morenumbers of seating at the dining area. .



Full Audit [Audit Id - 41957] Audit Date: 27/12/2015 PA Score: D Deadline date:30/06/2016Good practices


Based on satisfactory evidence it was noted that the main auditee partially respects this principle / Performance Area-7 (Occupational Health andSafety) because- 7.2: Factory maintain records for occupational accidents but no investigation procedure is in place to find out the root cause.Moreover, regular training to the workers and mid-level management was not provided to make them aware about the way to avoid accidents andminimize the impacts. 7.4: The factory management has no written procedure to assess health and safety risks. Besides the factory management didnot involve workers representatives to assess the risks. 7.6: Approx 20% workers of jacquard section were not using earplug while working thoughnotable amount of noise is being produced from the operation [as per Bangladesh Labor (amendment) Law 2013, section-78(a,1)]. 7.10: Facility hasthe reporting system for accident and injuries but no procedure in place for reporting near misses. 7.11: Following issues were noted during plant tourand documents review- a) factory did not have waiver certificate for 2 (400kw & 360kw) out of 4 power generators , however, facility has applied to theconcerned authority on August 8, 2014, [as per Bangladesh energy regulatory commission act 2006, section-9(1,b)]. b) 1 out of 2 boilers certificate wasexpired from November 6, 2015, however, facility has applied to the concerned authority on December 14, 2015 [Boiler act 1923, section-8]. c) Tradelicense was expired from July 1, 2015 [as per City Corporation and taxation rules 1983, rule-43]. 7.14: Smoke detector connected with fire alarmsystem was not installed from the 4th floor to 8th floor (top floor). 7.17: Needle guard of approx 30% sewing machines were found displaced on theother hand it was noted from injury register that majority injury in the factory is needle prick. 7.21: Seating capacity was not sufficient in the dining hall.Seating arrangement found only for 168 persons instead of approx 600 persons (15% of current manpower), [as per Bangladesh labor rules 2015, rule-92(1)].





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Performance Area 8 : No Child Labour


GOOD PRACTICES:NA





Entire performance area marked as "Not rated" as no non compliance had identified in last initial audit though during the plant tour, no child workerswere observed in the factory premises. All workers are hired by the Human Resource Department only and minimum hiring age of the factory is morethan 18 years of old. The factory has a policy on prohibition of child labour which stated that the factory do not permit child labour. The factorymanagement preserves copies of Birth Certificates, Educational Certificates and National ID Card in each workers personal file for better verification ofage of them. Factory management has remedial policy incase children are found in the factory.





Based on satisfactory evidence it was noted that the main auditee entirely respects this principle /performance area.





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Performance Area 9 : Special protection for young workers


GOOD PRACTICES:NA





Entire performance area has marked as "Not rated" as no non compliance had identified in last initial audit though during the plant tour, no younglooking workers were observed in the factory premises. Minimum hiring age of the factory is more than 18 years of old. Factory management hasverifies the age of the workers during recruitment.


Nil



Based on satisfactory evidence it was noted that the main auditee entirely respects this principle /performance area.





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Performance Area 10 : No Precarious Employment


GOOD PRACTICES:NA





Entire performance area marked as "Not rated" as no issue had identified in last initial audit though during audit it was found that the factorymanagement recruits the workers through advertisement or internal reference. Workers are selected based on the result of the examination taken onworking skill of workers during the recruitment process. Factory management has not recruited any worker on temporary or contract basis. Factorymanagement issues appointment letter and ID card to all the employees of the factory. The personal files of workers are well maintained by the factoryin connection with employment contract & all required papers. Service record book maintained for all workers. Job responsibilities of the workershas provided in the file. Factory management has a good relation with the workers.


Nil



Based on satisfactory evidence it was noted that the main auditee entirely respects this principle /performance area





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Performance Area 11 : No Bonded Labour


GOOD PRACTICES:NA





During audit it was observed that, the auditee fulfill the requirements of this performance area. Employees are free to leave factory and no restriction onworkers to free movement in the premises. No pressure from security guards to hold workers once they get authorized leave from management.During interview, workers confirmed that all of their dues correctly paid in case they want to leave factory for better opportunity. During documentsreview no evidence of any punishment were found.


Nil



Based on satisfactory evidence it was noted that the main auditee entirely respects this principle /performance area. Note that the worker of the facilitydid not any migrant worker as a result questionnaire point 11.2 rated as "Not Applicable"





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Performance Area 12 : Protection of the Environment


GOOD PRACTICES:Nil

AREAS OF IMPROVEMENT:The factory had written environmental policy. Mr. Abdul Kader was responsible for continuous improvements in their environmental performance.Factory management has assessed sources of (generator & boiler) air emission and sound emission level and impact of environment through a 3rdparty consultant firm where the tested parameters were found in acceptable limit. Factory has tested the waste water througu 3rd party testing firm aswell as applied for test to Department of Environment. Besides, the factory management has ensured separate designated area for storing wastageby type. Factory has ETP for waste water treatment and also have waste management plan. Questioner 12.3 Corrected: It was noted throughdocuments review and management interview that, factory has valid Environment Clearance Certificate which is valid till January 31, 2018.


1- Followup Audit [Audit Id - 49896] Audit Date: 25/05/2016 PA Score: A Deadline date:30/06/2016Good practices


During audit it was observed that, the auditee partially fulfill the requirements of this performance area. The factory management has assessed sourcesof (generator, boiler) air emission and noise level where the tested parameters were found in acceptable limit. Besides, the factory management hasensured separate designated area for storing wastage by type. Factory management As per product & production process nature, Factory did nothave Environment Clearance certificate.

12.1 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue. The facility conduct the Environmental ImpactAssessment and develop procedure for significant aspect regarding environment for its activities.

12.3 - In accordance with Environment conservation act 1995, section-12: No industrial unit or project shall be established or undertaken without obtaining, in themanner prescribed by rules, an Environmental Clearance Certificate from the Director General.

In accordance with BSCI questionnaire 12.3: Based on the satisfactory evidence it was noted that factory did not have environment clearance certificate from theconcerned authority, however, management had applied on October 5, 2015.

.

12.5 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as the facility installed water meter to measure the use ofwater and implementing the rainwater hervasting system very soon to promote water conservation and water waste reduction.


We would take corrective actions for all the above mentioned points

Full Audit [Audit Id - 41957] Audit Date: 27/12/2015 PA Score: C Deadline date:30/06/2016Good practices


Based on satisfactory evidence it was noted that the main auditee partially respects this principle / Performance Area-12 (Protection of theEnvironment) because- 12.1: The facility did not develop any procedure for significant aspect and impact assessment regarding environment for itsactivities. 12.3: a) factory did not have environment clearance certificate from the concerned authority, however, management had applied on October5, 2015 [as per Environment conservation act 1995, section-12]. 12.5: The facility did not implement any program yet to promote water conservationand water waste reduction.





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Performance Area 13 : Ethical Business Behaviour


GOOD PRACTICES:NA





During audit it was observed that, the auditee fulfill the requirements of this performance area. Factory management has developed an Anti BriberyPolicy. During audit no corruption or bribery related issues were noticed from the interviewed workers. Factory management has included all thebusiness partners in the anti bribery policy of the factory to ensure the non-involvement in any type of bribery. During audit workers also aware aboutbribery related issues. Factory management has reward system to maintain ethical behavior.

13.1 - Based on the satisfactory evidence it was noted that factory has corrected the previous issue as facility has identified possible area of corruption in thebusiness activities and there the system to provide regular training on ethics and integrity to all workers and managers. There was also a developedprocedure for investigating and discoursing misbehavior among the workers.


Nil

Full Audit [Audit Id - 41957] Audit Date: 27/12/2015 PA Score: A Deadline date:29/02/2016Good practices


Based on satisfactory evidence it was noted that the main auditee partially respects this principle / Performance Area-13 (Ethical Business Behaviour)because- 13.1: Facility has identified possible area of corruption in the business activities nut there was no system to provide regular training on ethicsand integrity to all workers and managers. Moreover, no procedure is developed for investigating and discoursing misbehaviour among the workers.





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Summary

Audit Type Date AuditId PA1 PA2 PA3 PA4 PA5 PA6 PA7 PA8 PA9 PA10 PA11 PA12 PA13OverallRating

Follow-upAudit 18/05/2017 80254 D A A A A C A A A A A A A C

Follow-upAudit 25/05/2016 49896 B A A A A D D A A A A A A C

Full Audit 27/12/2015 41957 D C A B E E D A A A A C A D




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Producer Photos

External photo(s) of the production unit(s)Factory front view.JPG

Photo first aid facilitiesDoctor room.JPG

Photo of fire safety equipmentPA system.JPG

External photo(s) of the production unit(s)Factory gate.JPG

Photo first aid facilitiesFirst aider with first aid box.JPG

Photo of fire safety equipmentSmoke detector.JPG

Photo of the inside of the main production hallAccessories store.JPG

Photo of chemical storage room (if applicable)Chemical keeping area.JPG

Photo of fire safety equipmentSprinkler system.JPG

Photo of the inside of the main production hallAuto winding section.JPG

Photo of fire safety equipmentBarred window.JPG

Photo of the canteen (if applicable)Dining hall.JPG

Photo of the inside of the main production hallFinished goods store.JPG

Photo of fire safety equipmentElectrical exit.JPG

Photo of the code of conduct on displayBSCI Code posted.JPG




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Photo of the inside of the main production hallFolding section.JPG

Photo of fire safety equipmentEmergency light.JPG

Photo of the nursery (if applicable)Child care room.JPG

Photo of the inside of the main production hallGetup section.JPG

Photo of fire safety equipmentEmergency response plan.JPG

Photo of the personal protection equipments (if applicable)PPE using.JPG

Photo of the inside of the main production hallJacquard section.JPG

Photo of fire safety equipmentEvacuation plan.JPG

Photo of the sanitary facilitiesDrinking water point.JPG

Photo of the inside of the main production hallLinking section.JPG

Photo of fire safety equipmentFire alarm switch.JPG

Photo of the sanitary facilitiesTolet area.JPG

Photo of the inside of the main production hallPacking section.JPG

Photo of fire safety equipmentFire alarm.JPG

Photo of the inside of the main production hallEmergency response plan.JPG




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Photo of the inside of the main production hallPQC section.JPG

Photo of fire safety equipmentFire control panel board.JPG

Photo of the inside of the main production hallGrievance box.JPG

Photo of the inside of the main production hallPressing section.JPG

Photo of fire safety equipmentFire fighting equipments.JPG

Photo of the inside of the main production hallGrievance procedure.JPG

Photo of the inside of the main production hallSewing section.JPG

Photo of fire safety equipmentFire hydrent pump.JPG

Photo of the inside of the main production hallRisk assessment.JPG

Photo of the inside of the main production hallTrimming and Mending section.JPG

Photo of fire safety equipmentFire resistance door.JPG

External photo(s) of the production unit(s)Boiler room.JPG

Photo of the inside of the main production hallWashing section.JPG

Photo of fire safety equipmentFire team.JPG

External photo(s) of the production unit(s)ETP area.JPG




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Photo of the inside of the main production hallWinding.JPG

Photo of fire safety equipmentHose pipe.JPG

External photo(s) of the production unit(s)Generator room.JPG

Photo of the inside of the main production hallYarn store.JPG




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