Audit Details. Sedex Site Reference: Sedex System) Health & Audit Conducted By

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2 Sedex Company Reference: (only available on Sedex System) Business name (Company name): Site name: Site address: (Please include full address) Site contact and job title: ZC: t Available Ammayapper Road Ways Ammayapper Road Ways Begum Ispahani Complex, 1 st Floor, 91, Armenian Street, Chennai Audit Details Sedex Site Reference: (only available on Sedex System) Country: Mr.H.Senthil Velu,, Executive Director ZS: t Available India Site phone: 91(44) Site e mail: Senthilvel.h@ammayapperroadways.com SMETA Audit Type: Labour Standards Health & Safety Environment Business Ethics Date of Audit: April 18, 2018 Audit Company Name & Logo: CSR SOLUTIONS LIMITED ( Report Owner (payee): Ammayapper Road Ways Commercial Purchaser Audit Conducted By Retailer Brand owner NGO Trade Union Multi stakeholder Combined Audit (select all that apply)

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4 SMETA Declaration I declare that the audit underpinning the following report was conducted in accordance with SMETA Best Practice Guidance and SMETA Measurement Criteria. (1) Where appropriate non-compliances were raised against the ETI code / SMETA Additions & local law and recorded as non-compliances on both the audit report, CAPR and on Sedex. (2) Any n-compliance against customer code alone shall not be uploaded to Sedex. However, in the CAPR these Variances in compliance between ETI code / SMETA Additions/ local law and customer code shall be noted in the observations section of the CAPR. Any exceptions to this must be recorded here (e.g. different sample size): ne Auditor Team (s) (please list all including all interviewers): Lead auditor: R.Natarajan Team auditor: NA Interviewers: R.Natarajan Report writer: R.Natarajan Report reviewer: CSR Solutions Limited Date of declaration: April 18, te: The focus of this ethical audit is on the ETI Base Code and local law. The additional elements will not be audited in such depth or scope, but the audit process will still highlight any specific issues. This report provides a summary of the findings and other information found/gathered during the social audit conducted on the above date only and does not officially confirm or certify compliance with any legal regulations or industry standards. The social audit process requires that information be gathered and considered from records review, worker interviews, management interviews and visual observation. More information is gathered during the social audit process than is provided here. The audit process is a sampling exercise only and does not guarantee that the audited site prior, during or post audit, are in full compliance with the Code being audited against. The provisions of this Code constitute minimum and not maximum standards and this Code should not be used to prevent companies from exceeding these standards. Companies applying this Code are expected to comply with national and other laws and where the provisions of law and this Code address the same subject, to apply that provision which affords the greater protection. The ownership of this report remains with the party who has paid for the audit. Release permission must be provided by the owner prior to release to any third parties.

5 n Compliance Table Issue (please click on the issue title to go direct to the appropriate audit results by clause) te to auditor, please ensure that when issuing the audit report, hyperlinks are retained. Area of n Conformity (Only check box when there is a non conformity, and only in the box/es where the non conformity can be found) ETI Base Code Local Law Additional Elements Custom er Code Record the number of issues by line*: NC Obs GE NC Findings Only (note to auditor, summarise in as few words as possible NC s only) 0A Universal Rights covering UNGP 0 0 ne Observed 0B Management systems and code implementation Internal Monitoring has not been conducted to understand the effectiveness of the implemented Social standards. 1. Freely chosen Employment ne Observed 2 Freedom of Association ne Observed 3 Safety and Hygienic Conditions NCR -1 The First aid training certificates has not renewed for the employees, since the validity of the first aid certificate is only for 3 years. NCR 2 First aid boxes did not contain adequate medicines as prescribed under law. NCR -3 Evacuation plan has not been displayed in the office area. NCR -4 Risk assessments did not address the risk Audit company: CSR Solutions Limited Report reference: CSR-S2018IDO-101 Date: 18/04/2018 5

6 related to the ergonomics issues of the employees performing jobs in the sitting position. NCR 5 Exit / Emergency exit signage marked. NCR 6 Emergency lights installed in the office area. 4 Child Labour ne Observed 5 Living Wages and Benefits ne Observed 6 Working Hours ne Observed 7 Discrimination ne Observed 8 Regular Employment ne Observed 8A Sub Contracting and Homeworking ne Observed 9 Harsh or Inhumane Treatment ne Observed 10A Entitlement to Work ne Observed 10B2 Environment 2-Pillar ne Observed 10B4 Environment 4 Pillar t 10C Business Ethics t General observations and summary of the site: Audit company: CSR Solutions Limited Report reference: CSR-S2018IDO-101 Date: 18/04/2018 6

7 Audit Process This is an announced audit was conducted by CSR Solution Limited. There was 01 auditor, who assessed the facility s operations. The scope of this audit was based on one man-day 2 Pillar SMETA systems. Overview of opening & closing meeting, facility management responses Auditors entered the facility at AM on 18th April 2018 and conducted an opening meeting with facility management according to the ETI Base Code. Mr.H.Senthil Velu,, Executive Director was present in the meeting and he assured full co-operation to this audit. Worker Interview conducted at a private place and ensured the confidentiality and complaint mechanism. Worker share their views about the company freely and no seems fear. Workers understood the objective of this audit and they are fully co-operative during worker interview. Workers are aware of the Grievances procedure and suggestion boxes placed near the toilets. Small issues were discussed with supervisors and HR Department personnel and sorted out. Management practices open door policy and workers can meet the Top Management at any time during working hours. case of Harassment or abuse reported since inception. Company Management is very keen on workers safety and welfare. Site Summary :- The closing meeting started at 5:30 pm and corrective action plan was discussed. A copy of the CAP was left to Mr.H.Senthil Velu,, Executive Director. Auditor thanked for good cooperation, organization and friendly working environment and left company at 6:00 pm on 18th April *Please note the table above records the total number of n-compliances (NC), Observations (Obs) and Good Examples (GE). This gives the reviewer an indication of problem areas but does not detail severities of each issue Reviewers need to check audit results by clause. Audit company: CSR Solutions Limited Report reference: CSR-S2018IDO-101 Date: 18/04/2018 7

8 Site Details Site Details A: Company Name: Ammayapper Road Ways B: Site name: Ammayapper Road Ways C: Applicable business and other legally required licence numbers and documents for example, business license no, liability insurance, any other required government inspections Registration under Tamil Nadu Motor Vehicle Act 1961, Registration. 367/CNI, 2018 dated 28/11/2017 valid up to 31/12/2019. Fire License /C2/2017 dated 17/11/2017 valid for one year. D: Products/Activities at site, for example, garment manufacture, electrical, toys, grower E: Site description: (Include size, location, and age of site. Also, include structure and number of buildings) Providing transport services to Cement, slag and fly ash Industries, and movement of Export and Import containers. The facility is located at Armenian Street, Parry s Corner in the Chennai city. The facility has been functional in the rental building from The facility is built up of one concrete building. Review of the stability certificate and physical verification shows that physical appearance of building the building seems good sound in construction. The plot area of facility is 2300 sq. feet with valid fire certificate. Production Building no 1 First floor Is this a shared building? Description Admin office, Accounts department, marketing office and Managing Director office Remark, if any This is a rental commercial building. Maintenance of lift, security, Electrical maintenance, fire equipments, drinking water and housekeeping is being carried out by the Building owner. Nil Visible structural integrity issues (large cracks) observed and without structural engineer evaluation

9 Details: The facility has obtained a stability certificate from the concerned department and has an approved building layout plan. cracks observed on the day of audit. F: Site function: Agent Factory Processing/Manufacturer Finished Product Supplier Grower Home worker Labour Provider Pack House Primary Producer Service Provider Sub Contractor G: Month(s) of peak season: (if ) H: Process overview: (Include products being produced, main operations, number of production lines, main equipment used) I: What form of worker representation / union is there on site? J: Is there any night production work at the site? K: Are there any on site provided worker accommodation buildings e.g. dormitories L: Are there any off site provided worker accommodation buildings M: Were the site provided accommodation buildings included in this audit There is no obvious peak season. Providing transportation facilities to cement plants, slags, fly ash and movement of containers for import and export. Union (name) Worker Committee Other (specify) ne If yes approx. % of workers in on site accommodation. The facility has not provided on site workers accommodation. If approx. % of workers ; the facility has not provided any off site worker accommodation If, please give details: The site has not provided accommodation for its workers Audit Parameters A: Time in and time out Day 1 Time in: 10:00 am Day 1 Time out: 6:00 pm B: Number of Auditor Days Used: 1 MD (1 auditor x 1 day) Day 2 Time in: Day 2 Time out: Day 3 Time in: Day 3 Time out:

10 C: Audit type: Full Initial Periodic Full Follow up Partial Follow Up Partial Other Define D: Was the audit announced? Announced Semi announced: Window detail: Unannounced E: Was the Sedex SAQ available for review? F: Any conflicting information SAQ/Pre-Audit Info to Audit findings? If, why not As per facility Management company was not aware about SAQ N/A If, please capture detail in appropriate audit by clause G: Who signed and agreed CAPR (Name and job title) H: Is further information available (if Y please contact audit company for details) Mr.H.Senthil Velu, Executive Director I: Previous audit date: Nil J: Previous audit type: Nil K: Was any previous audit reviewed during this audit N/A Audit attendance Management Worker Representatives Senior management Worker Committee representatives A: Present at the opening meeting? B: Present at the audit? C: Present at the closing meeting? D: If Worker Representatives were not present please explain reasons why Worker representative was available for the opening and closing meeting.

11 (only complete if no worker reps present) E: If Union Representatives were not present please explain reasons why: (only complete if no union reps present) There is no union in the facility Worker Analysis The term "migrant worker" refers to a person who is engaged or has been engaged in a remunerated activity in a country of which they are not a national and where they do not intend to remain permanently or has purposely migrated on a temporary basis to another in-country region to seek and engage in a remunerated activity Worker Analysis Local Migrant* Permanent Temporary Agency Permanent Temporary Agency Home workers Total Worker numbers Male Worker numbers female Total Number of Workers interviewed male Number of Workers interviewed female Total interviewed sample size A: Nationality of Management Indian B: Majority nationality of workers Main countries: Country 1: India Approx 100% total workforce

12 Country 2: t Applicable Country 3: t Applicable Approx 0% total workforce Approx 0% total workforce C: Worker remuneration (management information) 0% workers on piece rat 0% hourly paid workers 100% salaried workers Payment cycle: 0% daily paid 0% weekly paid 100% monthly paid 0% other please give details Worker Interview Summary Worker Interview Summary A: Were workers aware of the audit? B: Were workers aware of the code? C: Number of group interviews: (Please specify number and size of groups. Please see SMETA Best Practice Guidance and Measurement Criteria. If the auditor was not able to follow the BPG, please state within the declaration) D: Number of individual interviews (Please see SMETA Best Practice Guidance and Measurement Criteria) E: All groups of workers are included in the scope of this audit such as; Direct employees, Casual and agency workers, Workers employed by service providers such as security and catering staff as well as workers supplied by other contractors. te to auditor: please record details of migrant /agency/contractor workers in section 8 Regular Employment, under Responsible Recruitment 1 group of 4 workers Male: 2 Female: 4 If N, please give details t Applicable F: Interviews were done in private and the confidentiality of the interview process was communicated to the workers? G: In general, what was the attitude of the workers towards their workplace? Favourable n favourable Indifferent H: What was the most common worker complaint? complaints by the workers. They were satisfied with the facility arrangements and work environment.

13 I: What did the workers like the most about working at this site? Timely payment, providing sufficient PPEs, taking care of workers health & safety J: Any additional comment(s) regarding interviews: ne K: Attitude of workers to hours worked: Workers were satisfied with the working hours. L. Is there any worker survey information available? If, please give details: Facility has not conducted any worker survey M: Attitude of workers: (Include their attitude to management, workplace, and the interview process. Both positive and negative information should be included) te: Do not document any information that could put workers at risk 10 employees were selected for the interview; all interviews were conducted in confidential manner without management. negative comments about management and workplace highlighted during the employees interviews. Employees like to work in the factory due to high job security, good working condition, satisfied working systems and benefits and no any negative feedback about the factory. N: Attitude of worker s committee/union reps: (Include their attitude to management, workplace, and the interview process. Both positive and negative information should be included) te: Do not document any information that could put workers at risk Employees can select their committee representatives without involving management. Workers have rights to convey their suggestions. The members of the workers council do not have any complaints of discrimination among the other employees. They can discuss the matters without having restrictions from management and meetings were conducted in an open manner O: Attitude of managers: (Include attitude to audit, and audit process. Both positive and negative information should be included) The factory management was found to be cooperative throughout the audit; The management extended their fullest cooperation to the audit team at all times during the audit. All requested documents were provided without any delay. Audit Results by Clause 0A: Universal Rights covering UNGP (Click here to return to NC table)

14 0.A. Guidance for Observations 0.A.1 Businesses should have a policy, endorsed at the highest level, covering human rights impacts and issues, and ensure it is communicated to all appropriate parties, including its own suppliers. 0.A.2 Businesses should have a designated person responsible for implementing standards concerning Human rights 0.A.3 Businesses shall identify their stakeholders and salient issues. 0.A.4 Businesses shall measure their direct, indirect, and potential impacts on stakeholders (rights holders) human rights. 0.A.5 Where businesses have an adverse impact on human rights within any of their stakeholders, they shall address these issues and enable effective remediation. 0.A.6 Businesses shall have a transparent system in place for confidentially reporting, and dealing with human rights impacts without fear of reprisals towards the reporter. te for auditors and readers. This is not a full Human Rights Assessment, but instead a check on the business s implementation of processes to meet their Universal rights covering UNGP responsibilities. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is /are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: 1. Factory has formulated policy pertaining to the human rights impacts and issues. 2. Factory has measured their direct, indirect, and potential impacts on stakeholders (rights holders) human rights. 3. Factory has identified their stakeholders and salient issues where businesses have an adverse impact on human rights within any of their stakeholders. Per management, if adverse impacts on human right within stockholders are noticed, issues are addressed immediately and effective remediation steps are taken on the spot but no records are maintained. 4. Factory generally has a process for managing respect of addressing any negative impacts to factory own employees and external services such as security and janitorial. 5. Facility has transparent system in place for confidentially reporting, and dealing with human rights impacts without fear of reprisals towards the reporter. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Documented policy on human rights Supplier s social compliance monitoring records. Interaction with Management and Interview with employees

15 Any other comments: ne A: Policy statement that expresses commitment to respect human rights? Please give details: Facility has a policy to respect human rights B: Does the business have a designated person responsible for implementing standards concerning Human Rights? C: Does the businesses have a transparent system in place for confidentially reporting, and dealing with human rights impacts without fear of reprisals towards the reporter? D: Does the business demonstrate effective data privacy procedures for workers information, which is implemented? Please give details: Name: Mr. R.Bhaskar Job title: HR Manager Please give details: Factory has transparent system in place for confidentially reporting, and dealing with human rights impacts without fear of reprisals towards the reporter. Please give details: Facility has Data Privacy policy and ensures that employees, suppliers and customers information remains confidential. Findings 1. Finding: Observation Company NC ne Description of observation: NA Additional elements requirement: NA Comments: NA observed: ne Good examples observed: Description of Good Example (GE): ne Objective Evidence Observed: ne

16 Measuring Workplace Impact Workplace Impact A: Annual worker turnover: Number of workers leaving in last 12 months as a % of average total number of workers on site over the year (annual worker turnover) B: Current % quarterly (90 days) turnover: Number of workers leaving from the first of the 90 day period through to the last day of the 90 day period / [(number of employees on the 1 st day of 90 day period + number of employees on the last day of the 90 day period) / 2] C: Annual % absenteeism: Number of days lost through job absence in the year / [(number of employees on 1 st day of the year + number employees on the last day of the year / 2] * number available workdays in the year Last year: 5 % 4% Last year: 10 % This year 4 % This year _9 % D: Quarterly (90 days) % absenteeism: Number of days lost through job absence in the period / [(Number of employees on 1 st of the period + Number of employees on the last day of the period / 2] * Number of available workdays in the month 4% 3% E: Are accidents recorded? Please describe: Facility has maintained the register of accident and dangerous occurrence F: Annual Number of work related accidents and injuries per 100 workers: [Number of work related accidents and injuries * 100) / Number of total workers] G: Quarterly (90 days) number of work related accidents and injuries per 100 workers: [Number of work related accidents and injuries * 100) / Number of total workers] H: Lost day work cases per 100 workers: [(Number of lost days due to work accidents and work related injuries * 100) / Number of total workers] Last year: Nil Number: Nil Nil Last year: Nil Last year: Nil Number: Nil Nil Last year: Nil

17 I: % of workers that work on average more than 48 standard hours / week in the last 6 / 12 months: J: % of workers that work on average more than 60 total hours / week in the last 6 / 12 months: 6 months 0% workers 6 months 0% workers 6 months 0% workers 12 months 0% workers 0: Management systems and Code Implementation 0B: Management system and Code Implementation (click here to return to NC Table) 0.B.1 Suppliers are expected to implement and maintain systems for delivering compliance to this Code. 0.B.2 Suppliers are expected to be operating legally in premises with the correct business licenses and permissions and to have systems to ensure that all relevant land rights have been complied with 0.B.3 Suppliers shall appoint a senior member of management who shall be responsible for compliance with the Code. 0.B.4 Suppliers are expected to communicate this Code to all employees. 0.B.5 Suppliers should communicate this code to their own suppliers and, where reasonably practicable, extend the principles of this Ethical Code through their supply chain. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: 1. Mr.H.Senthil Velu,, Executive Director has been responsible to ensure compliance with these code requirements. 2. Facility has not displayed copy of ETI Code of Conduct in local language at notice board. 3. The managers are well aware of the compliance requirements and have adequate knowledge on the legal requirements. 4. The facility has obtained all relevant legal licenses to operate. And also have a system in place to monitor the compliance. 5. The facility has appropriate land rights. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Interviews with Management and workers ETI code translations, responsibilities of managers for implementation of Code Communication of ETI code Personnel records Employment Contracting procedures Documentation of Working time registration system Legal Permit Any other comments: ne

18 Management Systems: A: In the last 12 months, has the site been subject to any fines/prosecutions for non compliance to any regulations? B: Do policies and/or procedures exist that reduce the risk of forced labour, child labour, discrimination, harassment & abuse? C: If, is there evidence (an indication) of effective implementation? Please give details. D: Have managers and workers received training in the standards for forced labour, child labour, discrimination, harassment & abuse? E: If, is there evidence (an indication) that training has been effective e.g. training records etc.? Please give details F; Does the site have any internationally recognised system certifications e.g. ISO 9000, 14000, OHSAS 18000, SA8000 (or other social audits). Please detail (Number and date). Please describe: During the audit, no evidence found that the facility has had any fine for noncompliance levied against the facility during the last 12 months. Please describe: The facility has its own policies and procedures on forced labour, child labour, discrimination, harassment & abuse and the policies are posted for workers reference. The facility conducts training to the workers on legal requirements. The facility does not maintain any original documents of the employees and checks with a valid age proof document at the time of hire. On the day of assessment no traces of forced labour, child labour, discrimination, harassment & abuse was observed. All interviewed employees reported that they are treated with dignity and respect. The facility conducts training to all employees related to health and safety, legal requirements etc. and maintains all training records. Please describe: The facility conducts training to all employees on the social policies on regular basis and during the induction. The last training conducted on August 24, Please describe: The facility conducts training to all employees on all social policies and legal requirements on regular basis and during induction for the new employees. The interviewed employees are found to be aware of the standards of child labour, forced labour etc. Please describe: The facility is certified for ISO 9001:2015, ISO 14001:2015 and OHSAS 18001: QMS Certificate. 1705QMS012 EMS Certificate. 1711EMS128

19 OHSAS Certificate. 1711OHS129 G: Is there a Human Resources manager/department? If, please detail. H: Is there a senior person /manager responsible for implementation of the Code I: Is there a policy to ensure all worker information is confidential J: Is there an effective procedure to ensure confidential information is kept confidential K: Are risk assessments conducted to evaluate policy and procedure effectiveness? L: Does the facility have a process to address issues found when conducting risk assessments, including implementation of controls to reduce identified risks? M: Does the facility have a policy/code which requires labour standards of its own suppliers? Please describe: The facility has been appointed Mr. R. Baskar for taking care of the HR activities. Please describe: The facility has been appointed Mr. R. Baskar for taking care of the HR activities. Please describe: The facility has its own policy on confidentiality. data is published or disclosed to others without the consent of the workers. Please describe: As per the facility procedures, the data received from the workers are kept confidential and is only used for addition legal requirements for registering under social security benefits like ESI. The data will not be disclosed to others without workers consent Details: The facility has conducted risk assessments to evaluate policy and procedures are effectiveness. Details: Risk assessment addresses all the identified risk issues in the factory. Details: Factory has a policy and clearly indicated to require labour standards of its own suppliers Land rights N: Does the site have all required land rights licenses and permissions (see SMETA Measurement Criteria)? O: Does the site have systems in place to conduct legal due diligence to recognize and apply national laws and practices relating to land title Details: Factory is available all required land right licenses and permissions Details: Factory has a system in place To conduct legal due diligence relating to land

20 title P: Does the site have a written policy and procedures specific to land rights. If yes, does it include any due diligence the company will undertake to obtain free, prior and informed consent, (FPIC) even if national/local law does not require it Q: Is there evidence that facility site compensated the owner/lessor for the land prior to the facility being built or expanded. Please give details. R. Does the Facility demonstrate that alternatives to a specific land acquisition were considered to avoid or minimize adverse impacts Please give details. S: Is There any evidence of illegal appropriation of land for facility building or expansion of footprint. If yes, how does the company obtain FPIC: As per the legal requirement, factory has obtained all licenses N/A Details: Factory owner has paid for the land prior to the facility being built or expanded N/A Details: Factory has obtained all licenses required by local law. Details: There is no illegal appropriation of land and all the legal licenses for the land and buildings 1. Description of non compliance: NC against ETI/Additional Elements NC against customer code: ne Local law/eti Requirement: NA Recommended corrective action: NA Action By: NA Timescale: NA n compliance: NC against Local Law observed: It was observed during factory tour. Observation: Description of observation: Internal Monitoring has not been carried out to understand the effectiveness of the observed:

21 implemented social standard. Documents review Local law or ETI requirement: NA Comments: The Factory management has agreed to conduct the Internal audit once in 6 months on regular basis. Good Examples observed: Description of Good Example (GE): ne observed observed: t

22 1: Employment is Freely Chosen 1: Freely Chosen Employment (Click here to return to NC table) ETI 1.1 There is no forced, bonded or involuntary prison labour. 1.2 Workers are not required to lodge deposits or their identity papers with their employer and are free to leave their employer after reasonable notice. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: Factory has a policy like no child labour & no forced labour. Personnel records file (to check for ID s, terms & condition, evidence of force labour policy). Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Workers interviews confirmed that they can leave their employer after reasonable notice. During workers interviews confirmed that they are not required to submit any original documents or any deposits with the employer. During audit process on the day of audit, there was no evidence of forced, bonded or prison labour in the factory. They also confirmed that they are working voluntarily in the factory. Any other comments: ne A: Is there any evidence of retention of original documents, e.g. passports/id s B: Is there any evidence of a loan scheme in operation C: Is there Any evidence of retention of wages /deposits D: Are there any restrictions on workers freedom to terminate If please give details and category of workers affected t If yes please give details and category of worker affected t If yes please give details and category of worker affected t

23 employment? E: If any part of the business is UK based / registered & turnover is 36m+ there is a requirement to publish a modern day slavery statement. F: Is there a modern day slavery statement published G: Is there evidence of any restrictions on workers freedoms to leave the site at the end of the work day H: Does the site understand the risks of forced / trafficked / bonded labour in it s supply chain I: Is the site taking any steps taking to reduce the risk of forced / trafficked labour? Please describe finding: restrictions on workers freedom to terminate employment Please describe finding: t : Please describe finding: As confirmed by the interviewed employees there is no such restrictions to leave the site after completion of their shift. If yes please give details and category of workers affected: The facility does not use any sort of forced / trafficked or bonded labour in the facility nor in its supply chain. Therefore, no workers are affected. t Please describe finding: The facility has made a policy to prohibit any form of forces/trafficked labour to be employed in their facility n compliance: 1. Description of non compliance: ne apparent on the day of assessment. NC against ETI/Additional Elements NC against Local Law NC against customer code: Local law and/or ETI requirement: t Recommended corrective action: t observed: t Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: Comments: t Description of Good Example (GE): ne observed Good Examples observed: t observed: t observed: t

24 2: Freedom of Association and Right to Collective Bargaining are Respected 2: Freedom of Association and Right to Collective Bargaining are Respected (Click here to return to NC table) (Click here to return to Key Information) ETI 2.1 Workers, without distinction, have the right to join or form trade unions of their own choosing and to bargain collectively. 2.2 The employer adopts an open attitude towards the activities of trade unions and their organisational activities. 2.3 Workers representatives are not discriminated against and have access to carry out their representative functions in the workplace. 2.4 Where the right to freedom of association and collective bargaining is restricted under law, the employer facilitates, and does not hinder, the development of parallel means for independent and free association and bargaining. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: 1) Mr. R.Baskar, HR Manager is responsible to ensure that Freedom of Association and Right to Collective Bargaining is respected by the management. 2) At present, there was no union / trade union in the facility. 3) Facility has formed works committee to address workers issues and minutes of meeting records were available. 4) Suggestion box was provided in production area and all employees were free to express their suggestions and complaints if any. 5) Employees without distinction, have the right to join any union or form trade unions of their own choosing and to bargain collectively. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Facility Policy and Procedures. Suggestion Box. Works Committee Minutes dated 1 st February Grievance Committee Minutes dated 1 st February, Interaction with Management and Interview with employees. Any other comments: ne

25 A: What form of worker representation/union is there on site? B: Is it a legal requirement to have a union? C: Is it a legal requirement to have a worker s committee? D: Is there any other form of effective worker/management communication channel? (Other than union/worker committee) e.g. H&S, sexual harassment Union (name) Worker Committee Other (specify) ne Describe: Facility has provided suggestion box, where employees are free to communicate their problems / suggestions / complaints and grievances. While interviewing, all employees reported that they are free to approach the management for any problem. Further, facility also has health and safety committee and anti-sexual harassment committee to communicate and address health and safety issues and harassment issues. Is there evidence of free elections? E: Does the supplier provide adequate facilities to allow the Union or committee to conduct related business? Details: Based on employee s interview and review of records, it was noted that works committee employee representatives are free to carry out their functions like meetings with adequate facilities on periodical basis and the record of the same was maintained. F: Name of union and union representative, if : G: If no union what is parallel means of consultation with workers e.g. worker committees? Union Works Committee Is there evidence of free elections? N/A Is there evidence of free elections? N/A H: Are all workers aware of who their representatives are? The interviewed employees are found to be aware of the workers representatives. I: Were worker representatives freely elected? Date of last election: 30/06/2017 J: Do workers know what topics can be raised with their representatives? As per the interviewed employees the topics related to work and safety K: Were worker

26 representatives/union representatives interviewed L: State any evidence that union/worker s committee is effective? Specify date of last meeting; topics covered; how minutes were communicated etc. If, please state how many: one Facility has conducted last works committee meeting on 1 st February, Topics discussed during the committee meeting were regarding work place grievances and facilities. M: Are any workers covered by Collective Bargaining Agreement (CBA) N: If what percentage by trade Union/worker representation O: If, does the Collective Bargaining Agreement (CBA) include rates of pay 0% workers covered by Union CBA N: If what percentage by trade Union/worker representation t n compliance: 1. Description of non compliance: ne apparent on the day of assessment. NC against ETI/Additional Elements NC against Local Law NC against customer code: Local law and/or ETI requirement: t Recommended corrective action: t observed: t Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: t Comments: t observed: t Good Examples observed: Description of Good Example (GE): ne observed observed: t

27 3: Working Conditions are Safe and Hygienic 3: Working Conditions are Safe and Hygienic (Click here to return to NC table) (Click here to return to Key Information) ETI 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. 3.2 Workers shall receive regular and recorded Health & Safety training, and such training shall be repeated for new or reassigned workers. 3.3 Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for food storage shall be provided. 3.4 Accommodation, where provided, shall be clean, safe, and meet the basic needs of the workers. 3.5 The company observing the code shall assign responsibility for Health & Safety to a senior management representative. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: The facility has a written Health and Safety plan that indicates how all Health and Safety issues are being managed at the factory. The plan includes what steps the factory is taking to ensure that health and safety risk areas are being identified and addressed. The facility has a health and safety representative Mr.R.Baskar, HR Manager in charge to oversee compliance. Health & Safety risk assessment is available as part of the Health & Management System documentation. Fire Safety external training was provided on February 12, 2018 by Pentagon Quality Management Institure. There are 46 (Male -40, Female -06 workers trained on fire fighting. It was verified that there are visible, appropriate and accessible fire extinguishers available. Number of fire extinguishers:8 (ABC Type 8 kgs) Number of sand buckets: 4 s Fire alarm 2 s Fire call points 2 s First Aid training was provided by Indian St.John Ambulance services on 29/07/2014. The factory has 3 (Male 2, Female 1) first aid trainer employees. Adequate first aid kits with adequate medicines provided in all the factory areas. There are 2 first aid kits available in the factory. The emergency contact numbers are appropriately displayed inside factory. Health & Safety education is provided to all workers during initial orientation and on an ongoing basis. Good Ventilation, Illumination and Work Environment evidenced.

28 Social Accountability Policy has been displayed both in local language and English. Adequate Wash Rooms are available in the factory separate by gender. There are 2 male toilets and 2 female. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Fire license H&S policy List of first aid box, fire extinguishers and training records of first aid and firefighting operations Fire mock drill record Accident and Injury records Minutes of meeting records of committees Interaction with Management and Interview with employees. Any other comments: ne A: Does the facility have general Health & Safety and occupational Health & Safety policies and procedures that are fit for purpose and are these communicated to workers? B: Are the policies included in worker s manual? C: Are there any structural additions without required permits/inspections (e.g. floors added)? D: Are visitors to the site informed on H&S and provided with personal protective equipment E: Is a medical room or medical facility provided for workers? If yes, do the room(s) meet legal requirements and is the size/number of rooms suitable for the number of workers. F: Is there a doctor or nurse on site or there is easy access to first aider/ trained medical aid G: Where facility provides worker transport - it is fit for purpose, safe and Details: The facility has its own policy and procedures on health and safety and is posted on the work floor for the workers reference. Details: The policies are included in the workers manual Details: N/A Details: The visitors are informed about site H&S and provided required PPE while entering the workshop Details: Requirement of medical room not Details: doctor or nurse on site. However, facility has allocated trained first aiders and employees have access to the first aiders in case of any injury.

29 maintained and operated by competent persons e.g. buses and other vehicles H: Secure personal storage space is provided for workers in their living space and is fit for purpose I: H&S Risk assessments are conducted (including evaluating the arrangements for workers doing overtime e.g. driving after a long shift) and there are controls to reduce identified risk J: Is the site meeting its legal obligations on environmental requirements including required permits for use and disposal of natural resources K: Is the site meeting its customer requirements on environmental standards, including the use of banned chemicals Details: Facility does not provide transportation facility Details: Facility does not provide residential facility/dormitory Details: Factory has conducted risk assessment covering working hours and overtime if employees work after the regular hours and control points were there to reduce the risk. Please describe Facility is meeting its legal obligations on environmental requirements including required permits for use and disposal of natural resources. Please describe The site does not used any harmful, toxic or banned chemicals n compliance: 1. Description of non compliance: NC against ETI/Additional Elements NC against customer code: NC against Local Law NCR -1 The First aid training certificates has not renewed for the employees, since the validity of the first aid certificate is only for 3 years. observed: It was observed during facility tour / documents review NCR 2 First aid boxes did not contain adequate medicines as prescribed under law. NCR -3 Evacuation plan has not been displayed in the office area. NCR -4 Risk assessments did not address the risk related to the ergonomics issues of the employees performing jobs in the sitting position. NCR 5 Exit / Emergency exit signage marked. NCR 6 Emergency lights installed in the office area. Local law and/or ETI requirement: ETI Code 3.1 According to ETI Code 3.1- A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimizing, so far as is reasonably practicable, the causes of hazards inherent in

30 the working environment. Recommended corrective action: The factory shall ensure to renew the first aid certificate of the employees by providing refresher trainings through St.John Ambulance services. The facility shall ensure to provide adequate medicines in the first aid medicines on regular basis. The Facility shall ensure to display the Evacuation plans in the prominent places for easy evacuation during emergencies. The facility shall ensure to address the ergonomics related risks in the risk assessment. The Facility shall ensure to visibly mark the Exit / Emergency exits with illumination. The facility shall ensure to install Emergency lights in the office area. Action By: Mr.R.Baskar, HR Manager Timescale: 30 Days Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: Comments: t t observed: t Description of Good Example (GE): ne observed Good Examples observed: observed: t 4: Child Labour Shall t Be Used

31 4: Child Labour Shall t Be Used (Click here to return to NC table) (Click here to return to Key Information) ETI 4.1 There shall be no new recruitment of child labour. 4.2 Companies shall develop or participate in and contribute to policies and programmes which provide for the transition of any child found to be performing child labour to enable her or him to attend and remain in quality education until no longer a child. 4.3 Children and young persons under 18 shall not be employed at night or in hazardous conditions. 4.4 These policies and procedures shall conform to the provisions of the relevant ILO Standards. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: Factory has a policy where the minimum age of hiring is 18 years. There is a formal procedure for checking ages of workers at application stage, and this includes checking government issued ID as age proof document. Photocopies of age proof document are made and kept in the personnel files of workers. Original ID s are given back to workers whilst photocopies only are kept in their personnel file. Checks of all sampled workers files showed that all the workers were above 18 years of age. Through visual observation during facility tour no employee appeared to be child or of younger age less than 18. Through the review of personnel files of sampled workers, the youngest worker found of age 24 years old. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Personnel files of sampled workers, Interview with the workers, visual observation on floor Any other comments: ne A: Legal age of employment years with restrictions and 18 year and above without restrictions B: Age of youngest worker found: 24 years C: Children present on workfloor but not working at time of audit D: % of under 18 s at this site (of total 0%

32 workers) E: Workers under 18 subject to hazardous work assignments? (Go to clause 3 Health and Safety) If Y give details t Applicable. under 18 worker working in the facility n compliance: 1. Description of non compliance: ne apparent on the day of assessment. NC against ETI/Additional Elements NC against Local Law NC against customer code: Local law and/or ETI requirement: t Recommended corrective action: t observed: t Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: Comments: t t observed: t Description of Good Example (GE): ne observed Good Examples observed: observed: t

33 5: Living Wages are paid 5: Living Wages are Paid (Click here to return to NC table) (Click here to return to Key information) ETI 5.1 Wages and benefits paid for a standard working week meet, at a minimum, national legal standards or industry benchmark standards, whichever is higher. In any event wages should always be enough to meet basic needs and to provide some discretionary income. 5.2 All workers shall be provided with written and understandable information about their employment conditions in respect to wages before they enter employment and about the particulars of their wages for the pay period concerned each time that they are paid. 5.3 Deductions from wages as a disciplinary measure shall not be permitted nor shall any deductions from wages not provided for by national law be permitted without the expressed permission of the worker concerned. All disciplinary measures should be recorded. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: Abstracts of minimum wages act, payment of wages act, employees state insurance act, bonus act, gratuity act, factories act, payment day etc. are displayed at notice board. Payments are made through cash/bank transfer to all workers on or before 7th day of every month. The employees were paid regular wages on monthly basis. All employees are issued pay-slips. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Facility Policy. Salary register, Pay slip and Time records for 10 selected samples for 03 Random months. Leave with wage records (Form : 15) and Leave encashment records. Settlement and Gratuity paid records. List of National and Festival Holidays. Interaction with management and Employees. n compliance: 1. Description of non compliance: ne apparent on the day of assessment. NC against ETI/Additional Elements NC against Local Law NC against customer code: Local law and/or ETI requirement: t Recommended corrective action: t observed: t

34 Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: Comments: t t observed: t Description of Good Example (GE): ne observed Good Examples observed: observed: t Summary Information Criteria Local Law (Please state legal requirement) Actual at the Site (Record site results against the law) Is this part of a Collective Bargaining Agreement? A: Standard/Contracted work hours: (Maximum legal and actual required working hours excluding overtime, please state if possible per day, week, and month) Legal maximum: 08 hour per day / 48 hours per week 08 hour per day / 48 hours per week B: Overtime hours: (Maximum legal and actual overtime hours, please state if possible per day, week, and month) Legal maximum: 02 hour per day / 12 hours per week Overtime (Per sample checked) D: wage for standard/contracted hours: (Minimum legal and actual minimum wage at site, please state if possible per hr, day, week, and month) There is no fixed specific Minimum wages notified by the Government of Tamil Nadu. National floor level wages is INR 176/day. INR E: overtime wage: (Minimum legal and actual minimum overtime wage at site, please state if possible per hr, day, week, and month) Legal minimum: 200% of normal rate of wages 200% of normal rate of wages Wages analysis: Wages analysis: (Click here to return to Key Information) A: Were accurate records shown at the first request? B: If, why not? t

35 C: Sample Size Checked (State number of worker records checked and from which weeks/months should be current, peak, and random/low. Please see SMETA Best Practice Guidance and Measurement Criteria) 10 samples from March 2018 (Current month) 10 samples from vember 2017 (Random month 1) 10 samples from May 2017 (Random month 2) Remark There is no obvious peak season, both the months were selected randomly. D: Are there different legal minimum wage grades? If, please specify all. If, please give details: (INR/month) Cleark - INR 10000/- Month Supervisor INR 15000/- Month Manager - INR 20000/- Month Drivers INR / Month plus trip allowances. E: If there are different legal minimum grades, are all workers graded and paid correctly? F: For the lowest paid production workers, are wages paid for standard/contracted hours (excluding overtime) below or above the legal minimum? N/A Lowest Wages found: te: full time employees and please state hour / week / month etc. INR per month If, please give details: Please indicate the breakdown of workforce per earnings: Cleark - INR 10000/- Month Supervisor INR 15000/- Month Manager - INR 20000/- Month Drivers INR / Month plus trip allowances. Below legal min Meet Above 0% of workforce earning under min wage 0% of workforce earning min wage 100% of workforce earning above min wage G: Bonus (amount specify) Bonus Scheme found: Annual bonus given to the employees. te: full time employees and please state hour / week / month etc. The employees are paid the bonus at the rate of 8.33% of salary amount as per the legal requirement. H: What deductions are required by law e.g. social insurance? Please state all types: I: Have these deductions been made? Please list all deductions that have/have not been made. J: Were appropriate records available to verify hours of work and wages? Employee State 1.75% on Gross salary Employee provident 12% on basic salary If, please describe

36 K: Were any inconsistencies found? (if yes describe nature) Poor record keeping Isolated incident Repeated occurrence: L: Do records reflect all time worked? (For instance, are workers asked to attend meetings before or after work but not paid for their time) Details: Factory has maintained attendance (in and out time) records Manually M: Is there a defined living wage: This is not normally minimum legal wage. If answered, please state amount and source of info: Please see SMETA Best Practice Guidance and Measurement Criteria. If yes, what was the calculation method used. N: Are there periodic reviews of wages? If give details (include whether there is consideration to basic needs of workers plus discretionary income). O: Are workers paid in a timely manner in line with local law? P: Is there evidence that equal rates are being paid for equal work: Please specify amount/time: defined living wage in the region ISEAL/Anker Benchmarks Asia Floor Wage Figures provided by Unions Living Wage Foundation UK Fair Wear Wage Ladder Fairtrade Foundation Other please give details: t Details: The local government revises the minimum wage every six months which the facilities have to comply Details: From the review of available records it was noted that equal pay is given for same nature of work. Q: How are workers paid: Cash Cheque Bank Transfer Other If other explain:

37 6: Working Hours are not Excessive 6: Working Hours are not Excessive (Click here to return to NC table) (Click here to return to Key Information) ETI 6.1 Working hours must comply with national laws, collective agreements, and the provisions of 6.2 to 6.6 below, whichever affords the greater protection for workers. Sub clauses 6.2 to 6.6 are based on international labour standards. 6.2 Working hours, excluding overtime, shall be defined by contract, and shall not exceed 48 hours per week. 6.3 All overtime shall be voluntary. Overtime shall be used responsibly, taking into account all the following: the extent, frequency and hours worked by individual workers and the workforce as a whole. It shall not be used to replace regular employment. Overtime shall always be compensated at a premium rate, which is recommended to be not less than 125% of the regular rate of pay. 6.4 The total hours worked in any 7-day period shall not exceed 60 hours, except where covered by clause 6.5 below. 6.5 Working hours may exceed 60 hours in any 7-day period only in exceptional circumstances where all of the following are met: this is allowed by national law; this is allowed by a collective agreement freely negotiated with a workers organisation representing a significant portion of the workforce; appropriate safeguards are taken to protect the workers health and safety; and The employer can demonstrate that exceptional circumstances apply such as unexpected production peaks, accidents or emergencies. 6.6 Workers shall be provided with at least one day off in every 7-day period or, where allowed by national law, 2 days off in every 14-day period. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: Factory has manual system to record the attendance of the workers. Through employees interview, a factory policy it was noted that overtime is voluntary. The overtime wage rate is 200% of the regular wage rate. As per the reviewed records, the regular working hours and overtime working hours were in compliance with the legal and client requirement. The facility follows a single shift practice. The working time of the factory is from am to pm. there is a morning tea break from am to am, lunch from to pm, and an afternoon tea break from 3.30 pm to 3.45 pm. Worker interviews and the records support what is claimed to be practiced. The working hours are displayed on the notice board.

38 Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Employee interview, Management interview, Factory policy on working hours, Time records, Computerised time logging system, Workers contracts. Any other comments: ne n compliance: 1. Description of non compliance: ne apparent on the day of assessment. NC against ETI/Additional Elements NC against Local Law NC against customer code: Local law and/or ETI requirement: t Recommended corrective action: t observed: t Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: Comments: t t observed: t Description of Good Example (GE): ne observed Working hours analysis Systems & Processes Good Examples observed: Working hours analysis Please include time e.g. hour/week/month (Go back to Key information) observed: t A. What timekeeping systems are used: time card etc. B: Is sample size same as in wages section Describe: Manual Time record If N, please give details t Applicable C: Are standard/contracted If NO, please give details including % and which type of workers do NOT have standard hours defined in

39 working hours defined in all contracts/employme nt agreements? D: Are there any other types of contracts/employme nt agreements used? contracts/employment agreements. Details If YES, please complete as appropriate: t Applicable 0 hrs Part time If Other, Please define: Variable hrs 0 hrs E. Do any standard/contracted working hours defined in contracts/ employment agreements exceed 48 hours per week If Y please %detail hours, % and types of workers &affected and frequency Details: t Applicable F: Are workers provided with at least 1 day off in every 7- day-period, or 2 in 14- day-period (where the law allows)? Please select all : 1 in 7 days 2 in 14 days If, please explain: t Applicable Is this allowed by local law? Maximum number of days worked without a day off (in sample): 6 days Standard/Contracted Hours worked G: Standard working hours over 48 per week found If yes, % of workers & frequency t Applicable H: Any local waivers/local law or permissions which allow averaging/annualise d hours for this site? Overtime Hours worked If YES, please give details t Applicable

40 I: Actual overtime hours worked in sample (State per day/week/month) J: Combined hours (standard/contracted plus= total) 60 found? K: Approximate percentage of total workers on highest overtime hours Highest OT hours: NIL March 2018 Current month overtime performed vember 2017 Random month# overtime performed May 2017 Random month# overtime performed 0% L: Is overtime voluntary? Overtime Premiums M: Are the correct legal overtime premiums paid? Conflicting Information N/A there is no legal requirement to OT premium Please detail evidence e.g. Wording of contract/employment agreement/handbook/worker interviews/refusal arrangements: As per policy and workers interview, overtime is voluntary Please give details of normal day overtime premium as a % of standard wages: Overtime paid at 200% of the normal wage rate. N: Is overtime paid at a premium? N/A - overtime noted as per sample checked If yes, please describe % of workers & frequency: O: ETI Code requires a prevailing standard to give greatest worker protection. If a site pays less than 125% OT premium and this is allowed under local law, are there other considerations? Please complete the boxes where relevant. Multi select is possible. Consolidated pay (May be standard wages above minimum legal wage, with no/low overtime premium) Collective Bargaining agreements Other t Please explain any checked boxes above e.g. detail of consolidated pay CBA or Other t P: If more than 60 total hours per week and this is legally allowed, are there Overtime is voluntary Onsite Collective bargaining allows 60+ hours/week Safeguards are in place to protect worker s health and safety Site can demonstrate exceptional circumstances

41 other considerations? Please complete the boxes where relevant. Multi select is possible. Other reasons (please specify) Please explain any checked boxes above Regular working hours and overtime hours were within the legal limit. Q: Is there evidence that overtime hours are being used for extended periods to make up for labour shortages or increased order volumes? R: If sufficient workers cannot be hired, are new working time arrangements explored to ensure that overtime is the exception rather than the rule. If yes, please describe t Applicable overtime found as per the sample checked t. Facility has sufficient manpower

42 7: Discrimination is practiced 7: Discrimination is Practiced (Click here to return to NC table) ETI 7.1 There is no discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: 1)Mr.H.Senthil Velu,, Executive Director is responsible to check discrimination issue in the facility. b) discrimination reported / observed in hiring, compensation, promotion and termination based on race, caste, national origin, religion, age, disability, gender, marital status and sexual orientation. 3) All employees have fairly equal opportunity for training and overtime work in their respective departments. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Facility Policy. Appointment letter with terms and conditions of employment for 10 out of 10 selected samples. Salary and other benefit records. Interaction with management and Employees Any other comments: ne A: Gender breakdown of Management + Supervisors (Include as one combined group) B: Number of women who are in skilled or technical roles e.g. where specific qualifications are needed i.e. machine engineer / laboratory analyst Male: 100% Female 0% #: 0 C: Is there any evidence of discrimination based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation?: Hiring Compensation access to training promotion termination or retirement evidence of discrimination observed

43 Professional Development A: What type of training and development are available for workers? B: Are HR decisions on e.g. promotion, training, compensation based on objective, transparent criteria? Please give details: The facility provides training on safety like fire fighter training, first aid training and also on job training skill training to the unskilled workers if they are willing to develop their skills. Further, the facility also provides trainings for environment. If no, please give details: t Applicable n compliance: 1. Description of non compliance: ne apparent on the day of assessment. NC against ETI/Additional Elements NC against Local Law NC against customer code: Local law and/or ETI requirement: t Recommended corrective action: t observed: t Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: Comments: t t observed: t Description of Good Example (GE): ne observed Good Examples observed: observed: t

44 8: Regular Employment Is Provided 8: Regular Employment Is Provided (Click here to return to NC table) (Click here to return to Key Information) ETI 8.1 To every extent possible work performed must be on the basis of recognised employment relationship established through national law and practice. 8.2 Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour only contracting, sub contracting, or home working arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any such obligations be avoided through the excessive use of fixed term contracts of employment. Additional Elements: Responsible Recruitment 8.3 Suppliers have full understanding of the entire recruitment process and assess all labour recruiters and intermediaries against legal and/or ethical requirements. 8.4 There are effective management systems in place to identify and monitor the hiring and management of all migrant workers, contract workers, agency workers, temporary or casual labour The supplier shall implement processes to enable adequate control over agencies with regards the above points and related legislation. 8.5 Employment agencies must only supply workers registered with them. 8.6 Workers pay no recruitment fee at any stage of the recruitment process. 8.7 Worker contracts accurately reflect the agreed payment and terms in the recruitment process and are understood and signed by workers. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: Based from interaction with the facility management, it is noted that no apprentices or trainees are engaged. There were no migrant employees observed in the facility. Workers are given continuous employment. Workers employment contracts were reviewed and the terms & conditions were found as per law. Moreover as per the employee interviews, the workers are provided with regular work and they were aware of legal wages and no issues were reported. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Facility Policy. Appointment letter with terms and conditions for 10 out 10 selected samples. Salary and other benefit records. Interaction with management and Employees. Any other comments: ne

45 n compliance: 1. Description of non compliance: ne apparent on the day of assessment. NC against ETI/Additional Elements NC against Local Law NC against customer code: Local law and/or ETI requirement: t Recommended corrective action: t observed: t Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: Comments: t t observed: t Description of Good Example (GE): ne observed Good Examples observed: observed: t Responsible Recruitment All Workers A: Were all workers presented with terms of employment at the time of recruitment, did they understand them and are they same as current conditions? B: Did workers pay any fees, taxes, deposits or bonds for the purpose of recruitment/placement? Terms & Conditions presented Understood by workers Same as actual conditions If any are unchecked, please describe finding and specific category(ies) of workers affected: If Please describe details and specific category(ies) of workers affected

46 C: If yes, check all that apply: Recruitment / hiring fees Service fees Application costs Recommendation fees Placement fees Administrative, overhead or processing fees Skills tests Certifications Medical screenings Passports/ID s Work / resident permits Birth certificates Police clearance fees Any transportation and lodging costs after employment offer Any transport costs between work place and home Any relocation costs after commencement of employment New hire training / orientation fees Medical exam fees Deposit bonds or other deposits Any other non-monetary assets Other C: If any checked, give details: t Migrant Workers: The term "migrant worker" refers to a person who is engaged or has been engaged in a remunerated activity in a country of which they are not a national and where they do not intend to remain permanently or has purposely migrated on a temporary basis to another in-country region to seek and engage in a remunerated activity A: Type of work undertaken by migrant workers: migrant workers B: Migrant worker recruitment Total number of (in country recruitment agencies) used: migrant workers Total number of (outside of local country) recruitment agencies used: migrant workers C: Migrant workers voluntary deductions (such as for remittances) confirmed in writing by the worker and evidence of transaction is supplied by the facility to the worker. Please describe finding: t Observations ne D: Are Any migrant workers in skilled, technical, or management roles t If number and example of roles: t Applicable Migrant Workers (this should include all migrant workers including permanent workers, temporary and/or seasonal workers)

47 NON-EMPLOYEE WORKERS Recruitment Fees: A: Are there any fees B: If yes, check all that apply: C: If any checked, give details: Recruitment / hiring fees Service fees Application costs Recommendation fees Placement fees Administrative, overhead or processing fees Skills tests Certifications Medical screenings Passports/ID s Work / resident permits Birth certificates Police clearance fees Any transportation and lodging costs after employment offer Any transport costs between work place and home Any relocation costs after commencement of employment New hire training / orientation fees Medical exam fees Deposit bonds or other deposits Any other non-monetary assets Other ne Agency Workers (if ) (workers sourced from a local agent who are not directly paid by the site, but paid by the agency, Usually the agencies are paid by the site and the wages of the individual workers are paid by the agency.) A: Number of agencies used (average): B: Were agency workers age/pay/hours included within scope of this audit C: Were sufficient documents for agency workers available for review? D: Is there a legal contract / agreement with all agencies? E: Does the site have a system for checking labour standards of agencies? If yes, please give details. agency Workers employed t t Applicable t Applicable t Applicable Details: t Applicable Please describe:

48 Contractors: te: contractors in this context are generally individuals who supply several workers to a site. Usually the contractors are paid by the site and the wages of the workers are paid by the contractor. Common terms include, gang bosses, labor provider, A: Any contractors on site? B: If, how many workers supplied by contractors C: Do all contractor workers understand their terms of employment? D: If, please give evidence for contractor workers being paid per law: Please describe finding: t Applicable Please describe finding: t Applicable t Applicable 8A: Sub Contracting and Homeworking (Click here to return to NC table) (Click here to return to Key Information) 8A.1 There should be no sub contracting unless previously agreed with the main client. 8A.2 Systems and processes should be in place to manage sub contracting, homeworking and external processing. te to auditor on homeworking: Report on whether it is direct or via agents. How many workers, relationship with site and what control systems are in place. te to auditor on subcontracting : auditor should use this section for subcontractors of part made or wholly made finished goods, this section should not be used for raw material manufacturers unless instructed otherwise by customers Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: Facility was not subcontracting any of the process. homeworking activity noted. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): If any processes are sub contracted please populate below boxes

49 Process Subcontracted Process 1 Process 2 Name of factory Address Details: Review of product samples, management interview. n compliance: 1. Description of non compliance: ne apparent on the day of assessment. NC against ETI/Additional Elements NC against Local Law NC against customer code: Local law and/or ETI requirement: t Recommended corrective action: t observed: t Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: Comments: t t observed: t Description of Good Example (GE): ne observed Good Examples observed: observed: t Summary of sub contracting if t Applicable please x A: Has the auditor made a simple calculation to compare capacity with workers work load in order to identify possible unrecorded work hours or undeclared subcontracting B: If sub contractors are used, is there evidence this has been agreed with the main client? Please describe: If, summarise details: C: Number of sub contractors/agents used D: Is there a site policy on sub contracting? If, summarise details:

50 E: What checks are in place to ensure no child labour is being used and work is safe? Summary of homeworking if t Applicable please x A: If homeworking is being used, is there evidence this has been agreed with the main client? If, summarise details: B: Number of homeworkers Male: Female: Total: C: Are homeworkers employed direct or through agents? Directly Through Agents D: If through agents, number of agents E: Is there a site policy on homeworking? F: How does site ensure worker hours and pay meet local laws for homeworkers? G: What processes are carried out by homeworkers? H: Do any contracts exist for homeworkers Please give details: I: Are full records of homeworkers available at the site?

51 9: Harsh or Inhumane Treatment is allowed 9: Harsh or Inhumane Treatment is Allowed (Click here to return to NC table) ETI 9.1 Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation shall be prohibited. Additional elements: 9.2 companies should provide access to a confidential grievance mechanism for all workers A: Are there published, anonymous and/or open channels available for reporting any violations of Labour standards and H&S or any other grievances to a 3 rd party? B: If, are workers aware of these channels and have access? Please give details. Please describe: The facility has posted the contact numbers of local police station, labour officer C: If yes, what type of mechanism is used e.g. hotline, whistle blowing mechanism, comment box etc. Please give details. D: Is there a grievance mechanism is place for: E: Are there any open disputes? Phone numbers are displayed and workers can contact anytime Workers Communities Suppliers Other Details: As per the facility management All workers were aware of these processes, suggestion box was known by the workers. Also workers can share their problem with welfare officer; drop their complaints into suggestion box and even go to the top management. Moreover, factory has a system to open suggestion box in every week. If yes, please give details t Applicable F: Does grievance mechanism meet with UNGP requirement of e.g. (Legitimate, Accessible, Predictable, Equitable, Transparent, Rights-compatible, a source of continuous learning and based on stakeholder engagement)? G: Does the site \ encourage its business partners (e.g., suppliers) provide individuals and communities with access to effective grievance mechanisms (e.g., help lines or whistle blowing mechanism If no, please give details t Applicable If Please give details t Applicable

52 H: Is there a published and transparent disciplinary procedure If please explain t Applicable I: If yes, are workers aware of these the disciplinary procedure If no please give details t Applicable J: Does the disciplinary procedure allow for deductions from wages (fines) for disciplinary purposes (see wages section) If please give details t Applicable Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is /are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: As per the interviewed employee s testimony, all employees are treated with dignity and respect and there were no signs of physical abuse, sexual or other harassment and verbal abuse. Grievance mechanism is posted near the suggestion/complaint box for workers reference. All interviewed workers were found to be aware of the grievance procedures. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: 1. Disciplinary Policy 2. Personal files 3. Grievance handling policy 4. Grievance Committee Records Any other comments: ne n compliance: 1. Description of non compliance: ne apparent on the day of assessment. NC against ETI/Additional Elements NC against Local Law NC against customer code: Local law and/or ETI requirement: t Recommended corrective action: t observed: t Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: t observed: t

53 Comments: t Good Examples observed: Description of Good Example (GE): ne observed observed: t 10 A: Entitlement to Work and Immigration 10. Other Issue areas: 10A: Entitlement to Work and Immigration (Click here to return to NC table) Additional Elements 10A.1 Only workers with a legal right to work shall be employed or used by the supplier. 10A.2 All workers, including employment agency staff, must be validated by the supplier for their legal right to work by reviewing original documentation. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: Factory doesn t have system to recruit employees from manpower agency. The factory has no foreign workers. All are local workers and no permission is required for working from one district to another district. Thus, the factory is compliant with this section. Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Factory policy, rules and regulations, employees personnel files etc. Any other comments: Nil n compliance: 1. Description of non compliance: ne apparent on the day of assessment. NC against ETI/Additional Elements NC against Local Law NC against customer code: Local law and/or ETI requirement: t Recommended corrective action: t observed: t Observation:

54 Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: Comments: t t observed: t Description of Good Example (GE): ne observed B 2: Environment 2 pillar Good Examples observed: observed: t 10. Other issue areas 10B2: Environment 2 Pillar (Click here to return to NC table) To be completed for a 2 Pillar SMETA Audit, and remove the following page which is 10B4 environment 4 pillar 10B2.1 Suppliers must comply with the requirements of local and international laws and regulations including having necessary permits. 10B2.2 The supplier should be aware of and comply with their end clients environmental requirements. te for auditors and readers, This is not a full environmental assessment but a check on basic systems and management approach. Current Systems and Evidence Examined To complete current systems Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is /are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems. Current systems: Facility developed training programs for the responsible person to be updated with the latest environmental laws and facility environmental management system for handling and disposing of waste. Training record was found documented and maintained dated. Factory have a proper environmental emergency protocols Evidence examined to support system description (Documents examined & relevant comments. Include renewal/expiry date where appropriate): Details: Factory tour Document review Worker interview Management interview Any other comments: Nil

55 4. Description of non compliance: NC against ETI/Additional Elements NC against customer code: ne Observed Local law: n compliance: NC against Local Law observed: Recommended corrective action: Action By: Timescale: Observation: Description of observation: ne observed Local law or ETI/Additional elements / customer specific requirement: Comments: t t observed: t Description of Good Example (GE): ne observed Good Examples observed: observed: t ne Other Findings Outside the Scope of the Code Community Benefits (Please list below any specific community benefits that the site management stated that they were involved in, for example, HIV programme, education, sports facilities) Financial assistants provided to the employees those who are getting married, assistance for the educational expenses to the poor school students. And also financial assistance for maternity expenses for the employees those who are not eligible under ESIC Act.

56 Appendix 1 Comparison between ETI code and Customer's Supplier's Code. Any areas where a site complies with the Customer's Supplier Code, but not with the ETI code are discussed at the audit close out meeting and recorded on the CAPR. te to supplier "for this customer it may not be necessary to complete corrective actions where NC's DO NOT meet the ETI code, but DO meet your customer's code. If the audit is shared with other customers who work to the ETI code or an equivalent international standard, corrective actions will be necessary." t Applicable please x NOTE: The provisions of the ETI base Code constitute minimum and not maximum standards, and this code should not be used to prevent companies from exceeding these standards. Companies applying the ETI Base Code are expected to comply with national and other law and, where the provisions of law and the ETI Base Code address the same subject, to apply that provision which affords the greater protection. ETI Code / Additional Elements 0.A. Universal Rights covering UNGP 0.A. Guidance for Observations 0.A.1 Businesses should have a policy, endorsed at the highest level, covering human rights impacts and issues, and ensure it is communicated to all appropriate parties, including its own suppliers. 0.A.2 Businesses should have a designated person responsible for implementing standards concerning Human rights 0.A.3 Businesses shall identify their stakeholders and salient issues. 0.A.4 Businesses shall measure their direct, indirect, and potential impacts on stakeholders (rights holders) human rights. 0.A.5 Where businesses have an adverse impact on human rights within any of their stakeholders, they shall address these issues and enable effective remediation. 0.A.6 Businesses shall have a transparent system in place for confidentially reporting, and dealing with human rights impacts without fear of reprisals towards the reporter. Instruction to Audit Company: fill in the relevant clauses from the Customer Supplier Code - where. Customer's Supplier Code equivalent 0.A. Universal Rights covering UNGP ne 0.B. Management Systems & Code Implementation 0.1 Suppliers are expected to implement and maintain systems for delivering compliance to this Code. 0.2 Suppliers shall appoint a senior member of 0.B. Management Systems & Code Implementation ne

57 management who shall be responsible for compliance with the Code. 0.3 Suppliers are expected to communicate this Code to all employees. 0.4 Suppliers should communicate this code to their own suppliers and, where reasonably practicable, extend the principles of this Ethical Code through their supply chain. ETI 1. Forced Labour 1.1 There is no forced, bonded or involuntary prison labour. 1.2 Workers are not required to lodge deposits or their identity papers with their employer and are free to leave their employer after reasonable notice. ETI 1. Forced Labour ne ETI 2. Freedom of association and the right to collective bargaining are respected 2.1 Workers, without distinction, have the right to join or form trade unions of their own choosing and to bargain collectively. 2.2 The employer adopts an open attitude towards the activities of trade unions and their organisational activities. 2.3 Workers representatives are not discriminated against and have access to carry out their representative functions in the workplace. 2.4 Where the right to freedom of association and collective bargaining is restricted under law, the employer facilitates, and does not hinder, the development of parallel means for independent and free association and bargaining. ETI 3. Working conditions are safe and hygienic 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. 3.2 Workers shall receive regular and recorded Health & Safety training, and such training shall be repeated for new or reassigned workers. 3.3 Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for food storage shall be provided. 3.4 Accommodation, where provided, shall be ETI 2. Freedom of association and the right to collective bargaining are respected ne ETI 3. Working conditions are safe and hygienic ne

58 clean, safe, and meet the basic needs of the workers. 3.5 The company observing the code shall assign responsibility for Health & Safety to a senior management representative. ETI 4. Child labour shall not be used 4.1 There shall be no new recruitment of child labour. 4.2 Companies shall develop or participate in and contribute to policies and programmes which provide for the transition of any child found to be performing child labour to enable her or him to attend and remain in quality education until no longer a child. 4.3 Children and young persons under 18 shall not be employed at night or in hazardous conditions. 4.4 These policies and procedures shall conform to the provisions of the relevant ILO Standards. ETI 5. Living wages are paid 5.1 Wages and benefits paid for a standard working week meet, at a minimum, national legal standards or industry benchmark standards, whichever is higher. In any event wages should always be enough to meet basic needs and to provide some discretionary income. 5.2 All workers shall be provided with written and understandable information about their employment conditions in respect to wages before they enter employment and about the particulars of their wages for the pay period concerned each time that they are paid. 5.3 Deductions from wages as a disciplinary measure shall not be permitted nor shall any deductions from wages not provided for by national law be permitted without the expressed permission of the worker concerned. All disciplinary measures should be recorded. ETI 6. Working Hours are not excessive 6.1 Working hours must comply with national laws, collective agreements, and the provisions of 6.2 to 6.6 below, whichever affords the greater protection for workers. Sub clauses 6.2 to 6.6 are based on international labour standards. ETI 4. Child labour shall not be used ne ETI 5. Living wages are paid ne ETI 6. Working Hours are not excessive ne 6.2 Working hours, excluding overtime, shall be defined by contract, and shall not exceed 48 hours per week. 6.3 All overtime shall be voluntary. Overtime shall

59 be used responsibly, taking into account all the following: the extent, frequency and hours worked by individual workers and the workforce as a whole. It shall not be used to replace regular employment. Overtime shall always be compensated at a premium rate, which is recommended to be not less than 125% of the regular rate of pay. 6.4 The total hours worked in any 7 day period shall not exceed 60 hours, except where covered by clause 6.5 below. 6.5 Working hours may exceed 60 hours in any 7 day period only in exceptional circumstances where all of the following are met: this is allowed by national law; this is allowed by a collective agreement freely negotiated with a workers organisation representing a significant portion of the workforce; appropriate safeguards are taken to protect the workers health and safety; and The employer can demonstrate that exceptional circumstances apply such as unexpected production peaks, accidents or emergencies. 6.6 Workers shall be provided with at least one day off in every 7 day period or, where allowed by national law, 2 days off in every 14 day period. ETI 7. discrimination is practised 7.1 There is no discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation. ETI 8. Regular employment is provided 8.1 To every extent possible work performed must be on the basis of recognised employment relationship established through national law and practice. 8.2 Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour only contracting, sub contracting, or home working arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any such ETI 7. discrimination is practised ne ETI 8. Regular employment is provided ne

60 obligations be avoided through the excessive use of fixed term contracts of employment. Additional Elements: Responsible Recruitment 8.3 Suppliers have full understanding of the entire recruitment process and assess all labour recruiters and intermediaries against legal and/or ethical requirements. 8.4 There are effective management systems in place to identify and monitor the hiring and management of all migrant workers, contract workers, agency workers, temporary or casual labour The supplier shall implement processes to enable adequate control over agencies with regards the above points and related legislation. 8.5 Employment agencies must only supply workers registered with them. 8.6 Workers pay no recruitment fee at any stage of the recruitment process. 8.7 Worker contracts accurately reflect the agreed payment and terms in the recruitment process and are understood and signed by workers. 8A: Sub Contracting and Homeworking 8A: Sub Contracting and Homeworking 8A.1 There should be no sub contracting unless previously agreed with the main client. 8A.2 Systems and processes should be in place to manage sub contracting, homeworking and external processing. ne ETI 9. harsh or inhumane treatment is allowed 9.1 Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation shall be prohibited. Additional elements: 9.2 companies should provide access to a confidential grievance mechanism for all workers ETI 9. harsh or inhumane treatment is allowed ne 10. Other Issue areas: 10A: Entitlement to Work and Immigration Additional Elements 10A.1 Only workers with a legal right to work shall be employed or used by the supplier. 10A.2 All workers, including employment agency staff, must be validated by the supplier for their legal right to work by reviewing original documentation. ne 10. Other issue areas 10B2: Environment 2 Pillar

61 10B2.1 Suppliers must comply with the requirements of local and international laws and regulations including having necessary permits. 10B2.2 The supplier should be aware of and comply with their end clients environmental requirements. te for auditors and readers, This is not a full environmental assessment but a check on basic systems and management approach. ne SMETA Extra Sections for 4 Pillar Audit: Environment Section B.4. Compliance Requirements 10B4.1 Businesses as a minimum must meet the requirements of local and national laws related to environmental standards. 10B4.2 Where it is a legal requirement, businesses must be able to demonstrate that they have the relevant valid permits including for use and disposal of resources e.g. water, waste etc. 10B4.3 Businesses shall be aware of their end client s environmental standards/code requirements 10B4.4 Suppliers should have an environmental policy, covering their environmental impact, which is communicated to all appropriate parties, including its own suppliers. 10B4.5 Suppliers shall be aware of the significant environmental impact of their site and its processes. 10B4.6 The site should measure its impacts, including continuous recording and regular reviews of use and discharge of natural resources e.g. energy use, water use (see 4 pillar audit report and audit checks for details). 10B4.7 Businesses shall make continuous improvements in their environmental performance. 10B4.8 Businesses shall have available for review any environmental certifications or any environmental management systems documentation 10B4.9 Businesses should have a nominated individual responsible for co ordinating the site s efforts to improve environmental performance. B4. Guidance for Observations 10B4.10 Suppliers should have completed the appropriate section of the SAQ and made it available to the auditor. 10B4.11 Has the site recently been subject to (or pending) any fines/prosecutions for noncompliance to environmental regulations. SMETA Extra Sections for 4 Pillar Audit: Environment Section N/A Business Practices Section

62 10C. Compliance Requirements 10C.1 Businesses shall conduct their business ethically without bribery, corruption, or any type of fraudulent Business Practice. 10C.2 Businesses as a minimum must meet the requirements of local and national laws related to bribery, corruption, or any type of fraudulent Business Practices. 10C.3 Where it is a legal requirement, businesses must be able to demonstrate that they comply with all fiscal legislative requirements. 10C.4 Businesses shall have access to a transparent system in place for confidentially reporting, and dealing with unethical Business Ethics without fear of reprisals towards the reporter. 10C.5 Businesses should have a Business Ethics policy, covering bribery, corruption, or any type of fraudulent Business Practice, 10C.6 Businesses should have a designated person responsible for implementing standards concerning Business Ethics 10C.7 Suppliers should ensure that the staff whose job roles carry a higher level of risk in the area of ethical Business Practice e.g. sales, purchasing, logistics are trained on what action to take in the event of an issue arising in their area. N/A 10C. Guidance for Observations 10C.8 Businesses should communicate their Business Ethics policy, covering bribery, corruption, or any type of fraudulent Business Practice to all appropriate parties, including its own suppliers. 10C.9 Has the site recently been subject to (or pending) any fines/prosecutions for noncompliance to Business Ethics regulations. If so is there evidence that sustainable corrective actions have been implemented.

63 Photo Form Facility Main Entrance Over view of office premises Fire Extinguishers tice board, social policies Working Hours First Aid Box Abstracts of Acts Drinking Water Electrical panel area

64 NA Generator room Assembly area n Compliance Photo NCR - Exit Signage Missing For more information visit: Sedexglobal.com Your feedback on your experience of the SMETA audit you have observed is extremely valuable. It will help to make improvements to future versions. You can leave feedback by following the appropriate link to our questionnaire: Click here for Buyer (A) & Buyer/Supplier (A/B) members: