supplier nam e: kansal udyog

Audit company: SGS India Pvt Ltd Report reference: IN/GUR/CTS/20120974/001 Date: 17/4/2012 1

Supplier name: Kansal Udyog

Site country: India

Site name: Kansal Udyog


Audit Company Name: SGS India Private Limited

Client: Kansal Udyog

Sedex Company Reference: S S598177167137

Sedex Site Reference: P Not Available

Audit Conducted By

Commercial Purchaser

NGO Retailer

Trade Union Brand Owner

Multi-stakeholder Combined Audit (delete all that don’t apply)

Auditor Reference Number: (If applicable)

Not Applicable

SMETA Declaration

I declare that the audit underpinning the following report was conducted in accordance with SMETA best practice guidance. Any exceptions to this are recorded here: None Auditor Name: Yograj Yadhav Role: Auditor Date: April 17, 2012


Audit Details

Audit Details

Report #: IN/GUR/CTS/20120974/001

Date of audit: April 17, 2012

Time in and time out:

Time in: 10.10 AM Time out: 03:30 PM

Number of Auditor Days Used One

Audit type:

Full Initial Full Re-audit Partial Follow-Up Partial Other – Define

Was the audit announced?

Announced Semi – announced Unannounced

Was the Sedex SAQ reviewed?

Yes No

If no, why not?

Previous audit date: 10.03.2011

Previous audit type:

Full Initial Full Re-audit Partial Follow-Up Partial Other – Define

Auditor name(s) and role(s): Yograj Yadav / Auditor

Report written by: Yograj Yadav

Report reviewed by: Rahul Nishant

Report issue date: 20 April 2012

Supplier name: Kansal Udyog

Site country: India

Site name: Kansal Udyog

Site contact and job title: Mr. Pawan Kansal – Managing Director

Site address: Plot no. 46, Sector 25, Part II, Huda Industrial Area, Panipat -132103, Haryana, India.

Applicable business and other legally # PPT/K-106/2256 valid up to 31.12.2012 for 50 employees.


required licence numbers: for example, liability insurance

Site phone: 91-180-2660944

Site fax: -

Site e-mail: [email protected]; [email protected]

Products/Activities at site, for example, garment manufacture, electricals, toys, grower

Bathmats and breaded mats

Audit results reviewed with site management?

Yes

Who signed and agreed CAPR (Name and job title)

Mr. Pawan Kansal – Managing Director


Audit Scope

Local Law (Please state legal requirement)

Standard work week (total hours): 48 hours

Maximum allowed overtime hours (per day, week, month):

2 hours per day, 12 hours per week and 50 hours per quarter.

Minimum work age: 14 years completed (with restricted work) for young workers, 18 years for adult workers

Minimum wage for standard hours: The applicable minimum wages in the reason are For Unskilled - INR 4847.17 per month For Semi skilled A - INR 4977.17 per month For Semi skilled B - INR 5107.17 per month For Skilled A - INR 5237.17 per month For Skilled B - INR 5367.17 per month For Highly skilled - INR 5497.17 per month. These wages are applicable with effect from 01.01.2012.

Minimum overtime wage: 200% of rate of ordinary wages

Audit Scope (Please select the code and additional requirements that were audited against during this audit)

ETI Base Code (if partial audit, please detail which base code items were used):

A: Entitlement to Work and Immigration

Additional Requirements

B: Environment

Note: The main focus of this ethical audit is on the ETI Base Code and local law. The additional elements A,B,C,D 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 applicable 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 applicable 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.

Non-Compliance Table

Issue

Area of Non-Conformity (Only check box when there is a non-

conformity)

Rating (Currently only to be

completed as a specific client requirement)

ETI Base Code

Local Law

Additional

Elements

0 Management systems and code implementation

1 Employment Freely Chosen

2 Freedom of Association

3 Safety and Hygienic Conditions

4 Child Labour

5 Wages and Benefits

6 Working Hours

7 Discrimination

8 Regular Employment

8A Sub-Contracting and Homeworking

9 Harsh or Inhumane Treatment

A Entitlement to Work

B Environment


Audit Overview

Audit Overview

Audit attendance Senior management Worker representatives/ Union representatives

Present at the opening meeting? Yes No Yes No

Present at the audit? Yes No Yes No

Present at the closing meeting? Yes No Yes No

If Worker/Union Representatives not present please explain reasons why

No union exists in the factory. No works committee in the factory

Site description: (Include size, location, age, structure, number of buildings)

This initial audit was conducted at ‘Kansal Udyog’, located at “Plot no. 46, Sector 25, Part II, Huda Industrial Area, Panipat -132103, Haryana, India.” This facility was established and started operations at present location since 01.03.2007. The audited facility has one building consisting of 2 floors. The total area occupied by the facility is 1542 square meter and covered area is approximately 19000 square feet. The floor wise processes are as under: Ground Floor: Finishing and packing First floor: Tuffting, cutting, Periphery: Security, DG Set, Drinking Water, The factory has employed 31 employees on regular basis. No contractor workers are hired. No female employees working in the factory. Management stated that they do no have any discrimination but due to social constrant, no female employees has approached for work.

Wages are calculated and paid on monthly basis. The wages are paid to employees on or before 7th of every month by cash. The factory works in one general shift.The production capacity of the factory is 100000 pieces per month. However, management stated that at present they are working on only 10% capacity.

Site function: Agent Factory Processing/Manufacturer Finished Product Supplier Grower Homeworker Labour Provider Pack House Primary Producer


Service Provider Sub-Contractor

Month(s) of peak season: (if applicable)

Management stated that it depends on the orders

Process overview: (Include products being produced, main operations, number of production lines, main equipment used)

The products manufactured by the facility are carpets. The main process carried out by the factory is: Cutting -tufting – finishing - packing The main equipment used is diesel generator, tufting machines, stitching machine, Compressors, cutting machine

Attitude of workers: (Include their attitude to management, workplace and the interview process. Both positive and negative information should be included) Note: Do not document any information that could put workers at risk

The workers are happy with the management. There is no child or young worker working in the facility. There is no form of forced labour practiced in the facility. Workers are not required to deposit original documents or money at the time of hiring. Employees are not subject to any harassment, abuse (verbal or physical) or coercion. All the workers are treated with respect. The facility has provided a safe and healthy work environment for the workers.

Attitude of managers: (Include attitude to audit, and audit process. Both positive and negative information should be included)

The management was found to be very co-operative towards the audit & audit process. They were very receptive towards the findings and assured corrective actions.

Summary of main findings: (positive and negative)

Positive Observations:

• No person below 18 years was employed by the facility.

• No issue of forced labour was found on the day of audit. Employment is freely chosen.

• The building is found structurally sound. • No harassment, abuse in any form had been reported on the day of audit.

• First-aid boxes are provided in the facility with adequate contents.

• Adequate and sufficient numbers of fire extinguishers were provided.

• Wages are paid on or before 7th of every month by cash and through bank transfer.

• Leave with wages is provided to all the eligible employees.

• Factory has obtained no objection certificate for fire safety from local fire authority.

Negative Findings: The Corrective Action Plan Report was raised for the non compliances to the requirements of local law and ETI

Base Code. The non compliances raised are as follows:

1. Health examination of employees working in tufting section not conducted. 2. Factory has not obtained the approved building plan of first floor from the concerned authority.


3. Material kept below the electrical panel. 4. Drinking water point found not clean 5. Factory has not obtained prior approval from client for using subcontractors for dyeing process


Key Information

Key Information

Do all workers (including migrant workers) have contracts of employment?

Yes No

Were appropriate records available to verify hours of work and wages?

Yes No

Were any inconsistencies found? (if yes describe nature)

Yes Poor record keeping No Isolated incident

Repeated occurrence

For the lowest paid production worker, are wages paid for standard hours below or above the legal minimum?

Below legal minimum %age Meet 100%age Above %age

% of piece rate workers: (if applicable)

Not Applicable

Combined hours (regular and overtime) over 60 per week found?

Yes No

Are the correct overtime premiums paid?

Yes No

NA as no overtime is done in the factory.

Is there any night production work at the site?

Yes No

% of workers living in site provided accommodation (if applicable):

Not Applicable

Age of youngest worker found: 20 years

Workers under 18 subject to hazardous work assignments?

Yes No

NA, the factory does not have any worker below 18 years of age.

What form of worker representation is there on site?

Union (name) Worker Committee Other (specify) Suggestion box & open door policy.

Are there any External Processes? Sub-Contracting Home working Other External Process (detail)


Worker Analysis

Worker Analysis

Local

Migrant

Permanent

Temporary

Agency

Permanent

Temporary

Agency Homeworkers

Worker numbers – male

31 0 0

0 0 0 0

Worker numbers –female

0 0 0

0 0 0 0

Total 31 0 0 0 0 0 0

Total Workers at this Site: 31

Number of Workers interviewed

10 0 0 0 0 0 0

Migrant Workers:

Originating Locations/Countries: Not Applicable

Work undertaken by migrant workers: Not Applicable

Were migrant workers recruited through an agency?

Not Applicable

If yes, is there a contract with the agency? Provide details of agencies and contractual arrangements

Not Applicable

Percentage of migrant workers in company provided accommodation:

Not Applicable


Audit Results by Clause

0: Management systems and 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 management who shall be responsible for compliance with the

Code. 0.3 Suppliers are expected to communicate this Code to all employees and to their suppliers.

0.4 Suppliers should, where reasonably practicable, extend the principles of this ethical code through their supply chain.

Evidence of Compliance and Current Status

• All employees are aware of their rights, ethical business practice.

• Mr. Anil Kumar is responsible for compliance with the code in the factory.

• Factory has displayed ETI code and the same has been communicated to workers.

Non-compliance:

Description of non-compliance: No noncompliance was observed on the day of audit. Local law or ETI requirement: NA Recommended corrective action: NA

Objective evidence observed: NA

Observation:

Description of observation: None


Good Examples observed:

Description of Good Example (GE): None



1: Employment is Freely Chosen

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.


• Workers do not need to deposit original documents or money in the factory at the time of employment.

• Available workers’ files did not have any original documents. • Workers can leave the factory after working hours at their own will.

• Workers can resign from their job after giving reasonable notice period.

• They also confirmed that they are working voluntarily in the factory.

• No non-conformity was observed pertaining to forced labour during audit process.

Non-compliance:



Observation:

Description of observation None






2: Freedom of Association and Right to Collective Bargaining are Respected

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.


• There was no evidence of suppression of workers rights. • No Union exists in the factory. However workers can express their views to top management through

personal meetings or directly approach to their supervisors for any kind of issues.

• Factory does not obstruct workers to form or join any legal trade unions of their choice.

• Factory has also provided suggestion box for the workers to put their comments. • Factory has open door policy where workers can meet management at any time if they have any grievance.

Non-compliance:

Description of non-compliance: No non-compliance found on the audit date. Local law or ETI requirement: NA Recommended corrective action: NA


Observation:



Name of union and union representative, if applicable:

Not Applicable

If no union what is parallel means of consultation with workers?

Suggestion Box

The percentage of workers at the site covered by collective

0%


bargaining with one or more recognised trade unions

The percentage of workers at the site covered by negotiation with workers’ representatives who are NOT members of one or more recognised trade unions

0%

Does the Collective Bargaining Agreement (CBA) include rates of pay

Yes No

NA





3: Working Conditions are Safe and Hygienic

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 and 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 and safety to a senior management representative.


• Mr. Anil Kumar Production Incharge looks after all health and safety issues.

• Adequate procedures and fire extinguishers are installed to safeguard any fire hazards.

• Evacuation plans and fire alarms are provided on each floor. • Exits and emergency exits were marked and found unlocked and unblocked on the day of audit.

• Factory conducts fire drills as per legal requirement. The last drill was conducted on 02.03.2012

• First aid box with adequate contents are provided.

• Factory has obtained fire NOC from the concerned authority.

Non-compliance:

Description of non-compliance: 1 Health examination of employees working in tufting section were not conducted. Local law or ETI requirement: According to Rule 82 R of Model Factory Rules, 1948: MAKING AVAILABLE HEALTH RECORDS TO WORKERS: (1) The occupier of every factory carrying out a ‘hazardous process’ shall make accessible the health records including the record of worker’s exposure to hazardous process or, as the case may be, the medical records of any worker for his perusal under the following conditions:- (a) Once in every six months or immediately after the medical examination whichever is earlier;(2) A copy of the up to date health records including the record of worker’s exposure to hazardous process or, as the case may, the medical records shall be supplied to the worker on receipt of an application from him. X-ray plates and other medical diagnostic reports may also be made available for reference to his medical practitioner. According to ETI Base 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 minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment.

Objective evidence observed: It was observed during documents review.


Recommended corrective action: Factory shall conduct the health examination of workers working in the tufting section. Description of non-compliance: 2 Factory has not obtained the approved building plan of first floor from the concerned authority. Local law or ETI requirement: According to Rule 3A of The Punjab Factory Rules, 1952 as applicable in the state of Haryana: Approval of plans- (1) No building shall be constructed on any site on which a factory is to be situated or for the extension or use as a factory or a part of a factory after the date of commencement of these rules, unless previous permission in writing is obtained from the Chief Inspector of Factories. According to Rule 4(1) of The Punjab Factory Rules, 1952 as applicable in the state of Haryana: No manufacturing process shall begun or carried on in any building or part of a building until a certificate of stability of the building, or part of building in Form No.-1(B) signed by a person possessing the qualification prescribed in sub-rule (4) has been delivered to the chief inspector through the inspector of factories of the region concerned and accepted by him. No extended portion of any factory shall be used as the part of a factory anytime after the extension nor any plant or machinery shall be added in the factory, not brought into use any time after such addition until a certificate in respect of such extension or plant has been delivered to the chief inspector of factories of the region concerned and accepted by the chief inspector of factories. According to ETI Base 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 minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. Recommended corrective action: Factory shall obtain the approved building plan for the first floor. Description of non-compliance: 3 Material kept below the electrical panel. Local law or ETI requirement: According to Section 7A (2b) of The Factories Act, 1948, Every occupier should have arrangement in the factory for ensuring safety and absence of risk to health in connection with the use, handling, storage and transport of articles and substances. According to ETI Base 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 minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. Recommended corrective action: Factory shall ensure that material shall not keep below the electrical panels.

It was observed during factory tour and document review It was observed during factory tour.


Description of non-compliance: 4 Drinking water point found not clean. Local law or ETI requirement: According to Rule 43 of Model Rules of The Factories Act, 1948: (e) every water centre shall be maintained in a clean and orderly condition; and (f) the means of supply of cooled drinking water shall be either directly through taps connected to water coolers or any other system for cooling of water, or by means of vessels, receptacles or tanks fitted with taps and having dust proof covers and placed on raised stands or platforms in shade, and having suitable arrangement of drainage to carry away split water. Such vessels, receptacles or tanks shall be kept clean and the water renewed at least once every day. According to ETI Base Code 3.3 Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for food storage shall be provided. Recommended corrective action: Factory shall ensure that drinking water point clean all the times.

It was observed during tour of the factory.

Observation:





Objective Evidence Observed: NA


4: Child Labour Shall Not Be Used

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.


• From workers interviews, visual observation during factory tour it was noted that all workers working on the day of audit were above 18 years.

• Factory does not hire persons below 18 years as per certified standing orders. Policy pertaining to this is posted at the main entrance.

• Age proof documents were maintained for all the employees.

Non-compliance:

Description of non-compliance: No non compliance was observed on the day of audit. Local law or ETI requirement: NA Recommended corrective action: NA


Observation:







5: Living Wages are Paid

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 of 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.


• Revised minimum wages, abstracts of Minimum Wages Act, Payment of Wages Act, Employees State Insurance Act, Provident Fund Act, Bonus Act, Gratuity Act, Factories Act, Payment Day, etc. are displayed at Notice Board.

• Minimum wages are paid to all employees.

• Payslips are issued to all employees before disbursement of salary.

• Payments to employees are made by cash and through bank transfer on or before 7th of every month.

• Leave benefits are extended to all employees.

• All deductions are permitted as per law.

Non-compliance:

Description of non-compliance: No non compliance was observed on the day of audit. Local law or ETI requirement: NA Recommended corrective action: NA


Observation:







Wages analysis:

Sample size (number of wages checked and which weeks or months):

10 samples from the month of March 2012 (current month) 10 samples from the month of October 2011 (random month) 10 samples from the month of December 2011 (random month)

Legal minimum wage for standard time:

The applicable minimum wages in the reason are For Unskilled - INR 4847.17 per month For Semi skilled A - INR 4977.17 per month For Semi skilled B - INR 5107.17 per month For Skilled A - INR 5237.17 per month For Skilled B - INR 5367.17 per month For Highly skilled - INR 5497.17 per month. These wages are applicable with effect from 01.01.2012.

What deductions are required by law, and have all of these been made:

Employees State Insurance (ESI) , Provident Fund (PF) and labour welfare fund are legal deductions which are applicable as per the local law.

Industry norm for this region: Same as above

Legal overtime premium for weekdays:

200% of ordinary rate of wages.

Legal overtime premium for rest days:


Legal overtime premium for holidays:


Were collective bargaining agreements reached on the wages stated below?

Yes No

NA

Worker Type

Process Operator (Highest paid)

Process Operator (Average paid)

Process Operator (Lowest paid)

This is not so relevant in farms where most workers are paid the same, or are of the same ‘Worker type’. Also many farms in SA use a combination of piece and hourly rate which is impossible to capture on this form.

Select one worker’s records from each “Worker Type” and populate the boxes:

Pay period (pm/week) March-2012 March-2012 March-2012

Employee identification/ Staff ID#/Dept

0209 (Weaver/ Production) 0183 ( Stitcher / Production)

0199 ( Clipper / Production)

Employee Gender Male Male Male


Contract monthly/daily Monthly Monthly Monthly

Regular working hours 8 hours per day for 26 days

8 hours per day for 05 days

8 hours per day for 26 days

Regular work pay rate INR 6600.00 INR 5240.00 INR 4980.00

Regular day overtime (hour)

0 0 0

Regular day overtime (wage)

0 0 0

Rest day overtime (hour) 0 0 0

Rest day overtime (wage)

0 0 0

Statutory Holiday overtime (hour)

0 0 0

Statutory holiday OT (wage)

0 0 0

Total overtime hours 0 0 0

Incentives/Bonus/ Allowances etc.

Nil Nil Nil

Gross wages INR 5533.00

INR 1183.00

INR 4177.00

Social insurance and other deductions

INR 102.00 (ESI=97.00, LWF=5.00)

INR 168.00 (PF-142, ESI=21, LWF=5)

INR 581.00 (ESI=74, PF=502, LWF=5)

Actual wage paid after deduction

INR 5483.00 INR 1015.00 INR 3596.00

Comments: (Please state here any specific reasons/circumstances that explain the lowest and highest gross wages) None

The wage differences are due to skill and experience of the workers.

Is there a defined living wage: Yes No (add notes into guidance for auditors)

Please specify amount/time period:

Is there evidence that equal rates are being paid for equal work:

Yes No

Details:


How are workers paid: Cash Cheque BACS

If not explain:

1. Contracted overtime premium for…

Weekdays: 200% of ordinary rate of wages.

Rest days: 200% of ordinary rate of wages.

Holidays: 200% of ordinary rate of wages.

2. Actual overtime premium paid in sample for…

Weekdays: No overtime is done on weekdays

Rest days: No overtime is done on rest days

Holidays: No overtime is done on holidays

3. Average wage paid to operators: INR 5607.00


6: Working Hours are not Excessive

ETI 6.1 Working hours comply with national laws and benchmark industry standards, whichever affords greater

protection. 6.2 In any event, workers shall not on a regular basis be required to work in excess of 48 hours per week and shall be provided with at least one day off for every seven day period on average. Overtime shall be voluntary, shall not

exceed 12 hours per week, shall not be demanded on a regular basis and shall always be compensated at a premium rate.


• Working timings and rest day information are displayed at main gate. • The working hours are as follows:

9:00 am to 06:00 pm with a lunch break of one hour starting from 1.00 pm to 2.00 pm and two tea breaks of 15 minutes each from 11:00 am to 11:15 am and 4:00 pm to 4:15 pm. Show card electronic system is maintained for all employees for attendance except security guards whose attendance is manual. Factory operates from Monday to Saturday. Sunday is the declared weekly rest.

Non-compliance:

Description of non-compliance: No noncompliance observed on the day of audit. Local law or ETI requirement: NA Recommended corrective action: NA


Observation:







Working hours analysis

What timekeeping systems are used: time card etc.

Electronic drop card system for all employees.

Sample size checked (number of workers):

10 samples from the month of March 2012 (current month) 10 samples from the month of October 2011 (random month) 10 samples from the month of December 2011 (random month)

Legal standard work week (hours): 48 hours

1. Contracted standard work week this site (hours):

48 hours

2. Actual standard work week averaged over sample (hours):

44 hours

3. Lowest basic hours worked: 40 hours

4. Highest basic hours worked: 48 hours

Legal permitted overtime hours: 02 hours per day, 12 hours per week and 50 hours per quarter.

Any local waivers for this site: No

Comments: (Please state here any specific reasons/circumstances that explain the highest working hours)

None

1. Actual overtime hours: (averaged over sample)

No overtime is done in the factory.

2. Range of overtime hours over all workers: (quote highest and lowest)

No overtime is done in the factory.

3. Peak seasons: Management stated that it depends upon orders,


7: No Discrimination is Practiced

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.


• The facility does not discriminate 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.

• Workers interviews confirmed that they receive equal pay for equal work.

• Factory has displayed a policy on non discrimination in local language for workers’ reference. Workers are made aware of this policy as well.

Non-compliance:



Observation







8: Regular Employment Is Provided

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 homeworking 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.


• The factory hires regular employees only. No contractor workers are employed. • Appointment letter is issued to all the employees.

Non-compliance:



Observation:

Description of observation: None






8A: Sub-Contracting and Homeworking:

8a.1 There should be no sub-contracting unless previously agreed with the main client. 8a.2 Home-working should be properly managed.

Note 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.


• The factory uses 1 sub contractor for dyeing purpose. The details of subcontractor are as follows: 1. RK Dyeing Industries, Kishan Pur, Panipat, Haryana. Contact person: Mr. Vikas , Contact number: 91-9812238188.

• No home workers are used.

Non-compliance:

Description of non-compliance: Factory has not obtained prior approval from client for using subcontractor for dyeing process. Local law or ETI requirement: According to ETI Base Code 8a.1 There should be no sub-contracting unless previously agreed with the main client. Recommended corrective action: Factory shall obtain client’s approval for using any subcontractor.

Objective evidence observed: It was noted during management interaction.

Observation:







Summary of sub-contracting

1. Number of sub-contractors/agents used

1 subcontractor

2. Is there a site policy on sub-contracting?

Yes No

If yes, summarise details: Policy on subcontracting includes to ensure that there is no child labour, no harassment at subcontracting sites, working conditions are safe and that the wages, social benefits and leaves are paid as per law.

3. What checks are in place to ensure no child labour is being used and work is safe?

None.

4. What processes are sub-contracted?

Dyeing

Summary of homeworking

1. Number of homeworkers Male: NA Female: NA Total: NA

2. Are homeworkers employed direct or through agents?

Yes No

NA

3. If through agents, number of agents

NA

4. Is there a site policy on homeworking?

Yes No

NA

5. How does site ensure worker hours and pay meet local laws for homeworkers?

NA

6. What processes are carried out by homeworkers?

NA

7. Are written agreements in place for homeworkers that include regular employment?

Yes No

NA

8. Are full records available at the site?

Yes No

NA


9: No Harsh or Inhumane Treatment is allowed

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.


• None of the interviewees reported any issues pertaining to harsh treatment.

• All are treated fairly in the factory. • Equal opportunity has been provided to all employees.

Non-compliance:



Observation:







Other Issue areas: A: Entitlement to Work and Immigration

Additional Retailer Specific Elements A1 Only workers with a legal right to work shall be employed or used by the supplier.

A2 All workers, including employment agency staff, must be validated by the supplier for their legal right to work by reviewing original documentation.

A3 Employment agencies must only supply workers registered with them. A4 The supplier shall implement processes to enable adequate control over agencies with regards to the above

points and related legislation.


• All the employees working in this facility are of Indian origin. • No migrant workers were found working on the day of audit.

Non-compliance:



Observation:



Good examples observed:




Other issue areas B: Environment

B.1 Suppliers shall seek to make continuous improvements in their environmental performance and, as a minimum, comply with the requirements of local and international laws and regulations.

B.2 The supplier shall be aware of and comply with their end clients’ environmental requirements.


• The factory is aware of the environmental requirements.

• Factory has obtained the Exemption for Air and Water consent from State Pollution Control Board.

Non-compliance:



Observation:



Good examples observed:

Description of Good Example ( GE) None


Worker Interview Summary

Worker Interview Summary

Were workers aware of the audit? Yes No


Were workers aware of the code? Yes No

Number of group interviews 01 group of 06 male workers

Number of individual interviews Male: 4 Female: 0

Number of interviewed workers Male: 10 Female: 0

Interviews were done in private and the confidentiality of the interview process was communicated to the workers?

Yes No

In general, what was the attitude of the workers towards their workplace?

Favourable Non-favourable Indifferent

What was the most common worker complaint?

None

What did the workers like the most about working at this site?

• Management behaviour,

• Timely disbursement of wages, • Working conditions

Any additional comment(s) regarding interviews:

None

Agency Workers (workers sourced from a local agent who are not directly paid by the site)

Number of agencies used (average):

Nil

Were agency workers’ age/pay/hours included within scope of this audit

Yes No

NA

Other findings

Other Findings Outside the Scope of the Audit

None


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)

None


Photo Form

Outside view of the factory Prohibition of Child labour notice posted

Address of the factory displayed

Important phone number used in emergency

In and out time recording machine Security room

Duties of the security guards displayed

Assembly area marked Working hours form no.11 posted


Any discrimination policy and code of conduct posted Fire hydrant

Emergency light in working condition Evacuation plan Adequate contents in first aid box

Poster of PPE posted on work floors Fire extinguisher Fire alarm and suggestion box


Toilets are marked with gender sign Clean toilets provided

Diesel generator for standby power Compressor provided with belt

guards Fabric store

Yarn store Cutting area found idle on the day of

audit Tufting area


Tufting machines are not in use on the day audit

Finishing and packing area Drinking water point not clean

Material kept below the electrical panels on all the floors

supplier nam e: kansal udyog

Documents