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Auditee : MONDOL INTIMATES LTD.

Audit Date From : 10/02/2018

Audit Date To : 11/02/2018

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

Auditing Company : Intertek

Auditor’s Name(s) : Ruhi Tamanna, Wadud Ahmed Chowdhury(Lead), Md. Abdullah AlMamun

Auditing Branch (if applicable) : Intertek Bangladesh & Pakistan

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

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

This is an extract of the amfori BSCI Audit Report, which is available in the amfori BSCI Platform. © amfori, 2013 - The English version is the legally binding One.

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Producer : MONDOL INTIMATES LTD.DBID : 339692 and Audit Id : 117799 Audit Date : 10/02/2018

Audit Type : Full Audit

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Generated on:14/02/2018

Rating Definitions




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Main Auditee Information

Name of producer : MONDOL INTIMATES LTD.

DBID number : 339692

Audit ID : 117799

Address : Shirirchala, Bagher Bazar, Mahona, Bhabanipur, Gazipur Sadar Gazipur

Province : Dhaka Country : Bangladesh

Management Representative : Md. Shamsul Haque

Contact person: Md. Shamsul Haque Sector : Non-Food

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

Product Type : Knit garments (Lingerie items)




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Audit Details

Audit Range : Full Audit Follow-up Audit

Audit Scope : Main Auditee Main Auditee & Farms

Audit Environment : Industrial Agricultural

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

Random Unannounced Check (RUC) : No

Audit extent (if applicable) : none

Audit interferences or contingencies (if applicable) : none

Overall rating : B

Need of follow-up : If YES, by :

Rating per Performance Area (PA)

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

C C A A A A A A A A A A A

Executive summary of audit report

MONDOL INTIMATES LTD. is a 100আ export oriented knit garments (lingerie item) manufacturer located at Shirirchala, Bagher Bazar, Mahona,Bhabanipur, Gazipur Sadar, Gazipur, Bangladesh. Facility has 1 concrete structure building. Total land area was approximate 40000 square feet,production area was approximate 137990.24 square feet and warehouse area was approximate 8500 square feet.

This BSCI Initial audit was conducted by ITS Labtest Bangladesh Ltd. Three auditors in day-1 (10 February 2018) and two auditors in day-2 (11 February2018) assessed and verified the facility’s operations against the BSCI Code of Conduct and local legislation. Facility management was positive towards thisaudit and provided full access to the auditors.

Facility’s operation has a general shift which starts at 8:00 am and ends at 5:00 pm. Security guards have 3 shifts (Shift-A 6:00 am to 2:00 pm, Shift-B 2:00pm to 10:00 pm and Shift-C 10:00 pm to 6:00 am). All employees were recruited permanently and receives wages by monthly basis in local currency within7th working day of the following month. During audit day, the total workforce strength was 1979.

Auditors conducted opening meeting in day one and also conducted site observation, workers, worker representatives and management interview,document review Md. Shamsul Haque-Manager (HR and Compliance) was responsible for implementation of social compliance system in the facility.Facility had appointed 1 medical officers and 1 nurse for continuous medical services to the workers.

Main product of the facility is knit garments (lingerie item). Production capacity was approximate 1700000 pieces per month with an annual turnover ofapproximate 14159382.28 Euro. Facility started its operation since 2013. Main production processes were Cutting, Molding, Sewing, Finishing andPacking. Based on management interview, their major clients were from Europe and North America.

Facility has 1 concrete structure building. Detail description is given below:

Building-1 (9 storied RCC structure main production building):

Ground floor: Warehouse, child care, medical room, sub-station room and security room 1st floor: Finished goods store and packing section2nd floor: Cutting section, sewing section and packing section3rd floor: Cutting section, sewing section and packing section4th floor: Cutting section, sewing section and packing section5th floor: Cutting section, sewing section and packing section6th floor: Office7th floor: Sample section and training center8th floor: Dining room and prayer room9th floor: Rooftop (Vacant)

In opening and closing meeting Md. Shamsul Haque-Manager (HR and Compliance), Anisur Rahman-Sr. Officer, Md. Sohel Rana-DGM, Maksura Jahan-Welfare Officer and Mst. Shumija Akhter-Vice President of Worker’s Participation Committee were present. Auditor described the whole audit process,standards, scope, and explained the BSCI code of conduct and local laws to what extent these are related to this audit in the opening meeting. Meanwhile,




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management assured the auditors to help throughout the audit. Required documents were provided in time, photocopy of the required documents was alsogiven in time. Facility management provided a separate room for conducting employee’s interview. Besides, at the time of facility visit attitude of the facilitymanagement was good.

During site tour all areas of the facility such as cutting, molding, sewing, finishing, packing etc. were covered during the audit.

Facility started its operation from 2013. 38 permanent employees were selected for interviews from different production processes. Among them 28 werefemale and 10 were male. Facility provided last 12 months payroll records and on sample basis payroll records and time cards for the month of January2018 (current paid month), August 2017 (random month) and March 2017 (random month) were reviewed. Moreover, attendance register, productionrecords, garments inspection report, broken needle register and many other documents relevant to this audit were reviewed by the auditors.

Improvement areas were identified in Social Management System and Cascade Effect (PA 1), Workers Involvement and Protection (PA 2), FairRemuneration (PA 5) and Occupational Health and Safety (PA 7).

Details of the findings are listed in respective section.

For other areas, no non-conformity was noted and description is as below:

PA 3 (The Rights of Freedom of Association and Collective Bargaining): Facility has a policy and procedure in The Rights of Freedom of Association and Collective Bargaining. They have an effective Elected Worker’sParticipation Committee and they sit with the top management in a regular interval in various issues.

PA 4 (No Discrimination): No Discrimination Based on employee interviews, they are treated equally in accordance with each employee’s qualification and performance. They are nottreated differently based on personal characteristics, gender, disability, sexual orientation, racial characteristics, cultural or religious beliefs of similarfactors. The facility provides equal support to all employees in training and promotions to higher positions.

PA 6 (Decent Working Hour):Facility has maintained working hour under legal limit. Facility has 2 shifts (Shift-A, 8:00 am to 8:00 pm and Shift-B, 8:00 pm to 8:00 am) in knitting, dyeing,dyeing finishing, batch, washing, printing and embroidery section where working hour is fixed 12 hours (8 hours regular + 3 hours overtime) including 1hour lunch break.

PA 8 (No Child Labour):Facility has a robust recruitment procedure and polices against No Child Labor. All the employees recruited here are over 18 years of old.

PA 9 (Special Protection for Young Workers):Facility has a robust recruitment procedure and polices against Special Protection for Young Workers. However, the production process in the facilityallows only adult labours and all the employees recruited here are over 18 years of old.

PA 10 (No Precarious Employment):Facility has a robust recruitment procedure and polices. All employees are recruited on permanent basis and facility provided them employment contractwith condition as per legal requirement.

PA 11 (No Bonded Labour):Facility has a robust recruitment procedure and polices against No Bonded Labour. Facility did not keep any original documentation from workers andworkers were free to leave after their working hours.

PA 12 (Protection of the Environment): Facility has only dry process. Facility has conducted Environmental Impact Assessment for its production processes where detail environmental aspect-impact analysis was given.

PA 13 (Ethical Business Behavior): The auditee identifies the situations and activities where acts of corruption, extortion or bribery are most likely to occur in its context. The auditee developspolicies and procedures against any act of corruption and takes active measures to prevent and remediate them.

A closing meeting was conducted at the second day of the audit. All the attendees of opening meeting were also present in closing meeting. Auditorscommunicated all the findings in detail and discussed on the area of improvements to the auditees. The auditee was positive on the discussion and agreedon the area of improvements.




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Ratings Summary

Auditee's background information

Auditee's name : MONDOL INTIMATES LTD. Legal status : Private Limited Company

Local Name : নট লেইনটি েটস Year in which the auditee was founded : 2013

Address : Shirirchala, Bagher Bazar, Mahona,Bhabanipur, Gazipur Sadar

Contact person (please select) : Md. Shamsul Haque

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

City : Gazipur Auditee’s official language(s) for writtencommunications :

Bangla and English

Region : South Asia Other relevant languages for the auditee :

English

Country : Bangladesh Website of auditee (if applicable) : None

GPS coordinates : 24.1651663,90.42864729999997 Total turnover (in Euros) : 14159382.28

Sector : Non-Food Of which exports আ : 100.00

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

If other, please specify : Production volume : 1700000 pieces per month

Product Group : Apparel Production cost calculation : Yes

If other, please specify : Lost time injury calculation cost : No

Product Type : Knit garments (Lingerie items)

Auditee's employment structure at the time of the audit

Total number of workers : 1979 Total number of workers in the production unit to be monitored (if applicable) : 0

MALE WORKERS FEMALE WORKERS

Permanent workers 207 1361

Temporary workers 0 0

In management positions 141 27

Apprentices 0 0

On probation 48 195

With disabilities 0 0

Migrants (national citizens) 0 0

Migrants (foreign citizens) 0 0

Workers on the permanent payroll 396 1583

Production based workers 0 0

With shifts at night 28 0

Unionised 0 0

Pregnant - 29

On maternity leave - 23




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Finding Report

Performance Area 1 : Social Management System and Cascade Effect

Full Audit [Audit Id - 117799] Audit Date: 10/02/2018 PA Score: C Deadline date:11/04/2018

GOOD PRACTICES:None Observed

AREAS OF IMPROVEMENT:Based on satisfactory evidence it was noted that the main auditee partially respects this principle as-

1.1 - In accordance with BSCI Performance Area (Social Management System and Cascade Effect) No. 1.1 (Is there satisfactory evidence that theauditee has set up an effective management system to implement the BSCI Code of Conduct): The established management system of thefacility needs some improvement in implementing BSCI Code of Conduct in their business practice in few performance areas. Facility needs toimplement the BSCI system manual for producers properly where improvement areas are identified. Note: The facility has other effective system,policies and procedures in place to implement the BSCI COC in their business practice, so partial rating is given in this section. মে স াকতরতসতকং ক কে 1 বে েতেযকা1কত াপ ক ককম ত েতেক ি1 া0ম1 ে টস কড ির কল েকসেকেম1ত তত ক দমেকক15 ে টস মফমস সতক1 েক

টমতক টকটকমে েকসেকেম1ত দমেকক1 তমেম াকতরতমসং তেকে5

1.3 - In accordance with BSCI Performance Area (Social Management System and Cascade Effect) No. 1.3 (Is there satisfactory evidence that theauditee has a good overview of the significant business partners and their level of alignment with the BSCI Code of Conduct?): Facility did notinclude all relevant suppliers and subcontractors in their supply chain mapping, However, facility had only 3 suppliers in supplier list. The BSCIplatform for auditee was also not up to date as per supplier list. Note: The facility has other effective system, policies and procedures in place toimplement the BSCI COC in their business practice, so partial rating is given in this section.েতেক াপ কমক ে টস কড ির কল েকসেকেম1ত ক1ত দ ক নক েতেযকা1কত ততে1 দমেকক15 দক স তেতকষ কত0 ে তেতকষ াবরক সমভত দক স কে রকলত,

দক স ফ মষকটকত িরট ব 1ক, BSCI দমেকক10েকক ি1 কে0 ক1 0 বমসেক 0 ত স তক ষে 1 5 শভ সকা তেতকষ কত0 দ কনকম1ত কক ক 5 BSCI Sতকপরসব

তেতকষ কত0 কক ক ি1 কে0 টা প ডপ 1ক5

Remarks from Auditee:None

Performance Area 2 : Workers Involvement and Protection

Full Audit [Audit Id - 117799] Audit Date: 10/02/2018 PA Score: C Deadline date:11/04/2018



2.2 - In accordance with BSCI Performance Area (Workers Involvement and Protection) No. 2.2 (Is there satisfactory evidence that the auditee defineslong-term goals for protecting workers in line with the aspirations of the BSCI Code of Conduct?): Facility has a written vision, mission and long-term goals set by the top management but no specific objective, target and program were set to meet those long-term goals. Moreover, workersrepresentatives were not involved in defining those goals and strategic plan to achieve those goals were not documented. Note: As the facilityhas a written document of vision, mission and long-term goals, so partial rating is given in this section.া0ণব েতেযকা1কত নকতক 1ভবক তক রক টা1 , সা1 ঠ 0 বমসেক 0 ত তমেম ষ ক1 1 বে তমাত, ত ঠ সব ল 0 স 0 বমসেক 0 ত ালতমত ক1ত দরক 1ক5 কাক,

ও স ম ত দ ক 1 ভতক স তগ ে িাশক া ত গ1কত তগ িকবম1 ক াক 1ক 5

2.3 - In accordance with BSCI Performance Area (Workers Involvement and Protection) No. 2.3 (Is there satisfactory evidence that the auditee takesspecific steps to make workers aware of their rights and responsibilities?): Workers were not well aware regarding their legal rights andresponsibilities (e.g. workers couldn't tell about their entitlement and status of different sorts of leave, health & safety, annual leave and overtimerate). Note: As the facility has written policies on the legal rights, so partial rating is given in this section.ও স তক ককম ত টস10 ি ভ কত ে ক েয তম ব টকটকমে মক1 ম1 1ক ( স1 ও স তক ককম ত ে টত ভতমত স, েক ণব স ে ঠটকতপকসস তপ )5


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

Full Audit [Audit Id - 117799] Audit Date: 10/02/2018 PA Score: A Deadline date:


AREAS OF IMPROVEMENT:None Observed





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Performance Area 4 : No Discrimination





Performance Area 5 : Fair Remuneration

Full Audit [Audit Id - 117799] Audit Date: 10/02/2018 PA Score: A Deadline date:11/04/2018

GOOD PRACTICES:The main auditee exceeds expectations with respect to this principle because 1. Facility provides attendance bonus as per their company policy 2. Facilityprovides free transport facility to workers 3. Facility provides tuition fees of workers who are continuing their education


5.4 - In accordance with BSCI Performance Area (Fair Remuneration) No. 5.4: (Is there satisfactory evidence that the auditee provides sufficientremuneration that allows workers to meet a decent standard of living?): The factory management did not take initiative to calculate living wages,though they are ensuring minimum wage as per legal requirement. Approximate 90আ workers were not meeting living wage which is 11220 BDT.Note: As the facility was providing minimum wage as per their standard, so partial rating is given in this section.াক01 ক0 ে কত টে শ1ক তকত ক1ত তম তকশ 1ঠেক ষে 1, ঠ ককতক ককম ত 1ভবক তক র ি1 কে0 1লত1কস সক ত 1 মক তম5 ট1 সক 1 90আ ও স াক01 সক ত াকস 1কস5


Performance Area 6 : Decent Working Hours








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Performance Area 7 : Occupational Health and Safety

Full Audit [Audit Id - 117799] Audit Date: 10/02/2018 PA Score: A Deadline date:11/04/2018



7.3 - In accordance with BSCI Performance Area (Occupational Health & Safety) No. 7.3 (Is there satisfactory evidence that the auditee regularlycarries out risk assessments for safe, healthy and hygienic working conditions?): Facility conducted risk assessment for its all productionprocesses, transmittable and non-transmittable diseases however risk assessment document lacks the following areas: ল No documentedprocedure for conducting hazard identification and risk assessment ল Routine and non-routine activities were not covered in conducted riskassessment ল Follow-up on the effectiveness of the control determined was not conducted Note: As facility has documented its major risks in theirrisk assessment, so partial rating is given in this section.সস ত াক 1 দ েক, মকং সসে ে ি মকং সসে তকমশত ক1ত ি প সল তকে1 া তক ক ষমঠ ি প সল তকে1 1 ওমক 1ম ক ক কে িটকে তমেম: ল ি প 1ক ত ে ি প সল তকে1 া তক1কত ক1ত ক1 1 ওট াপ ক ল 1ে সক ঠ ি-িস1 ক ব স া তক ক ি প ত সল তকেম1 িরট ব তক ষে 1 ল 1ভবক তক 1েহমত ক ব ক তককত তাত রমক-টা তক ষে 1

7.4 - In accordance with Bangladesh Labor Rules 2015, Schedule-4, Vide Rule 85 (Matters relating to safety committee) and BSCI Performance Area(Occupational Health & Safety) No. 7.4 (Is there satisfactory evidence of active cooperation between management and workers (and/or theirrepresentatives) when developing and implementing systems towards ensuring OHS?): Facility conducted risk assessment for its all productionprocesses, transmittable and non-transmittable diseases however risk assessment document lacks the following areas: ল OHS committeemembers and workers were not involved while conducting risk assessment ল OHS committee members and workers recommendationsmechanism was not considered in conducted risk assessment Note: As facility has documented its major risks in their risk assessment, so partialrating is given in this section.সস ত াক 1 দ েক, মকং সসে ে ি মকং সমপে তকমশত ি প সল তকে1 া তক ক ষমঠ ি প সল তকে1 1 ওমক 1ম ক ক কে িটকে তমেম: ল ি প সল তকে1 া তক1কতসে স সসত ত ঠ ও স তক ক াক 1ক ল ঠস সসত ততক ে সম ত াক তমাত াপ ক া তক ক ি প সল তকে1 েমে1ক তক ষে 1

7.8 - In accordance with Bangladesh Labor Rules 2015, Rule 55 (14) (the concerned Inspector and nearby Fire Service Station have to be informedminimum 15 days before the drills are held) and BSCI Performance Area (Occupational Health & Safety) No. 7.8 (Is there satisfactory evidencethat the auditee has developed and implemented accident and emergency procedures?): The concerned Inspector and nearby Fire ServiceStation was not informed minimum 15 days before the fire drills were held. Note: As facility has conducted fire drills and maintained otherdocumentation, so partial rating is given in this section.টগম1ত ড ি1 নক ষঠেকত টমশ গে সংমালত ে 1 পেক রকেকত ক টবমত ফা1ম সাম 15 1 টমশ কক1কম1ক ষে 15


Performance Area 8 : No Child Labour





Performance Area 9 : Special protection for young workers








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Performance Area 10 : No Precarious Employment





Performance Area 11 : No Bonded Labour





Performance Area 12 : Protection of the Environment





Performance Area 13 : Ethical Business Behaviour








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Summary

AuditType Date Audit Id PA1 PA2 PA3 PA4 PA5 PA6 PA7 PA8 PA9 PA10 PA11 PA12 PA13 Overall

Rating

Full Audit 10/02/2018 117799 C C A A A A A A A A A A A B




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Producer Photos

External photo(s) of the production unit(s)Facility building.JPG

Photo of fire safety equipmentFire hose cabinet.JPG

Photo of the inside of the main production hallExhaust fan.JPG

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

Photo of fire safety equipmentFire hydrant pillar.JPG

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

External photo(s) of the production unit(s)Facility name.JPG

Photo of fire safety equipmentFire rated door.JPG

Photo of the inside of the main production hallFinish goods area.JPG

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

Photo of fire safety equipmentHose reel demonstration.JPG

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

Photo first aid facilitiesFirst aid box.JPG

Photo of fire safety equipmentPublic addressable system.JPG

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




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Photo first aid facilitiesMedical room.JPG

Photo of fire safety equipmentSmoke detector.JPG

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

Photo of fire safety equipmentAssembly point.JPG

Photo of fire safety equipmentSprinkler system.JPG

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

Photo of fire safety equipmentEvacuation plan.JPG

Photo of fire safety equipmentVisual fire alarm.JPG

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

Photo of fire safety equipmentExit sign.JPG

Photo of the canteen (if applicable)Canteen.JPG

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

Photo of fire safety equipmentFire alarm switch.JPG

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

Photo of the inside of the main production hallStaircase.JPG




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Photo of fire safety equipmentFire control panel.JPG

Photo of the code of conduct on displayAmfori BSCI CoC posted.JPG

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

Photo of fire safety equipmentFire equipment.JPG

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

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

Photo of fire safety equipmentFire extinguisher.JPG

Photo of the inside of the main production hallAisles mark.JPG

Photo of the sanitary facilitiesHand wash point.JPG

Photo of fire safety equipmentFire fighter.JPG

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

Photo of the sanitary facilitiesToilet area.JPG




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