IND 2133 03 PT NItya Nandha Sedex Annual 03 FNL

Supplier name: Uniform Clothing Solution Ltd
Site country: Indonesia

Site name: PT. Nitya Nandha
Parent Company name (of the site): PT. Nitya Nandha
SMETA Audit Type: 2–Pillar 4–Pillar
Date of Audit 19 October 2015
Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 1

Audit Company Name:
Report Owner (payee):
PT. Nitya Nandha
Sedex Company Reference:

S: N/A
(only available on Sedex System)
Sedex Site Reference:

P: N/A
(only available on Sedex System)
Audit Conducted By
Commercial Purchaser
NGO Retailer
Trade Union Brand Owner
Multi–stakeholder Combined Audit (select all that apply)
Auditor Reference Number:

Not applicable
(If applicable)
SMETA Declaration
I declare that the audit underpinning the following report was conducted in accordance with
SMETA Best Practice Guidance and SMETA Measurement Criteria.
Any exceptions to this must be recorded here (e.g. different sample size): No Exception
Auditor Name(s) (please list all including all interviewers):

Lead auditor: Mohamad Adhie Adriansyah
Team auditor: Gabriella Lumowa and Dimas Will Sambaga
Interviewers: Gabriella Lumowa
Date: 19 October 2015

Non–Compliance Table
Area of Non–Conformity
(Only check box when there is a non–conformity, Record the number
and only in the box/es where the non–conformity of issues by line*:
Issue can be found)
(please click on the issue title to go direct to
the appropriate audit results by clause) Additional NC Obs GE
ETI Base Elements
Local Law
Code (i.e. not part
of ETI code )
0 Management systems and code 1 0 0

implementation
1 Employment Freely Chosen 0 0 0
2 Freedom of Association 0 0 0
3 Safety and Hygienic Conditions 2 0 0
4 Child Labour 0 0 0
5 Wages and Benefits 1 0 0
6 Working Hours 0 0 0
7 Discrimination 0 0 0
8 Regular Employment 1 0 0
8A Sub–Contracting and 0 0 0
Homeworking
9 Harsh or Inhumane Treatment 0 0 0
10A Entitlement to Work 0 0 0
10B2 Environment 2–Pillar NA NA NA
10B4 Environment 4–Pillar 1 0 0
10C Business Ethics 0 0
*Please note the table above records the total number of Non 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.

Summary of Findings
Summary of main findings: (positive and negative)
(Please give a short summary of the main findings per clause)
Site Summary :
- The facility obtained business license to operate in facility area with business license number
535.1/010.P/00002/BPMPTSP/2015 issued by authority valid from 30 March 2015 untill as long as the
facility run its operation.
- The facility consists of one (1) main building consists of one (1) floor with mezanine. Ground floor is used
for production while mezzanine is used for office.
- No canteen or dormitory is provided by the facility.
- The main business doing by the facility is garment woven manufacturer for all.
- A total of 284 employees including 231 female employees and 53 male employees are currently working for
the facility, of which 220 are production employees while the other 64 are staff level.
- The employees work for six (6) days a week in one (1) shift. The normal working hours/days are:
Mondays to Fridays: 7:30am – 3:30pm with break given at 11:30am – 12:30pm
Saturdays: 7:30am – 12:30pm without break.
- Wages of employees are calculated on monthly basis. Payday is made monthly in fifth of next month cut off
period from first to end of month. Pay by bank transfer to employees account via local bank called Bank of
India
- The minimum wage of Kabupaten Bogor area is IDR. 2,655,000 per month for year 2015. However, the
facility had approval from Governor to pay employees with waiver IDR. 2,242,240 per month for year 2015.
The waiver is issued by the Governor considering the living cost in area where the facility located.
- Two sub-contractors are used by the facility for printing and embroidery process however they are already
approved by vendor/supplier.
- Three months payroll and time attendance records each 26 selected employees for period of September
2015 (current month), August 2015 (peak month) and February 2015 (non-peak month) are reviewed.
- A total 26 selected employees consisting of 20 female employee and six (6) male employees were chosen
as a sample of which six (6) of them were individually interviewed and the remaining 20 were interviewed in
4 groups of 5.
- Maximum overtime hours in sample was
1-2.5 hours per day, 7-11 hours per week on September 2015 (current month)
1-2.5 hours per day, 7-12 hours per week on August 20115 (peak month)
1-2.5 hours per day, 7-11 hours per week on February 20115 (non-peak month)
Summary of findings (positive and negative) :

In view of the findings raised, below non-compliances were found in the areas of Management system, Safety and
Hygienic Conditions, Wages and Benefits, Regular Employment and Environment. For other areas, no violations
were noted. Details are below :
1. The facility did not implement and maintain systems for delivering compliance to this Code.
2. No hydrant installed in facility.
3. The facility had not obtained a building acceptance certificate (SLF) from authority.
4. Only 50 employees instead of all employees covered with health care service (BPJS kesehatan).
5. Approximately 44.01% of total workforce or 125 out of 284 of total employees were contract employees
doing work that was not seasonal in nature.
6. The facility never reported environmental management plan (UKL) and environmental monitoring plan
(UPL) to the environmental impact control agency in every six (6) months on June and December.
.

Best practices observed :
No best practice observed
Additional auditor remark : Nil

Audit Details
Audit Details
A: Report #: IND-2133-03
B: Time in and time out Day 1 Time in: Day 2 Time in: NA Day 2 Time in: NA
(SMETA Best Practice Guidance and 10:00am Day 2 Time out: NA Day 2 Time out: NA
Measurement Criteria recommends 9.00–17.00 Day 1 Time out: 5:00
hrs. if any different please state why in the pm
SMETA declaration )
C: Number of Auditor Days Used: Three auditors in one (1) day (2.7 man-days)
(number of auditor x number of days)
D: Audit type: Full Initial

Periodic
Full Follow–up
Partial Follow–Up
Partial Other – Define
E: Was the audit announced? (AAG Announced

recommends a window of three weeks for semi– Semi – announced: Window detail: weeks
announced, this gives optimum results) Unannounced
F: Was the Sedex SAQ available for Yes

review? No
If No, why not? NA as the facility provided the sedex SAQ to be reviewed
(Examples would be, site has not completed
SAQ, site has not been asked to complete the
SAQ.)
G: Any conflicting information SAQ/Pre- Yes

Audit Info to Audit findings? No
If Yes, please capture detail in appropriate audit by clause
H: Auditor name(s) and role(s): Mohamad Adhie Adriansyah – Lead Auditor

Dimas Will Sambaga – Team Member
Gabriella Lumowa – Team Member
I: Report written by: Mohamad Adhie Adriansyah
J: Report reviewed by: Yunita Tampubolon / Karon Brinkworth – Grew
K: Report issue date: 24 October 2015
L: Supplier name: Uniform Clothing Solution Ltd

M: Site name: PT.Nitya Nandha
N: Site country: Indonesia
O: Site contact and job title: Mr. Ian Rufiansyah – HR Manager
P: Site address: Kp Cimanggu Rt 02/01. Desa Dayeuh, Cileungsi, Bogor 16820, Jawa
(Please include full address) Barat, Indonesia.
Site phone: 062-21-82496155
Site fax: 062-21-82496156
Site e–mail: deepak@nityanandha.com/ hrd@nityanandha.com
Q: Applicable business and other legally Business license number 535.1/010.P/00002/BPMPTSP/2015 issued
required licence numbers: by authority valid from 30 March 2015 untill as long as the facility run
for example, business license no, and its operation.
liability insurance
R: Products/Activities at site, for example, Garment manufacturer woven for all

garment manufacture, electricals, toys,
grower
S: Audit results reviewed with site Yes

management?
T: Who signed and agreed CAPR Mr. Deepak Melwani as Director

(Name and job title)
U: Did the person who signed the CAPR Yes

have authority to implement changes?
V: Present at closing meeting (Please state 1. Mr. Ian Rufiansyah as HR Manager

name and position, including any 2. Mr. Deepak as Director
workers/union reps/worker reps): 3. Mohamad Adhie Adriansyah – Lead Auditor
4. Dimas Will Sambaga – Team Member
5. Gabriella Lumowa – Team Member
W: What form of worker representation / Union (name)

union is there on site? Worker Committee
Other (specify)
None
X: Are any workers covered by Collective Yes No

Bargaining Agreement (CBA)
Y: Previous audit date: 15 April 2014

Z: Previous audit type: SMETA 2– SMETA 4– Other
pillar pillar
Full Initial
Periodic
Full Follow–Up
Audit
Partial Follow–
Up
Partial Other*
*If other, please define: NA

Audit Scope/Actual Results
Criteria Local Law Actual at the Is this part of a
(Please state legal Site Collective
requirement) (Record site results Bargaining
against the law) Agreement?
A: Standard/Contracted work hours: Legal maximum: 2.5 hours per day Yes
(Maximum legal and actual required working hours excluding Seven hours per and 52 hours per No
overtime, please state if possible per day, week and month) day and 40 hours week Not applicable
per week since no CBA in
facility
B: Legal Overtime hours: Legal maximum: 2.5 hours per day Yes
(Maximum legal and actual overtime hours, please state if Not exceeding and 52 hours per No
possible per day, week and month) three (3) hours week Not applicable
per day and 14 since no CBA in
hours facility
C: Legal age of employment: Legal minimum: 18 years old Not applicable

(Minimum legal and actual minimum age at site) 18 years old since no union in
facility
D: Legal minimum wage for standard/contracted hours: Legal minimum: IDR. 2,242,240 Yes
(Minimum legal and actual minimum wage at site, please state The minimum 3per month for No
if possible per hr, day, week and month) wage of year 2015 up to Not applicable
Kabupaten Bogor IDR. 2,242,280 since no CBA in
area is IDR. per month for facility
2,655,000 per year 2015
month for year
2015. However,
the facility had
approval from
Governor to pay
employees with
waiver Rp.
2,242,240 per
month for year
2015. The waiver
is issued by the
Governor
considering the
living cost in area
where the facility
located
E: Legal minimum overtime wage: Legal minimum IDR. 12,960.92 Yes

(Minimum legal and actual minimum overtime wage at site, overtime wage of per hour for year No
please state if possible per hr ,day, week and month) Kabupaten Bogor 2015 up to Not applicable
area is IDR. 12,961.15 per since no CBA in
15,346.82 per hour for year facility
hour for year 2015

2015. However,
the facility had
approval from
Governor to pay
employees
overtime wage
with waiver IDR.
12,960.92 per
hour for year
2015. The waiver
is issued by the
Governor
considering the
living cost in area
where the facility
located
Audit Scope
(Please select the code and additional requirements that were audited against during this audit)
2–Pillar Audit
10B4: Environment 4–Pillar
10C: Business Ethics
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.
Note: The main 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 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.

Audit Overview
Audit Overview
Management Worker Representatives
Audit attendance Senior management Worker Committee Union representatives

representatives
A: Present at the opening meeting? Yes No Yes No Yes No
B: Present at the audit? Yes No Yes No Yes No
C: Present at the closing meeting? Yes No Yes No Yes No
D: If Worker Representatives were not Not applicable since Mr. Ian as HRM as employee representative is
present please explain reasons why present during opeting and closing meeting.
(only complete if no worker reps present)
E: If Union Representatives were not Not applicable since no labor union is established in the facility.
present please explain reasons why:
(only complete if no union reps present)
F: Site description: PT. Nitya Nandha. is located in Kp Cimanggu Rt 02/01 Desa Dayeuh
(Include size, location and age of site. Also Cileungsi Bogor 16820, Jawa Barat Indonesia.. The total land area
include structure and number of buildings) occupied was approximately 1,582 square meters. Total building area
was approximately 900 square meters The facility has operated in the
existing location since January 2005.
The facility consists of one (1) main building sith mezzanine with ground
floor is used for raw material, cutting, sewing, finishing, packing while
mezzanine is used for office. No canteen or dormitory is provided by the
facility.
A total of 284 employees are currently working in the facility, which

includes 220 production employees and 64 non-production employees.
No migrant employees in facility as all employees are Indonesian who
come from various provinces in Indonesia.
The employees work for six (6) days a week in one shift. The normal
working hour is from 7:30 to 15:30 with one (1) hour for lunchtime from
11:30 to 12:30 for Mondays to Fridays while for Saturdays the normal
working hour is from 7:30 to 12:30 without break given. Employees’
wages are calculated on monthly basis and paid on fifth of next month
with cutt off period from first to end of month. The peak season in this
facility is in March-August per year.
The minimum wage of Kabupaten Bogor area is IDR. 2,655,000 per

month for year 2015. However, the facility had waiver from Governor to
pay employees with living wage Rp. 2,242,240 per month for year 2015.
Two sub-contractors are used by the facility for printing and embroidery

process however they are already approved by vendor/supplier.
Production Description Remark, if any

Building no
Used for
warehouse, cutting, Year of operation
Floor 1
sewing, finishing, since 2005
packing.
Year of operation
Floor 2 (Mezzanine) Used for office
since 2005
Floor 3 NA Nil
Is this a shared
No Nil
building?
For detail see below
G: Site function: Agent

Factory Processing/Manufacturer
Finished Product Supplier
Grower
Homeworker
Labour Provider
Pack House
Primary Producer
Service Provider
Sub–Contractor
H: Month(s) of peak season: March to August

(if applicable)
I: Process overview:
(Include products being produced, main operations, number of production lines, main equipment used)
The products manufactured in this unit is woven garment for all ages and genders.
The main production processes include raw material, cutting, sewing, finishing and packing. There are five lines and
main equipment was 133 sewing machines, 11 cutting machines and 8 ironing machines.
J: 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
Twenty six selected employees of which six (6) are men and 20 are female were selected from various production
departments for interview. Six employees were individually interviewed while remaining 20 employees were
interviewed in 4 group of 5 employees. The interviewees affirmed enjoying working for the facility and were satisfied
with the working condition, benefits, and management system and no complaints or negative information were called
out by them. No indication that the employees were being coached prior to the employees’ interview. No negative
information was called out during the interview.

K: Attitude of workers committee/union reps:
(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
Interviews with the bipartite committee members revealed that managers do not always act on requests. As an
example, there is a request to provide hydrant however so far such installment had not been done. The employees
committee representative were happy with the working conditions, and he/she stated that they could give suggestions
on all parts of the site’s practices.
L: Attitude of managers:
(Include attitude to audit, and audit process. Both positive and negative information should be included)
The management representatives were kind and cooperative during the audit. Auditors were given full access to
conduct facility tour, documentation review as well as employees’ interviews in a private manner. All information
questioned to the management was answered clearly and undertood by the auditors. During closing meeting, the
auditors communicated all the findings clearly to the management representative and they agreed with all the findings
and signed the CAPR.

Key Information
Key Information
(click on the key information title to go to appropriate section of the report)
A: Do all workers (including migrant workers) Yes

have contracts of employment/employment No
agreements?
(Go to clause 8 – Regular Employment)
B: Are maximum standard/contracted Yes

working hours clearly defined in No
contract/employment agreements?
(Go to clause 8 – Regular Employment)
C: Were appropriate records available to Yes

verify hours of work and wages? No
(Go to clause 5 – Living Wage)
D: Were any inconsistencies found? Yes Poor record keeping

(if yes describe nature) No Isolated incident
(Go to Wages Table) Repeated occurrence
E: For the lowest paid production workers, Wages found: Please indicate the breakdown of workforce
are wages paid for standard/contracted according to earnings:
hours (excluding overtime) below or above
the legal minimum? Below legal ____% of workforce earning under min wage
(Go to clause 5 – Living Wage) min __100__% of workforce earning min wage
Meet ____% of workforce earning above min wage
Above
F: % of piece rate workers: Not applicable since no piece rate employees are employed in the
(if applicable) facility.
G: Do the standard/contracted hours stated Yes

in a contract/employment agreement exceed No
the law or 48 hours per week?
(Go to clause 6 – Working hours)
H: If yes, what are the standard/contracted NA hrs/week Approx. NA % of ALL workers on these contacted
hours per week as stated in the hours
contract/employment agreement?
(Go to clause 6 – Working hours)
I: Combined hours (standard/contracted plus Yes

overtime = total hours) over 60 per week No
found?
(Go to Working Hours Analysis)
J: Are workers provided with 1 day off in Yes

every 7-day-period, or 2 in 14-day-period No
(where the law allows)? If ‘No’, please explain:

K: Are the correct legal overtime premiums Yes
paid? No
(Go to Wages Table) N/A – there is no legal requirement to OT premium
L: Please state what actual OT is paid. Please give details of overtime premium as a % of standard wages:
(As a percentage of the workers standard rate) 0%
(Go to Working Hours Analysis) 1% – 115%
116% – 124%
125% – 199%
200%+
Please give details:
If overtime is performed on regular work days for the first hour of
overtime, the overtime wage is 150% times the hourly wage. For the
succeeding hours of overtime the rate per hour is 200% times the
hourly wage.
M: Is there any night production work at the Yes

site? No
N: % of workers living in site provided 0%

accommodation (if applicable):
O: Age of youngest worker found: 18 years old as she/he was born on 13 June 1993 and employed on 30
(Go to clause 4 – Child labour) June 2011
P: Workers under 18 subject to hazardous Yes

work assignments? No
(Go to clause 3 – Health and Safety)
% of under 18’s at this site (of total workers) 0%
Q: What form of worker representation/union Union (name)

is there on site? Worker Committee
(Go to clause 2 – Freedom of Association) Other (specify)
None
R: Is it a legal requirement to have a union? Yes

(Go to clause 2 – Freedom of Association) No
S: Is It a legal requirement to have a workers Yes

committee? No
(Go to clause 2 – Freedom of Association)
T: Is there any other form of effective Yes

worker/management communication No
channel? (Other than union/worker committee) Describe: All employees are allowed to speak directly to management
(Go to clause 2 – Freedom of Association) if any complaint.
U: Are there any External Processes? Sub–Contracting

(Go to clause 8A – Sub–contracting and Home Homeworking
working) Other External Process

No external processes

Management Systems
Management Systems:
A: Nationality of Management Indonesia
B: Gender breakdown of Management + Male: 18 %

Supervisors (Include as one combined group) Female:_81 %
C: Majority nationality of workers Indonesia
D: Number of workers leaving in last 12 __1___ %

months as a % of average total number of
workers on site over the year (annual worker
turnover)
E: Were accurate records shown at the first Yes

request? No
F: If No, why not? NA
G: In the last 12 months, has the site been Yes

subject to any fines/prosecutions for non– No
compliance to any regulations? Please describe: Based on management discussion with Mr. Ian
Rufiansyah as HRM, the facility had not been subject to any
fines/prosecutions by law in the last 12 months
H: Do policies and/or procedures exist that Yes

reduce the risk of forced labour, child labour, No
discrimination, harassment & abuse? Please describe:
The facility commits to reduce the risk of forced labor, child labor,
discrimination, harassment and abuse.
- The facility has a copy of Law No.13/2003 regarding Manpower as
the reference law related to Forced and Compulsory Labor, child
labor, discrimination, harassment and abuse as written in company
regulation.
- The facility established a non-discrimination policy as written in
company regulation regarding employment. The management treats
employees nicely without discrimination based on race, culture,
ethics, and religion.
- Child labour policy is written in company regulation stating that
admittance age of employment is 18 years or older.
The facility has the system to raise any issues to the management. The
employees are free to communicate with the management to talk about
the problem or complaint as a written in company regulation
I: If Yes, is there evidence (an indication) of 1. Based on facility tour, the youngest age of selected employee is 18
effective implementation? Please give years old as he/she was born on 13 June 1993 and employed on 30
details. June 2011.
2. Based on employees’ interview, no deposit is required for hiring,
training, promotion nor placement are practiced in facility.
3. The employees never been a subject to a harrasment or abuse by

facility management, fellow employees nor security
J: Have managers and workers received Yes

training in the standards for forced labour, No
child labour, discrimination, harassment & Please describe: The last social compliance training was conducted by
abuse? Mr. Ian Ruffianyah as HRM attended by all employees on 15 October
2015.
K: If Yes, is there evidence (an indication) All selected employees are cooperative when the social compliance
that training has been effective e.g. training implemented and they are aware of social compliance policy. The last
records etc.? Please give details training was conducted by HRD attended by all empoyees on 19
September 2015.
L: Are there published, anonymous and/or Yes

open channels available for reporting any No
violations of Labour standards and H&S or Please describe: The employees are free to report the violations of
any other grievances to a 3rd party? labor standards, Health and Safety or any grievances to employee
management before to a 3rd party. One suggestion box is provided for
employees to use near production door. The suggestion box is check
by HR monthly.
M: If Yes, are workers aware of these All selected employees know what to do in case of danger and/or
channels? Please give details. human rights abuse practiced
N: Have health and safety risks been Yes

identified e.g. through internal audits, formal No
risk analysis process, worker involvement Please describe:
etc.? The last internal audit was conducted by Mr. Ian Rufiansyah as HRM
on 01 June 2015
O: If Yes, has effective action been taken to Yes. The facility has made corrective action for no time in and time out
reduce or eliminate these risks? in employees time attendance issue. Currently all employees were
provided with detailed time in and time out.
P: Are accidents recorded? Yes

No
Please describe: Two accidents were recorded because of stich by
needle for year 2015.
Q: Has the auditor made a simple calculation Yes

to compare capacity with workers’ work load No
in order to identify possible unrecorded work Please describe:
hours? Early leaving records, accident records, daily out puts, security record
and wage pay slip were reviewed to be compared with provided time
attendance record. No inconsistency was found during review of
attendance and payroll records and the other said documents.
R: Does the site have all required land rights The facility obtained a building construction permit (IMB) and land
licenses and permissions (see SMETA rights from authority as an industrial building.
Measurement Criteria)?
S; Does the site have any internationally No

recognised system certifications e.g. ISO
9000, 14000, OHSAS 18000, SA8000 (or
other social audits).
Please detail (Number and date).
T: Is there a Human Resources Yes

manager/department? No
If Yes, please detail. Please describe: Human Resources Department is under Mr. Ian
Ruffiansyah as Human Resourced Manager
Worker Analysis
Worker Analysis
Local Migrant
Total
Home
Permanent Temporary Agency Permanent Temporary Agency
workers
Worker numbers – 0 0 0 0 0
28 25 53
male
Worker numbers – 0 0 0 0 0
131 100 231
female
Total 159 125 0 0 0 0 0 284
Number of Workers 0 0 0 0 0
5 21 26
interviewed
Contractors:
(Individuals supplying workers to site with the workers paid by contractors, not by site)
Yes
A: Any contractors on site?
No
B: If Yes, how many workers supplied by

Not applicable, since no employees are supplied by agency.
contractors
Yes
C: Are all contractor workers paid according
No
to law?
If Yes, Please give evidence for contractor

workers being paid according to law:

Migrant Workers:
(Please see SMETA Best Practice Guidance and Measurement Criteria for definitions of migrant workers)
D: Originating Not applicable since no migrant employees nor expatriates work for the facility.
Locations/Countries:
E: Type of work undertaken by Not applicable since no migrant employees nor expatriates work for the facility.
migrant workers :
F: Were migrant workers Yes

recruited through an agency? No
If yes, please give details. Please describe: Not applicable since no migrant employees nor expatriates work
for the facility.
If Yes, is there a contract with Not applicable since no migrant employees nor expatriates work for the facility.
the agency? Provide details of
agencies and contractual
arrangements including any fees
lodged during the recruitment
process.
G: Does the site have a system Yes

for checking labour standards of No
agencies? Please describe: Not applicable since no migrant employees nor expatriates work
If yes, please give details. for the facility.
H: Percentage of migrant Not applicable since no migrant employees nor expatriates work for the facility.
workers in company provided
accommodation:

Audit Results by Clause
0: Management systems and Code Implementation
0: Managements system and Code Implementation
(click here to return to NC Table)
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.
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.
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. The facility appoints Ms. Dina Marisa as HRD to be responsible for compliance with the Code.
2. The facility communicates the code to all employees by posting the Code in local language on announcement
board.
3. The facility communicates this code to their own suppliers and supply chain via email.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Appointment letter of the Code representative issued on 2 January 2013 valid as long as the employee still works
for facility.
2. The Code in local language is posted on announcement board since 2 January 2013.
3. The facility communicates this code to their own suppliers and supply chain via email since 2 January 2013.
Non–compliance:
1. Description of non–compliance: Objective evidence

NC against ETI/Additional Elements NC against Local Law observed:
(where relevant please add
It was noted that the facility did not implement and maintain systems for delivering photo numbers)
compliance to this Code as reflected from non-compliances found in the areas of
Management system, Safety and Hygienic Conditions, Wages and Benefits, Regular 1. Management disscussion
with HRM
Employment and Environment. For other areas, no violations were noted. This it is an
isolated incident.
Local law and/or ETI requirement:

In accordance with ETI Code # 0.1 Suppliers are expected to implement and maintain
systems for delivering compliance to this Code.
Recommended corrective action:

It is recommended that the facility should implement and maintain systems for delivering
compliance to this Code.

Action by: Mr. Ian Rufiansyah as Human Resources Manager
(Recommended Completion Timescale: 30 days)
Observation:
Description of observation: Objective evidence

None observed observed:
Not applicable
Local law or ETI requirement:
Not applicable
Comments:
Not applicable
Good Examples observed:
Description of Good Example (GE): Objective evidence

Not applicable

Employment is Freely Chosen
1: Employment is Freely Chosen
(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.

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. The facility has a policy which prohibits forced labour and this is available for review.
2. There is a non-formalised application procedure which states that employees must present their ID’s for proof of
age but that only copies must be kept in the personnel files and the original is given back to the employees.
3. The employee handbook – given to all employees on joining day, states that the employees can resign from the
facility with one month’s prior written notice, given to their supervisor or HR staff. The handbook also states that
they will be given their full wages on their last day of work.
4. The terms and conditions of employment states that the employees are free to leave the workplace once their
working shift ends.
1. Twenty six selected employees personnel files
2. Resignation records
3. Facility policy about anti-forced labor number Kep.861/91/PP/2015 on 15 May 2015 valid until 15 May 2017
4. Employee handbook
Non–compliance:

NC against ETI NC against Local Law: observed:
None Observed photo numbers)
Local law and/or ETI requirement Not applicable

Not applicable

Not applicable

Observation:

Not applicable
Not applicable

Not applicable
Description of Good Example (GE): Objective Evidence

None observed Observed:
Not applicable

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 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:
1. There is no union at the site however the facility established a freedom of association policy according to law
with document number Kep.861/91/PP/2015 on 15 May 2015 valid until 15 May 2017.
2. The facility and employees established a bipartite institution as a communication forum between employees
and management representatives consists of five (5) employees representatives and five (5) management
representatives, endorsed by local labor bureau on 23 April 2015 valid as long as no member change
3. The bipartite activity report is submitted to local labor bi-annualy. The last report submitted to local labor was
for period January 2015 to June 2015 on 15 July 2015
4. The last meeting is about social compliance attended by five (5) employees representatives and five (5)
management representatives on 15 June 2015.
1. Site policy on freedom of association
2. Bipartite establishment endorsed by local labor bureau with document number Kep.861/91/PP/2015 on 15
May 2015 valid until 15 May 2017
3. Bipartite activity report submitted to local labor bureau for period of January 2015 to June 2015 on 15 July
2015.
4. Minutes of bipartite committee meeting on 15 June 2015.
Non–compliance:
1. Description of non-compliance: Objective evidence

NC against ETI NC against Local Law observed:
Not applicable
None observed

Not applicable

Not applicable
Observation:

Not applicable
Not applicable
Comments:
Not applicable
A: Name of union and union Not applicable since no union in Is there evidence of free elections?
representative, if applicable: facility Yes No N/A
B: If no union what is parallel means of Bipartite committee as a Is there evidence of free elections?
consultation with workers e.g. worker communication channel between Yes No N/A
committees? facility management and
employee representatives
C: Were worker representatives/union Yes No

representatives interviewed If Yes, please state how many: One. Mr. Ruffiansyah as HRM
D: State any evidence that Yes. The last meeting is about social compliance attended by five (5)
union/workers committee is effective? employees representatives and five (5) management representatives on
Specify date of last meeting; topics covered; 15 June 2015. The meeting minutes is posted on announcement board
how minutes were communicated etc.
E: Are any workers covered by Yes No

Collective Bargaining Agreement (CBA) Not applicable since no union in facility
F: If Yes what percentage by trade __ NA __% workers covered by __NA__% workers covered by
Union/worker representation Union CBA worker rep CBA
G: If Yes, does the Collective Yes

Bargaining Agreement (CBA) include No
rates of pay NA
Description of Good Example (GE): Objective evidence

Not applicable

3: Working Conditions are Safe and Hygienic
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 & 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:
1.General Health and Safety management
- Mr Ian Rufiansyah as HRM is appointed as Health and Safety Manager for the site.
- Potable water is freely available in all areas and test certificates are up-to-date. The last testing was conducted by
local laboratory on 31 September 2015
- Twelve toilets for 284 employees provided by facility were observed in clean condiction segregated by gender and
are available at all times to employees
- The facility established a health and safety committee consist of nine (9) management representatives and nine
(9) employees representatives, endorsed by local labor bureau on 10 February 2014 valid as long as no member
change. The last health and safety committee quarterly report submitted to local labor bureau was for period of July
2015 to September 2015 in October 2015.
2. Fire Safety
- There are at least two (2) exits in each work area and these were clearly marked.
- Thirteen fire extinguishers are provided to cover 900 square meters facility building size and the said fire
extinguishers are regularly checked. The last internal monitoring was conducted by mechanic on 29 September
2015, the last external monitoring was conducted by fire extinguisher supplier on 22 November 2014 the next
inspection would be on 22 November 2015
- Evacuation layout is posted in all areas and understood by all employees interviewed.
- Fire drills are performed and recorded every six (6) months The last fire fighting equipment training and
evacuation training was conducted by fire department attended by all employees on 27 August 2015.
- Four smoke detectors are provided throughout production areas.
3. Electrical safety
- All electrical equipments are maintained in good condition such as sockets, plugs, switches and main fuse
boards.
- Rubber mats are provided below all electrical control panels.

- Danger sign are provided at electrical control panel boxes.
- The last electrical inspection was conducted by local labor bureau with document number 566.2744/wasnaker/UL-
KU/2015 on 17 April 2015
4. Chemical safety
- All chemicals are provided with labels and signs.
- Material Safety Data Sheets are available and there are hazard diagrams on any chemicals which needed careful
handling.
- Employees in the chemical storage confirmed that they had been trained on correct handling procedures as well
as what to do in an emergency.
- The last chemical and PPE’s training was conducted by HRM on 7 October 2015.
- Eye wash station is provided near chemical storage.
- Chemical used are white oil for machineries and diesel for diesel machine
5. Medical services
- First aid kits are provided throughout production areas and they are stocked 21 items as per law.
One first aider as on-site paramedic certified on hyperkes by authority stands by during working hours. The onsite-
paramedic is identified by nurse suit. Four first aid kit box are provided throughout facility area
- One first aid room is provided at no cost to provide first aid treatment for ill or injured employees.
- The hyperkes number 22.412/PM-1/12 on behalf of Ms. Via Esti
- The last first aid training was conducted by anggi clinic attended by 10 employees representing all
departments on 6 October 2015
6. Machine safety
- 1 out of 1 boiler machine is provided by facility to support production. The boiler was inspected by local labor
bureau on 17 April 2015 and the next inspection would be on 17 April 2016. One certified boiler operator by local
labor bureau on behalf of Mr. Memed is valid until 26 September 2017
- 1 out of 1 lightning installation was endorsed and inspected by local labor bureau regularly. The last inspection
was on 17 April 2015 and the next inspection would be on 17 April 2016
- 1 out of 1 diesel machine was endorsed and inspected by local labor bureau regularly. The last inspection was on
17 June 2015 and the next inspection would be on 17 June 2016
- 1 out of 1 compressor machine was endorsed and inspected by local labor bureau regularly. The last inspection
was on 10 May 2015 and the next inspection would be on 10 May 2017.
1. Health and safety policy
2. Health and safety training records and certificates
3. Fire equipment maintenance records
4. Hyperkes certificate
5. Accident reports
6. Chemical list and MSDS for each chemical
7. Machineries and operator certificates
8. Appointment letter for Mr. Ian as Health and Safety Manager
9. Drinking water testing by local laboratory report
10. Health and safety committee
11. Health and safety minutes meeting
12. Machinery permits and inspections

Non–compliance:

It was noted that no hydrant installed in facility. The facility is approximately 900 photo numbers)
square meters. There are 284 employees working for facility. Thirteen fire
extinguishers are provided to cover 900 square meters facility building size and the 1. Facility tour with Mr.
said fire extinguishers are regularly checked. This is an isolated incident. Ian as HRM (1)
Local law and/or ETI requirement 2. Management

In accordance with Minister Of Public Works Number: 20 / PRT / M / 2009, article 2. 2. discussion with Mr. Ian as
Means of fire protection consists of fire hydrant system. HRM
In addition in accordance with 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 minimising, so far as is reasonably practicable, the causes of hazards
inherent in the working environment.

It is recommended that the facility should install hydrant

2. Description of non–compliance:
NC against ETI NC against Local Law
It was noted that the facility had not obtained building acceptance certificate (SLF)
from authority. However no crack is observed of facility floor, wall or roof. And the
facility obtained building construction permit from authority on year 2005. This is an
isolated incident.

In accordance with Government Regulation - PP. 36/2005 article 119: With the
enactment of this Government Regulation, in period of at least five (5) years of a
building that had been established prior to the issuance Government regulation is
required to have a certificate of acceptance function.
In addition in accordance with 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 minimising, so far as is reasonably practicable, the causes of hazards
inherent in the working environment.

It is recommended that the facility should obtain a building acceptance certificate
(SLF) from authority

Observation:

Not applicable
Not applicable

Not applicable

Not applicable

4: Child Labour Shall Not Be Used
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.

Current systems:
1. 18 years old as she/he was born on 13 June 1993 and employed on 30 June 2011
2. Based on the review of 26 out of 26 personnel files of selected employees and facility tour, no child labour
issue raised in the facility.
3. Child labour policy is written in company regulation article 16 stating that admittance age of employment is 18
years or older.
1. Personnel files of all selected employees
2. Latest list of employees
Non–compliance:

None observed (where relevant please add
photo numbers)
Local law and/or ETI requirement: Not applicable
Not applicable

Not applicable

Observation:

Not applicable
Not applicable

Not applicable

Not applicable

5: Living Wages are paid
5: Living Wages are Paid
(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:
1. The minimum wage of Kabupaten Bogor area is IDR. 2,655,000 per month for year 2015. However, the facility
had approval from Governor to pay employees with Governor waiver Rp. 2,242,240 per month for year 2015.
The waiver is issued by the Governor considering the living cost in area where the facility is located
2. All employees wages are calculated by monthly rate with cutt of period from first to end of month paid every
fifth date of next month with transfer method via local Bank called Bank of India and pay slip is signed by the
employees. No hourly, daily nor piece rate employees in facility
3. All employees are 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.
4. Health care service payment showed that only 50 employees instead of all employees covered with health
care service which is administered by BPJS Kesehatan, a state company. Currently the facility appoints Anggi
Clinic to cover employees and his/her legal spouse and up to maximum of three (3) children health care
service. The last payment for period of October 2015 paid on 10 October 2015
5. Sample of employees who take annual, sick, marital, maternity leave were reviewed and the said employees
received their compensation as well.
6. Sample of severance payment from production was reviewed and the said employee received his/her
compensation as well.
7. The last social security payment covering all employees is paid to authority for period of September 2015 on
10/10/15.
8. The highest wage of selected employees is IDR 2,292,280 and the lowest wage of selected employees is IDR
2,292,240.
1. Governor legal minimum wage waiver
2. Payroll records
3. Payslip
4. Health care service payment
5. Legal leave form

6. Severance payment
Non–compliance:

It was noted that only 50 employees instead of all employees covered with health care photo numbers)
service which was administered by BPJS Kesehatan, a state company. Currently the
facility appointed Anggi Clinic to cover employees and his/her legal spouse and up to 1. Management
maximum of three (3) children health care service. This is an isolated incident. discussion with Mr. Ian
Rufiansyah as HRM
In accordance with Regulation of BPJS 1/2014. Jo. Presidential Decree No.111 /
2013. Jo, Circular Letter Minister of Manpower SE. 1 / MEN / III / 2014: For an
employer in the state enterprises, small businesses and medium-sized businesses,
membership registration at the latest on January 1, 2015
In addition in accordance with ETI Code # 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.

It is recommended that the facility should cover all employees with health care security
which is administered by BPJS Kesehatan, a state company.

Observation:

Not applicable
Not applicable

Not applicable

Not applicable

Wages analysis:
Wages analysis:
A: Sample Size Checked Twenty six selected employees for period of September 2015
(State number of worker records checked and from (current month)
which weeks/months – should be current, peak and Twenty six selected employees for period of August 2015 (peak
random/low. Please see SMETA Best Practice month)
Guidance and Measurement Criteria) Twenty six selected employees for period of February 2015 (non
peak month)
B: Are there different legal minimum wage Yes If Yes, please give details:
grades? If Yes, please specify all. No The minimum wage applies only to employees
who have a work period of less than one (1)
year.
C: If there are different legal minimum grades, Yes If No, please give details:
are all workers graded correctly? No The employees who have a work period of more
N/A than one (1) year earn legal minimum wage plus
fixed allowance between IDR. 20.00 to IDR
40.00.
D: What deductions are required by law e.g. Social security scheme (BPJS Ketenagakerjaan), health care
social insurance? Please state all types: security scheme (BPJS Kesehatan)
E: Have all of these deductions been made? Yes If Yes, Please list all deductions that have been
Please list all deductions that have/have not No made:
been made.
If No, please give details on any deductions
which have not been made:
Only 50 employees instead of all employees are
deducted for health care service (BPJS
kesehatan) since only 50 employees instead of
all employees are covered with health care
service (BPJS kesehatan).
F: Industry norm for this region: The minimum wage of Kabupaten Bogor area is IDR. 2,655,000
(please include time period e.g. hour/week/month) per month for year 2015. However, the facility had approval from
Governor to pay employees with Governor waiver Rp. 2,242,240
per month for year 2015. The waiver is issued by the Governor
considering the living cost in area where the facility is located.

Wages table
Wages table
(Click here to return to Key information)
Process Operator Process Operator Process Operator

Worker Type
(Lowest paid) (Average paid) (Highest paid)
Select from individual worker records one worker from, lowest, average and highest wages and populate the
boxes. Ensure comparison is made for same pay period and only uses full–time workers. See SMETA Best
Practice Guidance and Measurement Criteria for completing this:
A: Pay period: September 2015 (current September 2015 (current September 2015 (current
(State month selected) month) month) month)
B: Anonymous Employee Employee A from sewing Employee B from cutting Employee C from
Reference/Dept. finishing
C: Employee Gender Female Male Female
D: Contracted/Standard Seven hours per day and Seven hours per day and Seven hours per day and
working hours: 40 hours per week per 40 hours per week per 40 hours per week per
(excluding OT – please include September 2015 (current September 2015 (current September 2015 (current
time period e.g. month) month) month)
hour/week/month)
E: Contracted /Standard IDR 2,242,260 per IDR 2,242,260 per IDR 2,242,260 per
work pay rate: September 2015 (current September 2015 (current September 2015 (current
(excluding OT – please include month) month) month)
time period e.g.
hour/week/month)
F: Standard day overtime – 2.5 hours per day per 2.5 hours per day per 2.5 hours per day per
hours: September 2015 (current September 2015 (current September 2015 (current
(please include time period e.g. month) month) month)
hour/week/month) 12 hours per week per 12 hours per week per 12 hours per week per
September 2015 (current September 2015 (current September 2015 (current
month) month) month)
G: Standard day overtime – IDR 12,960.92 per IDR 12,960.92 per IDR 12,960.92 per
wage: September 2015 (current September 2015 (current September 2015 (current
hour/week/month)
H: Rest day overtime – 0 0 0

hours: (please include time
period e.g. hour/week/month)
I: Rest day overtime – wage: IDR 25,921.84 per IDR 25,921.84 per IDR 25,921.84 per
(please include time period e.g. September 2015 (current September 2015 (current September 2015 (current
hour/week/month) month) month) month)
J: Statutory Holiday overtime 0 0 0

– hours:
(please include time period e.g.

hour/week/month)
K: Statutory holiday OT – 0 0 0
wages:
hour/week/month)
L: Total overtime hours: 51 hours per month per 51 hours per month on 51 hours per month on
M: Incentives/Bonus/ 0 0 0
Allowances etc.:
hour/week/month)
N: Gross wages: IDR. 3,428,192 per IDR. 3,428,192 per IDR. 3,428,192 per
O: Social insurance and IDR. 44,485 per IDR. 44,485 per IDR. 44,485 per
other deductions; please list September 2015 (current September 2015 (current September 2015 (current
which and amount. month) month) month)
P: Actual wage paid after IDR. 3,383,347 per IDR. 3,383,347 per IDR. 3,383,347 per
deduction: September 2015 (current September 2015 (current September 2015 (current
hour/week/month)
Comments:
(Please state here any specific reasons/circumstances that explain the lowest and highest gross wages)
The minimum wage applies only to employees who have been working less than one (1) year for employee.
Q: Is there a defined living wage: Yes

This is not normally minimum legal No
wage. If answered Yes please state Please specify amount/time period:
amount and source of info: Governor decree number 561/Kep.129-Bangsos/2015, IDR 2,242,240 per
Please see SMETA Best Practice month for year 2015.
Guidance and Measurement Criteria.
R: Are workers paid in a timely Yes

manner in line with local law? No
S: Is there evidence that equal rates Yes

are being paid for equal work: No
Details:
The minimum wage applies only to employees who have a work period of
less than one (1) year. The different is based on employees ability, skill and
year of service for facility.
T: How are workers paid: Cash

Cheque

Bank Transfer
Other
If other explain:
6: Working Hours are not Excessive

6: Working Hours are not Excessive
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:
1. Working hours policy stated that overtime is voluntary.
2. Time cards are completed automaticaly by employees with finger print system and then entered into the
electronic payroll system which calculate wages.
3. According to time records and employees’ interview normal working hours were seven (7) hours per day and 40
hours per week with no more than two 2.5 hours overtime per day, 12 hours overtime per week and no overtime on
rest days and all samples show that the selected employees were provided with at least one (1) day off per week.
1. Working hours policy number Kep.861/91/PP/2015 on 15 May 2015 valid until 15 May 2017
2. Time cards records for period of September 2015 (current month), August 2015 (peak month) and February
2015 (non peak month).
3. Quality and production records to cross check hours.

Non–compliance:

Not applicable
Local law and/or ETI requirement
Not applicable

Not applicable
Observation:

Not applicable
Not applicable

Not applicable

Not applicable
orking hours analysis

Working hours analysis
Please include time period e.g. hour/week/month
(Go back to Key information)
Systems & Processes
A. What timekeeping systems are Describe: Finger print

used: time card etc.
B: Sample Size Checked Twenty six selected employees for period of September 2015 (current
(State number of worker records month)
checked and from which Twenty six selected employees for period of August 2015 (peak month)
weeks/months and type – should be Twenty six selected employees for period of February 2015 (non-peak
current, peak and random/low: See month)

SMETA Best Practice Guidance and
Measurement Criteria)
C: Do ALL workers have Yes If NO, state which type of workers do NOT have
contracts/employment agreements? No contracts/employment agreements:
Not applicable
D: Are standard/contracted working Yes If NO, please state which type of workers do NOT have
hours defined in all No standard hours defined in contracts/employment
contracts/employment agreements? agreements.
Not applicable
E: Are there any other types of Yes If YES, Please complete as appropriate:
contracts/employment agreements No
used? 0 hrs Part time Variable hrs Other
If “Other”, Please define:
Not applicable
Standard/Contracted Hours worked
F: Do standard/contracted standard Yes If YES give details and comparison (local law/48 hrs
hours ever exceed the law or 48 No week)
hours per week?
Not applicable
G: What are the actual Highest hours: Seven hours per day and 40 hours per week per
standard/contracted hours worked in September 2015 (current month)
sample (State per week/month)
Lowest hours: Seven hours per day and 40 hours per week per
September 2015 (current month)
H: Any local waivers/local law or Yes If YES, Please give details

permissions which allow No
averaging/annualised hours for this Not applicable
site?
Overtime Hours
I: Actual overtime hours worked in Highest OT 2.5 hours per day and 51 hours per week per September
sample (State per day/week/month) hours: 2015 (current month)
2.5 hours per day and 52 hours per week per August
2015 (peak month)
2.5 hours per day and 51 hours per week per February
2015 (non-peak month)

Lowest OT One hour per day and 47 hours per week per September
hours: 2015 (current month)
One hour per day and 47 hours per week per August
2015 (peak month)
One hour per day and 47 hours per week per February
J: Range of overtime hours over all 1-2.5 hours per day, 7-11 hours per week on September 2015 (current
workers/or as large a sample as month)
possible. (State per week/month and
details) 1-2.5 hours per day, 7-12 hours per week on August 20115 (peak month)
1-2.5 hours per day, 7-11 hours per week on February 20115 (non-peak
month)

K: Approximate percentage of __91____%

workers on highest overtime hours
L: Is overtime voluntary? Yes Please detail evidence e.g. Wording of

No contract/employment agreement/handbook/worker
Conflicting interviews/refusal arrangements:
Information
The employees who work overtime work is required to fill
in overtime form as evidence of their approval.
Overtime Premiums
M: Is overtime paid at a premium? Yes Please give details of normal day overtime premium as a
No % of standard wages:
0% 1– 116 – 125 – 150 – 200%+

115% 124% 149% 199%
Any other comments: No
N: ETI Code requires a prevailing No

standard to give greatest worker Consolidated pay (May be standard wages above minimum legal wage, with
protection. no/low overtime premium)
If a site pays less than 125% OT Collective Bargaining agreements
premium and this is allowed under Other
local law, are there other
considerations? Please complete the Please explain any checked boxes in N above e.g. detail of consolidated
boxes where relevant. Multi select is pay CBA or Other.
possible.
Overtime payment in facility is between 150% up to 200%
Rest Days

O: Are workers provided with 1 day Yes Maximum number of days worked without a day off (in
off in every 7–day–period, or 2 in 14– No sample):
day–period (where the law allows)?
All selected employees in three selected months are
provided with one (1) day off per week.
Total Hours
P: Range of total hours: Highest total 2.5 hours per day and 51 hours per week per September
(Quote highest and lowest please include hours 2015 (current month)
time period e.g. hour/week/month) 2.5 hours per day and 52 hours per week per August
2015 (peak month)
2.5 hours per day and 51 hours per week per February
Lowest total One hour per day and 47 hours per week per September
hours 2015 (current month)
One hour per day and 47 hours per week per August
2015 (peak month)
One hour per day and 47 hours per week per February
R: If more than 60 total hours per Overtime is voluntary

week and this is legally allowed, are Onsite Collective bargaining allows 60+ hours/week
there other considerations? Please Safeguards are in place to protect worker’s health and safety
complete the boxes where relevant. Site can demonstrate exceptional circumstances
Multi select is possible. Other reasons
Please explain any checked boxes in R above
To achieve production target.
Comments:
(please state here any specific reasons/circumstances that explain the highest working hours)
Please add details of examples where the site has demonstrated “exceptional circumstances”.
Not Applicable
Please give details of any appropriate safeguards in place at the time of the 60+ hours working.
Not Applicable
Any other comments:

Difference on working hours is based on difference on overtime work performed.

7: No Discrimination is practiced
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.

Current systems:
1. Anti discrimination procedure on hiring, compensation, promotion and access to training article 34 established by
facility on 15 May 2015 with document number Kep.861/91/PP/2015
2. The provided payroll records show all employees share equal pay for equal job.
3. The provided personnel files and medical examination records show that none of all selected employees
undergo the hepatitis B and HIV virus testings prior to employment.
4. Based on visual observation, both female and male employees are well distributed working in all facility areas.
5. Based on overtime form, all employees share equal opportunity performing overtime work.
1. Anti discrimination procedure on hiring, compensation, promotion and access to training article 34 established by
facility on 15 May 2015 with document number Kep.861/91/PP/2015
2. Payroll records of all 26 selected employees in three (3) selected months for periof of September 2015 (current
month), August 2015 (peak month), February 2015 (non peak month)
3. Medical examination records for all employees for period of 2014.
4. Personnell file of all 26 selected employees.
5. Overtime form.

Non–compliance:

Not applicable
Not applicable

Not applicable
Observation:

Not applicable
Not applicable

Not applicable

Not applicable

8: Regular Employment Is Provided
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
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.

Current systems:
1. All employees were recruited by the facility directly. No labour agency was used to hire employees. No
apprenticeship schemes or home worker was identified by the auditors.
2. All selected employees received a copy of their contract agreement or appointment letter. Twenty six selected
employees consist of five (5) permanent and 21 contract employees.
1. The hiring and termination practises
2. 26 out of 26 selected employees contract agreement and appointment letters.
Non–compliance:

It was noted that approximately 44.01% or 125 out of 284 of total employees were photo numbers)
contract employees doing work that was not seasonal in nature. This is an isolated
incident. 1. Review of employee list
record
In accordance with Law No.13/2003, article 59.1: Fixed term working agreement may
only be made for certain work which based on the type and nature or activity involve in
the work, will finish at certain time, such as work which is done once on temporary in
nature, work that that is expected to be completed in relatively short period at most 3
years, work that is seasonal in nature, work related new product, new activity or
additional product which are still at the experimental or trial stage.

In addition In accordance with ETI clause # 8.1 To every extent possible work
performed must be on the basis of recognised employment relationship established
through national law and practice.

It is recommended that the facility should employ the current contract employees as
permanent employees.

Observation:

Not applicable
Not applicable

Not applicable

Not applicable

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.
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.

Current systems:
1. A site tour showed that not all production processes were present in the unit
2. A supporting process for printing and embroidery are done outside facility. Please see list of subcontractor on
populated box below. However, the subcontractor is agreed with the main vendor/supplier. The facility obtained
written approval by client to use the said subcontractors for printing and embroidery on 19/10/15
4. The facility conduct internal audit to monitor the sub contract units for agreement with laws or the code.
5. The facility communicated the Code to its sub contractor via email since 01/01/14.
6. The subcontractors are agreed to use with supplier/vendor via email.
1. Internal audit to supplier
2. List of subcontractor provided by facility
3. Internal audit to subcontractor on June 2015
4. Communication of this code to subcontractor on June 2015
5. Approval from vendor/supplier on 19 October 2015
If any processes are sub–contracted – please populate below boxes
Process Subcontracted Printing Embroidery

Name of factory PT. Ikhlas Indonesia CV. Kharisma Embroidery
Jalan Raya Telajung Udik km
Bedahan RT. 08 RW. 02 Kelurahan
23. RT 01.RW 08 Desa Telajung
Address Pabuaran Kecamatan Cibinong
Udik Kecamatan Gunung Putri
Kabupaten Bogor
Kabupaten Bogor

Non–compliance:

Not applicable
Not applicable

Not applicable
Observation:

Not applicable
Not applicable

Not applicable

Not applicable

Summary of sub–contracting – if applicable
Summary of sub–contracting – if applicable
A: If sub–contractors are used, is Yes

there evidence this has been agreed No
with the main client? If Yes, summarise details: The facility obtained written approval by client to
use the said subcontractors for printing and embroidery on 19/10/15
B: Number of sub– Two

contractors/agents used
C: Is there a site policy on sub– Yes

contracting? No
If Yes, summarise details:
1.The facility establish a policy to not use any sub–contracting unless
agreed with by client.
2. The facility conduct internal audit to visit the subcontract units on a
regular basis to both inform on the quality and conduct the social
compliance audit.
3. The facility conduct internal audit to monitored the sub contract units for
agreement with laws or the code
4. The facility discussed with the sub contract units on an ethical policy.
5. The facility management review the internal audit of subcontractor report
regularly
D: What checks are in place to The facility conduct internal audit to visit the subcontract units on a regular
ensure no child labour is being used basis to both inform on the quality and conduct the social compliance audit.
and work is safe?
E: What processes are sub– Printing and embroidery

contracted?
Summary of homeworking – if applicable
F: If homeworking is being used, is Yes

there evidence this has been agreed No
with the main client? If Yes, summarise details: Not applicable, since no home working is used
by facility.
G: Number of homeworkers Male: Not applicable, Female: Not Total: Not applicable,
since no home working applicable, since no since no home working
is used by facility. home working is used is used by facility.
by facility.
H: Are homeworkers employed direct Directly

or through agents? Through Agents Not applicable, since no home working is used by
facility.
I: If through agents, number of Not applicable, since no home working is used by facility.
agents
J: Is there a site policy on Yes

homeworking? No
Not applicable, since no home working is used by facility.
K: How does site ensure worker Not applicable, since no home working is used by facility.
hours and pay meet local laws for
homeworkers?
L: What processes are carried out by Not applicable, since no home working is used by facility.
homeworkers?
M: Are written agreements in place Yes

for homeworkers that include regular No
employment? Not applicable, since no home working is used by facility.
N: Are full records available at the Yes

site? No
Not applicable, since no home working is used by facility.

9: No Harsh or Inhumane Treatment is allowed
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.

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
Current systems:
1.The facility established a disciplinary procedure for employees misbehaviour which included oral warning, written
warning and finally termination with document number Kep.861/91/PP/2015 on 15 May 2015 valid until 15 May
2017
1. Policy on prevention of harassment and abuse
Non–compliance:

Not applicable
Not applicable

Not applicable
Observation:

Not applicable
Not applicable

Not applicable


Not applicable

10 A: Entitlement to Work and Immigration
10. Other Issue areas: 10 A: Entitlement to Work and Immigration
Additional Elements
10A1 Only workers with a legal right to work shall be employed or used by the supplier.
10A2 All workers, including employment agency staff, must be validated by the supplier for their legal right to work
by reviewing original documentation.
10A3 Employment agencies must only supply workers registered with them.
10A4 The supplier shall implement processes to enable adequate control over agencies with regards the above
points and related legislation.

Current systems:
1. Per employee list review, facility management representation and employees interview, all employees in facility
were Indonesian who come from various provinces in Indonesia
2. No agency staff or foreign employees was used by the factory.
1. Employee list
2. Personnel files
Non–compliance:

Not applicable
Not applicable

Not applicable

Observation:

Not applicable
Not applicable

Not applicable
Good examples observed:

Not applicable

10B4: Environment 4–Pillar
10. Other issue areas 10B4: Environment 4–Pillar
To be completed for a 4–Pillar SMETA Audit and remove the previous page which is 10B2 environment 2 pillar
B.4. Compliance Requirements

10B4.1 Suppliers as a minimum must meet the requirements of local and national laws related to environmental
standards.
10B4.2.Where it is a legal requirement, suppliers 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. The supplier shall be aware of their end client’s environmental standards/code requirements and have a
system in place to monitor their performance against these.
B4. Guidance for Observations
10B4.4. Suppliers should have completed the appropriate section of the SAQ and made it available to the auditor.
10B4.5. Suppliers should have an environmental policy, covering their environmental impact, which is
communicated to all appropriate parties, including its own suppliers.
10B4.6. Suppliers shall be aware of the significant environmental impact of their site and its processes.
10B4.7. 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).
10B4.8. Suppliers shall seek to make continuous improvements in their environmental performance.
10B4.9. Suppliers shall have available for review any environmental certifications or any environmental
management systems documentation
10B4.10. Suppliers should have a nominated individual responsible for co–ordinating the site’s efforts to improve
environmental performance.
10B.4.11. Has the site recently been subject to (or pending) any fines/prosecutions for noncompliance to
environmental regulations.
Note for auditors and readers. This environment section is intended to take not more than 0.25 auditor days. It is an
assessment only and the main requirement is to establish whether a site is meeting applicable environmental laws
and/or has any certifications or environmental management systems in place. Following this assessment the
client/supplier may decide a full environmental audit is required (see also best practice guidance/environment and
guidance for auditor)

Current systems:
1. The facility appointed HRD as personnel to in charge in environment areas.
2. Facility environment policy commit to follow law and customer requirements established on 15 May 2015
3. The facility did not used hazardous chemicals for manufacturing process
1. Appointment letter of the Code representative issued on 2 January 2013 valid as long as the employee still
works for facility.
2. Environmental policy
3. Energy bills
4. Water bill

Non–compliance:

NC against ETI/Additional Elements NC against Local observed:
It was noted that the facility never reported environmental management plan (UKL) photo numbers)
and environmental monitoring plan (UPL) to the environmental impact control agency
in every six (6) months that on June and December. This is a systemic problem. 1. Management
discussion with Mr. Ian
Local law and/or ETI/Additional Elements requirement: Ruffiansyah as HRM
In accordance with Government Regulation No. 27/1999, article 32: Company shall
make the evaluation report of environmental management plan (UKL) and
environmental monitoring plan (UPL) that submitted to the environmental impact
control agency in every 6 months that on June and December.
In addition in accordance with ETI Code # 10B4.1 Suppliers as a minimum must meet
the requirements of local and national laws related to environmental standards.

It is recommended that the the facility should reported environmental management
plan (UKL) and environmental monitoring plan (UPL) to the environmental impact
control agency in every six (6) months that on June and December.

Observation:

Not applicable
Not applicable

Not applicable

Not applicable

Environmental Analysis
Environmental Analysis
(Site declaration only – this has not been verified by auditor. Please state units in all cases below.)
A; Responsible for Environmental issues (Name and Mr. Ian Rufiansyah as HRM
Position):
B: Does the site have a recognised environmental Yes No

system certification such as ISO 14000 or equivalent? Details:
Please detail.
C: Does the site have an Environmental policy? Yes No

(For guidance, please see Measurement criteria )
Does the site have a Biodiversity policy? Yes No

(For guidance, please see Measurement criteria )
E: Is there any other sustainability systems present such Yes No

as Chain of Custody, Forest Stewardship Council Details: The facility conducted environmental impact by
(FSC), Marine Stewardship Council (MSC) etc.? environmental bureau on 2006. However, the facility
Please detail. never reported the environmental impact bi-annually
(For guidance, please see Measurement criteria ) report to environmental bureau since 2006. Please refer
to non-compliance raised in non-compliance section.
F: Have all legally required permits been shown? Yes No

Please detail. Details: The facility conducted environmental impact by
environmental bureau on 2006. However, the facility
never reported the environmental impact bi-annually
report to environmental bureau since 2006. Please refer
G: Is there a documentation process to record Yes No N/A

hazardous chemicals used in the manufacturing Details: The facility did not use hazardous chemicals for
process? manufacturing process.
H: Is there a system for managing client’s requirements Yes No

and legislation in the destination countries regarding Details: The facility conducted environmental impact by
environmental and chemical issues? environmental bureau on 2006. However, the facility
never reported the environmental impact bi-annually
report to environmental bureau since 2006. Please refer
Usage/Discharge analysis
Criteria Current year: Please state period: Previous Year: Please state period:
______________ ___________
Electricity Usage: 5,515kwh 5,513kwh

Kw/hrs
Renewable Energy Usage: 0 0

Kw/hrs

Gas Usage: 0 0
Kw/hrs
Has site completed any carbon Yes No Yes No

Footprint Analysis?
If Yes, please state result Not applicable since Not applicable
Water Sources:  One bore hole from water  One bore hole from water
Please list all sources e.g. lake, river, drilling permitted by authority drilling permitted by authority
and local water authority. on 30/12/13 untill 30/12/16 on 30/12/13 untill 30/12/16
Water Volume Used: 255,67 m3 255,67 m3

(m³)
Water Discharged:  Sewer  Sewer

Please list all receiving waters/recipients.
Water Volume Discharged: 255,67 m3 255,67 m3

(m³)
Water Volume Recycled: 0 0

(m³)
Total waste Produced One unit One unit

(please state units)
Total hazardous waste Produced: One unit One unit

Waste to Recycling: One unit One unit

Waste to Landfill: Nil Nil

Total Product Produced One unit One unit


10C: Business Ethics – 4–Pillar Audit
10C: Business Ethics – 4-Pillar Audit
To be completed for a 4–Pillar SMETA Audit
10C. Guidance for “Observations”

10C.1. Suppliers should have completed the appropriate section of the SAQ and have made it available to the
auditor.
10C.2. The supplier should have received and acknowledged– preferably in writing – the Business Ethics policy of
the auditor/audit company.
10C.3. Suppliers shall seek to conduct their business ethically without bribery, corruption, or any type of fraudulent
Business Practice.
10C.4. Suppliers shall be aware of any applicable laws, their end client’s Business Ethics standards/code
requirements and have a system in place to monitor their performance against these.
10C.5. Supplier should have a Business Ethics policy concerning bribery, corruption, or unethical Business
Practice. This should be clearly communicated to all relevant parties.
10C.6. Suppliers should have a designated person responsible for implementing standards concerning Business
Ethics
10C.7. Suppliers should have a transparent system in place for confidentially reporting, and dealing with unethical
Business Ethics without fear of reprisals towards the reporter
10C.8. 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.
Note for auditors and readers. This Business Ethics section is intended to take not more than 0.25 auditor days. It
is an assessment not an audit and the main requirement is to gather information on the relevant Business Ethics
issues in a supply chain. All findings will be recorded as observations not Non– Compliances and the data collected
will allow the membership to define appropriate standards over time as part of a continuous review process.

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
Current systems:
1. The facility director is the designated person responsible for implementing standards concerning Business
Ethics, and that site practices are conducted without any corruption and/or bribery.
2. The facility established a business ethics policy which is communicated to employees through posters and
training. The last training was conducted by HRM attended by all employees on 15 October 2015.
3. The facility has received and read the Business Ethics policy of the auditor/audit company.
1. Appointment letter of business ethics
2. Business ethics policy
3. Auditor/audit company policy

Observation

Not applicable
Not applicable

Not applicable

Not applicable

Worker Interview Summary
A: Were workers aware of the audit? Yes

No
B: Were workers aware of the code? Yes

No
C: Number of group interviews: 4 groups of 5

(Please specify number and size of
groups. Please see SMETA Best
Practice Guidance and Measurement
Criteria)
D: Number of individual interviews Male: 2 Female: 4

(Please see SMETA Best Practice
Guidance and Measurement Criteria)
E: Total number of interviewed Male: 6 Female: 20

workers
(Please see SMETA Best Practice
Guidance and Measurement Criteria)
F: Interviews were done in private Yes

and the confidentiality of the No
interview process was
communicated to the workers?
G: In general, what was the attitude Favourable

of the workers towards their Non–favourable
workplace? Indifferent
H: What was the most common No complaint from the employees

worker complaint?
I: What did the workers like the most The management is kind and no pressure when doing job
about working at this site?
J: Any additional comment(s) No

regarding interviews:
K: Attitude of workers to hours Good, because the employees can take a rest and can leave when the shift
worked: end.
Agency Workers

Agency Workers (if applicable)
(workers sourced from a local agent who are not directly paid by the site)
A: Number of agencies used

(average): And names if available: Not applicable since no agency used by the facility
B: Were agency workers’ Yes

age/pay/hours included within scope No
of this audit Not applicable since no agency used by the facility
C: Were sufficient documents for Yes

agency workers available for review? No
Not applicable since no agency used by the facility

Other findings
Other Findings Outside the Scope of the Code
None observed
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 observed

Photo Form
Non compliance
(1) No hydrant installed in facility.
General facility
Typical Fire exit Typical Fire extinguisher Sewing area
First aid kit contents, Eye wash stations Available drinking water station

Personal locker Toilets Electrical wiring box
Aisles Evacuation plans in facility Employee notice boards
Chemical storage Personal protective equipment Entrance of main building to identify

(PPE) being used the site

Best Practiced
No best practiced
No best practiced
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DISCLAIMER:
"This report is for the exclusive use of the client of Intertek named in this report (“Client”) and is provided pursuant to an agreement for services
between Intertek and Client (“Client Agreement”). This report provides a summary of the findings and other applicable information
found/gathered during the audit conducted at the specified facilities on the specified date only. Therefore, this report does not cover, and
Intertek accepts no responsibility for, other locations that may be used in the supply chain of the relevant product or service. Further, as the
audit process used by Intertek is a sampling exercise only, Intertek accepts no responsibility for any non-compliant issues that may be revealed
relating to the operations of the identified facility at any other date. Intertek's responsibility and liability are also limited in accordance to the
terms and conditions of the Client Agreement. Intertek assumes no liability to any party, for any loss, expense or damage occasioned by the

use of this information other than to the Client and in accordance with the Client Agreement and these disclaimers. The disclaimer should be
read in conjunction with the Terms and Conditions of Intertek.”
End of report.

crr*ctive ct$nn lan
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',,ti:,-:r.rrr r.!'|)lt llll,.:l,ti Ptiiar,{Lrlrri: rcilllic,iti',,uf:iiait : 1.r-t 1.,,J,'1,. ... ' .'
Supplier name: Uniform C othing Solution Ltd

Site country: lndonesia
Slte name: PT Nitya Na ndha
Parent Company name (of the site): PT. Nitya Nandha

Sl\4ETA Audrt Type: Z z-pt ar X +-Pittar
Date of Audit 16110t15
Audit Conlent:
il I A SMETA aud t was conducted whrch nc uded some or all of Labour Standards, Health and Safety,
Env ronment and Bus ness eth cs. The SMETA Best Practice Gu dance Versior-r 5 December 2Ol5 was
app ied. The scope of workers included a types atthe s te e.g. drectempoyees, agency workers,
workers etlp oyed by service prov ders, and workers prov ded by other contractors Any dev at ons from
the SMETA Methodology are stated (w th reasons for deviation) in the SMETA Dec arat on
r:lr The aud t scoDe was against the fo low ng reference documents:
Please check appropriate SI,4ETA Audit Type n the above box:
2-Pillar SN,4ETA Aud t
" ETI Base Code
" S[,4ETA Additions
N4anagement systems and code rmplementatlon,
Entitlement to Work and mmigration,
Sub-Contract ng and Home work ng
4 Pi lar SMETA Aud t
2 Pi lar requirements p us
Addit onal Pillar assessment of Env ronment
Addit onal P I ar assessment of Business Eth cs
The new ET Worklng Hours C ause
ow inlegrated into th s atest SMFTA version.
Where appropriate non-comp iances were raised agla nst the

ET code / S [,4 ETA Add tions and ocal law and recorded as
non-compliances on bolh the audit report, CAPR and on Sedex.
Audit company: lntertek Report reference: IND-2133-03 Date: 19/10/15

' SMETA Corrective Action Plan Repod (CAPR) lVe r;icn l. r Df I iii I .,;
Report Owner (payee):

PT. Nitya Nandha
Sed ex Company Refere nce :

(only available on Sedex System) S: N/A
Sedex Slfe Reference:

(only available on Sedex Sysfem) P: N/A
Audit Conducted By
Commercial X Purchaser n
NGO ! Retailer n
Trade Union tr Brand Owner n
Multi-stakeholder n Combined Audit (select all that apply)
Aud itor Reference Number:

(lf applicable) Not appljcable
Audit company: lntertek Report reference: IND-21 33-03 Date: 19/10/1 5

SMETA Conective Action PIan Reporl (CAPR) iV+rsicr 5.i ilrr !tf-r I .1 ,
Audit Details
Audit Details
A: Report #: IND-2133-03
B: Time in and time out Day 1 Time in: Day 2 Time in: NA Day 3 Time in: NA
(SMETA BPG recommends 9.0A17.00 hrs. if 10:00am Day 2 Tlme out; NA Day 3 Time out: NA
any different please state why in the SMEIA - Day 1 Time out: 5:00
declaration ) pm
C: Number of Auditor Days Used: Three auditors in one (1) day (2,5 mandays)
(number of auditor x number of days)
D: Audit type: T Full lnitial

X Period ic
n Full Follow-up
n Partial Follow-Up
tr Partial Other - Define
E: Was the audit announced? X An n ou nced
n Semi - announced: Window detail: weeks
T Unan nou nced
F: Was the Sedex SAQ available for I Yes
review? nno
lf No, why not? NA

(Examples would be, site has not completed
SAQ slte has nof been asked to complete the
sA a.)
G; Any conflicting information SAQ/Pre- tr ves

Audit Info to Audit findings? X tto
lf Yes, please capture detail in appropriate audit by clause
H: Auditor name(s) and role(s): lVohamad Adhie Adriansyah - Lead Auditor

Dimas Will Sambaga - Team l\4ember
Gabriella Lumowa - Team [4ember
l: Report written by: Mohamad Adhie Adriansya h
J: Report reviewed by: Yun ta Tarn pubolon
K: Report issue date: 1911012015
L: Supplier name: Uniform Clothing Solution Ltd
l\4: Site name: PT.Nitya Nandha
Ni Site country: lndonesia
O: Site contact and job title: Mr lan Rufiansyah - HR l\,4anager
Audit company: Intertek Report reference: IND-2'1 33-03 Date: 19/10/15

P: Site address: Kp Cimanggu Rt 02101 Desa Dayeuh Cileungsi Bogor 16820
(Please include full address) lndonesia.
Site phone: 062-21-82496155
Site fax: 062-21-824961 56
Site e-mail: deepak@nitvanandha.com/ hrd@nitvanandha.com

-
Q; Applicable business and other legally Business license number 535.1/010. P/00002/BPMPTSP/201 5 valid
requ red licence numbers: frorn 30/03/15 untill as long as the facility run its operation
for example, business license no, and
liability insurance
R: Products/Activities at site, for example, Garment m anufacturers

garment manufacture, electricals, toys,
grower
S: Audit results reviewed with site Yes

management?
T: Who signed and agreed CAPR (Name Mr. Deepak l\4elwani as Director
and job title)
U: Did the person who signed the CAPR Yes

have authority to implement changes?
V: Present at closing meeting (Please state '1 Mr. lan Rufiansyah as HR l\4anager
rame and posirion. including any 2 l\4r. Deepak as Director
workers/u nion reps/worker reps): 3 Mohamad Adhje Adriansyah - Lead Auditor
4. Dimas Will Sambaga - Team l\4ember
5. Gabrieila Lumowa - Team l\4ember
This information will be communicated to employees representatives

on facility meeting
W: What form of worker representation / n nion (name)

U
union is there on site? X Worker Committee
n Other (specify)
n None
X: Are any workers covered by Collective X Yes nruo
Bargain ing Agreement (CBA)
Y: Previous audit date: 15t04t14
Z: Previous audit type: SlVl ETA 2-pillar SIVETA 4-pillar Other
Full lnltial T n T
Periodic L] X !
Full Follow-Up n n n
SMETA Corrective Action PIan Report (CAPR) Mersion 8.0 Dec 201..i)
Audit
Partial Follow- n n n
Up
Partial Other* n n n
.lf other, please define: Nil
'""":"""""""""""
,-\
Audit company: lntertek Report reference ND-2133-03 Date: 19/10/'15 ( S)
\-r
SMETA Corrective Action Plan F:lepcfi (CAPF) iVcrrr*ri :r ll i)..::a..r .
Guidance:
The Corrective Action Plan Report summarlses the site audit findings and a corrective, and preventative action p an
that both the auditor and the site manager believe is reasonable to ensure conformity with the ETI Base Code,
Loca Laws and additional audited requirements. After the initial audit, the form is used to re-record actions taken
and to categorise the status of the non-com pliances.
N B observations and good practice examples should be pointed out at the closing meeting as well as discussing
non-com plrances and corrective actions.
To ensure that good practice examples aie highlighted to the supplier and to glve a more'balanced'audit a section
to record these has been provided on the CAPR document (see following pages) which will remaln with the
supplier They will be further confirmed on receipt of the audit report
Root cause (see column 4)

Nofe: ft ls not mandatory to complete this column at this time.
Root cause refers to the specific procedure or lack of procedure which caused the issue to arise. Before a
corrective action can sustainably rectify the situation it is important to find out the real cause of the non-
compliance and whether a system change is necessary to ensure the issue will not arise aqain in the
future.
See SMETA BPG Chapter 7 'Audit Execution' for more explanation of "root cause".
Next Steps:
1 The site shall request, via Sedex, that the audit body upload the audit report, non-com pliances,
observations and good examples lf you have not already received instructions on how to do this then
please visit the web site www.sedexq lobal.com.
2. Sltes shall action its non-compliances and document its progress v a Sedex
3. Once the stte has effect vely progressed through ts actions then it shal request via Sedex that the audit
body verify its actions Please visit www.sedexoloba l.com web site for information on how to do this
4. The audit body shall verify corrective actions taken by the site by either a "Desk-Top" review process via
Sedex or by Follow-up Audit (see point 5).
5. Some non-compliances that cannot be closed off by "Desk-Top" review may need to be closed off via a "1
Day Follow Up Audit" charged at normal fee rates lf this is the case then the site wil be notified after its
submission of documentary evidence relating to that non-compl ance. Any follow-up audit must take place
within twelve months of the lnitial audit and the information from the initial audit must be avai ab e for sign
off of corrective act on.
6. For changes to wages and hours to be correctly verified it will normally require a follow up slte v s t.
Auditors will generally require to see a minimum of two months wages and hours records, showing new
rates in order to confirm changes (note some cllents may ask for a longer period, f n doubt please check
with the client).
Audlt company: Intertek Report reference ND-2133-03 Date 19/10/15

S\IFTA Cerrct.ir\,c Acl,on PIan Qe rri (CAPI{;
Corrective Action Plan

Corrective Action PIan - non-compliances
Non- New or Details of Non-Compliance Root cause Preventalive and Timescale Verification Agreed by Verification Evidence Status
Compliance Carried Detail s of Non-Conpli ance Corrective Actions (lnne.liate,30 6A, Method Management and
Number Over Delails ol aclians lo be 90,180,365) Desktap / Fallow-Up and Name ol Comments
taken ta clear non- ID/F] Responsible Details an coneclive action
compliance, and lhe
Person:
syslem change ta
prevent re- occurrence
(agreed between site
avet (c)
0 New It was noted that during t is recommended 30 days Desktop l\,4r lan R as Upload documents to Open
Managements discuss on with
managernent that the facilrty H RI\,4 sedex system
system and HRM, the facility d d not implement should implement
Code and maintarn systems for and maintain
lmplernentahon deliver ng compliance lo this Code systems for
delivering
compliance lo thrs
Code
3 Working New It was noted that during facility tour 60 days Fo ow up I\,4r lan R as Provide hydrant Open
Conditions are wiih HRM, no hydrant nstalled rn
It is recommended HRM
facility that the facility
Hygienic should insta ed
hydrant
3 Work ng New t !1/as noted that d scussion with 90 days Desl.top l\,4r lan R as Upload buildlng Open
Cond tions are HRl,4, the facility had nol obtained It is recommended HR1\,l acceptance certificate
b!ilding acceptance certificate that the facll ty (SLF) from authority to
Hyqienic (SLF) frorn authority should obtained sedex system
buiding acceptance
certificate (SLF) from
authority
Audit company lnterteh Report reference: IND 2'133 03 Datet 19/10/15

SMETA Cor'rective Action Plan Repori (CAPR) iV.:rsic* 5.0 iiel:,l{,,11)
5: Livrng New It was noted that discussion with It is recommended 60 days Follow up I\,4r lan R as Provide all employees Open
Wages HR[,4, only
50 employees instead that the facility HRM with hea th care service
Paid of all employees covered with should covered all (BPJS kesehatan)
health care service (BPJS employees with
kesehatan) health care service
(BPJS kesehatan)
8: Regular New It was noted that discussion with 60 days Follow up I\,4r. lan R as Provide current contract Open
Employment ls HRM, approximately 44.O1ak ot It is recommended HRI\4 employees as
Provided 125 ot-)l of 284 of total employees that the facility permanent employees.
were contract employees doing should employ the
work that was not seasonal in current contract
employees as
permanent
employees.
10 Other {ssue New li wes noted that during It is recommended 60 days Desktop Mr lan R as Upload report of Open
areas 10841 management discussion with that the lacility HRM environmental
Environment HRM, the facility never reported should repo(ed rnanagement plan
4-Pillat environrnental management plan environmental (UKL) and
(UKL) and environmental managemeni plan environrnental
monitoring plan (UPL) to the (UKL) and monitoring plan (UPL)
environmental impact control environmental to the environmental
agency in every six (6) months that monitonng plan impact conkol agency in
on June and December (UPL) to the every six (6) months
environmental impact that on June and
control agency in Decernber to SEDEX
every six (6) months system
that on June and
Decernber
Audit company: Intertek Report reference. ND-2133-03 Date 19/10/15 ( a )

\_-/
SMET,A Corrective Action Plan Report (CAPR) iVr:;-rir:r r !.0 ilri:r: ll1,1l
Corrective Action Plan - Observations

Observation Details of Observation Root cause Any improvement actions discussed
Number Carried Over Details of abseNatian (conpleted by the site) (Nol uploaded on to SEDEX)
None observed
Good examples
Good example Details of qood example noted Any relevant Evidence and
Number Comments
numbet ot lhe nan
canpliance fran lhe
Discrimlnation Na 7
None obserued
Audit company. lntertek Report reference: IND-2133 03 Date: 19/10/15

SIIFTA Corrective Actron Plan iieport {C,ApR) i,.i:rrsi*:'r 5.C iler 2C I .t
:
Confirmation
Please sign this document confirming that the above findings have been discussed with and understood by you: (site management)
lf actual signatures are nof poss/b/e in electronic verslons, state the name of the signatory in applicable boxli, as indicating tie signature.
4/ease
A: Site Representative Signature:
Date: 1 9/10/1 5
.si-r,'-S ,fue"r €tq Title Auditors
.u1 a,o\a'e . G..lr. t l\a D\o\art !- Dale 1911O115

^
C: Please indicate below if you,.the site management, dispute any of the findings. No need to complete D-E, if no disputes.
E: Signed:
(lf anv entry in box D, please complete a Tgt ltAr{DflA
signature on this line) ulI .EOooR Date 19/1 0/1 5
F: Any olher site Comments:

Guidance on Root Cause
Explanation of the Root Cause Golumn
lf a non-compliance is to be rectified by a corrective action which will also prevent the non-compliance
re-occurring, it is necessary to consider whether a system change is required.
Understanding the root cause of the non-compliance is essential if a site is to prevent the issue re-
occurring.
The root cause refers to the specific activity/ procedure or lack of activity /procedure whtch caused the
non-compliance to arise. Before a corrective action can rectify the situation it is important to find out the
real cause of the non-compliance and whether a system change is necessary to ensure the issue will not
arise again in the future.
Since this is a new addition, it is not a mandatory requirement to complete this column at this time. We
hope to encourage auditors and sites to think about Root Causes and where they are able to agree, this
column may be used to describe their discussion.
Some examples of finding a "root cause"
Example 1
Where excessive hours have been noted the real reason for these needs to be understood, whether due to
production p anning, bottle necks in the operation, insufficient kaining of operators, delays in recelving trims, etc.
Example 2
A non-compliance may be found where workers are not using PPE that has been provided to them This could be
the result of insufficient training for workers to understand the need for its use; a lack of follow-up by supervisors
aligned to a proper set of factory rules or the fact that workers feel their productivity (and thus potentlal earnings) is
affected by use of items such as metal gloves
Example 3
A site uses fines to control unacceptable behaviour of workers.
lnternational standards (and often local laws) may require that workers should not be fined for disciplinary reasons
It may be difficult to stop fines immediately as the site rules may have been in place for some time, but to prevent
the non-compliance re- occurrlng it will be necessary to make a system change
The symptom is fines, but the root cause is a management system which may break the law. To prevent the
problem re-occurring it will be necessary to make a system change for example the site could consider a systern
which rewards for good behaviour
Only by understanding the underlying cause can effective corrective actions be taken to ensure continuous
'compliance.
The site is encouraged to complete this section so as to indicate their understanding of the issues raised and the
act ons to be taken.
Audit company: lntertek Report reference: IND-21 33-03 Date: 19/10/15

SMETA Corrective Action plan Re port (CApR) (lirrslcr 5.ii li..r.: ,,_i: i.,1

h!1p11www-st!t!eyqonkev.cpqll.LsLt:t!$m=d3yy€p _4slrpg_gDRglJ_2bts_3_d_3_d,
Disclaimer
Any proposed Corrective Actton Plan (CAP) cLosed utjlizing a Desktop Rev ew is imited by the evidential
documentation provided by the facility in order to correct the non conformance The intent of thjs service is to
provide assurance that the facil ty is on the correct path with its proposed or completed corrective actions. Intertek
cannot be heLd responsible for the falsifjcatlon of evidence or the effective implementation of the proposed
corrective actions, which rn many instances may only be truly validated by an onsite Audit v sit owing to the
Limitations of the desktop review process. The fac lltjes shall be whoLly respons ble for the correct and effectjve
implementation of their proposed CAP.
lntertek nor any of its affi iates shall be held ljab e for any direct, indirect, threatened, consequential, special,
exemplary or other damages that may result includlng but not lim ted to economic loss, injury, illness, or death
arjslng from the inab lity of a facility to implement tts CAP.
Audit company: lntertek Report reference ND-2133-03 Date. 19/10/15

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For more information on Sedex please go to www.sedexglobal.com

or email helpdesk@sedexglobai.com
Audit company: Intertek Report reference: IND-2133-03 Date: 19/10/1s

IND 2133 03 PT NItya Nandha Sedex Annual 03 FNL

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IND 2133 03 PT NItya Nandha Sedex Annual 03 FNL

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Supplier name: Uniform Clothing Solution Ltd

Site country: Indonesia

Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 1

Sedex Company Reference:

Sedex Site Reference:

Trade Union Brand Owner

Multi–stakeholder Combined Audit (select all that apply)

Auditor Reference Number:

Auditor Name(s) (please list all including all interviewers):

Date: 19 October 2015

Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 2

0 Management systems and code 1 0 0

1 Employment Freely Chosen 0 0 0

3 Safety and Hygienic Conditions 2 0 0

5 Wages and Benefits 1 0 0

9 Harsh or Inhumane Treatment 0 0 0

10A Entitlement to Work 0 0 0

10B2 Environment 2–Pillar NA NA NA

10B4 Environment 4–Pillar 1 0 0

10C Business Ethics 0 0

Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 3

Summary of findings (positive and negative) :

Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 4

Additional auditor remark : Nil

Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 5

D: Audit type: Full Initial

E: Was the audit announced? (AAG Announced

F: Was the Sedex SAQ available for Yes

G: Any conflicting information SAQ/Pre- Yes

H: Auditor name(s) and role(s): Mohamad Adhie Adriansyah – Lead Auditor

I: Report written by: Mohamad Adhie Adriansyah

J: Report reviewed by: Yunita Tampubolon / Karon Brinkworth – Grew

K: Report issue date: 24 October 2015

L: Supplier name: Uniform Clothing Solution Ltd

Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 6

N: Site country: Indonesia

O: Site contact and job title: Mr. Ian Rufiansyah – HR Manager

Site phone: 062-21-82496155

Site fax: 062-21-82496156

Site e–mail: deepak@nityanandha.com/ hrd@nityanandha.com

R: Products/Activities at site, for example, Garment manufacturer woven for all

S: Audit results reviewed with site Yes

T: Who signed and agreed CAPR Mr. Deepak Melwani as Director

U: Did the person who signed the CAPR Yes

V: Present at closing meeting (Please state 1. Mr. Ian Rufiansyah as HR Manager

W: What form of worker representation / Union (name)

X: Are any workers covered by Collective Yes No

Y: Previous audit date: 15 April 2014

Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 7

*If other, please define: NA

Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 8

C: Legal age of employment: Legal minimum: 18 years old Not applicable

E: Legal minimum overtime wage: Legal minimum IDR. 12,960.92 Yes

Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 9

10B4: Environment 4–Pillar

10C: Business Ethics

Audit company: Intertek Report reference: IND-2133-03 Date: 19 October 2015 10

Management Worker Representatives

Audit attendance Senior management Worker Committee Union representatives

A: Present at the opening meeting? Yes No Yes No Yes No

B: Present at the audit? Yes No Yes No Yes No

C: Present at the closing meeting? Yes No Yes No Yes No

A total of 284 employees are currently working in the facility, which

The minimum wage of Kabupaten Bogor area is IDR. 2,655,000 per

D: Number of workers leaving in last 12 1_ %