Document #: DFL/MR/9.

5/2
Internal Audit Checklist Effective Date: 15-12-2009
(SA 8000:2008) Revision: 0

Diamond Fabrics Limited Page: Page 1 of 10

Sr. No SA 8000 Points to be verified Evidence checked Whether NC /

Clause No complying OBS
Yes /No Ref

To:
Management Representative
Diamond Fabrics Limited

In the light of Internal Audit of Social Accountability (SA8000) the following findings statement are reported for your kind action.

Audit No. 2nd Audit Date 17-18, AUG - 2010

1. Child labour a) Check the age proof of the persons working in the Personal Files of the following YES
organization.[Age should be above 15 or 18 years] Employees Abdul Qadeer S/O.
Muhammad Ilyas (Cloth
Checker) Card number 106690,
Tahir Mehmood S/O. Abdul
Rasheed (Weaver) card No.
111028, Muhammad Hanif S/O.
Muhammad Latif (Sizer) Card #
156618 and Muhammad Abbass
(Warper) Card # 106547 were
checked NIC for these employees
age proof and interviewed of
above persons related to social
compliance SA-8000.

Page 1 of 10
 Document #: DFL/MR/9.5/2
Internal Audit Checklist Effective Date: 15-12-2009
(SA 8000:2008) Revision: 0

Diamond Fabrics Limited Page: Page 2 of 10

Sr. No SA 8000 Points to be verified Evidence checked Whether NC /

Clause No complying OBS
Yes /No Ref
b) Check how subcontractor’s employees are also covered in Evaluation of Shahzad & YES
this aspect. Company and canteen
contractor were carried out on
12-08-2010 and 06-08-2010
respectively refers Doc. No.
DFL/SA/938/2, Hiring record of
canteen contractors was also
checked and found Ok.
c) In case child labour is available check what is the action Child Labour not engaged YES
taken for remediation of child labour.[Schooling, financial
support]
d) No child labour shall be engaged. Policy for Prohibition of Child Yes
Labour refer Doc. DFL/SA/8.2/1
e) Young workers [age:15-18] can be engaged. They should N/A -
be assigned jobs which are fit for young persons only.
Young workers register is to be maintained.
f) Young workers duty time and schooling shall not exceed 10 N/A -
hours. Duty hours will not exceed 8 hours. No night shift is
allowed.
g) If there is any hazardous work-young workers should not be N/A -
exposed to it.
h) In the absence of age proof, the competent medical As per Child Labour Procedure YES
authority’s certificate of age can be accepted. refer Doc. # DFL/SA/8.1/2

Page 2 of 10
 Document #: DFL/MR/9.5/2
Internal Audit Checklist Effective Date: 15-12-2009
(SA 8000:2008) Revision: 0

Diamond Fabrics Limited Page: Page 3 of 10

Sr. No SA 8000 Points to be verified Evidence checked Whether NC /

Clause No complying OBS
Yes /No Ref

2. Forced and a) Compulsory deposit of money to be employed in the job is Policy for Prohibition of forced YES
Compulsory not allowed. Labour refer Doc. DFL/SA/8.2/1
Labour b) Ask employees whether their identity cards or certificates Verification from Worker’s YES
are held by the company as a condition for employment. Interviewed on floor during audit
c) The company should not deduct part of salary to force the Worker’s Interviewed on floor YES
continuation of the workers. during audit
d) Check with employees whether such deductions are done. Worker’s Interviewed on floor YES
during audit
e) Check whether security guards are used to force workers to No. Forced Labour Worker’s YES
remain in the job. Interviewed
f) Compulsory continuation in job (by not allowing the workers Worker’s Interviewed on floor YES
who want to leave the job) is not allowed. during audit
g) Check whether the employees have the freedom to resign Worker’s Interviewed on floor YES
and go away if they so desire. There should be no hindrance during audit
on them.
h) Whether people of external origin (without proper papers)are N/A -
held as employees?
i) Whether bonded labour system is followed by engaging all N/A -
members of a family under forcible conditions.
j) Can workers refuse overtime? Worker’s Interviewed YES
3 Health and a) Check the list of chemicals and their MSDS. Checked during round MSDS YES
Safety in Chemical Store
b) Whether safety precautions as per the MSDS are followed? - YES

Page 3 of 10
 Document #: DFL/MR/9.5/2
Internal Audit Checklist Effective Date: 15-12-2009
(SA 8000:2008) Revision: 0

Diamond Fabrics Limited Page: Page 4 of 10

Sr. No SA 8000 Points to be verified Evidence checked Whether NC /

Clause No complying OBS
Yes /No Ref
c) Whether adequate personal protective equipment are PPES Provided to all YES
available?(mask, glove etc) departments and also proper
training was provided to
employees how to use of
these PPES i.e. Dust Mask
Ear Plug, Helmet, Rubber
Gloves, Leather Gloves,
Goggles and Safety Shoes.
d) Is there an officer responsible for health and safety? H.S Representative YES
Nominated
e) Are exits marked clearly Emergency Exits roots are YES
properly marked with yellow
lines and also clearly marked
Emergency Door.
f) Whether health and safety training has been given? Health & Safety Training YES
provided by the Civil Defence
Officer Sheikhupura in the
month of June 2010. Training
Session has been held from
22 to 25 June -10, Training
record of the employees and
pictorial evedance has been
maintained of the H&S training
g) Whether employees are aware of the hazardous associated Safety instruction displayed in YES
with their area of operation and how to protect themselves? departments.
h) Whether adequate personal are trained in fire fighting? Fire party Members Trained YES
i) Whether adequate personal are trained in first aid? First Aid Party Members YES
Trained and training record
has been maintained
Page 4 of 10
 Document #: DFL/MR/9.5/2
Internal Audit Checklist Effective Date: 15-12-2009
(SA 8000:2008) Revision: 0

Diamond Fabrics Limited Page: Page 5 of 10

Sr. No SA 8000 Points to be verified Evidence checked Whether NC /

Clause No complying OBS
Yes /No Ref

j) Whether emergency preparedness plan is available? Fire Drill Record. Fire drill in YES
Night Shift March-10,
k) Whether accident register is maintained? Accident / Incident Report YES
Maintained
l) Whether emergency evacuation points are identified? Emergency door for exits are YES
Identified
m) Whether sufficient first aid boxes are available? First Aid Box provided and YES
record maintained
Refer Doc. # MR-8.3-14
n) Whether mock drills have been conducted? Fire Drill record YES
o) Fire Cylinder easily access able Not easy access of Fire NO NC-7
Equipment in Weaving and
Yarn Godown department
p) Monthly Fire Equipment Status properly - YES
q) L.T. Panels have rubber matt. - YES
r) Whether emergency plan and the H&S manual are - YES
amended based on experiences?
s) Whether pregnant women and feeding mothers are given N/A -
jobs which are fit for their state?
t) Whether proper drinking water is provided? Clearly Marked in Local YES
Language on all spots
u) Whether gang ways have been properly identified and free Yellow Lines YES
of clutter.
v) Whether dormitories provided by the company are clean, Accommodation Provided YES
safe and have adequate toilets?

Page 5 of 10
 Document #: DFL/MR/9.5/2
Internal Audit Checklist Effective Date: 15-12-2009
(SA 8000:2008) Revision: 0

Diamond Fabrics Limited Page: Page 6 of 10

Sr. No SA 8000 Points to be verified Evidence checked Whether NC /

Clause No complying OBS
Yes /No Ref
w) Has the company conducted risk analysis on the materials - YES
,processes and equipments[Health and Safety]
x) Is crèche provided when legally required? N/A -

y) During Internal Audit Colony visit Found two Tap of wash room NO NC-8
broken and three tube lights
rod missing
4. Freedom Of a) Whether unions are allowed in the company? Company Policy YES
Association
And Right To b) How many unions are there? Worker Committee YES
Collective Established
Bargaining. c) Are employees free to join unions(and that of their choice) Company Policy YES
d) Whether worker representatives are elected? SA8000 representatives from YES
workers elected
5. Discrimination a) Whether equal pay for equal work is given? Wages & Salary record YES
b) How promotion decisions are made (among worker Company Policy YES
category)
c) Whether people of particular religion, region, and sex are No Discrimination YES
discriminated against?
d) Are pregnant women discriminated against? N/A -

e) Are women dismissed when found pregnant? N/A -

f) Are women subjected to sexual harassment? N/A -
6. Disciplinary a) Are standing orders available? Updated Labour code YES
practices
b) Are they followed? As per Law YES

Page 6 of 10
 Document #: DFL/MR/9.5/2
Internal Audit Checklist Effective Date: 15-12-2009
(SA 8000:2008) Revision: 0

Diamond Fabrics Limited Page: Page 7 of 10

Sr. No SA 8000 Points to be verified Evidence checked Whether NC /

Clause No complying OBS
Yes /No Ref
c) How is disciplinary action taken? As per company Policy YES
d) Are fines levied as part of disciplinary action? No YES
e) Is physical punishment like beating, illegal confinement etc, No YES
carried out?
f) What are the legal cases pending related to disciplinary NONE -
action?
g) Are employees provided a fair opportunity to explain their Yes, Company Policy YES
side prior to decision on disciplinary action?
7. Working a) The company exceeds 8 hour duty per day per head NO, Working hours as per YES
hours company Policy,
b) What is the normal overtime level? 2 Hours per day YES
c) Work week cannot exceed 48 hrs. Company Policy YES
d) Overtime shall not exceed 12 hours per week. Company Policy YES
e) Is one day weekly off given? Company Policy YES
f) How are working hours tracked? Time record Machine has NO NC
been installed but due to some Ref-9
limitations in the software,
Attendance marked on sheet /
registers manually and also
computerized.
g) What is the maximum number of consecutive hours worked? 3, 4 Hours YES

Page 7 of 10
 Document #: DFL/MR/9.5/2
Internal Audit Checklist Effective Date: 15-12-2009
(SA 8000:2008) Revision: 0

Diamond Fabrics Limited Page: Page 8 of 10

Sr. No SA 8000 Points to be verified Evidence checked Whether NC /

Clause No complying OBS
Yes /No Ref

8. Remuneration a) Are minimum wages as per regulation paid? Salary / Wages record as per YES
Govt. Policy Rs.7000/-
b) Are the minimum wages meeting the basic need BNW Working YES
wages[BNW- see guidance note for calculations]
c) Are there pay slips with full wage details?[including Pay slip YES
explanation of deductions]
d) Whether premium rates are paid for overtime Overtime Record YES
e) Salary pay dates to employees Worker Interviewed Yes
f) Method of Payments Cash Yes
9. Management a) Is there a defined and documented SA policy (in local Company Policies YES
Systems language also)?
b) Is it displayed prominently? display on board in local YES
language Near Maingate
c) Does it include a commitment to meet national laws related - YES
to labour welfare?
d) Is there a senior officer appointed as SA 8000 MR? MR Authority Letter YES
e) Are there worker representatives who can interact with Elected Workers SA8000 YES
management on SA 8000 matters? representatives
f) Are works committees established? Health & Safety committee, YES
Workers Welfare committee.
g) Are top management reviews conducted formally regarding Management Review Meeting YES
SA 8000 performance and arrive at divisions for
improvement?

Page 8 of 10
 Document #: DFL/MR/9.5/2
Internal Audit Checklist Effective Date: 15-12-2009
(SA 8000:2008) Revision: 0

Diamond Fabrics Limited Page: Page 9 of 10

Sr. No SA 8000 Points to be verified Evidence checked Whether NC /

Clause No complying OBS
Yes /No Ref

h) Is worker training on SA aspects provided? Training Session & also YES

Pictorial Evedance for
verification
i) Is SA performance monitored? Audited? Internal Audit YES

j) Are undertakings obtained from suppliers and Supplier evaluation form YES
subcontractors on compliance to SA 8000 requirements

k) Are suppliers checked for minimum SA requirement Supplier evaluation form YES
compliance prior to registration?

l) Are there home workers? N/A -

m) Whether all welfares/safety measures are provided to home N/A -

workers?

n) Whether home worker records are maintained by the N/A -

company?

o) Whether audits are conducted on home worker? N/A -

p) Root cause analysis is done on all concern and action is C/A, P/A Procedure YES
taken to avoid recurrence.

Page 9 of 10
 Document #: DFL/MR/9.5/2
Internal Audit Checklist Effective Date: 15-12-2009
(SA 8000:2008) Revision: 0

Diamond Fabrics Limited Page: Page 10 of 10

Sr. No SA 8000 Points to be verified Evidence checked Whether NC /

Clause No complying OBS
Yes /No Ref
q) Is there regular communication with interested parties on SA Web site of Diamond Fabrics YES
8000 performance? Limited has been developed for
easy access of interested parties.
r) Whether company engages in dialogues with interacted Website address is as:
http://dfl.sapphire.com.pk
parties on SA compliance.
s) Whether company provides access to auditors to verify - YES
compliance.

NOTE: “O” Means for Observation; “NC” Means for Nonconformity

Signature of Auditor # 1 Mr. Rab Nawaz

Signature of Auditor # 2 Mr. Muhammad Farooq

Signature of Auditor # 3 Mr. Tahir Nasim

Signature of Auditor # 4 Mr. Adeel Shahbaz

Management
Representative

Page 10 of 10