Summary Audit Report_Tara Tex Fashion Ltd._BSCI Full Audit

Auditee : Tara Tex Fashion Ltd.

Audit Date From : 04/09/2016

Audit Date To : 04/09/2016

Expiry Date of the Audit : 04/09/2017

Auditing Company : TUEV Rheinland

Auditors Name(s) : Fatema Shahinur Jahan(Lead), Sajib Sarker

Auditing Branch (if applicable) : TUV Rheinl. Bangladesh

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

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

This is an extract of the BSCI Audit Report, which is available in the BSCI Platform. Foreign Trade Association (FTA), 2013 - The English version is the legally binding One.

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Producer : Tara Tex Fashion Ltd.DBID : 333307 and Audit Id : 66103 Audit Date : 04/09/2016

Audit Type : Follow-up Audit

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Rating Definitions




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Main Auditee Information

Name of producer : Tara Tex Fashion Ltd.

DBID number : 333307

Audit ID : 66103

Address : 6/1, Naimuddin Mollah Road, Auchpara, Tongi, Gazipur

Province : Dhaka Country : Bangladesh

Management Representative : Mr. Md. Shahabuddin - Manager (Admin,HR & Compliance)

Contact person: Mr. Neamul Ahsan Sector : Non-Food

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

Product Type : All kinds of knit and Woven items




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Audit Details

Audit Range : Full Audit Follow-up Audit

Audit Scope : Main Auditee Main Auditee & Farms

Audit Environment : Industrial Agricultural

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

Random Unannounced Check (RUC) : No

Audit extent (if applicable) : none

Audit interferences or contingencies (if applicable) : none

Overall rating : C

Need of follow-up : Yes If YES, by : 04/09/2017

Rating per Performance Area (PA)

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

B B B A B C D A A A A A A

Executive summary of audit report

Tara Tex Fashion Ltd. is a legally registered privately owned company which establishment year 2012 and started its operation since on September 2012 at6/1, Naimuddin Mollah Road, Auchpara, Tongi, Gazipur,Dhaka, Bangladesh. The company engaged in the manufacturing of ready-made garments (Knit &Woven items). The main production processes are listed as follows: Cutting > Sewing> Finishing (Pressing to Packing)

Audited factory runs its production process and used for different services in its rented 01 building.

Site Descriptions: Factory has rented 01 buildings. Details descriptions are in below.

Building (06 storied): Ground floor: Ware house, Childcare room, Boiler room, Generator room, Sub-station room, Compressor room, Wastage store, Workers dinning and canteenarea. 1st floor: Idle machine area, sample room, CAD room, finished goods area, medical room, prayer room & Office room 2nd floor: Sewing section, finishing section (Pressing to Packing), Lab room & Office room. 3rd Floor: Sewing section, finishing section (Pressing to Packing), and spot removing room. 4th Floor: Sewing section, finishing section (Pressing to Packing), and spot removing room. 5th Floor: Cutting section. Roof top: 100 Vacant

Audit Process: The audit was conducted in one day as per audit plan. On the day, 2 auditors arrived at the factory at 09:00 am on 04 September 2016 and an openingmeeting was held immediately after the auditors arrival with the factory management. During opening meeting, auditors explained about the audit scope &process and a short presentation about the BSCI, its upgrade system and auditing approach. Immediately after the opening meeting, a floor visit wasconducted with factory management. Documents list was provided and supplied documents were reviewed. For workers interview, the auditors selectedworkers from different production processes and different age groups. The workers were comfortable with the management and with the working environment.Auditors verified last 01 year (after previous audit scope to till this audit) documents as available in the factory. The total audit procedure was completed in oneday as per audit plan.

Closing meeting: At the end of the audit process, a closing meeting was held to discuss all the findings raised in the CAP with the factory management, Mr. Shahabuddin-Manager (Admin, HR& Compliance) was responsible for the CAP. Onsite CAP issued in Local & English language. During the closing, they agreed with all thefindings and signed the CAP.




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Ratings Summary

Auditee's background information

Auditee's name : Tara Tex Fashion Ltd. Legal status : Private Limited Company

Local Name : Year in which the auditee was founded : 2012

Address : 6/1, Naimuddin Mollah Road, Auchpara,Tongi,

Contact person (please select) : Mr. Neamul Ahsan

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

City : Gazipur Auditees official language(s) for writtencommunications :

Bengali (Local Language)

Region : South Asia Other relevant languages for the auditee :

English

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

GPS coordinates : Latitude: 23.916392099582133, Longitude:90.39220601320267 in DD (decimaldegrees)

Total turnover (in Euros) : 15026056.00

Sector : Non-Food Of which exports : 100.00

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

If other, please specify : Not Applicable Production volume : 1200000 pieces per month

Product Group : Apparel Production cost calculation : Yes

If other, please specify : Not Applicable Lost time injury calculation cost : Yes

Product Type : All kinds of knit and Woven items

Auditee's employment structure at the time of the audit

Total number of workers : 2186 Total number of workers in the production unit to be monitored (if applicable) : 0

MALE WORKERS FEMALE WORKERS

Permanent workers 655 1531

Temporary workers 0 0

In management positions 392 8

Apprentices 0 0

On probation 101 236

With disabilities 0 0

Migrants (national citizens) 0 0

Migrants (foreign citizens) 0 0

Workers on the permanent payroll 655 1531

Production based workers 0 0

With shifts at night 8 0

Unionised 0 0

Pregnant - 4

On maternity leave - 7




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Finding Report

Performance Area 1 : Social Management System and Cascade Effect

1- Followup Audit [Audit Id - 66103] Audit Date: 04/09/2016 PA Score: B Deadline date:31/03/2017

GOOD PRACTICES:

AREAS OF IMPROVEMENT:The overall observation shows that the auditee has set up management system to implement the BSCI Code of Conduct, Mr. Md. ShahabuddinManager (Admin, HR & Compliance) has been appointed to ensure that the BSCI values. However, gaps have been identified in implementation.

Non-conformity closed out comments:1.3 - Through management interview and documents review it was noted that factory has monitored their suppliers regarding BSCI code of conduct and also communicated to theirsuppliers BSCI CoC and ToI.

, , , , ,

1.4 - Facility has not developed workforce capacity to meet the expectations of the delivery order and/or contracts. No reliable methodology has developedto reduce the unnecessary overtime. Moreover management has no contingency plan in case something slow down or interrupt production. So thatfactory has to request the workers to do overtime in regular basis. ,

Remarks from Auditee:

Full Audit [Audit Id - 36565] Audit Date: 10/09/2015 PA Score: B Deadline date:31/12/2015Good practices

NoneAreas of improvement

Based on Satisfactory evidence, the main auditee respects this principle however: 1.3: The factory has no system to monitor its supplier regardingBSCI code of conduct. Moreover BSCI code of conduct also not communicated to the suppliers. , ,

Remarks from Auditee

Performance Area 2 : Workers Involvement and Protection


GOOD PRACTICES:

AREAS OF IMPROVEMENT:The overall observation shows that the auditee has established health and safety committee and communication structure to genuinely involvedworkers and their representative. Factory management has installed the complaint box inside the toilet area to ventilate workers grievance in aconfidential manner.However, gaps have been identified in implementation: Findings Closed out comments: 2.5: Through documents review andmanagement interview it has been confirmed that facility management has kept record of all type of complaints including verbal complaints. , , , ,

2.2 - The facility did not define a long-term goal comprising vision, mission and objectives of the company in line with the BSCI values and principles toprotect workers. ,

2.5 - Factory did not conduct survey on the grievance mechanism. ,


Full Audit [Audit Id - 36565] Audit Date: 10/09/2015 PA Score: A Deadline date:30/09/2015Good practices


Based on Satisfactory evidence, the main auditee respects this principle however: 2.5: The factory did not have proper grievance handling procedure toaddress complaint from the different sources of ways e.g workers representative or workers through verbal or written communication. However theyonly kept records which came from complain box. ,





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


GOOD PRACTICES:

AREAS OF IMPROVEMENT:The overall observation shows thatNo trade union has been formed by the workers of the factory. Workers are free to join or form the trade union, norestriction has been imposed to the workers from the management. Moreover, factory has formed a Workers Participation Committee as parallelmeans where members are selected through the workers.However, gaps have been identified in implementation, , , , , , , , , ,

3.1 - Workers Participation Committee (WPC) was formed through selection process instead of election. However, factory managent were aware to givethe workers right to join and form union. Law reference: section 205 of Bangladesh Labour Law 2006.




3.1: Based on satisfactory evidence, the main auditee respects this principle however Workers Participation Committee (WPC) was formed throughselection process instead of election. However, factory managent were aware to give the workers right to join and form union. According to section 205of Bangladesh Labour Law 2006.


Performance Area 4 : No Discrimination

1- Followup Audit [Audit Id - 66103] Audit Date: 04/09/2016 PA Score: A Deadline date:

GOOD PRACTICES:

AREAS OF IMPROVEMENT:Not rated


Full Audit [Audit Id - 36565] Audit Date: 10/09/2015 PA Score: A Deadline date:Good practices


None





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Performance Area 5 : Fair Remuneration


GOOD PRACTICES:

AREAS OF IMPROVEMENT:The overall observation shows that the auditee pays the minimum wages as per the local minimum wages declared by the government for thegarment industry. No evidence identified that the factory made payment less than local minimum wages. Pay slip provided to the workers in Bengali.No illegal deduction has been identified through document review and nothing reported by the interview workers. No records of illegal disciplinarymeasure identified and nothing reported by the workers interview. Facility management has paying monthly salary by cash to the workers. Thefacilitys wage period is English calendar month. Facility management has ensured monthly wages at least BDT. 5300 for lowest grade workerswhere local legal minimum wage BDT. 5300 for garments industry in Bangladesh. Auditors covered the payroll records from September 2015 to July2016 and reviewed the payroll records randomly selected three (3) months i.e. July 2016, January 2016 & October 2015. , , , ,

5.2 - Wages are not being ensured within 7 working days for the worker who resigned, terminated or stopped continuing the job for any other reason. Lawreference: Bangladesh labour rule 2015, rule- 112 (4). ,

5.4 - Provided remuneration by the factory to the workers is not sufficient to meet a decent living standard. Noted that approx. 30 workers of the factoryare not able to meet a decent living wage. In this area, decent living wage is around BDT. 7754, but 30 workers of the factory earned between BDT.5300 to BDT. 7754. ,



The main auditee exceeds expectations with respect to this principle because 1. Two festival bonuses veryensured to the workers as per company policy. 2.Attendance bonus BDT. 500 if workers are present full working days of calendar month (pay period). 3. Fair Remuneration Scan has been done by the factorybefore audit.Areas of improvement

Based on satisfactory evidence, the main auditee respects this principle, However, 5.4: Provided remuneration by the factory to the workers is notsufficient to meet a decent living standard. Noted that approx. 80 workers of the factory are not able to meet a decent living wage. In this area, decentliving wage is around BDT. 7782, but 80 workers of the factory earned between BDT. 5300 to BDT. 7782 /





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Performance Area 6 : Decent Working Hours

1- Followup Audit [Audit Id - 66103] Audit Date: 04/09/2016 PA Score: C Deadline date:31/03/2017

GOOD PRACTICES:

AREAS OF IMPROVEMENT:The overall observation shows that the auditee has developed a policy to follow the working hours as per law. Factory has provided sufficient restdays to the employees. Workers are getting one day off in every seven days. In general, the employees are working 06 days in a week (Saturday toThursday) and Friday is weekly off day. General working hours start from 08:00 am to 05:00 pm including one hour personal break. Personal breakfrom 012:45 pm to 01:45 pm & from 01:15 pm to 02:15 pm. In this factory security guards do their duty by 03 shifts in a day, start from 06:00 am to02:00 pm, 02:00 pm to 10:00 pm & 10:00 pm to 06:00 am. Facility management has maintain workers attendance record by manual time keepingsystem. Auditors covered the working hours & overtime records from 1st September 2015 to till the audit date and reviewed the working hours &overtime records selected three (3) months i.e. July 2016, January 2016 & October 2015. current month job cards also verified during audit. Auditorsrandomly selected 16 samples from different areas of the facility and reviewed their working hours including overtime hours respectively. However,gaps have been identified in implementation. , , ,

6.2 - Facility has not developed workforce capacity to meet the expectations of the delivery order and/or contracts. No reliable methodology has developedto reduce the unnecessary overtime. Moreover management has no contingency plan in case something slow down or interrupt production. So thatfactory has to request the workers to do overtime in regular basis. ,




Based on satisfactory evidence, the main auditee respects this principle, however: 6.2: Through documents review (salary sheet and time card)workers and management interview it has been noted that workers has worked more than 12 hours daily and more than 72 hours weekly which wereas follows: In August 2015 (current month) maximum daily working hour noted 17 hours (Regular 8 + overtime 9) and maximum 97 hours noted in aweek (Regular 48 + overtime 49). In March 2015 maximum daily working hour noted 22 hours (Regular 8 + overtime 14) and maximum 84 hours notedin a week (Regular 48 + overtime 36). In November 2014 maximum daily working hour noted 15 hours (Regular 8 + overtime 7) and maximum 98 hoursnoted in a week (Regular 48 + overtime 50). According to section 100 & 102 of Bangladesh Labour Law 2006.





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Performance Area 7 : Occupational Health and Safety

1- Followup Audit [Audit Id - 66103] Audit Date: 04/09/2016 PA Score: D Deadline date:31/03/2017

GOOD PRACTICES:

AREAS OF IMPROVEMENT:The overall observation shows that the auditee did risk assessment for the most processes of the factory. Records of all kinds of in-house trainingprovided and interviewed workers confirm that training on health & safety provided to the new and existing workers. Relevant Personal ProtectiveEquipment was provided to the employees of maximum areas. Factory lay-out plan was approved by proper authority. During site visit no visibledefect identified to the facility building. During site tour it was noted that working environment with respect to ventilation and lighting of the factory isacceptable. Factorys health and safety condition is favorable. Existing toilets are sufficient in number and are hygienic. All exit doors are clearlymarked with emergency light and are easily accessible. There is floor mark and aisles are found unobstructed along with posted evacuation plot plan.Machinery is found well maintained with safety devices. However, gaps have been identified in implementation: Findings closed out comments: 7.1:Through documents review, plant tour and management interview it has been confirmed that all the 03 generators are found registered. 7.3: a. Duringplant tour asbestos rope found in secured condition in all area. b. During plant tour gas cilynders found kept in a segregated place. c. During audit nosnap button operation found in the factory. 7.10: During plant tour, documents review and first aider interview it has been noted that facilitymanagement has kept all type of injuries including minor injuries treated by the first aider. 7.15: b. All the workers from poly packing area found freefrom blockage. C. During plant tour all the aisles found free from blockage. , , , , , , , , , ,

7.5 - Fire fighters were not allocated as per law (6 fire fighter, 6 rescue team, 6 first aider). Law reference: section 55 (10,) of Bangladesh LaborRules- 2015.

7.6 - Personal Protective Equipment was not used by the following mentioned workers a. Eye guard was not found in proper position for approx. 30 offlat lock machine. b. Approx. 20 Workers of sewing section were not using scarf. Moreover 20 of sewing machine operator were not wearing facemask in properly. Law Reference: Section 78(a) of Bangladesh labor Law-2006 (Amendment-2013). , , 2 ,

7.11 - 1. Facility management did not have approved building approval plan from concern authority (RAJUK). However facility has applied on 15 April, 2014to concern authority (Rajuk). Law reference: Building Construction Act 1952, Section-3. 2. Metallic number was no found posted on 03 out of 01factory boiler. Law reference: Boiler Act 1923, section-7(6), , , ,

7.13 - 05 out of 06 electricians has no proper license from concern authority. Law reference: Bangladesh labor Rules 2015, Section 58(9).

7.15 - Approx. 10-15 workers in pressing section are blocked by wall, tables at 4th floor. Law reference: Section 72 (c) of Bangladesh Labour Law, 2006. , - , , ,

7.21 - Facility has a dining and canteen facility with capacity of 350 workers which does not comply with the requirement. Facility needs dining and canteencapacity for 656 workers at a time as per the law. Law reference: Bangladesh Labor Rules 2015, section 87(1):

7.23 - Marked as N/A because no transportation provide to the workers by the factory management.

7.24 - Marked as N/A because no social facility (workers dormitory) ensure for the workers by the factory management.


Full Audit [Audit Id - 36565] Audit Date: 10/09/2015 PA Score: D Deadline date:31/12/2015Good practices


7.1: It was noted that 01 out of 02 boiler of the factory was not registered. However factory has applied for the registration. According to Boilers Act,1923, Section-6. 7.3: Facility does not take into consideration below mentioned points in their risk assessment: a) Open asbestos rope were found infour different point in boiler steam line in finishing section on 1st floor. , , , b) Gas cylinders were foundwithout any segregation in boiler room. , c) During plant tour it was noted those 04 button attach machinesoperators were working with bare footed at 4th floor. Where sharp portion of the button has been found which may cause bodily injury of the workers. , , 7.10: It was noted through the first aider interview that, no record/register hasbeen maintained for minor injuries which those are treated by first aider. According to The Factories Rules 1979, rule-85. ,

, , , , , /, 7.11: Facility management did not have approved building approval plan fromconcern authority (RAJUK). According to Building Construction Act 1952, Section-3. However factory has applied to proper authority on 06 January2014. , , 7.15: Based on factory site tour following issues were noted a) Approx. 10-15 workers inpressing section are blocked by wall, tables at 4th floor. b) Approx. 4 workers in poly packing section found blocked by wall, tables and co-workers at3rd floor. c) Two out of seven aisles on 1st floor, two out of five on 4th floor were found partially blocked by goods basket and standing workers infinishing section. According to section 72 (c) and of Bangladesh Labour Law, 2006. , ,

- , , ,





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Performance Area 8 : No Child Labour


GOOD PRACTICES:





Remark: No child labour found in this factory and it was confirmed through site tour, documents review, workers & management interview.


Performance Area 9 : Special protection for young workers


GOOD PRACTICES:





None


Performance Area 10 : No Precarious Employment


GOOD PRACTICES:





None





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Performance Area 11 : No Bonded Labour


GOOD PRACTICES:





Remark: Factory did not engage any migrant worker till now. Moreover no migrant worker found in this factory.


Performance Area 12 : Protection of the Environment


GOOD PRACTICES:





Remark: Factory management doing it's operation only cutting, sewing & finishing process for woven garments (tops), So that no need toenvironmental permits or license as per legal requirements.


Performance Area 13 : Ethical Business Behaviour


GOOD PRACTICES:





None





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Summary

Audit Type Date AuditId PA1 PA2 PA3 PA4 PA5 PA6 PA7 PA8 PA9 PA10 PA11 PA12 PA13OverallRating

Follow-upAudit 04/09/2016 66103 B B B A B C D A A A A A A C

Full Audit 10/09/2015 36565 B A B A B B D A A A A A A C




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Producer Photos

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

Photo of the inside of the main production hallPA system installed.JPG

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

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

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

Photo of the inside of the main production hallBoiler room.JPG

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

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

Photo of the inside of the main production hallGenerator room.JPG

External photo(s) of the production unit(s)Roof top of factory building.JPG

Photo of the inside of the main production hallOpen window installed .JPG

Photo of the inside of the main production hallSub-station room.JPG

Photo of the inside of the main production hallStaircase in factory building.JPG

Photo of fire safety equipmentFire hose reel.JPG

Photo of fire safety equipmentVisual fire alarm.JPG




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Photo of the inside of the main production hallEvacuation plot plan posted.JPG

Photo of the inside of the main production hallNotice board.JPG

Photo of the nursery (if applicable)Childcare room.JPG

Photo of the inside of the main production hallRisk assessment posted.JPG

Photo of the inside of the main production hallDanger sign marked in electrical pannel board.JPG

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

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

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

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

Photo of the inside of the main production hallDrinking water facility.JPG

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

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

Photo of the inside of the main production hallEmergency light.JPG

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

Photo of the inside of the main production hallCompressor room.JPG




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Photo of fire safety equipmentFire alarm switch.JPG

Photo of the sanitary facilitiesToilet area.JPG

Photo of the inside of the main production hallNC Closed Photo- Aisle found free from blockage. .JPG

Photo of fire safety equipmentFire alarm.JPG

Photo of the inside of the main production hallNo smoking sign posted.JPG

Photo of the inside of the main production hallNC Closed Photo- Asbestos rope not found in stream pipein finishing section..JPG

Photo of the inside of the main production hallFire fighter.JPG

Photo of the inside of the main production hallEye wash facility.JPG

Photo of the inside of the main production hallNC Closed Photo- Asbestos rope not found in stream pipein boiler area..JPG

Photo of fire safety equipmentFire door.JPG

Photo of the inside of the main production hallSpot removing room.JPG

Photo of the inside of the main production hallNC Closed Photo- Gas cylinder placed in proper way inproper place..JPG

Photo of the inside of the main production hallExit sign marked.JPG

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

Photo of the inside of the main production hallNC Closed Photo- Factory kept in minor injury..JPG




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Photo of fire safety equipmentCo2 type of fire extinguisher.JPG

Photo of the inside of the main production hallEmergency telephone number posted.JPG

Photo of the inside of the main production hallNC Closed Photo- Workers found free in packing area..JPG

Photo of fire safety equipmentABC type of fire extinguisher.JPG

Photo of the code of conduct on displayBSCI CoC posted.JPG

Photo of non-conformityNC Photo-Eye guard was not found in proper position .JPG

Photo of the inside of the main production hallFire equipment checking card.JPG

Photo of the inside of the main production hallQuality checking area.JPG

Photo of non-conformityNC Photo-Workers of sewing section were not usingscarp.JPG

Photo first aid facilitiesDesignated first aider.JPG

Photo of the personal protection equipments (if applicable)PPE use instruction.JPG

Photo of non-conformityNC Photo- Pressing section workers found blocked..JPG

Photo of fire safety equipmentSamoke detector.JPG

Photo first aid facilitiesMedical room.JPG

Photo of non-conformityNC Photo- Pressing section workers were foundblocked.JPG




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Photo of the inside of the main production hallAisle marked in production floor.JPG

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

Photo of non-conformityNC Photo-Sewing machine operator were not wearing facemask in properly.JPG




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