Esprit apparels ltd 2015 - BSCI Audit report

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BSCI Audit Summary Report

NAME OF THE PRODUCER : ESPRIT APPARELS LTD.

DBID : 348297

DATE OF THE AUDIT : 12/04/2015

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 FTA’s 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.

Producer InformationName of producer : Esprit Apparels Ltd.

DBID number : 348297

Audit ID : 29369

Address : Office: House 258, Road No. 3, 1st Floor, Baridhara, DOHS, Dhaka-1206, Bangladesh,-Factory: Luna Complex (1st and 2nd floor), Joibangla Road, Khalikhur,Gazipur

Province : Dhaka Country : Bangladesh

Management Representative : Md. Shah Noman, Asst. Manager (HR, Admin & Compliance).

Contact person: Abu Saleh Chowdhory

Sector : Non-Food Industry Type : Textiles, clothing, leather

Product group : Apparel Product Type : All kind of woven items

Audit DetailsType of audit : Full Audit Re-Audit

Sub type of audit : Combined audit Special investigation-RUC

Special investigation-Other

Unannounced/Semiannounced

Audit date : 12/04/2015 Audit Duration : 4.000

Audit methodology : Industrial Primary Production

Auditing Company : ABS

Auditing Company Branch :

Auditing company address : ABS QE Headquarters 16855 Northchase Dr.,,,

Lead Auditor Name(SA8000Certificate Number) : AMM Waliuddin (A0753)

Team Member Name(SA8000Certificate Number) :

Salim Shahed (A0750) , Ruhul Amin Sarkar (AD 10341) , MahabubarMondol ( AD10404)

Audit Results for Part B tier ITotal Score Part B tier I: Good Improvements Needed Non-Compliant

Total Number of deviations in crucial questions : 0 / 35

Agreed date for closing theCorrective Action Plan ( If applicable ) :

31/03/2016

Contingencies to be reported : Aborted Partially Conducted Combined With Other SystemsDesktop Review Others

Audit Results for Part B tier II (Only relevant if Primary Production Methodology is used)

Please refer to section "Sampled Units Tier II" and "Audit Sample CAP B"


Name of the producer : Esprit Apparels Ltd.

DBID : 348297 and Audit Id : 29369 Audit Date : 12/04/2015

Audit Type : Full Audit Audit Methodology : Industrial

Tier I

Page 2/16BSCI Audit Summary Report 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.

Score Interpretation

Good Improvements Needed Non-Compliant Under “Grace Period”

Minor deviations are identified in no morethan 2 questions per chapter; thesequestions are not marked as crucial.

Deviations are identified in less than half of the totalnumber of questions per chapter. No deviations arefound in questions marked as crucial.

Deviations are identified in half or more of the total number ofquestions per chapter. One deviation in a question marked ascrucial is sufficient to assess the entire chapter as non-compliant.

Not Available

Audit Master Data Part A

For more details of the company, see complete Master Data in the on-line Audit Report

General information on the ProducerName of producer : Esprit Apparels Ltd.

Address : Office: House 258, Road No. 3, 1st Floor, Baridhara, DOHS, Dhaka-1206, Bangladesh,-Factory: Luna Complex (1st and 2nd floor), Joibangla Road, Khalikhur,Gazipur

Year of foundation : 2007

Legal status : Private Limited Company

Turnover (in euros ) : 6000000.000

Main contact person : Abu Saleh Chowdhory

Language spoken : Bengoli

Valid GlobalG.A.P Certificate : Yes No

Other Social audit : Yes No Social audit name : SEDEX ETI Code

Auditors’ notes

Producer’s backgroundEsprit Apparels Ltd. is located at Luna complex, 1st & 2nd floor, Joybangla road, Khailkur, N.U, Gazipur, Bangladesh. It is 100%export oriented garments factory exporting all kinds of woven bottom items all over the world. The factory has established in2007 and its capacity is in average 90,000 pcs/month.

Total production floor of the factory is approximately 28,600 square feet and main products manufactured by the factory coverall types of woven bottom items. Production processes are consisting of Cutting, Sewing, Finishing, Ironing, Packing anddispatch. Total 762 employees are employed among them 309 employees are male and rests of the employees are female 453.

Site Description: The facility is consist of one seven storied building:

Process layout is as follows: Ground floor: Generator room, Boiler room, Garage, PSK Embroidery (different factory of different owner). 1st Floor: Esprit Apparels (Security post, Prayer room, Canteen facility, Store room, Bonded ware house, Office room, Inspectionroom, Medical room, Child care room, Time section, Sample section, Cutting section, Finishing section, Packing section,Conference room.) 2nd Floor: Esprit Apparels (Sewing section, Q. C Section, Maintenance section, Office room.) 3rd Floor: Vacant (Under processing) 4th Floor: P & K Fashion (different factory of different owner) 5th Floor: Padma Satal Fashion (different factory of different owner) 6th Floor: Padma Satal Fashion (different factory of different owner) Roof top: Dining facility, Prayer room, Open area.

Chapter summaryChapter Chapter Summary

B.1. Management Practice Four Non Crucial deviations have been recorded during the audit date andChapter Score is Improvements Needed.

B.10. Health and Social Facilities Two Non Crucial deviations have been recorded during the audit date andChapter Score is Good.

B.11. Occupational Health and Safety (OHS) Eight Non Crucial deviations found during the audit and Chapter Score isImprovements Needed.

B.13. Environment Only two Non Crucial deviations have been recorded during the audit dateand Chapter Score is Good.

B.2. Documentation Two Non Crucial deviations have been recorded during the audit date andChapter Score is Good.

B.3. Working Hours One deviation found during the audit date and Chapter Score is Good.B.4. Compensation No deviation found during the audit date and Chapter Score is Good.B.5.1. Child Labour No deviations found during the audit and Chapter Score is Good.

B.5.2. Young Workers No young worker’s is working in the facility, so that this section is notapplicable.

B.6. Forced Labour / Disciplinary Measures / PrisonLabour No deviations found during the audit and Chapter Score is Good.

B.7. Freedom of Association and CollectiveBargaining

Two Non Crucial deviations found during the audit date and Chapter Score isGood.

B.8. Discrimination, Harassment and Abuse No deviations found during the audit and Chapter Score is Good.





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Not Available

B.9. Working Conditions Only one Non Crucial deviation has been recorded during the audit date andChapter Score is Good.





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Not Available

Part B Tier I - Overall Summary

Chapter Full Audit Results(29369 and 12/04/2015)

B.1. Management Practice

B.2. Documentation

B.3. Working Hours

B.4. Compensation

B.5.1. Child Labour

B.5.2. Young Workers

B.6. Forced Labour / DisciplinaryMeasures / Prison LabourB.7. Freedom of Association andCollective BargainingB.8. Discrimination, Harassmentand Abuse

B.9. Working Conditions

B.10. Health and Social Facilities

B.11. Occupational Health andSafety (OHS)B.12. Dormitories (if notapplicable, go to B.13)

B.13. Environment

Total

G IN NC NA %

66.67

66.67

80.00

100.00

100.00

100.00

100.00

66.67

100.00

85.71

75.00

79.49

100.00

60.00

80.87





Tier I



Good Minor deviations are identified in no more than 2 questions per chapter; these questions are not marked as crucial.

Improvements Needed Deviations are identified in less than half of the total number of questions per chapter. No deviations are found in questions marked as crucial.

Non-compliant Deviations are identified in half or more of the total number of questions per chapter. One deviation in a question marked as crucial is sufficient to assess the entire chapter as non-compliant.

Under “Grace Period” Not Available

Not Applicable Requirements do not match to the company structure

Not Rated Only applicable for re audits; if a question was rated “+” in the previous full audit or re-audit the auditor will mark the question NR

In House Production Structure

Department Function in production Number ofWorkers

Number ofshifts

Shift 1

From To

Shift 2

From To

Shift 3

From To

Human Resources HR, Admin & Accounts 6 1 8:00 AM 5:00 PM

Services Electrician, Checker,Cleaner & Others 16 1 8:00 AM 5:00 PM

Services Security guard 12 3 6:00 AM 2:00 PM 2:00 PM 10:00 PM 10:00 PM 6:00 AM

Production Cutting, Sewing,Finishing 641 1 8:00 AM 5:00 PM

Quality Control Quality checking 74 1 8:00 AM 5:00 PM

Product Development Sample making 13 1 8:00 AM 5:00 PM

In House employment Structure at the time of the audit

Total number of workers : 762

Male Female

Permanent workers 309 Permanent workers 453

In management position 12 In management position 2

On probation 28 On probation 41

National migrants National migrants

Salaried workers 309 Salaried workers 453

Temporary workers (odd jobbers) Temporary workers (odd jobbers)

Apprentices Apprentices

With disabilities With disabilities

Cross-border migrants Cross-border migrants

Production based workers Production based workers

Pregnant

On maternity leave





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Outsourced structure

Location/ AddressUnit Function in

the chainContactperson

Businessrelation

-shipsince Address City State Country

Distanceto the

companyin km

Mainproduct

Certificatesand socialaudits (if

applicable)

Numberof

workers

Part ofthe

ISMS(if

applic-able)

Part ofthe

auditsample

PacificZipperBangladeshLtd.

subsupplier Mr. Saddam 2015 EPZ ChittagongDhakaBangladesh300 Zipper No 180 No No

PaxarBangladesh subsupplier Mr. Mehbub 2015 EPZ Savar DhakaBangladesh45 Label,

Tags No 190 No No

SimtexIndustriesLtd.

subsupplier Mr. Riaz 2012 Birulia Savar DhakaBangladesh35 SewingThreadNo 636 No No

TuskaPackagingLtd.

subsupplier Mr. Reza 2011 KonabariGazipur DhakaBangladesh20 CartonNo 46 No No





Tier I


Dormitories (if applicable)

No Data Available for Dormitories





Tier I


Corrective Action Plan (CAP) B Tier I

Chapters andSubchapters Crucial Score CAP Responsible Person Deadline

dateB.1. ManagementPractice

B.1.1. ManagementPactice No ( - )

[Minus]

It was noted through documents review andmanagement interview that the facility hasintroduced the system to use cost accountingmethod and documented production capacityplan but it was not done in a regular basis. -Factory is recommended to use cost accountingmethod and documented production capacityplan in regular basis.

Md. Shah Noman, Asst.Manager (HR, Admin &Compliance).

31/07/2015


[Minus]

There is some lack in effective record keepingsystem in store management. - Factory isrecommended to ensure the effectivemanagement system on record keeping in alldepartments.


31/07/2015


[Minus]

It was noted through the interview thatinterviewed mid-level management and workerswere not fully aware on the legal rights andduties under labour legislation. - Factory isrecommended to take necessary steps to makethe mid-level management and workers awareabout the legal rights and duties under labourlegislation.


31/05/2015


[Minus]

It was noted through documents review andmanagement interview that the facility has anti-corruption and anti-bribery policy and procedurebut not in practice in the factory for all businessactivities. - Factory is recommended to ensurethat there is anti corruption and anti briberypolicy in practice in the factory for all businessactivities and trained all the employeesaccordingly.


31/07/2015

Chapter Score Good Improvements Needed Non-CompliantNumber of deviationsin crucial questions 0 of 3

Fulfillment Percentage 66.67% B.2. Documentation

B.2.1. Documentation No ( - )[Minus]

a) It was noted through documents review thatthe fire license of the factory does not cover thedining area and prayer room of the roof top andthe generator and boiler area of the ground floor.Note that the facility has already applied for therevised fire license covering the missing facilities.- Factory is recommended to obtain revised firelicense covering the dining area and prayer roomof the roof top. Generator and boiler area of theground floor. b) It was noted through plant tourand documents review that factory managementdoes not obtained permission from the energyregulatory commission to run generator in thefactory. Noted that the facility has applied for therenewal. - Factory is recommended to obtainupdated permission from the energy regulatorycommission to run generator in the factory.


31/08/2015

B.2.5. Documentation No ( - )[Minus]

It was noted through documents review, trainersand workers interview that facility is conductingtraining but trainers' qualification are notmentioned in all the training documents. -Factory is recommended to keep all the trainingdocuments perfectly mentioning necessarytraining information including qualification of thetrainer(s).


31/07/2015


Fulfillment Percentage 66.67% B.3. Working Hours

It was noted through the review of manual time





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B.3.1. Working hours No ( - )[Minus]

cards that uniform time has been recorded foreach working day for each worker. Such as timein 8.00 am and time out 5.00 pm or 7.00 pm incase of two hours voluntary overtime. - Factoryis recommended to maintain record systemguarantees that working time is properlymonitored in line with national labour law andILO Conventions.


31/10/2015


Fulfillment Percentage 80.00% B.7. Freedom ofAssociation andCollective Bargaining

B.7.5. Freedom ofAssociation andCollective Bargaining

No ( - )[Minus]

It was noted through workers interview thatmost of the interviewed workers do not know theactivities of the participation committee (PC) aswell as committee representative. - Factory isrecommended to provide necessary awarenesstraining to the workers about the activity ofparticipation committee as well as committeemembers.


31/07/2015

B.7.6. Freedom ofAssociation andCollective Bargaining

No ( - )[Minus]

It was noted through management andparticipation committee members interview thatfacility has formed 'Participation Committee' butthe committee's workers representative wereselected not elected by following the electionprocedure of the law (Bangladesh Labour Code2006; Section: 205). - Factory is recommendedto form participation committee by following theelection procedure/instruction of the law.


31/10/2015


Fulfillment Percentage 66.67% B.9. WorkingConditions

B.9.7. WorkingConditions No ( - )

[Minus]

It was noted through floor visit that the spaceprovided for the workers in some areas of thesewing section line-A and line - D were notadequate for safe execution of all activities. -Factory is recommended to provide sufficientspace for each worker for safe execution of allactivities and safe evacuation in times ofemergency.


30/06/2015


Fulfillment Percentage 85.71% B.10. Health andSocial Facilities

B.10.1.1. First aid No ( - )[Minus]

It was noted through first aider interview andqualification documents review that first aidersdo not have six month training on first aid.(Labour Law 2006 & amendment 2013;section89(3). It was also noted that doctor is notavailable for all the working hours at the facility.- Factory is recommended to recruit qualifiedfirst aider who has at least six month training onfirst aid and the factory also recommended torecruit full time doctor at the facility.


31/10/2015

B.10.2.2. SocialFacilities No ( - )

[Minus]

Number of seating arrangement in dining hall isless than legal requirement. Existing seatingarrangement around 120 where as legalrequirement (30% of 762) = 229. - Factory isrecommended to ensure sufficient seatingarrangement in the dining hall.


30/09/2015


Fulfillment Percentage 75.00%





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B.11. OccupationalHealth and Safety(OHS)

B.11.1.5. RiskAssessment andMonitoring

No ( - )[Minus]

It was noted through documents review andmanagement interview that facility did notconduct regular inspection on engineeringequipments including any machineries, buildingsand provided PPEs to ensure maintenance andcontinuous improvement of safety measures. -Factory is recommended to conduct regularinspection on all the equipments including anymachineries, buildings and provided PPEs toensure maintenance and continuousimprovement of safety measures.


31/08/2015

B.11.2.1. Training No ( - )[Minus]

It was noted through interview and documentsreview that there are training records on OHSbut there is lack of effective training on OHS forworkers. - Factory shall ensure that they conducteffective training like visual training for theworkers to bring effectiveness in OHS training.


31/08/2015

B.11.2.2. Training No ( - )[Minus]

It was noted through interview and documentsreview that there are training records on PPEsuse but lack of effective training on PPEs use wasnoted during the interview and factory visit. -Factory is recommended to conduct effectivetraining on PPEs for all the workers on a regularinterval.


31/07/2015

B.11.3.3. PersonalProtective Equipment No ( - )

[Minus]

It was observed through floors visit that someover lock machine operators and thread suckermachine operators were not using appropriatePPEs and moreover facility management did notensure the workers/operators to use appropriatePPEs. - Factory is recommended to ensure theuse of appropriate PPEs to all respectiveworkers/operators.


30/06/2015

B.11.5.5. Accident andEmergency Procedures No ( - )

[Minus]

Facility does not conduct root cause analysis anddoes not keep remediation procedure onoccupational accident with the assistance of acompetent person. – Factory is recommended toconduct root cause analysis and keepremediation procedure on occupational accidentwith the assistance of a competent person.


31/08/2015

B.11.8.1. EscapeRoutes and EmergencyExits

No ( - )[Minus]

It was noted through floors visit that aisles arenot conspicuously marked in the dining area andaccessories store area. - Factory isrecommended to conspicuously mark the aislesin all the production areas of the facility.


30/06/2015

B.11.8.2. EscapeRoutes and EmergencyExits

No ( - )[Minus]

It was noted through floors observation thatfacility has posted fire safety evacuation plan ineach floor but the posted fire safety evacuationplans in the work floors are not approved by theconcern dept. of the Fire service and civildefense (Bangladesh National Building Code2006; chapter 4). - Factory is recommended topost approved fire safety evacuation plan in thework floors.


31/08/2015

B.11.09.2. Machineand Vehicle Safety No ( - )

[Minus]

It was noted through documents review thatgenerator operator did not have any competencycertificate to operate generator. - It isrecommended that the generator operatorshould have necessary competency certificate tooperate generator.


31/07/2015


Fulfillment Percentage 79.49% B.13. Environment

B.13.2. Environment No ( - )[Minus]

It was noted during the audit that the facility hasdeveloped waste management policy but doesnot developed any waste management plan andprocedure as well, so that the wastemanagement arranged in a way that does notlead to pollution of the environment. - Factory isrecommended to develop necessary waste


31/10/2015





Tier I









management plan and procedure as well, so thatthe waste management arranged in a way thatdoes not lead to pollution of the environment.

B.13.5. Environment No ( - )[Minus]

The facility has not taken any initiative ordevelops any mechanism to ensure reduction ofemissions, particularly CO2 emission. More, thefactory even did not assess the stack emissionfrom diesel generator. - Factory is recommendedto develop mechanism for ensure reduction ofemissions, particularly CO2 emission and shallassess the stack emission from diesel generator.-----------------------------------------------


31/03/2016


Fulfillment Percentage 60.00%

Total Audit Results for Part B Tier ITotal Score Good Improvements Needed Non-CompliantTotal number ofdeviations in crucialquestions

0 of 35

Overall fulfillmentpercentage 80.87%





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Part C: Audit Findings

Chapter

C.1. Policy

C.2. Planning and Implementation

C.3. Management Review

C.4. Control of Subcontractors /Suppliers / Sub-suppliers

C.5. Control of Homeworkers

C.6. Compensation

C.7. Child Labour

C.8. Outside Communication

Total





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Workers Interview Sheet

Workers Interview Sheet

Workers Male workers number Female workers number % of the total workforce

Total 13 17 3.94

Workers aged < 18 years interviewed 0 0 0.00

Apprentices interviewed 0 0 0.00

Disabled persons interviewed 0 0 0.00

Full time workers interviewed 13 17 3.94

Part time workers interviewed 0 0 0.00

Seasonal workers interviewed 0 0 0.00

Migrant workers interviewed 0 0 0.00

Pregnant workers interviewed 0 0.00

Interview methods used number (how many)Number of Individual interviewsconducted 15

# of people interviewed in Group(s) 15

# of Interviews conducted on site 30

# of Interviews conducted off site 0

Was an interpreter used? Yes NoLanguage(s) used for workerinterviews Bengali

No. ofinterview

Essentials (If the number of rows is not enough, please add pages as needed and include with theattachments).

1 Interviews were conducted on site of 15 individuals and 15 workers in 5 groups (3 in each group); among them13 were male and 17 were female workers. Workers interview conducted in local Language. Interpreter was notneeded in the interviews. The auditors explained their interview process to the workers and assured them aboutthe confidentiality of the information provided by them.

2 Two groups’ interview (3 workers in group) of male workers and three groups of female workers interview wereconducted. Workers were satisfied with the rules of the company. Employees are provided with all necessary toolsand personal protective equipment by the company free of cost. Employees get training periodically on health &safety, working rules & regulations. Fire fighting and emergency evacuation drills were done regularly.

3 The employees informed the auditors that they work in from 8.00 am to 5.00 pm normally, if necessary they work2 hours more 5.00 pm to 7.00 pm but it depends on their own wish no one force them to work extra. Employeesalso reported that they get 01 hour meal break from 1.00 am to 2.00 pm. All workers working there get one dayoff after working Saturday to Thursday and Friday is their weekly off day.

4 Most of the interviewed workers do not know the activities of the participation committee (PC) as well ascommittee representative. If any needed the workers inform it to the supervisors and product incharge. Facilityhas formed 'Participation Committee' and the committee's workers representatives were selected instead ofelection.

5 Interviewed employees reported that they are free to leave after their working shift. All employees reported thatthere was no serious accident or untoward incident occurred in the factory since the establishment.

6 All the employees get wages as per law. Facility comply minimum wages as per local law. The employees receivesalaries on monthly basis within the 7th day of the pay period. Pay slip is issued prior to wages payment.

7 Employees are provided with all necessary tools and personal protective equipment by the company free of cost.The interviewed workers also informed that the factory provide fire fighting training to the workers.

8 No child labor engaged by the facility since the company’s establishment reported by the employees. Employeesget ID card and employment contract. No sexual harassment was reported by the interviewed employees.

9 Regarding the complaint/suggestion procedure. It was noted through floor visit and worker interview that facilityhas set up complain/suggestion boxes beside the toilet to drop any complain or suggestion and has trained theworkers on the complain/suggestion procedure.





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Child and Young Workers Record Sheet

No Data Available for >Child and Young Workers Record Sheet





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Overall Producer Pictures

No Photos Available





Tier I


Esprit apparels ltd 2015 - BSCI Audit report

Documents

audit audit methodology

audit type

audit id

audit duration

bsci audit report

bsci audit summary report

audit sample cap b

total number of questions