Supplier name: MODA LUX

Site country: Romania

Site name: MODA LUX
SMETA Audit Type: 2-Pillar 4-Pillar

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 1
 Audit Company Name: Report Owner (payee):
SGS Romania SA MODALUX

Sedex Company Reference: S000000061625

(only available on Sedex System):

Sedex Site Reference: P

(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:

(If applicable)

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 2
 Audit Details
Audit Details

A: Report #: RO/BUH 1393-252

B: Date of audit: 03.10.2014

C: Time in and time out: Time in: 8.30

Please see Best Practice Guidance page Time out: 15.30

D: Number of Auditor Days Used: 1 MD

(number of auditor x number of days)

E: Audit type: Full Initial

Periodic
Full Follow-up Audit
Partial Follow-Up
Partial Other - Define

F: Was the audit announced? Announced

Semi – announced
Unannounced

G: Was the Sedex SAQ available for Yes

review? No

If no, why not?

I: Auditor name(s) and role(s): Vasile Simescu - LA

J: Report written by: Vasile Simescu

K: Report reviewed by: Paula Ionascu

L: Report issue date: 3.10.2014

M: Supplier name: MODA LUX

N: Site name: MODA LUX

O: Site country: Romania

P: Site contact and job title: Mioara Herda, Senior Manager

st
Q: Site address: Social Site: 33 1 December Street, Macin, Tulcea County
Working point: 14 Vadul Schelei Street, 810026 Braila, Braila County
Romania

Site phone: +40239670324

Site fax: +40239613636

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 3
Site e-mail: [email protected]

R: Applicable business and other legally Business license: B1589552

required licence numbers: J36/315/23.10.2001
for example, business license no, and VAT no.14252806
liability insurance

S: Products/Activities at site, for Ladies and children Garments

example, garment manufacture,
electricals, toys, grower

T: Audit results reviewed with site Yes

management?

U: Who signed and agreed CAPR (Name Mrs. Mioara Herda, senior Manager
and job title)

V: Did the person who signed the CAPR Yes

have authority to implement changes?

W: Previous audit date: -

X: Previous audit type: SMETA 2-Pillar SMETA 4-Pillar Other

Full Initial

Periodic

Full Follow-Up
Audit

Partial Follow-
Up

Partial Other*

*If other, please define:

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 4
Guidance:
The Corrective Action Plan Report summarises the site audit findings and a corrective, and preventative action plan
that both the auditor and the site manager believe is reasonable to ensure conformity with the ETI Base Code,
Local 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-compliances.

N.B. observations and good practice examples should be pointed out at the closing meeting as well as discussing
non-compliances and corrective actions.

To ensure that good practice examples are highlighted to the supplier and to give a more ‘balanced’ audit a section
to record these has been provided on the CAPR document (see following pages) which will remain with the
supplier. They will be further confirmed on receipt of the audit report.

Root cause (see column 4)

Note: it is 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 again in the
future.
See Appendix 2.5 for more explanation of “root cause’’.

Next Steps:
1. The site shall request, via Sedex, that the audit body upload the audit report, non-compliances,
observations and good examples. If you have not already received instructions on how to do this then
please visit the web site www.sedexglobal.com.
2. Sites shall action its non-compliances and document its progress via Sedex.
3. Once the site has effectively progressed through its actions then it shall request via Sedex that the audit
body verify its actions. Please visit www.sedexglobal.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. If this is the case then the site will be notified after its
submission of documentary evidence relating to that non-compliance. Any follow-up audit must take place
within twelve months of the initial audit and the information from the initial audit must be available for sign
off of corrective action.
6. For changes to wages and hours to be correctly verified it will normally require a follow up site visit.
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 clients may ask for a longer period, if in doubt please check
with the client).

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 5
Corrective Action Plan
Corrective Action Plan – non-compliances

Non- New or Details of Non- Root cause Preventative and Timescale Verification Agreed by Verification Evidence and Status
Compliance Carried Over Compliance (completed by the Corrective Actions (Immediate, Method Management Comments Open/Closed
Number Is this a new Details of Non-Compliance site) Details of actions to be 30, 60, Desktop / and Name of Details on corrective action or comment
The reference non-compliance taken to clear non- 90,180,365) Follow-Up evidence
Responsible
number of the identified at the compliance, and the system [D/F]
Person:
non- follow-up or one change to prevent re- Note if management
compliance carried over (C) occurrence (agreed
agree to the non-
from the Audit that is still between site and auditor) compliance, and
Report, outstanding document name of
for example, responsible person
Discrimination
No.7

N There were not available The factory will 30 days / D Mrs. Mioara
records regarding the maintained 15.11./2014 Herda
maintenance of all fire appropriate records
fighting equipments: fire regarding the
alarm and fire hydrants maintenance of fire
fighting equipment,
according to ord.
Nu au fost disponibile 163/2007, art. 142
inregistrari referitoare la
mentenanta tuturor Organizatia va mentine
echipamentelor tehnice de inregistrari adecvate in
interventie/semnalizare a conformitate cu Ord.
incendiilor 163/2007 – art. 142.

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 6
 Corrective Action Plan – Observations

Non- New or Details of Observation Root cause Preventative and Timescale Verification Agreed by Verification Evidence and Status
Compliance Carried Over Details of Observation (completed by the Corrective Actions (Immediate, Method Management Comments Open/Closed
Number Is this a new site) Details of actions to be 30, 60, Desktop / and Name of Details on corrective action or comment
The reference observation taken to clear non- 90,180,365) Follow-Up Responsible evidence
number of the identified at the compliance, and the system [D/F] Person:
observation follow-up or one change to prevent re-
Note if management
from the Audit carried over (C) occurrence (agreed agree to the non-
Report, that is still between site and auditor)
compliance, and
for example, outstanding document name of
Discrimination responsible person
No.7

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 7
 Good examples

Good example Details of good example noted Any relevant Evidence and
Number Comments
The reference
number of the non-
compliance from the
Audit Report,
for example,
Discrimination No.7

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 8
 Confirmation
Please sign this document confirming that the above findings have been discussed with and understood by you: (site management)

Site Representative Signature: Mioara Herda Title : Senior Manager

Date : 3.10.2014

Auditor Signature: Vasile Simescu Title : Lead Auditor

Date: 3.10.2014

Please indicate below if you, the site management, dispute any of the findings
I dispute the following numbered non-compliances:

Signed: Title

Date

Site Comments:

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 9
Appendix 2.5. Guidance on Root Cause

Explanation of the Root Cause Column

If 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 which 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 planning, bottle necks in the operation, insufficient training of operators, delays in receiving 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 potential earnings) is
affected by use of items such as metal gloves.

Example 3
A site uses fines to control unacceptable behaviour of workers.

International 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- occurring 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 system
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
actions to be taken.

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 10
 Your feedback on your experience of the SMETA audit you have observed is extremely valuable.
It will help to make improvements to future versions.

You can leave feedback by following the appropriate link to our questionnaire:

Click here for A & AB members:

http://www.surveymonkey.com/s.aspx?sm=riPsbE0PQ52ehCo3lnq5Iw_3d_3d

Click here for B members:

http://www.surveymonkey.com/s.aspx?sm=d3vYsCe48fre69DRgIY_2brg_3d_3d

Audit company: SGS Romania Report reference: RO/BUH 1393 - 252 Date: 03/10/2014 11