4771 Sedex Zhongshan Detron Display Products Co., Ltd (SMETA) Initial CAPR May 16, 2016

Audit Company: SMT-Global Report Reference: 4771 Date: May 16, 2016 1
Supplier name: Zhongshan Detron Display Products Co., Ltd
Site country: China
Site name: Zhongshan Mingfeng Display Products Co., Ltd
Parent Company name (of the site): Nil
SMETA Audit Type: 2–Pillar 4-Pillar
Date of Audit May 16, 2016

Audit Company Name:
Global Strategy Management Technology Co., Ltd.
Sedex Company Reference:
(only available on Sedex System)
Not provided
Sedex Site Reference:
(only available on Sedex System)
Not provided
Audit Conducted By
Commercial Purchaser
NGO Retailer
Trade Union Brand Owner
Multi-stakeholder Combined Audit (select all that apply)
Auditor Reference Number:
(If applicable)
4771
Address: Unit 04 7/F, Bright Way Tower No.33, Mong Kok Road, Kowloon Hong Kong
Email: charles@smt-global.com
Global Strategy Management Technology Co., Ltd

Audit Details
Audit Details
A: Report #: 4771
B: Time in and time out
(SMETA BPG recommends 9.00-17.00 hrs. if
any different please state why in the SMETA
declaration )
Day 1 Time in: 9:00
Day 1 Time out:17:30
Day 2 Time in:N/A
Day 2 Time out:N/A
Day 3 Time in: N/A
Day 3 Time out:N/A
C: Number of Auditor Days Used:
(number of auditor x number of days)
1 auditor x 1 day
D: Audit type: Full Initial
Periodic
Full Follow-up
Partial Follow-Up
Partial Other – Define
E: Was the audit announced? Announced
Semi – announced: Window detail:
Unannounced
F: Was the Sedex SAQ available for
review?
Yes
No
If No, why not?
(Examples would be, site has not completed
SAQ, site has not been asked to complete the
SAQ.)
The factory has not yet completed SAQ.
G; Any conflicting information SAQ/Pre-
Audit Info to Audit findings?
Yes
No
If Yes, please capture detail in appropriate audit by clause
H: Auditor name(s) and role(s): Richard Li(Lead Auditor and Interviewer)
I: Report written by: Richard Li
J: Report reviewed by: Rambo Pan
K: Report issue date: May 17, 2016
L: Supplier name: Zhongshan Detron Display Products Co., Ltd
M: Site name: Zhongshan Mingfeng Display Products Co., Ltd
N: Site country: China
O: Site contact and job title: Mr. Qixiang Zeng, General Manager
P: Site address:
(Please include full address)
No.11, 3rd Warehouse, Guangkou Road，Guangkou Town,
Zhongshan City, Guangdong Province, China.

Site phone: 86-18211495889
Site fax: 86-760 89918801
Site e-mail: Samson@detronpop.com
Q: Applicable business and other legally
required licence numbers:
for example, business license no, and
liability insurance
Business license: 442000000261517
Valid period: August 25, 2009 to long time
R: Products/Activities at site, for example,
garment manufacture, electricals, toys,
grower
Display stand
S: Audit results reviewed with site
management?
Yes
T: Who signed and agreed CAPR (Name
and job title)
Mr. Qixiang Zeng, General Manager
U: Did the person who signed the CAPR
have authority to implement changes?
Yes
V: Present at closing meeting (Please state
name and position, including any
workers/union reps/worker reps):
Mr. Qixiang Zeng, General Manager
Ms. Hanying Chen, Financial Supervisor
Ms. Caiyun Feng, HR Staff
Richard Li, Lead Auditor and Interviewer
W: What form of worker representation /
union is there on site?
Union (name)
Worker Committee
Other (specify)
None
X: Are any workers covered by Collective
Bargaining Agreement (CBA)
Yes No
Y: Previous audit date: N/A
Z: 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: N/A

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 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-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).

Corrective Action Plan
Corrective Action Plan – non-compliances
Non-Compliance
Number
The reference
number of the non-
compliance from the
Audit Report,
for example,
Discrimination No.7
New or
Carried
Over
Is this a
new non-
compliance
identified at
the follow-
up or one
carried over
(C) that is
still
outstanding
Details of Non-
Compliance
Details of Non-Compliance
Root cause
(completed by the site)
Preventative and
Corrective Actions
Details of actions to be
taken to clear non-
compliance, and the
system change to prevent
re- occurrence (agreed
between site and auditor)
Timescale
(Immediate,
30, 60,
90,180,365)
Verification
Method
Desktop /
Follow-Up
[D/F]
Agreed by
Management and
Name of
Responsible
Person:
Note if management
agree to the non-
compliance, and
document name of
responsible person
Verification Evidence
and
Comments
Details on corrective action
evidence
Status
Open/Closed
or comment
0.
Management
systems and
code
implementation
No. 1
New 依据辅则 0.3
审核员发现工厂没有
就 ETI 行为守则与工
人沟通。通过员工访
谈发现工人并不清楚
ETI 行为守则的要求。
In accordance with
additional elements
requirement 0.3
It was noted that the
factory did not
communicate the ETI
Base Code with
employees. According
不清楚客户要求
Unfamiliar with
client’s
requirement
建议工厂与工人沟
通 ETI 基本守则的
要求。
It is recommended
that the factory
should
communicate the
client’s Code to all
employees.
60 days Desktop Yes,
Mr. Qixiang
Zeng, General
Manager

to employee interview,
it was noted that
workers were not
aware of ETI Base
Code.
3. Safety and
Hygienic
Conditions
No. 1
New 依据《生产设备安全
卫生设计总则
(GB5083-1999)》第
6.1.6 条
审核员发现生产车间
1/2 台抛光机没有安装
皮带轮保护罩。
In accordance with
Code of Design of
Manufacturing
Equipment Safety and
Hygiene (GB5083-
1999) article 6.1.6
It was noted that no
pulley guard was
equipped to 1 out of 2
polishing machines
being used in the
production workshop.
不清楚法律要求
Unfamiliar with
the legal
requirement
建议工厂需要按照
法律要求为所有的
抛光机安装皮带轮
保护罩。
It is recommended
that pulley guards
should be
equipped to all
polishing machines
to comply with the
law.
Mr. Qixiang
Zeng, General
Manager
No. 2 New 依据《用电安全导则
GB/T13869-2008》第
6.7 条
日常检查不到位建议所有的电源开
关盒都得到良好的
维护处于绝缘状
Mr. Qixiang
Zeng, General

审核员发现工厂生产
车间 1/5 电源开关盒直
接暴露在外面，没有
绝缘保护装置。
In accordance with
General Guide for
Safety of Electric User
article 6.7
It was noted that the 1
out of 5 electricity
power switch boxes in
production workshop
exposed directly
without insulation
cover.
Failure in daily
check
态。
It is recommended
that all electricity
power switch
boxes should be
properly
maintained with
insulation covers.
Manager
No. 3 New 依据《用电安全导则
GB/T13869-2008》第
6.5 条
审核员发现工厂生产
车间 1/5 电源开关被生
产物料部分堵塞。
In accordance with
General Guide for
Safety of Electric User
(GB/T13869-2008)
Article 6.5
日常检查不到位
Failure in daily
check
建议工厂确保包装
部所有的电源开关
处于畅通状态。
It is recommended
that all electricity
power switch
boxes in the
Mr. Qixiang
Zeng, General
Manager

It was noted that the 1
out of 5 electricity
power switch boxes
was partially blocked
by production
materials in
production workshop.
production
workshop should
be kept free from
obstruction.
No. 4 New 依据《中华人民共和
国职业病防治法》第
36 条
审核员发现工厂没有
为生产车间 5/5 名接触
有噪声和粉尘的员工
以及 5/5 名接触化学品
（如：胶水）的员工
提供职业病体检。
In accordance with
the PRC Law of
Prevention and
Control of
Occupational
Diseases article 36
It was noted that the
factory didn’t provide
the occupational
health checks to 5 out
of 5 employees who
不清楚法律要求
Unfamiliar with
the legal
requirement
建议工厂为接触有
毒有害物质的员工
提供上岗前和离岗
时职业病体检。
It is recommended
that occupational
health checks
should be provided
to employees
before they take
the posts or leave
the posts.
Mr. Qixiang
Zeng, General
Manager

were in contact with
high decibel noise and
dust and 5 out of 5
employees who were
in contacted with
chemicals (e.g. glue)
in production
workshop.
5. Wages and
Benefits
No. 1
New 依据《中华人民共和
国劳动法》第 72 条及
第 73 条。
审核员发现工厂的社
会保险覆盖不足。根
据厂方提供的 2016 年
4 月社会保险缴费单
据，显示工厂仅为
7/13 名员工提供工
伤、养老、医疗、生
育和失业保险。另
外，工厂为 12/13 名
员工提供了有效期为
2015 年 6 月 6 日至
2016 年 6 月 5 日的商
业保险。
备注：工厂在 2016 年
5 月 4 日向当地社保部
门申请获得了一份批
文，证明工厂目前购
工厂管理人员解
释部分员工不愿
意购买社保。
建议工厂应保证所
有工人均参加全部
五种社会保险。
90 days Follow up Yes,
Mr. Qixiang
Zeng, General
Manager

买社保的情况符合当
地要求。
In accordance with
the PRC Labor Law
article 72 and 73
It was noted that
insufficient social
insurances were
provided to
employees. According
to the social insurance
payment receipt
provided by factory
management, it was
noted that only 7 out
of 13 employees were
provided with injury,
pension, medical,
maternity and
unemployment
insurance in April
2016. Besides, the
factory had provided
commercial insurance
to 12 out of 13
employees with valid
period from June 6,
2015 to June 5, 2016.
Remark: The factory
had applied and
The factory
management
explained that
partial
employees were
unwilling to
purchase social
insurances.
It is recommended
that the factory
should ensure all
workers participate
in the all 5 types of
social insurance
schemes and
therefore receive
all of their statutory
welfare to comply
with the Law.

obtained a waiver
from the local social
insurance bureau on
May 4, 2016,
indicating that the
social insurance
participation situation
of the factory was in
compliance with the
local regulations.
6. Working
hours
No. 1
New 依据《中华人民共和
国劳动法》第 41 条
审核员发现抽样工人
的加班时间超出了法
定标准。抽查 2015 年
6 月, 2015 年 12 月及
2016 年 3 月的考勤，
发现：
1) 2015 年 6 月，10
名抽样工人中 9 人的
月加班时间为 37-39
小时，超过法定每月
36 小时标准;
2) 2015 年 12 月，10
36 小时标准;
3) 2016 年 3 月，10
货期紧张建议工厂减少工人
的加班时间确保每
月的加班时间不超
过 36 小时。
90 days Follow up Yes,
Mr. Qixiang
Zeng, General
Manager

36 小时标准。
In accordance with
the PRC Labor Law
article 41
It was noted that
sample population
workers worked in
excess of the
statutory overtime
hour limits. A review
of attendance records
for June 2015,
December 2015 and
March 2016 yielded
the following:
1）9 out of 10 sample
population workers
worked in excess of
36 overtime hours per
month (i.e. 37 to 39
hours) in June 2015;
2）10 out of 10
sample population
workers worked in
excess of 36 overtime
hours per month (i.e.
50 to 51 hours) in
Tight shipment It is recommended
that the overtime
hours should be
reduced to ensure
it is within 36 hours
per month.

December 2015;
3）10 out of 10
sample population
workers worked in
excess of 36 overtime
hours per month (i.e.
47 to 50 hours) in
March 2016.
Corrective Action Plan – Observations
Observation
Number
The reference
number of the
observation from the
Audit Report,
for example,
Discrimination No.7
New or
Carried
Over
Is this a new
observation
identified at the
follow-up or
one carried
over (C) that is
still
outstanding
Details of Observation
Details of Observation
Root cause
(completed by the site)
Any improvement actions discussed
(Not uploaded on to SEDEX)
8A. Sub-
Contracting
and
Homeworking
No. 1
New 依据附则 8A.1.
审核中发现工厂使用如下分包商，但没有得到客户书面许可:
工厂名称：艺典广告吸塑厂
工厂地址：中国广东省中山市海景工业区海景路 18 号
联系人：黄先生
电话：86-86116139
工序：吸塑
不清楚要求建议工厂在把产品外发给其他工厂前，先
从客户处得到允许使用外发商的书面许
可。

工厂名称：展恒塑料制品有限公司
工厂地址：中国广东省中山市板芙镇顺景工业大道 5 号
联系人：胡先生
电话：86--88616813
工序：丝印
In accordance with additional element 8A.1
It was noted that the following subcontracted factories were used, but
without client’s written approval.
Factory Name: Yidian Guanggao Blister Factory
Address: No. 18, Haijing Road, Haijing Industrial Zone, Zhongshan
City, Guangdong Province, China.
Contact Person: Mr. Huang
Tel: 86--86116139
Process Type: Blister
Factory Name: Zhanheng Plastic Products Co., Ltd
Address: No. 5, Shunjing Gongye Avenue, Banfu Town, Zhongshan
City, Guangdong Province, China.
Contact Person: Mr. Hu
Tel: 86--88616813
Process Type: Silk printing
Not aware of the
requirement
It is recommended that the factory should
obtain client’s written approval prior to
subcontracting.
Good examples
Good example
Number
The reference number
of the non-compliance
from the Audit Report,
for example,
Details of good example noted Any relevant Evidence and
Comments

Discrimination No.7
5. Wages and
Benefits
工厂为所有员工每月提供270伙食补贴和50元的全勤奖。
The factory provided RMB 270 as food allowance and RMB 50 as full attendance allowance per month to all
workers.
文件审核，员工及管理层访谈
Documents review, employee and
management interview.

Confirmation

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.

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

4771 Sedex Zhongshan Detron Display Products Co., Ltd (SMETA) Initial CAPR May 16, 2016

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