Assessment Report 2019

Date: 07 October

Date: 3rd Jan to 4th Jan 2013 Assessment Report 2019

[Disclaimer: The audit report has been generated to reflect the compliance of the company toward the MSPO standard and every criterion’s have been in every effort taken to ensure MSPO 253O:2013 the accuracy of the assessment and reporting produced. As the assessment is been carried Part 4 out based on sampling, certain areas or processes may not be able to verified on its compliances. ] Company name ARAH KAWASAN SDN BHD (PALM OIL MILL) Address LOT 713, MUKIM SINGAU BATU, 09180 DAERAH BANDAR BHARU, KEDAH DARUL AMAN. Report no MS18MM020 Status of audit Main Assessment If surveillance NA

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Thank you for your trustful cooperation during our audit of your organization. This report has been prepared of every effort to ensure the accuracy of the information recorded. The assessment is based on sampling on the records, practice, documents and personnel, therefore the final results of the assessment is of representative towards the system implementation of the organization. This report may generated to record as much of the system implementation information but may still limited due to the sampling .This report details the assessment results including strengths, opportunities, and weaknesses. These results were presented to your management at the closing meeting of the audit. You can use these results to improve the effectiveness of your management system. We look forward to continuing our partnership towards sustainable business success. This report has been prepared in compliance to the ISO 17021:2011 requirements.

To ensure the next assessment will be carry out in compliance to the ISO 17021:2011, please remember to immediately notify CARE Certification International about any significant change to your company at any point of time. Together we will then coordinate appropriate measures to maintain your current certification. Such circumstances include, for example, changes relating to the legal, commercial, organizational status or ownership, organization and management (e.g. key managerial, decision making or technical staff), contact address and sites, scope of operations under the certified management system, and major changes to the management system and processes. Together we CARE and will then ensure the smoothness of the upcoming assessment. Thank you for your persistence of support.

Signed for on behalf of CCI Signed for on behalf of client Sign

Name: LEE MOOI TONG Designation: ARAH KAWASAN PALM OIL MILL MANAGER NRIC: 710615-01-6057 Name Mohamad Hafis bin Mustafa Company stamp Date 03/01/2019 Email [email protected] Fax no 038073 2688

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Section A General Information

General Audit objectives To verify that the system initial implementation is in accordance to requirements of the standard adopted. To verify that the system implementation is continuously in accordance to the requirements of the standards adopted. To verify that the system implementation is continuously after

and in third years of implementation is in accordance to the standards adopted. Other, (please specify) Integrate Assessment No Issue of certificate Yes

Scope of Certification Scope of certification in English The provision of Fresh Fruits Bunch (FFB) processing by palm oil mill Requirement not being applicable NA Justification - Other language than above NA Changes from Previous registration No Extension/changes of scope date NA

Contact Details Management Representative Noorhidayah Alternate contacts Lee Mooi Tong Management Representative contact no. 019-7744376 E-mail address [email protected] Fax Number 07-897 6562 Fixed Line Number 07-897 6551 NO OF GROUP MEMBERS 1

Section B Previous Audit Result The result of the last audit system have been reviewed, in particular to ensure appropriate correction and corrective action has been implemented to address any nonconformities identified. This review has concluded that: No nonconformities have been raised during last assessment. Any nonconformities identified during last previous audit have been corrected and the corrective action continuous to be effective. The management system has not adequately addressed non conformity identified during previous audit activities and the specific issue has been re-defined in the nonconformity section of this report.

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Section C Conclusion

The audit team conducted a process based audit focusing on significant aspects/risk objectives required by the standard(s). The audit methodology used is based on 3P which were People, Paper and Practice. The audit team concludes and express CONGRATULATION and has CONGRATULATION however some processes need to address non-compliance(s) but others has SORRY and the organization has not established and maintained its management system in line with the requirements of the standard and

demonstrated not demonstrated the ability of the system to systematically achieved agreed requirements within the scope of the organizations.

Base on the record, there is/are NIL unresolved issue. Therefore the audit team recommends that based on the results of this audit and the system's demonstrated state of development and maturity, management system certification be: Granted (initial certification or recertification) Granted upon the acceptance of the noncompliance(s) Continued (surveillance) Continued (surveillance) upon the acceptance of the noncompliance(s) Withheld suspend until satisfactory corrective action(s) is completed Others (please specify)

Note : The assessment and recommendation for the initial or continue was based on random samples and therefore nonconformities may exist which have not been identified. All the pages should be attached if the organization wishes to copy and delivered to the interested party.

Section D (For Recertification only)

1 The company has demonstrated effective implementation and maintenance/improvement on its Yes No management system 2 The internal audit program has been fully implemented and demonstrates its effectiveness as a Yes No tool for maintaining and improving the management system. 3 The management review process demonstrates its capability to ensure the continuing suitability, Yes No adequacy and effectiveness of the management system 3 The management review process demonstrates its capability to ensure the continuing suitability, Yes No adequacy and effectiveness of the management system 4 Throughout the audit process, the management system demonstrates overall conformance with Yes No the requirements of the audit standard

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Section E Auditor and Auditees Names

CCI Assessors Attendance during opening and closing meeting

Team leader Name Designation

Mohamad Hafis Mustafa (MH) Team member

Trainee auditor

Mohd Nur Amin Mohd Halim Observer

Section F Audit Process Matrix Next Audit Matrix (legend “ ” plan to cover & covered, “ ” for uncover)

Planned month & year 11/2018 11/2019 11/2020 11/2021 11/2021

Internal Audits

Stakeholder consultation / survey

Use of logo

Follow-up from previous audit finding

4.1 Management Commitment & Responsibility

4.1.1 MSPO Policy 4.1.2 Internal audit

4.1.3 Management Review 4.1.4 Continual Improvement 4.2 Transparency

4.2.1 Transparency of information and documents relevant to MSPO requirements 4.2.2 Transparent method of communication and consultation 4.2.3 Traceability 4.3 Compliance to legal requirements

4.3.1 Regulatory requirements 4.3.2 Land use rights 4.3.3 Customary land rights 4.4 Social responsibility, health, safety and employment condition

4.4.1 Social impact assessment (SIA) 4.4.2 Complaints and grievances 4.4.3 Commitment to contribute to local sustainable

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development 4.4.4 Employees safety and health 4.4.5 Employment conditions 4.4.6 Training and competency 4.5 Environment, natural resources, biodiversity and ecosystem services

4.5.1 Environmental management plan 4.5.2 Efficiency of energy use and use of renewable energy 4.5.3 Waste management and disposal 4.5.4 Reduction of pollution and emission including green house gas 4.5.5 Natural water resources 4.6 Best Practices

4.6.1 Mill management 4.6.2 Economic and financial viability plan 4.6.3 Transparent and fair price dealing 4.6.4 Contractor

Assessment man days for the next assessment : 2 md. Recertification: 2024 Note: Recertification should be carry out minimum 2 months prior to the expiry of the certificate

Section G Audit Note Summary of Area Audited BUSINESS AREAS DETAILS OF AUDITED SUMMARY Auditor Date Time MH 9 9.30 Opening Meeting a) introduction of the participants, including an outline of their roles; b) confirmation of the scope of certification; c) confirmation of the audit plan (including type and scope of audit, objectives and criteria), any changes, and other relevant arrangements with the client, such as the date and time for the closing meeting, interim meetings between the audit team and the client's management; d) confirmation of formal communication channels between the audit team and the client; e) confirmation that the resources and facilities needed by the audit team are available; f) confirmation of matters relating to confidentiality; g) confirmation of relevant work safety, emergency and security procedures for the audit team; h) confirmation of the availability, roles and identities of any guides and observers; i) the method of reporting, including any grading of audit findings; j) information about the conditions under which the audit may be premature terminated; k) confirmation that the audit team leader and audit team representing the certification body is responsible for the audit and shall be in control of executing the audit plan including audit activities and audit trails; l) confirmation of the status of findings of the previous review or audit, if applicable; m) methods and procedures to be used to conduct the audit based on sampling; n) confirmation of the language to be used during the audit; o) confirmation that, during the audit, the client will be kept informed of audit progress and any concerns; p) opportunity for the client to ask questions.

Closing Meeting a) informing the client that the audit evidence collected was based on a sample of the information; thereby introducing an element of uncertainty

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b) the method and timeframe of reporting, including any grading of audit findings; c) the certification body's process for handling nonconformities including any consequences relating to the status of the client's certification; d) the timeframe for the client to present a plan for correction and corrective action for any nonconformities identified during the audit; e) the certification body's post audit activities; f) information about the complaint handling and appeal processes. g) Any diverging opinion that are not resolved. h) opportunity for the client to ask questions. Executive Summary The audit was based on the MSPO2503:2013 Part 4 Standard, procedure and applicable requirements. There is no issue, only 4 observation raise during the 1st Stage Audit conducted on 04/06/2018 and found all the required document, procedure and form are available.

The audit were done one whole day with total manday for audit at AKOM is two (2) mandays, meanwhile the stakeholders consultation was held with one (1) manday.

The audit was lead by Mr Mohamad Hafis who are have almost 3 years in the sustainable certification and other management system certification such as RSPO, ISCC, ISO9001 etc and also attended the MSPO Lead Assessor Course conducted by SIRIM.

The stakeholders consultation was conducted by Mr Mohd Nur Amin who are having experience in sustainability, safety and health practitioner in refinery, palm oil mill and oil palm industry for almost 7 years and attended the internal audit training for ISO 9001, OHSAS 18001, EMS 14001, FSSC 22000, HALAL Certificate, Food Safety Handler & MSPO Lead Assessor conducted by Variety of Competent Trainer.

Stakeholder Consultation Mr. Tan Cheng Heng, (Liheng Enterprise) – Good business partner for civil and minor repair with Arah Kawasan. Mat Saat bin Wahab (Villages, Kg. Keda Sg. Tengas) – Management always deliver corporate social responsibilities to his villages and helping people for having work in the factory.

Mijamur, Kobinhusing and Cho Lar Sue (Operator, Arah Kawasan Palm Oil Mill) – Management take good care of their welfare. Better wages, leave and medical treatment.

Mr. Eng (Paya Salak Sawit Trading-ramp) – Management always having two ways communication and discuss on the significant business continuity which deliver a good FFB into the mill.

Azrul (Laboratory Supervisor, Arah Kawasan Palm Oil Mill) – Management manage to deliver good wages, working lfe and welfare to all employee in the factory.

Introduction 1. Location of mill NAME OF LOCATIO GPS Reference Mill Capacity CPO Output PK Output MILL N Latitude Longitu (Tonnes/Hour Tonnes/year Tonnes/year de Kilang DAERAH 5.27949 100.683 Sawit Arah BANDAR 80 Mt/Hour 55,049.56 15,709.50 81" 8185" Kawasan BHARU

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2. Location of the supply base NAME OF ESTATE/ LOCATION COORDINATE SMALLHOLDERS

ALMA PRODUCE SDN.BHD 51-21-A, Menara BHL Bank, Jalan Sultan Ahmad Shah, 5.332307° 10050 Georgtown, Pulau 100.4749962° Pinang ALMA RUBBER ESTATE SDN.BHD Siew Yong Estate, 5.3623925° Lot 4, 283, 434, 414, 257, 239 100.5267561° Mukim Sungai Ular, Daerah Kulim, Kulim, Kedah. BUKIT SIDIM DIVISION SELAMA Bukit Sidim Estate, P.O Box 76, 4.8127856° 09000 Kulim Darul Aman 100.452531°

BUKIT SIDIM – NATIONAL LAND Bukit Sidim Estate, P.O Box 76, 5.4875981° FINANCE 09000 Kulim Darul Aman 100.6693098°

FELDA GUNUNG BONGSU 2 Felda Gunung Bongsu 02, Lot 5.3594648° PT 910, Mukim Karangan, 100.6956753° Kulim, Kedah. FELDA LUBOK MERBAU Kuala Nerang, Padang Terap, 6.0033804° Kedah, Malaysia 100.7144982°

GENTING PLANTATIONS (SELAMA Genting Selama Estate, 09800 5.2217941° ESTATE) Serdang, Kedah 100.6550793°

GENTING PLANTATIONS (CHONG Genting Selama Estate, 09800 5.2217941° MENG) Serdang, Kedah 100.6550793°

GENTING SELAMA ESTATE Genting Selama Estate, 09800 5.2217941° (SELDING) Serdang, Kedah 100.6550793°

KIM SENG PLANTATIONS Batu 5, Kuala Ketil, Kedah 5.5878082° SDN.BHD 100.7078736°

KUMPULAN LADANG KHTP SERA Ladang Sungai Ular, Mukim 5.3610376° Sungai Ular, 09000 Kulim, 100.5267558° Kedah. LADANG SUNGAI ULAR (PKNK) Ladang Sungai Ular, P.O Box 5.4021531° 116, 09000 Kulim, Kedah 100.5706434°

LAND CAPACITY SDN.BHD 2, Jalan Nangka, Taman Desa 5.3646538° Damai, 14000 Bukit Mertajam, 100.439888° Pulau Pinang NEOH CHOO EE CO.SDN.BHD 73, Leboh Pantai, 10300 Pulau 5.4158655° Pinang 100.3379803°

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SATRIA UTARA(M) SDN.BHD Ladang Bakai, Lot 18, Mukim 5.4021531° Bakai, Baling, Kedah 100.5706434°

SHING SHENG KEE FARM 1) Mukim Terap, Kulim 5.10537° SDN.BHD (KEDAH) 2) Bagan Samak, Bandar 100.4832033° Baharu, Kedah 3) Serdang, Bandar Baharu, Kedah 4) Kuala Selama, Bandar Baharu, Kedah. SK BROTHERS PLANTATION Lot 1084, 1085, 1764, 1765, 5.1194405° 1766, 1775 & 1951, Mukim 100.5220966° Pekan Kuala Selama, Bandar Baharu, Kedah. SUN-YOUNG PLANTATION 11, Lorong Tambun Indah 18, 5.2962057° SDN.BHD Taman Tambun Indah, 14100 100.4420166° Simpang Ampat, Penang. OUP PLANTATIONS SDN.BHD Lot 1006 Mukim Terap, 08950 5.182087° Bandar Baharu, Kedah 100.4226625°

ARAH KAWASAN S/B Lot 425, Mukim Briah, Kerian, 5.0833328° Perak 100.5912452°

BANHIN CORPORATE SDN.BHD 4272, 1st Floor Jalan Kampung 5.4119686° Benggali, 12200 Butterworth, 100.3126093° Pulau Pinang. BND SAWIT ENTERPRISE Lot 6364, Mukim Ulu Selama, 4.8127856° Selama, Perak 100.452531°

CAHAYA PERTANIAN TRADING Lot 4908, Changkat Lobak, 5.1277724° Bagan Serai, 34300 Kerian, 100.6256081° Perak CHOON HOAY TRADING SDN.BHD No. 2014, Jalan Bukit Tambun, 5.2813853° Simpang Ampat, Seberang 100.4730017° Perai Selatan, Pulau Pinang. EAU TRADING Lot 3023, Kampung Permatang 5.117393° Kerat Telunjuk, Bandar Baharu, 100.554699° Kedah. GUAN SOON (ALOR PONGSU) Batu 7, Matang Pasir, Alor 5.0465911° Pongsu, 34300 Bagan Serai, 100.5321232° Perak. HK TEIK TRADING SDN.BHD GM 142, Lot 717, Mukim Kuala 5.2411484° Selama, 09810 Bandar Baharu, 100.6321062° Kedah. HOCK LIAN HUAT (KUBU GAJAH) Lot 6839, Jalan Ijok, Kubu 5.1622659° Gajah, 34130 Selama, Perak 100.6687678°

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HOCK LIAN HUAT ( N&Y TWIN Lot No. 1220, Mukim Mahang, 5.3245384° ENTERPRISE) Kulim, Kedah 100.7460038°

HOMELAND TRADING Lot 3227, Simpang Tiga Mukim, 4.8127856° Ulu Selama, Selama, Perak 100.452531°

HONG JADI SAWIT SDN.BHD Lot, 770, Batu Tiga, Mukim 4.8127856° Selama, Selama Perak. 100.452531°

ICAN TRADING SDN.BHD Lot 2866 Kampung Perak 5.3162217° Sungkap Mukim Teloi Kiri, Bukit 100.1560628° Selambau, 08010 Kuala Muda, Kedah JIA SHENG SAWIT ENTERPRISE Lot 1331, Mukim Hulu Selama, 4.8127856° Ulu Mengkuang, Selama Perak. 100.452531°

JING TAT SAWIT ENTERPRISE Lot 4342, Batu 20, Batu Kurau, 4.46193° 34520 Larut Dan Matang, Perak 101.1639003°

K&T ENTERPRISE HSM 1065, Lot. PT.272, Mukim 5.0833754° Beriah, 34300 Kerian, Perak. 100.5824902°

KC ONE ENTERPRISE Lot 2041, Jalan Besar, Mukim 5.318254° 16 Tasek, 14020 Seberang 100.5066229° Perai Tengah, Pulau Pinang. KOPERASI PENANAM SAWIT Lot 6294, Kampung Bukit 4.986977° MAMPAN DAERAH Bertam Ulu Kerian, Mukim 100.7807783° Hulu Selama, 34140 Selama Perak. KOPERASI KAMPUNG BELIA KHAS KOP P'Seta RTBK Pondok 5.1127537° SELAMA Tanjung Bhd, 100.7119255° PA 08-059700, Mukim Briah, Kerian, Perak KOPERASI PEKEBUNKECIL Pusat Pembelian Sawit 5.1928575° DAERAH SELAMA Koperasi, Lot 6375, Ulu KRIAN, 100.7996547° Rantau Panjang, Ulu Selama, 34140 Selama, Perak. LUBOK TUALANG ENTERPISE Lot 6563, Kampung Sungai 5.9213193° Senam, Mukim Jeneri, 08200 100.7198792° Sik, Kedah. PAYA SALAK SAWIT TRADING (PS) 272-A Kampung Paya Salak, 4.9705212° Lubuk Buntar, 09800 Serdang, 100.5689235° Kedah. PERNIAGAAN SAWIT STANDARD Lot 1372, Mukim Hulu Selama, 5.2686999° 34100 Selama, Perak 100.7639689°

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PERTUBUHAN PELADANG Lot 923, Jalan Mahang, 5.2044579° KAWASAN SELAMA Serdang, Bandar Baharu, 100.4866767° Kedah. PL OIL PALM & RUBBER SDN.BHD Suite 2, 1st Floor, No. 28, 5.8592061° Lengkok Cempaka 2, Bandar 100.5330184° Aman Jaya, 08000 Sungai Petani. SG MALAU TRADING Lot 5331, Kampung Sungai 5.1354855° Malau, Selama, Perak 100.6243573°

SINARAN SAWIT ENTERPRISE Lot 5838, Batu 11, Jalan Batu 4.9727818° Kurau, Bukit Jaya, 34500 Batu 100.7876735° Kurau, Perak. TEOH LAI SOON (SERDANG) Lot 1295, Simpang Kampung 5.2262858° Leret, 09800 Serdang, Kedah. 100.5978879°

ZHONG XIN VENTURES SDN.BHD Lot 1911, Sungai Salleh, Jalan 5.1194405° Selama, Serdang, 09810, 100.5220966° Bandar Baharu, Kedah. CHAN ENG POH Lot 358, 359, 367, 368, 369, 5.2413165° 370, 371, 404, Mukim Kuala 100.59708° Selama, Daerah Bandar Baharu, Kedah GOAY CHUAN KEAT Lot 1037 Serdang, Daerah 5.1196086° Bandar Baharu 100.4869026°

GOAY CHUAN CHYE Lot 1040 Serdang, Daerah 5.2113698° Bandar Baharu 100.6100429°

GOOI AH BA @ GOAY TUA BAH Lot 1636 Serdang, Daerah 5.2113457° Bandar Baharu 100.6094005°

INFINITE GOLDEN FARM SDN.BHD Lot 3711,737, Mukim Serdang, 5.8123637° Daerah Bandar Baharu, Kedah 99.250230°

KS PARTNER PLANTATION Mukim Ulu Selama, Daerah 4.8134697° Selama, Perak 100.4518313°

LOW CHONG SAN Lot 1782(1) , Mukim Sg.Batu, 5.1196086° Daerah Bandar Bahru, Kedah 100.4869026°

MACOA SDN.BHD 1) Lot 512 Sungai Batu, Bandar 5.1196086° Baharu 100.4869026°

2) Lot 97 Sidam Kanan, Kulim 5.5346854° 100.5382822° MASLAN BIN NAPIAH Lot 1382, Mukim Terap, Daerah 5.4083231° Kulim, Kedah 100.4144882°

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NG HOCK CHOON Lot 5398, 9935, 9936, 9939, 4.9905535° ,Mukim Gunung Semanggol, 100.407784° Daerah Krian, Perak NG THAN CHIN (TAN CHIN WOEI) Lot 1787, Sungai Batu, Bandar 5.1196086° Baharu, Kedah 100.4869026°

PENTERNAKAN ERA BARU Lot 4828, 4829, 4830, Mukim 5.1030217° SDN.BHD Bagan Samak, Bandar Baharu, 100.525189° Kedah RAMLI BIN AHMED Lot PT 272, Sungai Batu, 5.2927455° Bandar Baharu, Kedah 100.6361481°

TAN BAK HUA/ TAN MENG HENG Lot 727, Serdang, Bandar 5.2112029° Baharu, Kedah 100.608545°

TAN BENG LONG Lot 1853, Serdang, Bandar 5.2110054° Baharu, Kedah 100.6086113°

YANG SWEE YIEW Lot 1872, 2374, 280, Sungai 5.1196086° Batu, Bandar Baharu, Kedah 100.4869026°

YANG SWEE CHEONG Lot 1871, Mukim Sungai Batu, 5.1196086° Daerah Bandar Baharu, Kedah 100.4869026°

YANG SWEE YEE Lot 1943, 2373, Mukim Sungai 5.1196086° Batu, Daerah Bandar Bahru, 100.4869023° Kedah. NG ENG CHUAN Lot 1872, 2374, 280, Mukim 5.1196086° Sungai Batu, Bandar Baharu, 100.4869023° Kedah GOAY PHAIK KEOW Lot 1040, Serdang, Kedah 5.2326635° 100.4952149°

KHOR HUNG LENG Lot 311, 315, 316, Mukim 5.1196086° Sungai Batu, Daerah Bandar 100.4869023° Baharu, Kedah. 3. Statistic of the supply base NAME OF ESTATE/ AREA OF OIL PALM (HA) ESTIMATE TONNES SMALLHOLDERS OIL PALM MATURED (FFB TON/ YEAR) ALMA PRODUCE SDN.BHD 818.00 818.00 585.11 ALMA RUBBER ESTATE 319.17 319.17 129.96 SDN.BHD BUKIT SIDIM DIVISION 1093.00 1093.00 220.11 SELAMA BUKIT SIDIM – NATIONAL 1,987.95 LAND FINANCE FELDA GUNUNG PONGSU 2 362.25 362.25 12.34

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FELDA LUBOK MERBAU 355.18 355.18 6,180.88 GENTING PLANTATIONS 1,830.14 1,830.14 10,440.86 (SELAMA ESTATE) GENTING PLANTATIONS 20.99 (HALIFAX DIVISION) GENTING PLANTATIONS 1,735.62 (CHONG MENG) GENTING SELAMA ESTATE 766.96 (SELDING) KIM SENG PLANTATIONS 656.69 656.69 42.57 SDN.BHD KUMPULAN LADANG KHTP 714.00 714.00 54.82 SERA LADANG SUNGAI ULAR (PKNK) 4,629.49 LAND CAPACITY SDN.BHD 329.50 329.50 1,259.67 NEOH CHOO EE CO.SDN.BHD 781.00 781.00 7,060.96 SATRIA UTARA(M) SDN.BHD 1,020.00 1,020.00 4,544.90

SHING SHENG KEE FARM 100.30 100.30 345.57 SDN.BHD (KEDAH) SK BROTHERS PLANTATION 87.78 87.78 903.83 SUN-YOUNG PLANTATION 258.10 258.10 5,316.10 SDN.BHD UOP PLANTATIONS SDN.BHD 46.47 46.47 1,230.86 ARAH KAWASAN S/B DF 1,633.99 BANHIN CORPORATE DF 1,076.69 SDN.BHD BND SAWIT ENTERPRISE DF 1,887.61 CAHAYA PERTANIAN TRADING DF 5,943.41 CHOON HOAY TRADING DF 132,437.54 SDN.BHD EAU TRADING DF 7,971.02 GUAN SOON (ALOR PONGSU) DF 4,484.38 HK TEIK TRADING SDN.BHD DF 6,433.41 HOCK LIAN HUAT (KUBU DF 1,483.04 GAJAH) HOCK LIAN HUAT ( N&Y TWIN DF 5,720.72 ENTERPRISE) HOMELAND TRADING DF 16,767.09 HONG JADI SAWIT SDN.BHD DF 889.55 ICAN TRADING SDN.BHD DF 8,345.36 JIA SHENG SAWIT DF 1,173.42 ENTERPRISE

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JING TAT SAWIT ENTERPRISE DF 402.18 K&T ENTERPRISE DF 970.15 KC ONE ENTERPRISE DF 91.79 KOPERASI PENANAM SAWIT DF 1,569.17 MAMPAN DAERAH KOPERASI KAMPUNG BELIA DF 1,546.85 KHAS SELAMA KOPERASI PEKEBUNKECIL DF 1,924.62 DAERAH SELAMA LUBOK TUALANG ENTERPRISE DF 625.51 PAYA SALAK SAWIT TRADING DF 21,748.80 (PS) PERNIAGAAN SAWIT DF 139.07 STANDARD (KSU MUTIARA) PERTUBUHAN PELADANG DF 520.35 KAWASAN SELAMA PL OIL PALM & RUBBER DF 2,049.18 SDN.BHD SINARAN SAWIT ENTERPRISE DF 721.24 TEOH LAI SOON (SERDANG) DF 1,921.12 ZHONG XIN VENTURES DF 9,133.73 SDN.BHD CHAN ENG POH 20.71 20.71 188.34 GOAY CHUAN KEAT 3.87 3.87 101.81 GOAY CHUAN CHYE 3.37 3.37 116.61 GOOI AH BA @ GOAY TUA BAH 4.39 4.39 103.56 INFINITE GOLDEN FARM 6.23 6.23 1,036.77 SDN.BHD KHOR HUNG LENG 12.94 12.94 41.67 KS PARTNER PLANTATION 13.21 13.21 205.22 LOW CHONG SAN 6.17 6.17 248.30 MACOA SDN.BHD 31.05 31.05 649.91 MASLAN BIN NAPIAH 1.47 1.47 33.68 NG CHOO LUM @ NG POON 5.26 5.26 5.85 LUM NG HOCK CHOON 17.67 17.67 82.91 NG THAN CHIN (TAN CHIN 5.54 5.54 248.94 WOEI) PENTERNAKAN ERA BARU 28.97 28.97 494.96 SDN.BHD RAMLI BIN AHMED 1.16 1.16 308.24 TAN BENG LONG 2.94 2.94 189.59 YANG SWEE YIEW 6.66 6.66 155.34

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YANG SWEE CHEONG 0.70 0.70 47.99 YANG SWEE YEE 1.15 1.15 55.64 GOAY PHAIK KEOW 3.37 3.37 111.68 KHOR HUNG LENG 12.94 12.94 171.60

Audit Checklist

P1: Management Commitment & Responsibility

Criterion 1 Malaysian Sustainable Palm Oil (MSPO) Policy Indicator Requirement Findings 4.1.1.1 A policy for the implementation of MSPO shall be established

Sighted the management establish the MSPO policies and seen the policies on the office wall. The mill developed 6 policies as below; 1) MSO Policy under this policy there is statement regarding; - Achieving highest standard of quality, environment, social, business, safety and health, by promotting sustainable environment in production of crude palm oil. 2) Occupational Safety & Health Policy 3) Environmental Policy 4) Human Rights Policy 5) Sexual Harassment Policy

All the policies were signed by Mr. Beh Hang Tong, Managing Director, dated 01/04/2018.

Communication of the policy sighted done by display at the wall office, attended sheet briefing for MSPO Awareness training to the staff and workers sighted on 13.09.2018. Sighted minutes of meeting for stakeholder meeting to nearest stakeholder villages dated on 07.12.2018.

4.1.1.2 The policy shall also emphasize commitment to continual improvement with the objective of improving the milling operation.

Verified the Social Impact Assessment (SIA) report for Arah Kawasan Sdn Bhd – Arah Kawasan PALM OIL MILL, dated July 2018. Sighted the matters raised from stakeholders; 1. Water supply and quality 2. Local Economy - (natural resources, occupation and income; new job opportunities and general local development). 3. Socio-cultural life - (health & safety, road-related safety & health, new knowledge and skills, new values and ethics) Action taken based on SIA Report:- 1. Based on work plan, Arah Kawasan management had issued out a memo regarding to Road safety (speed limit in stakeholder resident to transporter driver - 80kmj) 2. Arah Kawasan management had taken necessary action to publish vacancies thru banner, JobStreet (17 Nov 2017) and New Straits (11 May 2017) for new jobs opportunities in their organisation.

Criterion 2 Internal Audit Indicator Requirement Findings

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4.1.2.1 Internal audit shall be planned and conducted regularly to determine the strong and weak points and potential area for further improvement.

Arah Kawasan POM establish the procedure for internal audit, dated 01/04/2018 Doc. No SOP-02

Arah Kawasan POM already done the Internal Audit on 19/10/2018. Internal Audit Plan dated on 08.10.2018 and Internal Assessment report dated on 19/10/2018.

Sighted the audit scheduled, audit planed and audit report were in place as per internal audit procedure.

Sighted no NC and OFI as a result from the internal audit.

4.1.2.2 The internal audit procedures and audit results shall be documented and evaluated, followed by the identification of strengths and root causes of nonconformities, in order to implement the necessary corrective action

Verified the internal audit procedure and audit report.

Sighted there is no nonconformities and opportunity for improvement resulted from internal audit.

4.1.2.3 Report shall be made available to the management for their review.

As per 4.1.2.2 Sighted the report were done and the issue inside the report have been discussed during management review meeting held on 19th Oct 2018.

Criterion 3 Management Review Indicator Requirement Findings 4.1.3.1 The management shall periodically review the continuous suitability, adequacy and effectiveness of the requirements for effective implementation of MSPO and decide on any changes, improvement and modification. Arah Kawasan POM conducted the once of Management Review Meeting on 15/11/2018; with twice Internal Audit Meeting specifically for MSPO on 19/10/2018 & 6/10/2018 chaired by Mr. Lee Mooi Tong (Production Manager) and attended by all heads and staffs. Sighted the meeting which cover all important indicator and agenda including the findings based on last MSPO Internal Audit for palm oil mill.

Criterion 4 Continual improvement Indicator Requirement Findings 4.1.4.1 The action plan for continual improvement shall be based on consideration of the main social and environmental impact and opportunities for the company.

Arah Kawasan POM establish the continual improvement plan as below:

a) Water Conservation Program b) Reduce Electricity Consumption c) Reduce amount of paper used d) Zero accidents in the company e) Air quality monitoring f) Zero ill health related incidents in the company g) Reduction and control of fossil fuel usage

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h) POME discharge reduction and control i) Awareness on Road Safety j) Waste Management Plan

4.1.4.2 The company shall establish a system to improve practices in line with new information and techniques, and for disseminating this information throughout the workforce.

Arah Kawasan POM has no new technology and techniques in the plant. 1. EPS Installations (Dark Smoke Indicator).

P2: Transparency Criterion 1 Transparency of information and documents relevant to MSPO requirements Indicator Requirement Findings 4.2.1.1 The management shall communicate adequate information to other stakeholders on environmental, social and legal issues relevant to sustainable practices in the relevant

languages and form.

Generally, Arah Kawasan POM communicate the information with stakeholders and public through meeting with stakeholders. The mill management annually organize meeting with stakeholder.

The recent meeting was held on 15/10/2018. For every issue raised the Mill management has prepared management plan on social impact assessment.

Verified the Penilaian Impak Aspek Alam Sekitar – Environment Aspect Impact Assessment & Evaluation, dated 01/04/2018

4.2.1.2 Management documents shall be publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

The company has engage with nearest Head of Villages for any issues raised impacted within their area.

Criterion 2 Transparent method of communication and consultation Indicator Requirement Findings 4.2.2.1 Procedures shall be established for consultation and communication with the relevant stakeholders APOM has established procedure for stakeholder and procedure Communication and Consultation. This SOP has been communicated to all stakeholders during stakeholder meeting dated 15/10/2018 held at Meeting Room, Arah Kawasan Sdn. Bhd.

Records of complaints and grievances were implemented by complaints form for Stakeholder/supplier and Internal. So far there is no issue related to external stakeholder.

Sighted the appointment letter PIC for stakeholder’s consultation matters, Miss Salina Binti Ismail dated 13/03/2018. Sighted the list of internal and external stakeholders updated on 01.04.2018.

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4.2.2.2 A management official shall nominated officials at the operating unit responsible for issues related to indicator 1 (4.2.2.1)

Noted that the management had appoint the official management representative responsible for issue related to stakeholder; Miss Salina Binti Ismail.

4.2.2.3 List of stakeholders, records of all consultation and communication and records of action taken in response to input from stakeholders should be properly maintained.

Sighted all the list of stakeholders, minute meeting during stakeholder meeting, communication and record of action taken have been kept inside stakeholder file. Verified inside the file the list of attendance of participant for stakeholder meeting, MSPO Awareness training plan for stakeholder, SIA report and others document related to stakeholder were inside the file.

Criterion 3 Traceability Indicator Requirement Findings 4.2.3.1 The management shall commit itself to implement and maintain the requirements for traceability and shall establish a standard operating procedure for traceability.

SOP for traceability has been established by Arah Kawasan POM, Doc No: SOP-08 dated 01/04/2018. A clear procedure and proper guideline to mill to comply with the supply chain certification under Malaysia sustainable palm oil Sighted the flow chart for FFB received. Verified the sample of FFB weighbridge ticket; Date: 18/12/2018 – Ticket no: 1812/22294 – 15.5mt

Grading with unripe FFB: 45 fruits Grading with overripe FFB: 85 fruits total rejected fruits: 17% (2.77 mt).

Sighted the MPOB license agreement of ‘Menjual, Membeli & Mengalih' for Choon Hoay Trading Sdn. Bhd., with license no: 5-5356-315000 which expired dated on 30/06/2019. 4.2.3.2 The management shall conduct regular inspections on compliance with the established traceability system

SOP for traceability has been established by Arah Kawasan Palm Oil Mill, Doc No: SOP-08 dated 01/08/2018. A clear procedure and proper guideline to mill to comply with the supply chain certification under Malaysia sustainable palm oil Letter of appointment of personnel in charge of traceability – Cik Nor Ida Farida Bt. Hashim, dated 08/10/2018. Verified the internal audit meeting has mention about traceability.

The amount of FFB processed was cross-checked against the amount received. Example, weighbridge tickets include Supplier. CPO delivery order weighbridge tickets include contract number. Sighted the management had done monthly inspection on the traceability system.

Sample of weighbridge ticket; Ticket no: C107355 - 32.18mt - 18/12/2018

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Delivery Order no: C107359 Contract No: Arah Kawasan (AKSCPO1812009) - Grant Contract dated on 12.12.2018 with 400 mt. Sunzen (SFPCPO1812018) Wilmar (4610016652) Carry Forward CPO Balance from previous contract AKSCPO1812008, SFPCP01812016, 4610016641 - Grant Contract dated on 11.12.2018.

MPOB License No: 500418-006000 Seal No: 1. ASB 031025, 031026, 031027, 031028, 031029, 031030, 031031 Spec FFA: 5% Spec M&I: 0.25% Spec DOBI: 2.31%.

4.2.3.3 The management should identify and assign suitable employees to implement and maintain the traceability system

Arah Kawasan POM has appointed Cik Siti Nor Ida Farida Bin Hashim as personnel in charge for traceability, dated 08/10/2018.

4.2.3.4 Records of storage, sales, delivery or transportation of crude palm oil shall be maintained.

Arah Kawasan Management had recorded their daily production data in Monthly Record. The record was inserted by PIC Traceability assign in order to tally their FFB process and CPO Production in manual monitoring (excel sheet). All data recorded as per such as Date, FFB Record (Received & Processed), CPO Record (Despatch, Production & OER), Quality of CPO and Kernel Record (Despatch, Production & KER) . The quality of product periodically monitored and recorded by lab personnel.

Verified the Daily Stock Report December 2018 - as at 31/12/2018: - Balance CPO in Physical Storage = 3,460.02 mt, dispatch = 4,039.07mt Balance CPO in System = 704.27mt

Balance Kernel in System = 350.81mt, dispatch = 1,427.41mt

Verified the one of CPO contract agreement between Wilmar Edible Oils Sdn Bhd, dated 12/12/2018. Contract no: 4610016652. Delivery month of December 2018 - 400mt CPO for the month of December.

Sighted the dispatch ticket no: CO107355, dated 18/12/2018. Sold to Wilmar Edible Oils Sdn Bhd. Time out: 8.22am Time out: 9.54am Nett weight CPO 32.18mt.

Sighted the record of CPO dispatch for Wilmar Edible Oil Sdn Bhd.

P3: Compliance to legal requirements

Criterion 1 Regulatory requirements Indicator Requirement Findings 4.3.1.1. All operations are in compliance with the applicable local, state, national and ratified international laws and regulations

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Verified all the available license and permit required for the Arah Kawasan Palm Oil Mill operation as below: a) Lesen JAS: Lesen No: JP 004562 valid until 30/06/2018 b) Perakuan Pendaftaran: Akta Bekalan Elektrik 1990 - License No:- 2018/01661 - issue date on 01/06/2018 c) Refer to "Senarai Nama Mesin-Mesin Untuk Pemeriksaan JKKP" and found still valid as below: i) Sterilizer: PMT-KD/18 10983, 10986, 10979, 10991, 10988, 10989, 10983, F1 valid until 21/05/2019 ii) Dandang PM-KD/18 09771, 10981, 1090, 10981, 09771 iii) Air Receiver Tank PMT-KD/18 09772, 10982, 10985, 10987, 10982, 10990, 09772 f) Lesen MPOB: No: 50031410400 valid until 31/12/2018

NCR: Found that there is no evidence of prove that the management apply for Fire Certificate as under the regulation of Fire Service Act 1988 (Act 341). With under the Fire Services Designated Premises Order, 1998; Arah Kawasan Palm Oil Mill is listed under No.7, Seksyen 3, fire Services (Designated Premises) Order 1998 (Factories, flatted factories exceeding 7000 cubic meters, Special structures, palm oil mills, oil refinery, cement works and those with Hazardous processes. 4.3.1.2 The management shall list all laws applicable to their operations in a legal requirements register Verified the list of all laws applicable to the Arah Kawasan Palm Oil Mill as per Legal Requirement Register listed legal applicable as below: a) Manual Penggredan Buah Kelapa Sawit MPOB Edisi Ketiga (2015) b) Envrionment Quality Act 1967 c) Occupational Safety Health Act 1994 (514) d) Akta 582 Akta Lembaga Minyak Sawit Malaysia 1998 - License No. 509280104000 (01.10.2018-30.09.2019) e) Fire Service Act 1988 (Act 341) - No evidence of Fire Certificate applied f) Akta 597 Akta Suruhunjaya Hak Asasi Manusia Malaysia 1999 g) Akta 139 Akta Kilang Dan Jentera 1967 h) Akta 447 Akta Bekalan Elektrik 1990 - Form F (License No. 2018/01661) Serial No. 30104 (27.06.2018 - 26.6.2019) - 1931 kWh i) Akta 341 Akta Perkhidmatan Bomba 1998 j) Akta 265 Akta Kerja 1955 k) Akta 446 Akta Standard-Standard Minimum Perumahan Dan Kemudahan Pekerja 1990 l) Enakment Sumber air Kedah 2008 (Pengabstrakan Air) 2015 - Form B (Water Abstraction License) License No. WA2018010047 (22.06.2018 - 21.06.2019) - Serial No. 000174 m) Children and Young Person (Employement) Act 2010 n) Minimum Wages Order 2012.

Refer to the Legal Requirement Register and found was updated on 01.06.2018 with status of compliance is 100% compliance.

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4.3.1.4 The management should assign a person responsible to monitor compliance and to track and update the changes in regulatory requirements.

Arah Kawasan POM appoint En Azirah Inez Bt. Jamaludin as a person responsible to monitor compliance and to track and updated the changes. Seen the appointment letter dated 08/10/2018 and approved by Mill Manager.

OFI: Interview with Person Incharge for Legal and sighted the PIC was not well verse on the national legal requirement.

Criterion 2 Land used right Indicator Requirement Findings 4.3.2.1 The management shall ensure that their oil palm milling activities do not diminish the land use rights of other users

Arah Kawasan POM operation was sighted operated in the area at Lot 2660, 453, and 454 with 16.3286ha was bought by Arah Kawasan Sdn. Bhd.

Arah Kawasan POM operation leased land in the area lot 477, 481, 320, and 1995 with 6.5875ha from 4 different land tittle and 2 different personel. 4.3.2.2 The management shall provide documents showing legal ownership or lease, history of land tenure and the actual use of the land.

Verified the valid land title as below: a) Borang 5DK (Jadual Keempat belas), No. H.S.(D) : 2092 b) No PT : Lot 2660 c) Kategori Penggunaan Tanah : Perusahaan/Perindustrian d) Width Lot : 11.28 ha e) Date registered on 12.04.2018 f) Town: Mukim Sungai Batu (Bandar Baharu District) 4.3.2.3 Legal perimeter boundary markers should be clearly demarcated and visibly maintained on the ground where practicable.

Verified the Arah Kawasan had documented the picture of boundary perimeter in Doc No. MSPO/P3/C4.3.2.

4.3.2.4 Where there are, or have been, disputes, documented proof of legal acquisition of land title and fair compensation that have been or are being made to previous owners and occupants; shall be made available and that these should have been accepted with free prior informed consent (FPIC).

As to date, no land disputes issue been recorded.

Criterion 3 Customary rights Indicator Requirement Findings 4.3.3.1 Where lands are encumbered by customary rights, the company shall demonstrate that these rights are understood and are not being threatened or reduced.

No customary rights

4.3.3.2 Maps of an appropriate scale showing extent of recognized customary rights shall be made available

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No customary rights

4.3.3.3 Negotiation and FPIC shall be recorded and copies of negotiated agreements should be made available.

No customary rights

P4: Social responsibility, health, safety and employment condition

Criterion 1 Social impact Assessment (SIA) Indicator Requirement Findings 4.4.1.1 Social impacts should be identified and plans are implemented to mitigate the negative impacts and promote the positive ones

Verified the Social Impact Assessment Final Report with assessment date on 14-15 & 22-22 July 2018. Refer to the SIA Report noted the report contain of the data collections method, demography information, finding and recommendation action plan. The issue was raised for APOM are: a) Management emphasize the safety & health culture at workplace b) Workers happy with the management c) Management provides subsidies for school bus fare and made yearly contribution for employees d) Workers expressed their gratitude on the social initiative by the management.

Refer to SIA Summary Analysis identified the significant relationship between management and internal/ external stakeholders as below: a) Social background: Impact: Co-existence of Malaysian and non-Malaysian workers would create any differential treatment b) Education: Both primary and secondary school are available within or near the estate area c) Living Condition: Pleasant housing condition and amenities d) Infrastructure and amenities: Workers used the amenities for recreational activities.

Criterion 2 Complaints and grievances Indicator Requirement Findings 4.4.2.1 A system for dealing with complaints and grievances shall be established and documented

Arah Kawasan POM establish the Standard Operating Procedure: Social Impact Assessment (Doc. No. SOP-18) dated 01/04/2018 and applicable to the selection of communities , Stakeholder participation, Identification of Key Social Impacts, Mitigation and Enhancement Measures complaint related with safety, health, workers welfare, land dispute, sexual harassment etc.

4.4.2.2 The system shall be able to resolve disputes in an effective, timely and appropriate manner that is accepted by all parties.

Verified the below cmplaints as below: a) Kapten (B) Jumali bin Mat Ali dated 18/3/2018; resolve the complaint (Kerosakan Bangunan & Tanah) on 4/6/2018 b) Mohd Shariffudin Bin Che Ait dated on 30.03.2018; resolve the complaint 21/04/2018

Noted that two complaints received from external parties due to the uneven land which cause to damage at nearest residential area. 4.4.2.3 A complaint form should be made available at the premises, where employees and affected stakeholders can make a complaint.

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Observe the Grievance Log Book was available at the Office. For stakeholder, they can email or sent letter to the management for complaints direct to Production Manager.

4.4.2.4 Employees and the surrounding communities should be made aware that complaints or suggestions can be made any time All stakeholder are freely to request the "Rekod Daftar Aduan/ Pertanyaan" from the Mill Management and submit directly to the mill management.

The communities surrounding was aware with the complaint procedure and explanation was done during the stakeholder consultation and most of the mill workers are from the local communities.

4.4.2.5 Complaints and resolutions for the last 24 months shall be documented and made available to affected stakeholders upon request. Verified the last complaint for Year 2018 and sighted the record is still available.

Criterion 3 Commitment to contribute to local sustainable development Indicator Requirement Findings

4.4.3.1 Palm oil mill should contribute to local development in consultation with the local communities. Where the mills in an integral part of plantation, such contribution to local community development may be regarded as a joint effort by the mill and the plantation.

Verified the record of “Corporate Social Responsibilities to nearest stakeholder" and listed a contribution from management to the local community. Sample as below: a) Rumah Cahaya Sg. Tengas, Kulim - 13.10.2018 - Gotong Royong b) Masjid Al-Falah - 22.06.2018 - Majlis Sambutan Hari Raya Aidilfitri c) Lembaga Pengurus SJK (C)Alor Pongsu - 07.06.2018 - School Donation. d) JKK Kampung Keda Sg. Tengas - 12.04.2018 - Sukaneka e) Sekolah Kebangsaan Sg. Tengas - 12.04.2018 - Hari Kantin f) Ibu Pejabat polis Kontijen Jalan - 05.03.2018 - Sukan Sepak Takraw g) Pusat Daerah Mengundi - 08.02.2018 - Sumbangan Ikhlas h) JKK Kampung Keda Sg. Tengas - 05.02.2018 - Lawatan Kerja Menteri Besar Kedah

Criterion 4 Employees safety and health Indicator Requirement Findings 4.4.4.1 An occupational safety and health policy and plan shall be documented, effectively communicated and implemented

Verified the policy Occupational Safety & Health Policy date on 01/04/2018 - sign by Managing Director.

Communication of the policy sighted done by display at the notice board, briefing on explaining the policy to the employees on 13/09/2018.

4.4.4.2 The occupational safety and health plan shall cover the following: a) A safety and health policy, which is communicated and implemented

Observed the policy was display at the noticed board surrounding the mill. The policy communicated during the safety briefing on 13/09/2018

b) The risks of all operations shall be assessed and documented

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Verified the HIRARC for mill operation such as laboratory, loading ramp, sterilizer, threshing etc. The HIRARC was reviewed on 01/04/2018. a) Boiler station - Welding, repair of pump i) Hot surface/cut bys harp surface/ machine unexpectedly run : L (2) X S (2) = R (4) - LOW

b) Laboratory - Mixing chemical for production kaolin i) Chemical hazard upon contact with eyes or skin: L(3) X S(2) = R(6)- MED, Risk control : To give training on chemical handling - completed on 01/04/2018

c) Reception - Load/Unload of FFB/PK/ CPO/EFB i) Falling bunches/ EFB: L(2) X S(2) = R(4)- LOW on chemical handling - completed on 01/04/2018

Chemical Health Risk Assessment (CHRA) conducted by Goh Teik Beng #CHRA/18-10/002, work unit covered such 1) Raw water treatment plant operator, 2) Maintenance Workshop/Production-fitter, Boiler man, Laboratory - lab technician/lab assistant.

Environmental Noise Monitoring conducted by SEMC Sdn Bhd on 25-16/10/2017. The monitoring of boundary point at N1-Near sister manufacturer mill, N2-Opposite boiler, N3-sewage pond, N4-near construction site.

Initial Noise Exposure Monitoring Report dated 01/10/2007 by TK EHS Consultancy Services Sdn Bhd

Audiometric report conducted on 26/10/2016 by involved 10 employees with result 1 employee (Alif Hanafiee - resigned) need to undergone every year for a n employee exposed to noise level at or above the limits, and 9 employees (Aslam, Fikri - Resign, Gobmathan AL Kuppusamy, Halim Pramanik, Kamal Hossain, Mahandran AL Ramasamy, Mohd Nor Faridzul, Mohidul Hawlader - resign, Muhammad Faizal - resign) with result need to undergone every year for an employee whose baseline audiogram shows a hearing impairment

31/10/2018 - 2 person, NB Lab, Bandar Perda, Bukit Mertajam. - Mahandran & Razali

OBS: To include the control measure in HIRARC for working at height for CPO dispatch process.

CAR Refer to Initial Noise Exposure Monitoring Report on 01/10/2007: 1. Hearing protection safety sign no available at production area exposed with above 85db (Power house, boiler house & kernel station/fiacre cyclone section.

2. Additional Noise Monitoring - During site visit and verified with auditee, the additional of equipment such sterilizer and boiler after year 2007, where refer to FMA (Noise Exposure) Reg 12. Additional monitoring. Whenever there has been a production, process, equipment, control measures or personnel change in the factory, the occupier shall conduct additional monitoring within six months from the date of such change or changes.

3. Audiometric test for Aslam, Gobmathan, Halim Pramanik, Kamal Hossain, Mohd Nor Faridzul not yet conducted for yearly audiometric test as per recommend from audiometric.

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c) An awareness and training programme which includes the following requirements for employees exposed to pesticides: i) all employees involved shall be adequately trained on safe working practices; and ii) all precautions attached to products shall be properly observed and applied.

i) Environmental management program & Chemical Handling conducted by consultant on 23/04/2018, Pre-treatment system & boiler water treatment training conducted on 15/11/2017. ii) Precaution attached to product and displayed at chemical was available for operator references.

d) The management shall provide the appropriate personal protective equipment (PPE) at the place of work to cover all potentially hazardous operations as identified in the risk assessment and control such as Hazard Identification, Risk Assessment and Risk Control (HIRARC).

Verified the HIRARC and required PPE such as hand glove, ear plug, safety shoe, safety helmet etc.

Verified the PPE issuance records for below sample: a) Safety Shoe to Halimi B Alliyas, Muhammad Faizal B Mat Abu & etc. b) helmet t0 Kyaw Naing Soe, Sangar AL Yalumalai & etc c) Earplug Kyaw Naing Soe, Zulnaim & etc

OBS: Verified during site visit and refer to record PPE distribution, the Lab assistant were not provided with respirator as per CHRA recommend.

e) The management shall establish Standard Operating Procedure for handling of chemicals to ensure proper and safe handling and storage in accordance to Occupational Safety Health (Classification Packaging and Labeling) Regulation 1997 and Occupational Safety Health (Use and Standard of Exposure of Chemical Hazardous to Health) Regulation 2000.

Sighted procedure "Raw Chemical Management" #SOP013.

Noted laboratory has provided with MPOB Methods book - A Compendium of Test on Palm Oil Products, Palm Kernel Products, Fatty Acids, Food Related Products and Others.

OBS: 1. Lack of precaution sign at oxy-acetylene cylinder storage at maintenance station and chemical at mini lab. 2. Containment for chemical storage at mini lab not available 3. During site visit, the containment of CPO skid tank have the flow pipe without any stop valve.

f) The management shall appoint responsible person(s) for workers' safety and health. The appointed person(s) of trust must have knowledge and access to latest national regulations and collective agreements.

Arah Kawasan POM appointed as per Safety and Health Committee Organization Chart - Secretary - Mr Heah Chin Chai. Interview Mr Sharudin and observe he is aware with a basic knowledge of the latest national safety & health matters and regulations.

g) The management shall conduct regular two-way communication with their employees where issues affecting their business such as employee's health, safety and welfare are discussed openly. Records from such meetings are kept and the concerns of the employees and any remedial actions taken are recorded.

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Verified the Safety & health Committee minute meeting and conducted regularly dated 15/11/2018, 29/08/2018 & etc. and sighted the meeting was discuss on the issue of the safety training, mill cleanliness, safe work etc. h) Accident and emergency procedures shall exist and instructions shall be clearly understood by all employees.

Verified Procedure "Emergency Preparedness and Reponses" #SOP-12. The procedure has detail in such Fire response, chemical and oil spillage/leakage response, Incident/accident control, emergency response training, impact on environment & the form of incident reporting. Sighted drill conducted such Chemical response on 28/10/2018 and Fire response 16/07/2018, Introduction of Basic First Aid on 26/07/2018, with item discuss such factory safety, shock, nose bleeding, faint & suffocation, amputation & etc.

i) Employees trained in First Aid should be present at all field operations. A First Aid Kit equipped with approved contents should be available at each worksite

Verified certificate of attendance for "Introduction Basic First Aid Training dated 26/0/2018 attended by supervisor and ERT members.

j) Records shall be kept of all accidents and be reviewed periodically at quarterly intervals.

Accident record available for year 2018 recorded in form "Borang Laporan Kemalangan" Accident on: 1.19/12/2018 to En Mohd Irwan Ismail where get caught in chain conveyor during stopping the conveyor. Total Medical Leave 3 days. 2. 27/11/2018 to En Sulahudin Omar, victim fall during pulling the FFB using hook at ramp. Total Medical Leave 6 days. 3. 01/07/2018 to En Che Azrul Bin Che Ta caused a finger caught between valves during maintenance. Total Medical Leave 29 days. Noted JKKP6 submitted to DOSH on 21/11/2018.

Sighted all the accident been investigated and record with the root cause and corrective action. As refer to auditees, the accident been reviewed in OSHC meeting every quarterly basis, but not recorded in the minute.

CAR: Accident case of En Sulahudin Bin Omar on 27/11/2018 with Medical leave 6 days (28/11-29/11/28, 30/11-01/12/2018, 03/12-04/12/2018) not yet submit to DOSH.

OBS: To record the accident investigation and corrective action in OSHC minute meeting quarterly interval to trace the status of compliance for the corrective action.

Criterion 5 Employment conditions Indicator Requirement Findings 4.4.5.1 The management shall establish policy on good social practices regarding human rights in respect of industrial harmony. The policy shall be signed by the top management and effectively communicated to the employees

Sighted management establish the Human Right Policy dated 01/04/2018 approved by MD.

Communication of the policy sighted done by display at the notice board, briefing on policy to the stakeholder during the stakeholder meeting.

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4.4.5.2 The management shall not engage in or support discriminatory practices and shall provide equal opportunity and treatment regardless of race, colour, sex, religion, political opinion, nationality, social origin or any other distinguishing characteristics.

Refer to Human Right Policy and mentioned no discrimination on race, gender, nationality, religion and political view. The company seek to maintain a workplace free from discrimination.

4.4.5.3 Management shall ensure that employees’ pay and conditions meet legal or industry minimum standards and as per agreed Collective Agreements. The living wage should be sufficient to meet basic needs and provide some discretionary income based on minimum wage.

Verified the records of payment to workers; 1. Mohamad Homaun – Emp. No: F158 – Gross Salary for Nov 2018 = RM 2,240.46 2. Zaw Lin - Emp. No: F139 – Gross Salary for Nov 2018 = RM1,725.54 3. Mohd Hazrol Bin Abu Hanafiah – Emp. No: L024 – Gross Salary for Nov 2018 = RM2,168.70

Sighted the contract agreement for:- 1. Mohamad Homaun (Bangladesh Worker) 2. Zaw LIn (Myanmar Worker) 3. Mohd Hazrol Bin Abu Hanafiah (Local Worker)

All the agreement is under UNION Koperasi MAPA/NUPW and employment act 1955.

Sighted the daily rate: 1. RM44.038/day 2. RM43.615/day 3. RM50.038/day

Noted, increment letter to comply with minimum wages order 2018 has issues to employees with income below than rm1100 and implement on the minimum wages rate start on Jan 2018 salary. 4.4.5.4 Management should ensure employees of contractors are paid based on legal or industry minimum standards according to the employment contract agreed between the contractor and his employee

Refer to auditee, the contractor has aware and explained on the requirement as employer to pay based on legal or industry minimum standards to employees. Verified during stakeholder consultation with contractor, they has understand and implement the minimum wages to his employees.

OFI: To kept the contractor's employee payslip as record and references. 4.4.5.5 The management shall establish records that provide an accurate overview of the employees (including seasonal workers and subcontracted workers on the premises). The records should contain full names, gender, date of birth, date of entry, a job description, wage and the period of employment.

Verified the list of the employee data from local & foreign workers particular record book dated November 2018 with total 121 employees in eps system.

Sighted the data contain name, gender, status, date of birth, date of entry, designation, etc.

4.4.5.6 All employees shall be provided with fair contracts that have been signed by both employee and employer. A copy of employment contract is available for each and every employee indicated in the employment records

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As per 4.4.5.4

4.4.5.7 The management shall establish a time recording system that makes working hours and overtime transparent for both employees and employer.

Time records of employee is based on the thumb print system (eps system). Verified the salary calculation as per 4.4.5.3 and found accurate with the system calculation.

Refer to Overtime Requisition From for Nov 2018: 1. Mohamad Homaun (Bangladesh Worker) - 62hour (normal day - 1.5), 21 hour (rest day - 2.0), 2. Zaw LIn (Myanmar Worker) 3. Mohd Hazrol Bin Abu Hanafiah (Local Worker)

4.4.5.8 The working hours and breaks of each individual employee as indicated in the time records shall comply with legal regulations and collective agreements. Overtime shall be mutually agreed and shall always be compensated at the rate applicable and shall meet the applicable legal requirement

Morning Shift : 8am - 5pm, 1 - 2pm rest Night Shift : 6pm - 3am, 11 - 12am rest All the payment is follow the legal regulations and collective agreements.

4.4.5.9 Wages and overtime payment documented on the pay slips shall be in line with legal regulations and collective agreements

Verified the pay slip and check roll book, working time records and found the calculation is sufficient as per legal regulation. 4.4.5.10 Other forms of social benefits should be offered by the employer to employees, their families or the community such as incentives for good work performance, bonus payment, professional development, medical care and health provisions

Refer to employment contract as below: 1. Hostel provided free by employer. 2. Employer will provide the healthcare facility and provide medical benefit to the employee 3. Foreign Workers Compensation Scheme Policy provided by the Employer Deceased in the event of any employee dies in the cause of his employment

4.4.5.11 In cases where on-site living quarters are provided, these quarters shall be habitable and have basic amenities and facilities.

Site visit at the worker’s quarters and found all the basic amenities and facilities was provided sufficiently such as electricity and fresh water. Noted the employee quarters for mill and estate are located in same area. Mill quarters managed by mill itself.

Monthly worker's housing inspection checklist conducted monthly on December, November, October & etc by assistant supervisor. Item inspected such toilet, electricity, water, drain, rubbish, lighting, cleanliness. 4.4.5.12 The management shall establish a policy and provide guidelines to prevent all forms of sexual harassment and violence at the workplace

The management has establish the Sexual Harassment Policy dated 01/04/2018. Sighted Procedure of Employment #SOP-04 dated 01/04/2018 mention on the sexual harassment.

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4.4.5.13 The management shall respect the right of all employees to form or join trade union and allow workers own representative(s) to facilitate collective bargaining in accordance with applicable laws and regulations. Employees shall be given the freedom to join a trade union relevant to the industry or to organize themselves for collective bargaining. Employees shall have the right to organize and negotiate their work conditions. Employees exercising this right should not be discriminated against or suffer repercussions.

Company shown the respect the right of employees to join the trade union as per Social & Human Rights Policy dated 01/04/2018.

Verified, this mill's employees were not joined any union.

4.4.5.14 Children and young persons shall not be employed or exploited. The minimum age shall comply with local, state and national legislation. Work by children and young persons is acceptable on family farms, under adult supervision, and when not interfering with their education. They shall not be exposed to hazardous working conditions.

Verified the Employee name list, there is no young person and child worker was hired.

Criterion 6 Training and competency Indicator Requirement Findings

4.5.6.1 All employees, contractors and relevant smallholders are appropriately trained. A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training shall be kept.

Verified training conducted such Fire drill training on 16/07/2018, Internal audit MSPO on 20 & 24/09/2018, Legal requirement training on 20/09/2018 & etc. Training attendance, training material, training certificate of attendance were available in record.

4.5.6.2 Training needs of individual employees shall be identified prior to the planning and implementation of the training programmes in order to provide the specific skill and competency required to all employees based on their job description.

Refer to doc MSPO Training Syllabus, the need of training were identified for personnel such Non-operational, operational, internal auditor, forklift handler, ERT, MSPO team.

4.4.6.3 A continuous training programme should be planned and implemented to ensure that all employees are well trained in their job function and responsibility, in accordance to the documented training procedure.

Verified the Training Plan for Year 2018 and listed 11 planned training such as MSPO Policy, objectives, internal audit training, scheduled waste handling, 5s housekeeping training, fire drill training & etc.

P5 Environment, natural resources, biodiversity and ecosystem services Criterion 1 Environmental management plan Indicator Requirement Findings

4.5.1.1 An environmental policy and management plan in compliance with the relevant country and state environmental laws shall be developed, effectively communicated and implemented.

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Sighted management establish Environmental Policy dated 01/04/2018 and approved by the Managing Director, Beh Hang Tong. The policy mention on the management commitment on sustain the environmental issues as first priority to tackle thru environmental management and decision making committee in the pursuit of business activities. The management had committed to protect the environment, including prevention of pollution and shall fulfill compliance obligations as part of continual improvement in their company.

Communication of the policy sighted done by display at the notice board.

CAR: 1. During site visit, the containment of CPO skid tank have the flow pipe without any stop valve. 2. Containment for chemical storage at mini lab not available

4.5.1.2 The environmental management plan shall cover the following: a) An environmental policy and objectives. b) The aspects and impacts analysis of all operations

a) Environmental management plan dated 01/04/2018 available with 5 Objective to environmental issues. The plan Objective. Sample as below: 1. Objective: Reduce water consumption by 5% yearly. Action plan: Monthly monitoring of Non-renewable energy consumption. But based on summary table show during document review. No evidence that management had monitor the achievement based on objective sighted. b) Arah Kawasan POM establish the Environmental Aspect Impact Assessment and evaluation for year 2018, dated of preparation 01/04/2018 by Noor Hidayah Bt. Abd. Wahab, Documentation Control total 7 Station process covered such jambatan timbang, pejabat, pengedan BKS, Ramp BKS & etc. The assessment covered the process, activities, aspect, weightage, quantity, impact evaluation, legal, Evaluation of impact, Operation condition, criteria (frequency, impact, duration, and preservation action), total marks, and potential of compliance.

The sample as below: 1) Process – Effluent Treatment Plant Activities – Collecting Sample from Effluent Ponds (Water), Impact evaluation - Health Hazard, Air Pollution. Assessment - 12. Significant Level - 2

2) Process - Weighbridge Station/Office Admin Activities - Pantry ( Water), Impact evaluation - Water pollution, Assessment - 18, Significant Level - 2

OBS: Sighted that the Environment Management is not available, but the management had split the management as (water management plan, waste management plan). 4.5.1.3 An environmental improvement plan to mitigate the negative impacts and to promote the positive ones, shall be developed, effectively implemented and monitored.

Document as indicator 4.5.1.2. 4.5.1.4 A programme to promote the positive impacts should be included in the continual improvement plan As per 4.5.1.3

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4.5.1.5 An awareness and training programme shall be established and implemented to ensure that all employees understand the policy and objectives of the environmental management and improvement plans and are working towards achieving the objectives. Refer to the Training Record and sighted sufficient training related to environment and sample as below: a) Environmental Objective Action Plan Training dated 23/04/2018 b) Environmental Aspect & Impacts Identification Training dated on 14.3.2018 c) Environmental Management Program & Chemical Handling training dated 23/04/2018. 4.5.1.6 Management shall organize regular meetings with employees where their concerns about environmental quality are discussed

Noted minute meeting of "Jawatankuasa Pengurusan Alam Sekitar 02/2018" dated 05/09/2018 attended by manager, assistant manager, technical department, s.w. coordinator & etc. The meeting of environment discuss issues such scheduled waste, 3R program, zero burning inspection & etc and the PIC of each issues discussed.

Criterion 2 Efficiency of energy use and use of renewable energy Indicator Requirement Findings

4.5.2.1 Consumption of non-renewable energy shall be optimized and closely monitored by establishing baseline values and trends shall be observed within an appropriate timeframe. There should be a plan to assess the usage of non-renewable energy including fossil fuel, electricity and energy efficiency in the operations over the base period. 1) Arah Kawasan POM monitored the Diesel usage monthly. The quantity:- - Nov - 11,445L - Oct - 15,905L - Sept - 11,341

2) Arah Kawasan POM monitored the electrical usage by Arah Kawasan POM for year 2018. The quantity:- - Nov - 61,390 kWh - Oct - 55,860 kWh - Sept - 17,859 kWh

OBS The management had not tabulated the monitoring based on objective of MSPO to monitor the non-renewable consumption.

4.5.2.2 Palm oil millers shall estimate the direct usage of non-renewable energy for their operations, including fossil fuel, and electricity to determine energy efficiency of their operations.

Refer to auditee, the efficiency benchmarked are based on the previous average usage.

OBS: Record of the efficiency for year 2017 are not yet used to benchmarked for current consumption monitoring 4.5.2.3 The use of renewable energy should be applied where possible

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Noted Arah Kawasan POM generated the electricity by steam turbine for process in Factory. While for electrical supply, the management using TNB power supply.

The TNB generated as below: Electric by steam turbine: November 2018 - 61,390 kWh October 2018 - 55,860 kWh

Electric by turbine: September 2018 - 5196 kWh August 2018 - 5074 kWh. Criterion 3 Waste management and disposal Indicator Requirement Findings 4.5.3.1 All waste products and sources of pollution shall be identified and documented.

Arah Kawasan POM listed all the SW generated as per List Of Waste Produced By Arah Kawasan POM and listed the SW such as SW 305, SW 306, SW 410, SW429 and domestic waste such as rubbish, Industrial waste such as POME, EFB, scrap metal. The SW been registered online into the eswiss.doe.gov.my. with File Reference No. AS(B)K9KLM)31/152/000/007

4.5.3.2 A waste management plan to avoid or reduce pollution shall be developed and implemented. The waste management plan should include measures for: a) Identifying and monitoring sources of waste and pollution. b) Improving the efficiency of resource utilization and recycling of potential wastes as nutrients or converting them into value-added by-products.

Arah Kawasan POM establish the Waste Management Plan dated 02/05/2018, the detail of waste management plan such type of waste, S.W. code, item description, location, action to be taken, PIC.

Sample taken as below; a) Scheduled - SW 305, SW 306, SW 410 & SW429. location: Workshop/Lab Action to be taken - collect & record amount of relevant scheduled waste, used for storage of waste oil, etc. PIC: Heah Chin Chai.

b) Domestic waste - rubbish Location: worker housing, office, workshop, store, Action to be taken: Collect recyclable materials (paper, glass, plastic), execute awareness of recycling program. PIC: Heah Chin Chai

Verified waste management plan date 02/05/2018, type of waste identified are waste of Scheduled waste (Spent lubricant, spent hydraulic, spent oil filter) Domestic waste (rubbish), Industrial waste (re-use empty chemical container).

OBS: Scrap iron not included in the Waste Management Plan, as during site visit seen the scrap iron scattered/collected at few different area (next to ramp & next to maintenance station).

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4.5.3.3 The management shall establish Standard Operating Procedure for handling of used chemicals that are classified under Environment Quality Regulations (Scheduled Waste) 2005, Environmental Quality Act, 1974 to ensure proper and safe handling, storage and disposal.

Arah Kawasan POM has established scheduled waste procedure #27.0, ver1.0 dated 01/04/2018.

Sighted scheduled waste inventory are updated monthly basis in eswis, sample; November 2018 SW305 - Balance 0.048MT SW306 - Balance 0.000MT SW410 - Balance 0.036MT

Disposal record: i) 04/12/2018 - Consignment Note for Chemicals that are discarded or off-specification (SW429) #2018120411T5G3R1, transporter - Alam Aliran Kualiti (M) Sdn. Bhd., receiver - Alam Aliran Kualiti (M) Sdn. Bhd., Quantity disposed - 0.2290MT

CAR Lack of Scheduled waste management - site visit at scheduled waste store, - The waste not label properly (Used filter and spent engine oil) & laboratory of spent IPA/hexane - Seen empty chemical container used inside toilet of ramp office, housing area. 4.5.3.4 Domestic waste should be disposed as such to minimize the risk of contamination of the environment and watercourses.

Domestic waste will be manage by Arah Kawasan and the waste will be taken and dispose on every 2 days to dumping into landfill. OBS: During site visit, seen a domestic waste nearby of ramp office Criterion 4 Reduction of pollution and emission Indicator Requirement Findings

4.5..4.1 An assessment of all polluting activities shall be conducted, including greenhouse gas emissions, scheduled wastes, solid wastes and effluent

Noted "Buku rekod effluent", the record of the parameter of each pond been measured daily basis by lab assistant.

4.5.4.2 An action plan to reduce identified significant pollutants and emissions shall be established and implemented

As per 4.5.3.2

4.5.4.3 Palm oil mill effluent (POME) shall be treated to ensure compliance with standards as stipulated in the relevant Environmental Quality (Prescribed Premises) (Crude Palm Oil) Regulations 1977. POME discharge limits and method should be in accordance with the respective state and national policies and regulations. Refer to Jadual Pematuhan "Jadual Pematuhan DOE" under "syarat 2.8" refrerene no ; AS(B)K31/152/000/007 JLD.11 - License no : JPKKS/004562/2018-2019 validity from 1/7/2018 until 30/6/2019. Criterion 5 Natural water resources Indicator Requirement Findings

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4.5.7.1 The management shall establish a water management plan to maintain the quality and availability of natural water resources (surface and ground water). The water management plan may include: The water source came from river from nearby estate. This water is used for mill and boiler. Sighted the records of Water treatment Usage for the year 2018. The last record shown for the October usage is 17,818m3.

Arah Kawasan POM establish the comprehensive assessment report of water usage. The usage of water were used for milling processing

Sighted that the Arah Kawasan POM had a permit of License " Lesen Melencong atau Mengabstrak Air Sungai" - section 7 under Enakmen Air (Johor) 1921 -No license : 08/A/KT/032

a) Assessment of water usage and sources of supply.

Arah Kawasan POM has record of water consumption and has update monthly basis, sample as below:

a) November 2018 - 44,905m3 b) October 2018 - 46,535m3 c) September 2018 - 50,648m3

b) Monitoring of outgoing water which may have negative impacts into the natural waterways at a frequency that reflects the estate’s current activities

Arah Kawasan POM do the assessment of water sampling to check the quality of water at the point of natural river, river before and river after as per "Jadual Pematuhan DOE" under "syarat 2.8" refrerene no ; AS(B)K31/152/000/007 JLD.11 - License no : JPKKS/004562/2018-2019 validity from 1/7/2018 until 30/6/2019. The water sampling test report were accepted by DOE. No issue of environmental were comment by DOE. Latest result of Water Analysis was conducted by BioChem Laboratories Sdn. Bhd. (MS/ISO/IED 17025, Testing SAMM No. 020) for Arah Kawasan dated on 22.11.2018, with below parameter:- pH @ 25% : 8.5 BOD @ 30°C for 3 days (mg/L) : 5 Suspended Solid (mg/L) : 3 Oil & Grease (mg/L) : <1.0 Ammoniacal Nitrogen (mg/L) : <1 Total Kjeldhal Nitrogen (mg/L) : 3 c) Ways to optimize water and nutrient usage to reduce wastage (e.g. having in place systems for re-use, night application, maintenance of equipment to reduce leakage, collection of rainwater, etc.). Sighted in the continual improvement plan for environment had mention element in ways of optimize water nutrient usage by planning on as per below : i. Water usage for toilet tapping from nearest river (Sg. Tengas). Sighted and ‘Standard Operating Procedure – Water Consumption Management’ under Doc. No. WI-02 (Rev. 00) Eff Date: 01.01.2018 4.5.5.2 Where open discharge of POME into water course is practiced, mills should undertake to gradually phase it out in accordance to the applicable state or national regulations.

Verified that the POME were discharge through Desluging. This were verified through "Jadual pematuhan DOE" reference no; AS(B)K 31/152/000/007 JLD 11 - License no : JPKKS/004533/2018-2019 validity from 1/7/2018 until 30/6/2019. P6: Best Practices

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Criterion 1 Mill management Indicator Requirement Findings

4.6.1.1 Standard operating procedures shall be appropriately documented and consistently implemented and monitored.

Sighted that company had established Basic Operation Guidelines with total 12 process such weighbridge, loading ramp, sterilizer & etc.

4.6.1.2 All palm oil mills shall implement best practices.

Verified that the daily production were recorded inside the daily operation report : - Sighted daily report dated on 30/11/2018 shown the total process 1100mt with total hours process 16hours. Oil production 209mt OER: 19 KER : 5.4 FFA: 4.48%

Verified the practices in the operation are as per documented SOP. Sighted the POM Alf were compliance on MPOB Code of practices.

During site visit at ramp station - the ramp assessor were qualified grader certified by MPOB. Sighted the understanding of quality of FFB category (unripe, underripe, ripe, overripe, rotten) were well verse as according to "Manual Penggreddan buah kelapa Sawit MPOB edisi 3 (2015).

OBS: 1. During site visit, sighted FFB with longer stalk (>5cm) inside the hopper.

Criterion 2 Economic and financial viability plan Indicator Requirement Findings

4.6.2.1 A documented business or management plan shall be established to demonstrate attention to economic and financial viability through long-term management planning.

Verified the Business Management Plan of Arah Kawasan Sdn Bhd year 2019 budget as below: 1. Projected cash flow for year 2018 and year 2019, with nett cash flow rm3,581,000.00 for year 2018 and rm5,338,700.00 for year 2019 2 Projected profit and loss account for year 2018 and year 2019 3. Projected balance sheet for year 2018 and year 2019 with total liabilities RM89,278,000.00 for year 2018 and rm90,228,000.00 for year 2019. 4. Mill expenditure analysis for profit and Loss Account from 01/01/2018 - 31/10/2018 Criterion 3 Transparent and fair price dealing Indicator Requirement Findings

6.6.3.1 Pricing mechanisms for the products and other services shall be documented and effectively implemented.

The pricing mechanisms will be based on the MPOB Monthly Prices and the prices will be announce by issue the MEMO by monthly basis. Noted the prices will follow MPOB rate. Verified the price for month of November as per memo "MPOB Press Release dated 03/12/2018" is RM1820.00 (Crude Palm Oil Regional North)

6.6.3.2 All contracts shall be fair, legal and transparent and agreed payments shall be made in a timely manner

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Noted the mill has based on Purchase Order #6523 dated 13/12/2018 for contractor Repair Tube Vicker Hoskins to company Indra Teknik Sdn Bhd with total rm770,000.00 with duration of work estimation 35 days.

Noted the payment voucher #MB1812-100 for 35% downpayment as agreed by both parties, rm269,500.00 paid on 14/12/2018. Criterion 4 Contractor Indicator 1 Requirement Findings 4.6.4.1 In case of the engagement of contractors, they shall be made to understand the MSPO

As to date, the briefing regarding the MSPO was done during the Stakeholder Meeting among the contractors as per Borang Komitmen MSPO to Indra Teknik Sdn Bhd (Mr Chong Wai Hoong) on 09/10/2018. 4.6.4.2 The management shall provide evidence of agreed contracts with the contractor.

Noted the payment voucher #MB1812-100 for 35% downpayment as agreed by both parties, rm269,500.00 paid on 14/12/2018. 4.6.4.3 The management shall accept MSPO approved auditors to verify assessments through a physical inspection if required Not applicable

Observation for Improvement No Details 01 4.5.3.3 CAR Lack of Scheduled waste management - site visit at scheduled waste store, - The waste not label properly (Used filter and spent engine oil) & laboratory of spent IPA/hexane - Seen empty chemical container used inside toilet of ramp office, housing area.

02 4.4.4.2 (b) CAR Refer to Initial Noise Exposure Monitoring Report on 01/10/2007: 1. Hearing protection safety sign no available at production area exposed with above 85db (Power house, boiler house & kernel station/fiacre cyclone section.

03 2. During site visit and verified with auditee, the additional of equipment such sterilizer and boiler after year 2007, where refer to FMA (Noise Exposure) Reg 12. Additional monitoring. Whenever there has been a production, process, equipment, control measures or personnel change in the factory, the occupier shall conduct additional monitoring within six months from the date of such change or changes.

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04 4.4.4.2 (d) CAR: Verified during site visit and refer to record PPE distribution, the Lab assistant were not provided with respirator as per CHRA recommend – respirator mask with multipurpose cartridge, current site visit found only surgical mask.

05 4.4.4.2 (j) CAR: Accident case of En Sulahudin Bin Omar on 27/11/2018 with Medical leave 6 days (28/11-29/11/28, 30/11-01/12/2018, 03/12-04/12/2018) not yet submit to DOSH.

06 4.5.1.1 CAR: 1. During site visit, the containment of CPO skid tank have the flow pipe without any stop valve. 2. Containment for chemical storage at mini lab not available

07 4.4.2.4 Internal and external stakeholder been informed on the procedure of complaint though previous briefing, however, villagers surround not yet informed. (OBS)

08 4.4.2.5 Grievance log book not yet updated for the record keeping as per procedure required (OBS)

09 4.4.4.2 (b) OBS: To include the control measure in HIRARC for working at height for CPO dispatch process.

10 4.4.4.2 (e) OBS: Lack of precaution sign at oxy-acetylene cylinder storage at maintenance station and mini lab.

11 OBS: To record the accident investigation and corrective action in OSHC minute meeting quarterly interval to trace the status of compliance for the corrective action.

12 4.5.3.2 OBS: Scrap iron not included in the Waste Management Plan, as during site visit seen the scrap iron scattered/collected at few different area (next to ramp & next to maintainance station).

13 4.5.3.4 OBS: During site visit, seen a domestic waste nearby of ramp office

14 4.6.1.2 OBS: 1. During site visit, sighted FFB with longer stalk (>5cm) inside the hopper.

15 4.4.5.4

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OFI: To kept the contractor's employee payslip as record and references.

16 CAR: 4.3.1.1 Found that there is no evidence of prove that the management apply for Fire Certificate as under the regulation of Fire Service Act 1988 (Act 341). With under the Fire Services Designated Premises Order, 1998; Arah Kawasan Palm Oil Mill is listed under No.7, Seksyen 3, fire Services (Designated Premises) Order 1998 (Factories, flatted factories exceeding 7000 cubic meters, Special structures, palm oil mills, oil refinery, cement works and those with Hazardous processes.

17 OBS: 4.5.1.2 Sighted that the Environment Management is not available, but the management had split the management as (water management plan, waste management plan).

18 OBS 4.5.2.1 The management had not tabulated the monitoring based on objective of MSPO to monitor the non-renewable consumption

19 OBS 4.5.2.2 Record of the efficiency for year 2017 are not yet used to benchmarked for current consumption monitoring.

20 OFI: 4.3.1.4 Interview with Person Incharge for Legal and sighted the PIC was not well verse on the national legal requirement

During the assessment 05 nonconformities were identified.

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