Introduction By The Managing Member - Puma

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OUR MOST MATERIAL ISSUES At Vimal, we define “material” as those issues that can, or in fact do, have a significant impact on our ability to remain competitive within the markets we operate. Given the nature, structure and operating environment of our company, we tend to regard production, product safety and labour issues as our ‘Most Material’, while environmental issues have, until recently, been of limited concern to us. Ultimately, we believe that the long-term viability of our business rests on our ability to manage the following issues, as identified by our management team through their daily interaction with key customers, suppliers and employees: Production efficiency, delivering on-time Compliance to the National Bargaining Council (Clothing ISSUE PERFORMANCE TARGETS Industry) Customer complaints about late deliveries are rare but performance can still improve. In 2007 no penalties were levied by any clients. Currently working on the installation of a new IT system to capture production data to improve efficiency. Vimal is certified as a ‘Compliant Member’ of the NBC. As a certificated member, Vimal has been able to prove that we • pay correct normal and overtime wages • pay appropriate end of year bonuses • pay for appropriate benefits • adhere to appropriate guidelines on normal and overtime hours. To date, no unresolved concerns or complaints are outstanding with the NBC, and no complaints have ever led to CCMA arbitra- tion. New technology The implementation of new technology within DTI Codes of Good Practice Vimal has increased the output per worker, particularly for specialised tasks such as pocket affixation. Quality and sophistication of products has increased due to the presence of higher value-add machinery, ultimately leading to an increase in orders that Vimal otherwise would not be able to fill. The Department of Trade and Industry (DTI) Codes of Good Practice are a set of govern- ment principles in support of Broad Based Black Economic Empowerment (BBBEE) in South Africa. The Codes come into full effect at the end of February 2008, and at the time of writing this Report, we are in the process of undergoing a review of our status accord- ing to these Codes. 8 • Complete the integration of IT systems for automatic order generation with Adidas • Engage other key clients (Puma, TotalSports) to discuss similar possibilities. • Maintain certificated compliance to the NBC • Ensure that no employee is treated in a manner that is inconsistent with the agreements established by the NBC • Ensure that all employees work towards targets leading to the payment of bonuses • Complete the installation and conversion to automated cutting machines. • Complete the installation and development of skills to operate the new automated cuff, collar and waistband knitting machines. • Investigate possibilities to procure an automated marking system to increase accuracy and efficiency, and to reduce material wastage. • Vimal is committed to completing a full assessment of our Codes status within the first half of 2008, and we will discuss this assessment in our 2008 Sustainability Report.
Securing adequate orders to ensure the long-term financial ISSUE PERFORMANCE TARGETS viability of the company Vimal is proud of our record of never having cause to commit employees to ’short time’, or to retrench employees due to lack of orders. The quantity of 2007 orders was sufficient to merit the increase in staff complement by 79 employees. Welfare of our team Vimal is committed to ensuring a policy of ‘zero short shifts’, where all employees are guaranteed full weekly wages. Annual performance and zero sick leave bonuses are paid out to workers in exchange for their dedication to performance excellence. Long service awards are given to employees who complete 5 years (or more) service. School fees are payable to employees who meet specific performance criteria, thus re- ducing their financial concerns. All employees are allowed to take the day off on the first day of the school year, to assist their children with school enrolment. Workplace safety Although appropriate safety equipment is used, 3 employees sustained injuries in the cutting room. An Injury on Duty (IOD) Register is main- tained within the factory, and at our off-site assembly plant in Umzinto (Yash Clothing). Supervisors conduct daily inspections to manage risks, including ensuring that needle guards are not removed and that work spac- es are free from obstructions. Inspections of potential workplace hazards are conducted on a bi-weekly basis or as/ when necessary. 6 employees are trained by St. John’s Ambu- lance in First Aid every 3-years. Fire fighting training has been conducted by Chubb Fire. All fire fighting equipment is tested on a monthly basis. Evacuation drills are conducted on a 6-monthly basis. 9 • Maintain current clients, and ensure that growth in new orders does not affect our ability to meet existing performance expectations. • Ensure that increased capacity due to new and more efficient technology is met by increased order taking. • Maintain a zero ‘short shift’ policy within the company • Ensure a zero redundancy policy • Ensure that wages are paid in-full, on time and, where possible, in the presence of performance and special gratitude awards • Implement our ‘Qualifying for 2010’ bonus scheme for awarding employees who reduce their sick leave. • Complete the installation and conversion to automated cutting machines, which is expected to reduce our exposure to cutting injuries. • Continue to maintain an up-to-date IOD register, and to discuss to discuss ‘near misses’ when they are raised. • Continue to conduct regular workplace hazard inspections. • Continue to adhere to fire prevention, evacuation and fighting programme. • Avoid all injuries on duty to reach our target of ‘Zero Harm’
Page 2 and 3: CONTENTS PAGE Introduction by the M
Page 4 and 5: Our operations exist only in South
Page 6 and 7: Start (20 employees) ‘81 ‘87 Th
Page 8 and 9: In order to ensure that the same pr
Page 12 and 13: Theft and unethical ISSUE PERFORMAN
Page 14 and 15: ASSEMBLY AND MATERIAL PREP Flat Mac
Page 16 and 17: Vimal is a proud supplier of soccer
Page 18 and 19: THE VIMAL TEAM At the heart of any
Page 20 and 21: Since 1988, Vimal has recognised th
Page 22 and 23: What our employees have told us In
Page 24 and 25: 6 5 4 3 2 1 0 2003 2004 Injuries on
Page 26 and 27: Vimal’s parking lot could have be
Page 28 and 29: 3. Non-hazard- ous waste 3. Hazardo
Page 30 and 31: STAKEHOLDER ENGAGEMENT Until recent
Page 32 and 33: - Collecting reasonably large piece
Page 34 and 35: VISION & STRATEGY ECONOMIC SOCIAL S
Page 36 and 37: • A review of the approach of man

Introduction By The Managing Member - Puma

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