Introduction By The Managing Member - Puma

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Vimal is a proud supplier of soccer kit to players and supporters of the South African PSL 14 On close inspection of our audit results, we have found that while we continue to excel in the Social aspects of Puma’s audits, we still have significant room for improvement in both the Environmental and Health & Safety areas. These findings are extremely helpful when comparing our own internal assumptions and conclusions about our performance with what we consider to be the ‘reality’ of our progress. Moreover, where we believe we should be classified as an ‘A’ supplier, we are prepared to accept that Puma rates us as a ‘B’ supplier, although with a reasonable level of further improvements to be addressed. Closer to our hearts, and almost as important as supporting global brands, Vimal has had the distinct pleasure of supplying garments to South African teams representing our country at major sporting events around the world, including: • Bafana Bafana replica kit for the 2008 African Nations Cup (Adidas) • South African team kit for the 2006 Commonwealth Games in Australia (Sedsports) • Springbok team kit for the 2003 Rugby World Cup (Nike) • South African team kit for the 1996 Olympics in Atlanta (Reebok) • Replica kit (Puma) for the 2008 Nations Cup teams from Angola, Botswana, Cameroon, Egypt, Ghana, Ivory Coast, Morocco, Mozambique, Namibia, Senegal and Tunisia Currently, Vimal is producing PSL team and replica kit for the following sporting sides: • Bloemfontein Celtic • Orlando Pirates • Ajax Cape Town • Santos (Cape Town) • Jomo Cosmos In the 2007 Calendar Year (CY), our primary client was once again Adidas, firmly representing over 70% of all orders delivered for the year. However, we noted a significant rise in interest and orders from our friends at TotalSport and Mr. Price, both of which are domestic South African retail chains.
Mr Price Reebok TotalSports Puma Adidas 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% January February Over the past three years we’ve noted a significant change in the orders we process and fill for our clients. While we are maintaining a relatively stable number of deliveries to Adidas, our orders to Puma have risen from less than 1% of our total production to nearly 16%. Meanwhile, we have seen a significant increase in the quanity of garments that are being produced for our South African clientelle, from less than 2% in 2005 to over 8% in 2007. Table 1: Distribution of Units (i.e., garments) to Our Key Clients 2007 2006 2005 3 Years Adidas 696 599 73.5% 573 341 81.9% 694 656 92.4% 1 964 596 81.9% Puma 149 112 15.7% 55 530 7.9% 5 746 0.8% 210 388 8.8% Nike 0 0.0% 21 984 3.1% 38 404 5.1% 60 388 2.5% Mr. Price 53 562 5.7% 0 0.0% 0 0.0% 53 562 2.2% Reebok 23 178 2.4% 29 365 4.2% 90 0.0% 52 633 2.2% TotalSport 25 122 2.7% 4 681 0.7% 0 0.0% 29 803 1.2% Sedgars 0 0.0% 2 413 0.3% 13 195 1.8% 15 608 0.7% Falstan 0 0.0% 11 579 1.7% 0 0.0% 11 579 0.5% Ass Ind 0 0.0% 1 042 0.1% 0 0.0% 1 042 0.0% Total 947 573 100.0% 699 935 100.0% 752 091 100.0% 2 399 599 100.0% Production efficiency improved over the second half of the 2007 calendar year because the team has now settled into our new facilities. There is still a problem with backlogs in dispatch, mostly because of absenteeism, particularly in summer, but we are confident that 2008 will be marked with a measured improvement reduction in absenteeism. Thankfully, Vimal has been relatively immune to a common plague among garment manufacturers: product returns and order rejections. While we are aware of a few batches of products that were produced in a manner that was deemed inconsistent with client expectations, we have not needed to endure a situation where our staff allowed these products to be shipped to clients. As such, we continue to be proud of our record of ‘zero rejections’, with only a small handful of returned items. 15 March April May June July August September October November December CY 2007
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 10 and 11: OUR MOST MATERIAL ISSUES At Vimal,
Page 12 and 13: Theft and unethical ISSUE PERFORMAN
Page 14 and 15: ASSEMBLY AND MATERIAL PREP Flat Mac
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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