Sankina Oil Mills Sdn. Bhd. (Takon Production Unit) 50450538 · DQS Certification (M) Sdn Bhd...

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DQS Certification (M) Sdn Bhd (689316-X) Suite 43-4 Setia Avenue, Jalan Setia Prima S U13/S, Setia Alam Seksyen U13, 40170 Shah Alam, Selangor, Malaysia. Tel: +603-3342 3259 (Hunting Line) - Fax: +603-3358 3299 MSPO CERTIFICATION EXECUTIVE / PUBLIC SUMMARY REPORT Sankina Oil Mills Sdn. Bhd. (Takon Production Unit) 50450538 Unit 30-01, Mail Box 300, Menara Landmark, No.12, Jalan Ngee Heng, 80000 Johor Bahru, Johor, Malaysia Sankina Oil Mills Sdn. Bhd. (Takon Production Unit) 5 - 7/3/2019 Annual Surveillance Audit 4

Transcript of Sankina Oil Mills Sdn. Bhd. (Takon Production Unit) 50450538 · DQS Certification (M) Sdn Bhd...

Page 1: Sankina Oil Mills Sdn. Bhd. (Takon Production Unit) 50450538 · DQS Certification (M) Sdn Bhd (689316-X) Suite 43-4 Setia Avenue, Jalan Setia Prima S U13/S, Setia Alam Seksyen U13,

DQS Certification (M) Sdn Bhd (689316-X)

Suite 43-4 Setia Avenue, Jalan Setia Prima S U13/S, Setia Alam Seksyen U13, 40170 Shah Alam, Selangor, Malaysia. Tel: +603-3342 3259 (Hunting Line) - Fax: +603-3358 3299

MSPO CERTIFICATION

EXECUTIVE / PUBLIC SUMMARY

REPORT

Sankina Oil Mills Sdn. Bhd. (Takon Production

Unit)

50450538

Unit 30-01, Mail Box 300, Menara Landmark, No.12, Jalan Ngee Heng, 80000 Johor Bahru, Johor, Malaysia

Sankina Oil Mills Sdn. Bhd. (Takon Production Unit)

5 - 7/3/2019

Annual Surveillance Audit 4

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Contents

I. Public Summary Report ............................................................................ 4

1. Detail of Certification Assessment .................................................................................................................. 4

2. Details of Estates ............................................................................................................................................. 4

3. Assessment Process ......................................................................................................................................... 5

4. Summary of Audit Results ............................................................................................................................... 6

5. Audit findings ................................................................................................................................................... 6

II. Audit Report (Estate) .............................................................................. 7

1. Introduction ..................................................................................................................................................... 7 1.1 Objectives ................................................................................................................................................ 7 1.2 Scope of Certification ............................................................................................................................... 7

2. Audit Evaluation Process ................................................................................................................................. 8 2.1. Stage 1 ..................................................................................................................................................... 8 2.2. Annual Surveillance Audit 4 ..................................................................................................................... 8

3. Audit Information ............................................................................................................................................ 9 3.1. Contact Information ................................................................................................................................ 9 3.2. Audit Data .............................................................................................................................................. 10 3.3. Audit Result............................................................................................................................................ 12 3.4. Next Step ............................................................................................................................................... 13 3.5. Attached Documents ............................................................................................................................. 14

4. Audit Activities ............................................................................................................................................... 15 4.1. Stage 1 Audit .......................................................................................................................................... 15 4.2. Annual Surveillance Audit 4 ................................................................................................................... 15 4.3. Stakeholder’s Consultation .................................................................................................................... 18

5. Overview of Non-Conformity ......................................................................................................................... 19 5.1. Action Plan 1 .......................................................................................................................................... 19

MSPO Clause 5.3.2 stated that A waste management plan to avoid or reduce pollution shall be developed and

implemented. The waste management plan should include measures for: ............................................................ 19

c) Identifying and monitoring sources of waste and pollution ............................................................................... 19

d) Improving the efficiency of resource utilization and recycling of potential wastes as nutrients or

converting them into value-added by-products. Refer to Indicator as above. ........................................................ 19

Refer to Guideline on Wastes and Waste Products Identification and Disposal Plan for Estate and Mills (Doc.

Ref. No. F/007-06/2016) dated 22.12.2016 ............................................................................................................ 19

It was noted that there were action plans to control pollution, however, it was observed that it was not

effectively implemented as there was still evidence of diesel spillage on the ground at diesel storage tank and

used lubricant oil spillage from lubricant oil tray at general store which causes soil contamination and there was

no action taken to mitigate the pollution that has occurred. ................................................................................. 19

6. Conclusion / Recommendation ...................................................................................................................... 19

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6.1. Opportunity for Improvement ............................................................................................................... 19 6.2. Concern Area for Next Year Audit ......................................................................................................... 19 6.3. Certification Recommendation .............................................................................................................. 20

7. Appendixes ..................................................................................................................................................... 22 7.1. Appendix 1: Group Certification Member and Address ........................................................................ 22 7.2. Appendix 2: Main business/processes at location ................................................................................. 23 7.3. Appendix 3: MPOB Licenses................................................................................................................... 24 7.4. Appendix 4: Order and Assessment Process Data ................................................................................. 25 7.5. Appendix 5: Map .................................................................................................................................... 26

III. Audit Plan ............................................................................................ 27

VI. Audit cycle plan ................................................................................... 34

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I. Public Summary Report

1. Detail of Certification Assessment Date(s) of Audit: 5 to 7 March 2019

Type of Audit: Annual Surveillance Audit 4

Scope of MSPO certification: Oil Palm Plantations - Group certification

MSPO Standard: Malaysian Sustainable Palm Oil (MSPO) in accordance to the MS 2530-3:2013 (Part 3): General principles for oil palm plantations and organized smallholders.

2. Details of Estates Management Contact Person: Kiu Heng Seng, Loh Soh Seang

Contact No: 013-3113442 0198835393

Email Address: [email protected],

MPOB License No, Scope of activity, Expiry date:

503994302000 Company: Ideal Enterprise Sdn Bhd (Takon Estate)

Click or tap here to enter text.

Activity 1: Menjual dan Mengalih FFB

Expiry date: 31/7/2019

BR No: 50450320

(For Estate has more than 1 site, please refer to Appendix 1)

Total land area Ha: 2,842.12

Certified area Ha: 2842.12

Planted area Ha: 2335.08

Estate - Estimated tonnages of annual FFB

Production:

Takon Est - 1.7.16 to 30.6.17 - 12mths FFB output: 45,151.06 mt.vs 53,090 mt. budget 1.7.18 to 30.6.18 - 12mths FFB output: 42,338.57 mt.vs 52,138 mt. budget MMP 1 - 1.7.16 to 30.6.17- 12mths FFB output: 48,714.27 mt. vs 51,307 mt. budget 1.7.17 to 30.6.18 -12mths FFB output: 51,014.94 mt. vs 51,653 mt. budget

Mill - Estimated certified palm oil (CSPO) and certified palm kernel (CSPK) and processing capacity:

23372.75 mt CPO from certified estates only 5373.27 mt PK from certified estate only

Current valid certificate: ☒ Yes - MSPO-3:2013

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☐ No Date of Certification: 7/10/2015 Valid until: 6/10/2020

Other sustainability certifications: ☐ Yes (if “yes”, please specify)

☒ No Date of Certification: Valid until: Click or tap to enter a date.

3. Assessment Process Lead Auditor: Sahudin bin Sapiin

Qualification: Tertiary Working Experience: Minimum 10 years

Co-Auditor: Johari bin Mohd Nor Qualification: Tertiary Working Experience: Minimum 10 years

Co-Auditor: Borhan bin Abd Aziz Qualification: Tertiary Working Experience: Minimum 10 years

Observer: Noorainie binti Awang Anak Qualification: N/A Working Experience: N/A

Proposed dates of next audit: March 2020 Recertification Audit

Information on certified entities to be audited in five years cycle:

To be more focus on Good Agriculture Practice according to Principle 6, an effectiveness of safety and health and also environmental aspects.

Note: Auditors listed are meeting with competency criteria according to clause 3 (Table 1) of Competency

Requirement for Certification Body of Operating Oil Palm Management Certification Under the Malaysian

Sustainable Palm Oil (MSPO) Certification Scheme (ACB – OPMC 1, Issue 1, 01 August 2017) and clause 7

of ISO/IEC 17021 Requirements for The Accreditation of Certification Bodies.

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4. Summary of Audit Results Audit summary and recommendation for certification.

This report details the audit 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

In reference to MS 2530-3:2013, the audit team recommends to DQS:

☐ Issuance of the certificate

☐ Issuance of the certificate as soon as implementation of corrective actions has been

demonstrated

☐ Maintenance of the certificate

☒ Maintenance of the certificate as soon as implementation of corrective actions has been

demonstrated

☐ Not applicable, due to extraordinary type of report

5. Audit findings Type of Findings Total number Responses from entities

Major 0 (Nil) Official signed-off

Minor

1 (one) Official signed-off

OFI 3 (three) Acknowledged

Issues raised during stakeholder consultation

To have regular interaction & relationship with local stakeholders - Jabatan Pertanian.

Notified

Official Sign-off of the assessment findings:

Lead Auditor Signature:

Name: Sahudin bin Sapiin Date:15 March 2019

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II. Audit Report (Estate)

1. Introduction The Assessments conducted under agreement with Sankina Oil Mills Sdn. Bhd. (Takon

Production Unit) at their production units to certify that audited sites comply with the

requirements of Malaysian Sustainable Palm Oil (MSPO) in accordance to the MS 2530-

3:2013 (Part 3): General principles for oil palm plantations and organized smallholders.

1.1 Objectives The objectives of Annual Surveillance Audit 4 are as follows:

Surveillance audit

1. Changes to the certified client and its management system

2. Verification continuous management system implementation

3. Review of effectiveness of measures arising from the previous audit (if applicable)

4. Confirmation of fulfillment of certification requirements

5. Enquiries on aspects of certification (Complaints)

6. Review of any client's statements with respect to its certified operations (e.g. promotional

material, website, use of DQS logos and marks, use of the certificate)

7. Customer specific requirements

8. Others:

1.2 Scope of Certification This Audit Report details the evaluations of audit process and actual onsite audit activities of

Auditors to collect evidences basing on the requirement of seven principles in according to

Malaysian Sustainable Palm Oil (MSPO) in accordance to the MS 2530-3:2013 (Part 3):

General principles for oil palm plantations and organized smallholders.

Audit result determines compliance of audited sites in the overview of Non-Conformity and

Opportunity for Improvement. The outcomes have been described from 939-D2-MSPO Guidance

- Part 3 (estate) checklist of each sampled estates.

Recommendation of Certificate releases in consideration of relevant issues raised by stakeholder

groups to gauge level of compliance against the requirements of Malaysian Sustainable Palm

Oil (MSPO).

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2. Audit Evaluation Process 2.1. Stage 1

Stage 1 has been carried out to meet with the requirement of MSPO certification procedure. The

result shows that the organization has demonstrated their readiness to go for certification

2.2. Annual Surveillance Audit 4 This is an Annual Surveillance Audit 4 being planned and executed according to MS2530-3

standard reference.

Sankina Oil Mills Sdn. Bhd. (Takon Production Unit) is registered to function as group

management for certification where, the management system has been regulated within one unit

operation

This is Annual Surveillance Audit 4 audit after successful achievement of previous year

surveillance audit conducted 6th-9th March 2018 and organization has demonstrated their

maintenance of good sustainability management system.

Therefore, the summary report will describe the effectiveness of the Company’s implementation

and management of the principles and criteria of MSPO together with the documentation of the

company’s current management system.

The audit criteria are the certification standards as documented in the audit schedule as well as

the current management system documentation of the company.

Assessment has been executed at the site area with below GPS no (refer to Appendix 2)

Site(s) has been sampled and assessed as per inspection plan (refer to Appendix 1)

Notes: Sampling process was not applied due to site was registered for individual certification

Takon Palm Oil Mill is registered to function as group management where legal document, internal

audit, final management review has been retrieved from this unit. It was however, the process of

internal audit has been executed by Sustainability section based in headquarter at Johor Bahru,

Johor.

The member of group certification is listed as per appendix 1 of this document. Company

ownership has been demonstrated by official document released by the headquarter office. It

would be sufficient enough to demonstrate the relationship between holding group company

against operational unit.

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3. Audit Information 3.1. Contact Information Management Representative at site

Name : Kiu Heng Seng

Title: Estate Junior Manager

(Takon Estate)

Name: Click or tap here to enter text.

Title: HQ Management Representative

Name: Loh Soh Seang

Title: Estate Manager (Muis

Melewar Plantation 1)

Tel:+6013-3113442

Email:[email protected]

Tel:

Email:

Tel: +6019-8835393

Email:[email protected]

Audit team

Name: Sahudin bin Sapiin

Title: Audit Team Leader

Name: Johari bin Mohd

Nor

Title: Co-Auditor

Name: Borhan bin Abd

Aziz

Title: Co-Auditor

Name: Noorainie binti

Awang Anak

Title: Observer

Tel +603-3342 3259

Email:[email protected]

Tel +603-3342 3259

Email: [email protected]

Tel +603-3342 3259

Email:[email protected]

Tel +603-3342 3259

Email [email protected]

Contact person at DQS

Ili Arina Anuar

Tel +603-3342 3259

Email: [email protected]

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3.2. Audit Data Audited sites and sampling basis

Click or tap here to enter text. Ref. No: 50450320 Shifts: NA

Site 2: Muis Melewar Plantation 1, CL 105426784,

KM 45, Jalan Merotai, Merotai Besar, W.D.T.66,

91009 Tawau, Sabah

Ref. No: 50450320 Shifts: NA

Please refer to Appendix 3

Main business/processes at location, please specify: Oil Palm Plantations - Group certification

Please refer to Appendix 2

Estate size (ha) FFB Production (MT) Geo-coordinate data

Site name Certified

Area

Planted

area

12 month Production

(Financial Year)

North (N) East (E)

Click or tap here to enter text.

2842.12 2335.08 42,338.57 mt. 5° 05’

2.2344”

118° 48’ 49.9”

Muis Melewar Plantation 1

2320.00 2056.01 51,014.94 mt. 4° 27’

33.1848”

117° 50’

54.1068”

Sampling site in case of group certification is applied? ☒ Yes ☐No

Complete below section if ‘Yes’

Sampling process is meeting with Malaysian Sustainable Palm

Oil (MSPO) Certification System Procedure?

Site sample; S = r√n

S = sample size

n = number of group members

r = Risk factor (Low, medium or high)

☒ Yes ☒ No

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List of the site Audit Year 2019

No Site Name Y1 Y2 Y3 Y4 Y5

2015 2016 2017 2018 2019

1 Click or tap here to enter text. ☒ ☐ ☒ ☐ ☒

2 Muis Melewar Plantation 1 ☒ ☐ ☒ ☐ ☒

Please refer to Appendix 1

Date Agenda sent to Client:

Audit sequence: ☒ The audit schedule was maintained

☐ The audit schedule was altered as follows:

Meeting of audit objectives: ☒ The audit objectives have been met

☐ The following audit objectives could not be met:

Closing meeting: A closing meeting was performed with the organization’s management. Audit results were presented, explained and, where necessary, discussed. Findings and corrective action plans were agreed upon with the respective managers, as necessary.

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3.3. Audit Result

Current scope of registration: Oil Palm Plantations - Group certification

The top level of Management System manual and related management system documentation were reviewed and found to conform to all applicable standard requirements for documentation.

Current revision of manual:

☒ Yes ☐ No

Remarks:

In case of surveillance audit

Changes to the management system, its documentation, processes, or structures have been implemented.

☐ Yes ☒ No

Remarks: There is no changes to the management system.

In case of recertification audit

The overall system performance for the past certification cycle demonstrates the continued effectiveness of the system. (two criteria for evaluation)

☒ Yes, management review records

indicate achievement of established objectives and continuous improvement.

☒ Yes, trends of corrective action records

indicate effectiveness and continuous improvement.

☐ No, see remarks and corrective action

plan

Remarks: Refer to the internal audit report and all the report has been reviewed by top management.

Internal audits and corrective action records show continued conformance of the management system to selected standards.

☒ Yes ☐ No

Remarks: All findings had been closed within a week as per SOP.

In the past certification period, similar findings were identified repeatedly

☐ Yes ☒ No

Remarks:

In the past certification period, the certification was placed under probation or suspension or special audits were performed to address deficiencies

☐ Yes ☒ No

Remarks:

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The management system is effective and fulfil the requirements:

☐ Yes

☒ Only partly – see corrective action plans

☐ No – see corrective action plans

Number of findings: Major nonconformities: 0 (Nil)

Minor nonconformities: 1 (one)

On site verification of nonconforming needed via follow-up / special audits:

☐ Yes ☒ No

The agreed corrective actions of the previous audits are

☒ Effectively implemented

☐ Not effectively implemented

Remarks:

☐ This appraisal is not applicable.

The current registration certificate was reviewed and found to be accurate.

expiration date : 6/10/2020

☒ Yes ☐ No

Remarks:

The Registered Firm Mark & Accreditation Body Marks are being used appropriately.

☒ Yes ☐ No

Remarks:

Risk Assessment justification Current Risk justified;

☐ High ☐ Medium ☒ Low

Lead auditor justification

☐ High ☐ Medium ☒ Low

Remarks:

3.4. Next Step Activity of the customer

Corrective actions: ☐ Corrective actions not necessary

☒ Corrective actions will be implemented and reviewed

for effectiveness as agreed by 6/4/2019.

Opportunities for Improvement: Identified improvement potential will be evaluated internally and incorporated into the continual improvement process if deemed beneficial.

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Nonconformities, identified during an audit, shall be closed with evidence of effectiveness within

defined time lines. Otherwise, certificates may be put on hold or be withdrawn.

Activity of DQS

Type of the next assessment: MS 2530-3:2013 ☐ ☒

Advancement / Surveillance

Re-certification

Deadline of the next assessment: By March 2020

Next assessment data: (non-binding estimate of person days)

Planned date for next assessment: March 2020 (week or month, if appropriate)

For __4___person-day(s)

By ___2___auditor(s)

Main emphasis will be on the following subjects:

As per MSPO audit checklist

Customer requests: ☐ Information on

☐ Quotation for

☐ Telephone call from Customer Service Representative

Additional remarks:

3.5. Attached Documents

☒ Action Plans (corrective action requests) Number: 1

For DQS-internal use only:

☒ Basic Data

☒ Verified draft or current certificates

☒ Audit Schedule

☒ General Principles for Oil Palm Plantation

Audit Checklist

☒ Participant List(s) – opening and closing

☐ Further standard specific documents [if applicable]

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☒ Stakeholder Consultation Report

☐ Others

4. Audit Activities 4.1. Stage 1 Audit Stage 1 has been carried out to meet with the requirement of MSPO certification procedure.

The result shows that the organization has demonstrated their readiness to go for certification

4.2. Annual Surveillance Audit 4 Surveillance audit was conducted on 5 to 7 March 2019 with total 5.0 man-days was allocated

according to MSPO Certification Procedure.

In summary, we have evaluated your management system as follows:

Annual Surveillance Audit 4

Malaysian Sustainable Palm Oil (MSPO) Principle Principle 1

Management Commitment & Responsibility

A policy for the implementation of MSPO has been established by the top management of and emphasized on the commitment to continual improvement. Internal audit has been conducted timely as usual on annual basis with records of all the findings.These findings were closed in formatted forms showing the strong and weak points with certain potential areas for further improvement had been planned. Takon Estate and Muis Melewar Plantation 1 were audited internally following the latest Guideline for Internal Auditing and Management Review of the Sustainability and Supply Chain System (Doc.Ref.No T/001-03/2018). The Internal audit was well documented with Findings, Root Cause and remedial actions (corrective actions). Reception of report on 25/6/2018 and Reply has been done within the approve standard of 1 week. Internal audit report was made available to the management for their review. The continuous Improvement plan has been set and established by the estates focusing on the social and environmental aspects and that the implementations of the plan in ongoing as the weekly inspection of worker quarters, safety work condition in spraying of chemicals, manuring and FFB harvesting, handling of chemicals and diesel, management of domestic waste and its recycling, etc.

Principle 2

Transparency

The Standard of Operating Procedure on Consultation for Employees & other Stakeholders has been established. Representatives have been appointed to be responsible. The estate Stakeholders List is available and all records of consultation, communication and actions were updated and maintained. Takon Estate has established the guideline on traceability of harvested FFB whereby the inspection processes were done by Traceability Officer using the Traceability Checklist. At the same time, the FFB ripeness inspection was monitored based on "Harvesting In Field Grading" which was carried out on daily basis. The Daily Internal Transport and External Transport book was available where the recording of the driver's name,

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time (in & out), block no., total bunches, gross, tare & net weight and comparison of the FFB weight between the estate's weighbridge with the mill's weighbridge were recorded. The Daily FFB Book Report was also well maintained.

Principle 3 Compliance to legal

requirement

The Standard OperatingProcedure on Mechanism to trace changes in

Legal Requirements were sighted and all operations were in compliance

with regulations for example the MPOB, SSM, Compressor License and

‘Perakuan Penentuan Timbangan dan Sukat’ – Akta Timbang dan Sukat

1972. Perimeter boundary was marked clearly on the ground and a Free

Prior Informed Consent (FPIC) also been applied where, the company

agreed to resurvey the land CL 11539892 and excise the disputed land

legally for the 42 claimants to apply their title from the authority.

Principle 4 Social

responsibility, health, safety and

employment condition.

Takon Production Unit has established Environmental Social Improvement

Plan-Sabah -N/009-1/2018 (Dated : 17/08/2018) together with the

implementation and action plan and assessment for further improvement.

updated on 05/09/2018.

The social improvement plan emphasizes aspects and impact identification

covering Pay & Living Condition; Communication & Consultancy; Fair

Pricing; Soil (Erosion, soil management, etc); about Water (water source,

rainfall etc); Energy; Operational Procedure; Training; Compliance to Law

Regulation; Local Development; Water Course & wetland; HCV; Pollution;

and Waste; human and reproductive right, complaint and grivances.

Sighted the Stakeholder Request Record Book and Stakeholder

Complaints/Grievances Record Book are well implemented. The latest

request by stakeholder has been recorded on 21/01/2019 and date

resolved on 28/02/2019. The grievance was about the requisition for the

sanitation of the grave area at Kg Murotai. No complaint and grievances

were received so far. Complaint and grievances form available. The box is

located outside the office. (Refer to "Record of suggestion box opening by

estate manager/assistant Manager).

Sighted that Takon Estate and MMP1 already communicate and implement

For safety and health purpose the management has fixed the emergency

shower and eye wash but it shall be prudent if the management could look

into the continuous functionality of the units so that it does not jeopardize

the function and ensure that it is in working order at all times..

The landfil was well managed by preparing scheduled dumpsite however it

could be better if the management can consider highlighting precaution

markers around dumping site to avoid potential accident.

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Sighted the awareness and training programme have been organized and

been recorded. Evaluation assessment using the proper evaluation form

was usedfor the purpose.

In Muis Melewar Plantation1, the training evaluation summary are as

follows:

a) First Aid Training done at 21.06.2018 Participants : 26

b) Training SOP for Harvesting done at 14.10.2018 Participants : 99

c) Training for Driver done for every month from 12/7/18 and the latest is

16/2/19 with Participant : 34.

d) Chemical Handling done at 29.8/18 Participats:13

e) Rat Baiting done in Training of 'Pengurusan Haiwan dan Penyakit

Perosak secara Bersepadu" at 28/3/18 Participants : 11

f) Creche Ayah-"Cara bekerja dengan betul untuk Penjaga Kanak-kanak",

& "Cara Penggunaan Peti Kecemasan dan Pencuci Mata" at 04/3/19

Participants : 2

g) Workshop - "Jack" usage at 8/11/18 Participants : 34.

1. "Multiple oil trap" viewed on site for oil spillage containment.

2. "Systematic Oil waste and lubricant Storage Tank" been succesfull

implementeP and always been monitored.

Refer to SOP on Chemical Purchase, Storage, Handling & Disposal of

Used Chemical and Container. (Doc. No. H/005-02-2015) - 3.8.2015

CHRA was last done on 24/07/2018 by Klinik Mabello Paris Sdn Bhd.

Ref.No; HQ/17/ASS/00/26-2018/023.

Medical Surveillance to sprayer and manurers were conducted on

15/08/2018

Sighted that ERP Plan and Escape Plan for the Main Office and

Surrounding Building are available.

It was observed that office staff understands Emergency Response Plan

and knows how to escape if any emergency incident happen in the office.

The evidence of first aid kit at particular location during visit has complied

with requirements and found satisfactory.

Living quarters are provided with electricity and treated water - compliance

with the Workers' Minimum Standards Housing and Amenities Act 1990

(Act 446).

With Reference to the Guideline on Training Need (Matrix) for FY2018/19

which include all workers with the relevant document of training matrix,

material, attendances and assessment.

Example of trainings ;

1. Kerani store - 16.7 2018

2. Penyembur racun - 29.8.2018

3.SOP Sample air - 20.1.2019

4. Penjaga tempat kanak-kanak - 4.3.2019

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Principle 5 Environment,

natural resources, biodiversity and

ecosystem

The Environmental Policy signed by the Plantation Director. Under the

Social and Environmental Improvement Plan (Takon Production Unit), the

Aspect and Impact were identified and action plans prepared, monitored

and implemented. Training on managing the environmental issues has

been conducted and every Wednesdays on each month at morning muster

call, the workers will be briefed on the importance of environment and their

social being as well.

Consumption of non-renewable energy was optimized and closely

monitored. Almost all the scheduled waste was managed following the

procedures available however mitigating the pollution aspect is still not

effective whereby there was evidence of diesel spillage on the ground at

the diesel storage tank and that there was no segregation of domestic

waste as well.

Land Use Change Analysis (LUCA) was prepared on 16.11.2017 for Takon

Estate and in Muis Melewar Plantation 1, Guidelines on Biodiversity

Conservation Management Plan For Estates was sighted. Common

species of wildlife has been sighted and recorded for all engagements or

sightings of rare,threatened and endangered species were available and on

13th May 2018 around 9am they sighted a herd of elephant at PM95A,

A08, 09 moving out from estate areas. Signboards on Prohibition on illegal

hunting and fishing were visible as well.

Principle 6 Best Practice

Standard operating procedures for best practices, business management

plans, pricing mechanism were available and consistently implemented and

monitored.

Ganoderma infected palms were observed during site visit however the

palms were left untreated.

Principle 7 Development of

new plantings

No new planting

4.3. Stakeholder’s Consultation Stakeholder consultation process carried out by taking a sample from the list of stakeholders

established by Sankina Oil Mills Sdn. Bhd. (Takon Production Unit). It was noted that the objective

of activity had met to capture the view, opinion and expectation of interested parties as a result of

operation run by the organization.

Details of the outcome from the sessions has been reported in 939-D4_MSPO Stakeholder

Consultation document.

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5. Overview of Non-Conformity 5.1. Action Plan 1 MSPO Clause 5.3.2 stated that A waste management plan to avoid or reduce pollution shall be developed and implemented. The waste management plan should include measures for: c) Identifying and monitoring sources of waste and pollution d) Improving the efficiency of resource utilization and recycling of potential wastes as nutrients or converting them into value-added by-products. Refer to Indicator as above. Refer to Guideline on Wastes and Waste Products Identification and Disposal Plan for Estate and Mills (Doc. Ref. No. F/007-06/2016) dated 22.12.2016 It was noted that there were action plans to control pollution, however, it was observed that it was not effectively implemented as there was still evidence of diesel spillage on the ground at diesel storage tank and used lubricant oil spillage from lubricant oil tray at general store which causes soil contamination and there was no action taken to mitigate the pollution that has occurred.

6. Conclusion / Recommendation 6.1. Opportunity for Improvement

6.1.1. OFI 1

Sighted that Takon Estate and Muis Melewar Plantation 1 had communicated and

implemented safety and health procedures by fixing the emergency shower for emergency

purposes.

It will be better if Takon Estate management may consider to have regular routine checks on

the viability of all the emergency safety appliances to ensure the device are functional during

actual emergency.

6.1.2. OFI 2

Sighted that dumping site are well managed in terms of good landfill management by preparing

scheduled dumping site.

However, the management can consider extra initiatives to place precaution markers around

dumping site to avoid potential accident.

6.1.3. OFI 3

It was observed that there were ganoderma infected palms in the fields that were left

untreated and it would beprudent for the management consider treating these palms so as to

prolong their lifespan.

6.2. Concern Area for Next Year Audit 1. Employees safety and health

2. Waste management - recycling programme

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3. Best Practice - IPM

6.3. Certification Recommendation This report details the audit 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

In reference to MS 2530-3:2013, the audit team recommends to DQS:

☐ Issuance of the certificate

☐ Issuance of the certificate as soon as implementation of corrective actions has been

demonstrated

☐ Maintenance of the certificate

☒ Maintenance of the certificate as soon as implementation of corrective action has been

demonstrated

☐ Not applicable, due to extraordinary type of report

Please remember to notify DQS about any significant change to your management system at

your earliest convenience. Together we will then coordinate appropriate measures to maintain

your current certification.

Report prepared on 15/3/2019

Sahudin bin Sapiin Lead Auditor for MS 2530-3:2013

6 May 2019 Shahrizal Ridzuan Ambak

Date Certification Decision Making on behalf of DQS

Click or tap to enter a date.

Date Document reviewing on behalf of DQS (Peer Reviewer 1)

Click or tap to enter a date.

Date Document reviewing on behalf of DQS (Peer Reviewer 2)

Remark: Not applicable in case of surveillance or special audit

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Disclaimer: The contents of this report and all information received in association with the audit of the subject company will be maintained in the strictest

confidence by the members of the audit team and by DQS, in accordance with prior agreements.

DQS maintains ownership of this report. The content of this report and all information received in relation to the audit and certification of the

audited organization will be treated confidential and not disclosed to third parties. For exceptions e.g. disclosure to accreditation body refer to

DQS Certification and Assessment Regulations.

This report is considered as final by the audit team, if you do not get any adverse information from DQS within 14 days after the last audit day.

The recommendation of the audit team is subject to review and approval by DQS technical certification experts, who take binding certification

decision. An appeal process is defined in DQS Certification and Assessment Regulations. Should DQS obtain any information indicating

nonconformity of the certified management system, DQS will notify the certified organization timely and initiate investigation and evaluation of

such information.

Distribution

MS 2530-3:2013

DQS

Sankina Oil Mills Sdn. Bhd. (Takon Production Unit) - Sankina Oil Mills Sdn. Bhd. (Takon Production

Unit)

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7. Appendixes 7.1. Appendix 1: Group Certification Member and Address

Ref No.: 50450538 Company: (Sankina Oil Mills

Sdn. Bhd. (Takon Production Unit))

Date: 5 to 7

March 2019 Audit Year 2019

2015 2016 2017 2018 2019

BR Number Name and address Y1 Y2 Y3 Y4 Y5

50450320 Click or tap here to enter text. ☒ ☐ ☒ ☐ ☒

50450321 Pelita Estate, CL 115397496, Mukim Ulu Tungku, Lahad Datu, Sabah

☐ ☒ ☐ ☒ ☐

50450322 Muis Melewar Plantation 1 CL 105426784, Tawau, Sabah

☒ ☐ ☒ ☐ ☒

50450323 Muis Melewar Plantations 2 CL 245360523, Mukim Sungai Binuang, Ulu Tingkayu, Kunak, Sabah

☐ ☒ ☐ ☒ ☐

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7.2. Appendix 2: Main business/processes at location Estate size (ha) FFB

Production (MT/ha/yr

Geo-coordinate data Coordinate No.

Site name Certified Area

Planted area

North (N) East (E)

Click or tap here to enter text.

2842.12 2335.08 18.13 5° 05’ 2.2344”

118° 48’ 49.9”

N5° 05’ 2.2344” E118° 48’ 49.9”

Pelita Estate 1100.90 1023.55 20.43 5° 8.803’ 56.006”

118° 56.006” N5° 08.803’ 56.006” E118° 56.006”

Muis Melewar Plantation 1 2320.00 2056.01 24.02 4° 27’ 33.1848”

117° 50’ 54.1068”

N4° 27’ 33.1848” E117° 50’ 54.1068”

Muis Melewar Plantation 2 1793.00 1481.00 21.84 4° 39’ 52” 117° 54’ 10” N4° 39’ 52” E117° 54’ 10”

Other sites, press tab to add more table and insert data manually

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7.3. Appendix 3: MPOB Licenses Ref No.: 50450538 Company: Sankina Oil Mills Sdn. Bhd. (Takon

Production Unit)

Date: 5 to 7 March 2019

License number Site registered

503994302000 Click or tap here to enter text.

Activity 1: Menjual dan Mengalih FFB

Expiry date: 31/7/2019

BR No: 50450320

503397002000

Pelita Estate

Activity : Menjual & mengalih buah sawit

Expiry date : 31/7/2019

BR No: 50450321

503926612020 Muis Melewar Plantation 1

Activity : Menjual & mengalih buah sawit

Expiry date : 31/5/2019

BR No: 50450322

503534402000

MuisMelewar Plantation 2

Activity : Menjual & mengalih buah sawit

Expiry date : 31/7/2019

BR No: 50450323

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7.4. Appendix 4: Order and Assessment Process Data Audit Information

Certification No.: 50450538

Name of the company: Sankina Oil Mills Sdn. Bhd. (Takon Production Unit)

Operational unit 1. Takon Estate 2. Pelita Estate 3. Muis Melewar Plantation 1 4. Muis Melewar Plantation 2

HQ Holding company name (if apply): Sankina Oil Mills Sdn. Bhd. (Takon Production Unit)

Certified site address: Unit 30-01, Mail Box 300, Menara Landmark, No.12, Jalan Ngee Heng, 80000 Johor Bahru, Johor, Malaysia

Company Representative

Manager Kiu Heng Seng, Loh Soh Seang

Telephone Number 0133113442 0198835393

Email [email protected], [email protected]

Audit Team

Audit Team leader Sahudin bin Sapiin

Audited site

Site 1 Click or tap here to enter text.

In case of group management is applied

Site 1 Takon Estate

Site 2 Muis Melewar Plantation 1

Production Information:

Year of operation start 1995 - Takon Estate 1969 - Muis Melewar Plantation I

Total land area 2,842.12

Total planted area 2335.08

Soil type Peatland and mineral

First year of production (harvest) 1998 - Takon estate 1972 - Muis Melewar Plantation 1

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7.5. Appendix 5: Map

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III. Audit Plan

Version (date) 10/26/2018 Ref. no. 50450538

Company name Sankina Oil Mills Sdn. Bhd. (Takon Production Unit)

Site(s) Unit 30-01, Mail Box 300, Menara Landmark, No.12, Jalan Ngee Heng, 80000 Johor Bahru, Johor, Malaysia

Standard(s) Malaysian Sustainable Palm Oil (MSPO) in accordance to the MS 2530-3:2013 (Part 3): General principles for oil palm plantations and organized smallholders.

Type of audit Annual Surveillance Audit 4

Audit team Sahudin bin Sapiin, Johari bin Mohd Nor, Borhan bin Abd

Aziz, Noorainie binti Awang Anak,

Audit scope Oil Palm Plantations - Group certification

Audit language English

Audit date

Audit criteria

— Requirements of the mentioned standard(s) above

— Relevant statutory, regulatory and contractual requirements for the management system

— Process documentation of the management system developed by the client

DQS Audit and certification regulations

Audit objective(s):

Surveillance audit

1. Changes to the certified client and its management system

2. Verification continuous management system implementation

3. Review of effectiveness of measures arising from the previous audit (if applicable)

4. Confirmation of fulfillment of certification requirements

5. Enquiries on aspects of certification (Complaints)

6. Review of any client's statements with respect to its certified operations (e.g. promotional material, website, use of DQS logos and marks, use of the certificate)

7. Customer specific requirements

8. Others:

Audit agenda Date / 5 March 2019

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Time Subject; process Reference Unit; department Participants Auditor(s)

Date / Day 1 (05th. Mar. 2019) – Takon Estate

08:00

08:30 Audit process data

MPOB Licenses

Geo-coordinate, Basic Data, google

map

- Review of previous action plans

-usage of MSPO Logo

Management commitment and

Responsibility

Policies

Document reviews

Management Review

Internal audit

Continuous improvement

MS 2530-3

Principle 1

Estate

Estate

management

representative

JOH

08.30 Environment, Natural Resources,

Biodiversity & Ecosystem

(Environmental Management Plan)

Environmental Objective

Environmental Aspect & Impact

Waste identification & management

plan

Water management plan

Pollution assessment and action

plan

Energy Management

Non-renewable energy estimation

MS2530-3

Principle 5

Estate Estate

Representative

BOB

10:00 Best Practices

SOP, Economic and Financial

viability plan

Transparent & Fair pricing

- contracts

Contractor Management

Subcontractor List

MSPO Information

Contract Agreement

MS 2530-3

Principle 6

Estate

Estate

Representative

BOB

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9:30 Social, Safety & Health

SIA

OSH Plan

HIRARC

Accident & emergency report

Complaint and grievances

Safety meeting

Contribution for sustainable

Employment condition

Training and Competency

MS 2530-3

Principle 4

Estate Estate

Representative

JOH

11:30 Site Management

Field Visit

MS2530-3 Estate Estate

Representative

JOH/BOB

1.00 Lunch Break

1.30 Stakeholder consultation JOH/BOB

2.30 CONT.

Social, Safety & Health

SIA

OSH Plan

HIRARC

Accident & emergency report

Complaint and grievances

Safety meeting

Contribution for sustainable

Employment condition

Training and Competency

MS2530-3 Estate Estate

Representative

JOH

2.30 CONT.

Best Practices

SOP, Economic and Financial

viability plan

Transparent & Fair pricing

- contracts

Contractor Management

Subcontractor List

MSPO Information

Contract Agreement

MS2530-3 Estate Estate

Representative

BOB

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Audit agenda Date / 7 March 2019

3.30 Transparency

Information and Documentation

-Information from stakeholder

-Internal communication -

Stakeholder consultation,

procedures

Competent person

MS 2530-3

Principle 2

Estate

Estate

management

representative

JOH

3.30 Compliance to Legal

Requirements

Legal Register List, update

Compliance status

Land Used Right

Customary Right (if applicable)

MS 2530-3

Principle 3

Estate

Estate

management

representative

BOB

5:00 End of audit - - - -

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Time Subject; process Reference Unit;

departme

nt

Participants Auditor(s)

Date / Day 3 (07th. Mar. 2019) – Muis Melewar Plantation 1

08.00 Opening Meeting

MS 2530-3

Estate

Estate

management

representative

SAH

8.30 Audit process data

MPOB Licenses

Geo-coordinate, Basic Data,

google map

- Review of previous action plans

-usage of MSPO Logo

Management commitment and

Responsibility

Policies

Document reviews

Management Review

Internal audit

Continuous improvement

MS 2530-3

Principle 1

Estate Estate

management

representative

SAH

08.30 Environment, Natural Resources,

Biodiversity & Ecosystem

(Environmental Management

Plan)

Environmental Objective

Environmental Aspect & Impact

Waste identification &

management plan

Water management plan

Pollution assessment and action

plan

Energy Management

Non-renewable energy estimation

MS2530-3

Principle 5

Estate Estate

Representative

BOB

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10.00 Best Practices

SOP, Economic and Financial

viability plan

Transparent & Fair pricing

- contracts

Contractor Management

Subcontractor List

MSPO Information

Contract Agreement

MS 2530-3

Principle 6

Estate

Estate

Representative

BOB

08.30 Social, Safety & Health

SIA

OSH Plan

HIRARC

Accident & emergency report

Complaint and grievances

Safety meeting

Contribution for sustainable

Employment condition

Training and Competency

MS 2530-3

Principle 4

Estate Estate

Representative

JOH

11.00 Site Management

Field Visit

MS2530-3 Estate Estate

Representative

SAH/BOB/

JOH

12:30 Lunch Break

1.00 Stakeholder Consultation SAH/BOB/

JOH

2.00 CONT.

Best Practices

SOP, Economic and Financial

viability plan

Transparent & Fair pricing

- contracts

Contractor Management

Subcontractor List

MSPO Information

Contract Agreement

MS2530-3 Estate Estate

Representative

BOB

2.00 CONT.

Social, Safety & Health

SIA

MS2530-3 Estate Estate

Representative

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OSH Plan

HIRARC

Accident & emergency report

Complaint and grievances

Safety meeting

Contribution for sustainable

Employment condition

Training and Competency

JOH

2.00 Transparency

Information and

Documentation

-Information from stakeholder

-Internal communication -

Stakeholder consultation,

procedures

Competent person

MS 2530-3

Principle 2

Estate

Estate

management

representative

BOB

2.00 Compliance to Legal

Requirements

Legal Register List, update

Compliance status

Land Used Right

Customary Right (if applicable)

MS 2530-3

Principle 3

Estate

Estate

management

representative

SAH

3.00 Preparation for closing All

4.00 Closing meeting - Estates MS2530 3

Estate Estate

management

representative

All

5:00 End of audit - - - -

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VI. Audit cycle plan

MS2530-3:2013

Organized Plantation- Group Certification

Sta

ge

2 a

ud

it

Su

rveilla

nc

e

1st

Su

rveilla

nc

e

2n

d

Su

rveilla

nc

e

3rd

Su

rveilla

nc

e

4th

Recert

ific

ati

on

Ref. No. / AZ: 50450538 Date:

4 –

7

Ma

r

2019

Organization: Sankina Oil Mills Sdn. Bhd. (Takon Production Unit)

Lead auditor: (initials)

SA

H

4.1 Management Commitment and Responsibility

Malaysian Sustainable Palm Oil (MSPO) 4.1.1

Internal Audit 4.1.2

Management Review 4.1.3

Continual Improvement 4.1.4

4.2 Transparency

Transparency of information and documents relevant to MSPO requirement

4.2.1

Transparent method of communication and consultation 4.2.2

Traceability 4.2.3

4.3 Compliance to Legal Requirement

Regulatory requirements 4.3.1

Land use rights 4.3.2 P

Customary rights 4.3.3 P

4.4 Social responsibility, health, safety and employment condition

Social impact assessment (SIA) 4.4.1 P

Complaints and grievances 4.4.2 P

Commitment to contribute to local sustainable development

4.4.3

Employees safety and health 4.4.4

Employment conditions 4.4.5

Training and competency 4.4.6

4.5 Environment, natural resources, biodiversity and ecosystem services

Environmental management plan 4.5.1 P

Efficiency of energy use and use of renewable energy 4.5.2 P

Waste management and disposal 4.5.3 P

Reduction of pollution and emission 4.5.4

Natural water resources 4.5.5

Status of rare, threatened or endangered species and high biodiversity value area.

4.5.6

Zero burning practices 4.5.7

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AUDIT REPORT_ESTATE TPU AA4-2019 / 2019-02-14 All aspects of the audit are considered confidential

Page 35 of 35

MS2530-3:2013

Organized Plantation- Group Certification

Sta

ge

2 a

ud

it

Su

rveilla

nc

e

1st

Su

rveilla

nc

e

2n

d

Su

rveilla

nc

e

3rd

Su

rveilla

nc

e

4th

Recert

ific

ati

on

4.6 Best Practices

Site management 4.6.1 N

Economic and financial viability 4.6.2

Transparent and fair price dealing 4.6.3 X

Contractor 4.6.4

4.7 Development of new plantings

High biodiversity Value 4.7.1

Peat land 4.7.2

Social and Environment Impact Assessment (SEIA) 4.7.3

Soil and topographic information 4.7.4

Planting on steep terrain, marginal and fragile soils 4.7.5

Customary land 4.7.6

Use of DQS certificates, marks and symbols

Legend: P = required, to be planned; O= optional, to be audited when changes occurred or planned or previous NC; ✓ or X = audited N = nonconformity identified The lead auditor expands this planning individually.

(extend this table as needed to fit in all relevant processes)