SCOPE:

This manual is a general description of the quality system elements at TEXLYNX. This manual provides management policies, strategies, and principles defining responsibilities for the development, implementation, maintenance, and management of the quality system. Procedures documented to implement the requirements of this manual shall contain necessary details assigning responsibilities and describing methods employed to satisfy these requirements. The manual encourages the incorporation of advanced or total quality concepts for continuous improvement and increased customer satisfaction.  MANAGEMENT RESPONSIBILITIES, ORGANIZATION AND REVIEW: QUALITY POLICY AND OBJECTIVE Our quality policy is to assist our Vendors/Suppliers to regularly meet and exceed customer needs and continuously improve work efficiency to meet mutual financial motivations.

Imran Lateef (President/ CEO)

Sohail R. Bokhari (GM Systems & Quality Assurance)

Asif Khan (QA Head - South)

Saleh Muhammad (QA Head - North)

Raza Blaoch (QA Coordinator)

Rafay (QA) Siraj (QA)

Usman (Senior QA) Kamran (QA)

Ammad Najmi (QC)

Ali Muqadas (Senior QA)

Muhammad Noman (QC)

Muhammad Asim (QC)

Zafar Iqbal (QC)

Imran Habib (QC)

NOTE: Organizational Charts are reviewed and modified periodically. Quality Manual was reviewed and may not be the most current chart. Responsibilities: GENERAL MANAGER QA is responsible to:

Figure 1 reflects the organization when the

 Establish, implement and maintain the Quality System which is to include periodic review of the entire system.  Actively participate in the Quality Steering Committee to ensure that corporate and quality goals remain synchronous.  Develop systems and procedures to ensure things are executed on time and are right the first time.  Direct continuous improvement activities.  Oversee the Management review of all elements of the Quality System.  Communicate corporate Quality goals to the organization.  Oversee Internal Quality Audits.  Develop priorities for prompt solutions to customer related problems.  Encourage a multi-disciplined approach for problem solving at all levels of the organization. MERCHANDISING MANAGER is responsible to:  Coordinate and assist quality team activities.  Notify to QC coordinator in writing of new placement to Vendors  Notify to QC coordinator in writing of any change in Quality status when notified as such by the customer

 Placement of timely audit requests  Follow up Vendor representatives regarding  Prepare and handover to QA department the QA file (Procedure 0010) QUALITY ASSURANCE/CONTROL MANAGER is responsible to:  Ensure that the Quality Policy is understood, implemented and maintained throughout the Organization.  Establish, implement, review and maintain the Quality System.  Manage and report on the performance of the Quality System to Quality Steering Committee. QUALITY ASSURANCE ORGANIZATION:  The Quality Assurance Organization as shown in Figure 1 also indicates the authority and responsibilities for personnel who directly perform and verify work affecting quality.

Procedure:

Audits are very important for vendors and equally important for TEXLYNX. The purpose of in-process and final audits is to determine that finished merchandise has been made according to specifications and is acceptable to ship. It is also a way to evaluate vendors control system and their ability to produce first quality product.
Use the TEXLYNX Sampling Plan. If audit fails, corrective action must be taken. In-Process Audits

Random in-process audits will be carried out during all production processes. If a lot fails audit, corrective action must be taken.
Final Audits Final Audits are to be performed on packed, finished merchandise as each article is completed. TEXLYNX Sampling Plan should be used. Copies of final audit results should be emailed or faxed to the TEXLYNX Quality Assurance Department. Any failures at this point should be immediately reported to Q.A. Vendor will 100% inspect the merchandise and correct the problem.

Third Party Audits

In-process Audits TEXLYNX may arrange for a third-party random inspection to be performed after 10% of the production has been completed. TEXLYNX will designate the Sampling Plan. Results will be compared with the in-process audit results. Final Audits A third party may perform final audits when more than 80% of production has been completed. Third party Sampling Plan will be used. Findings will be reported to TEXLYNX's Q.A. Department and compared with the vendor in-line Audit Reports. Goods may not be shipped prior to release of certificate of inspection by TEXLYNX Q.A. Department. If a lot, style or color fails, it will be put on hold until the problem is corrected and the merchandise passes a re-audit. Re-audits are to be done at the Vendors expense as stated in Vendor Agreement. Depending on vendors operation (floor space, size of bundle, weight of bundle, lighting conditions), the location for the inspection process will vary. Inspection will be carried out at a fully equipped and well-lit workstation. The following is the recommended procedure for auditing sample units: The Inspector will audit completed finished merchandise. Inspector will not stand behind the Operator and inspect units as the Operator sews. It is the job of vendors supervisor. The Inspector must select units at random. The Inspector must inspect exactly the number of units called for on the sampling plan. No more, no less. The Inspector must not establish a routine. The Operatorsshould not be able to guess which bundles of work will be audited. TEXLYNX will rotate its inspectors so that the same Inspector does not inspect the same Operators too long. QA manager will ensure that Quality levels for an Operators do not fluctuate due to a change of Inspector. If defective unit are found it will be marked and following corrective action steps should be taken: The Inspector records the fault on the prescribed form. The Inspector gives all rejected articles to the vendors Supervisor. The Inspector is to ensure with the help of the Supervisor that the operator is explained as to what the defect is and how it should be repaired and what should be done to avoid further occurrence of the fault. If the defect is major in nature then vendors Supervisor must inspect all units of that operator to sort out and repair the defects. To ensure that the problem has been corrected, the Inspector re-audits the corrected article by inspecting five units at random. The important thing is that the re-audit is done to ensure the problem has been corrected. Once an article has been rejected, the Inspector must continue to audit every article produced by the Operator until three bundles in succession are audited and passed. After passing the third bundle, the Operator returns to routine auditing. The purpose of in-process auditing is to direct attention to the identified problem. Feedback from the final statistical audits will be used to decide the frequency of in-process audits.

Pre-Cut inspection
Vendor should send us request on email with Texlynx precut format for inviting on inspection. Vendor should make sure to submit and hand over QA the lab. test reports of each design and color version before inspection. Rolls / lots shade bands / cards should be submitted before final inspection Fabric packing list together with vendor inspection report needed by the QA. QA will make sure to inspect rolls and lots as per standard set by Texlynx. (5 to 10% and in critical and important customers we increase the sample size.) Vendor should have designated area for fabric inspection with proper lighting. Note: Vendor should get approval on dyed and printed shade bands for each lot before going in bulk production (cutting/stitching). Each shade should have meter information on shade cards. It is vendors responsibility to make sure that only Texlynx approved shade lots should be used in production. Other than Approved shades, goods will be rejected during in-line or final inspection. TEXLYNX QAs will ensure that Vendor follows procedure P-Q189 Non Conforming Product

Inline inspection
y If precut inspection results are ok, TEXLYNX QA team will conduct in-line at any time. y All in-line finding will be communicated to vendor on emails and hard copy during after in-line audit. y It is vendors responsibility to take corrective measures on all in-lines inspection findings and observations.

Final Inspection
y All Final inspection requests should come to us well on time as per Texlynx procedure, i.e. 24 hours before audit time. y Vendor should make sure to provide adequate place with proper lighting for final inspection. The lighting standard for final inspection should be between 800 to 1000LUX. y TEXLYNX QA team will need a packing list on their arrival and the goods should be 100% ready packed for final inspection. y The team will inspect the goods on AQL 2.5 as per the customer requirement. y The goods should be properly stacked and in countable position. y y Note: y Vendor is to inform us on time on email 24 hours before for samples, precut and 48 hours before for final inspection. It is clearly instructed from Texlynx top management not to inspect goods after 5.30pm. The QA will not wait and leave the factory if goods are not ready before 5.30pm. y Texlynx recommends that vendor should designate one QA inspector to check samples/goods prior to Texlynx QA inspection. y Reference: y P-0001 Quality Policy y P-0005 Management Review Process  P-0010 QA File QUALITY STEERING COMMITTEE IS THE CUSTOMER REPRESENTATIVE

 The Quality Steering Committee membership comprises of two Vice Presidents and the General Manager QA.  Area heads of North & South may be invited as participants to help incorporate good quality practices, teamwork, employee empowerment and other such undertakings as required in the continuous improvement process.  The Quality Steering Committee will establish, monitor and support the direction of the quality System. It will define information that is to be monitored, the frequency of reporting and the method of measurement. The Committee shall also establish Quality Goals and Measurement Systems such as the Cost of Quality, Customer Returns, Internal Rejects and Cost of Scrap. Review performance toward these goals. Support activities to improve overall performance including:  Training efforts to support the Quality System.  Reviewing Internal Quality Audit Results.  Promoting activities to prevent non-conformances.  Empowering employees at all levels to accomplish their objectives, responding promptly to customer related problems.  Encourage and prioritize employee participation in team activities,  Assign team projects and monitor team progress.  Promote quality consciousness throughout the organization.  Review the effectiveness of the Quality System bi-annually.  Remain flexible to promptly address other issues as they arise.  Promote and help maintain customer satisfaction. AREA MANAGERS AND SUPERVISORS are responsible to:  Develop, implement, support and use quality systems that emphasize prevention rather than detection.  Identify training needs  Identify and resolve problems related to the product or process.  Record quality related activities.  Initiate, coordinate, and implement corrective and preventive actions.  Verify the effectiveness of corrective and preventive action activities.  Control further processing of non-conforming product until unsatisfactory conditions have been resolved  Resolve non-conformances found during Internal Audits. Prevent potential defects and non-conformances. ALL EMPLOYEES: Represent the needs of the customer in internal functions.  CONFIDENTIALITY TEXLYNX shall exercise appropriate care to keep confidential any technical process or economic information derived from drawings, specifications and other data furnished by the Customer in connection with the Order and shall not divulge, directly or indirectly, such information for the benefit of any other party without obtaining Customer s prior written consent. Except as required for the efficient performance of the Order, TEXLYNX shall not use such information or make copies or permit copies to be made of such drawings, specifications, or other data without the written consent of the Customer.  CONTRACT REVIEW Purpose: To establish a procedure for reviewing contracts to ensure that TEXLYNX is capable of meeting customer requirements. Scope: Inquiries, orders, contracts and amendments received from our customers are to be reviewed and agreed upon before they are accepted by TEXLYNX. Reference: P-002 Contract Review Responsibilities: MERCHANDISERS check that customer requirements are adequately defined. Resolve differences between the customer s requirements and vendor capability before the order is accepted. Document and maintain records of contract reviews and approvals. Document and communicate changes to the appropriate function. Obtain written approval for changes from the customer when required. Monitor orders through the system to completion.  DOCUMENT AND DATA CONTROL Purpose: To establish a document and data control procedure for internal and external documents to ensure the availability and use of the appropriate revision at each operation. Scope: The origination, review, approval, release, maintenance and change of documents related to the Quality System which includes internal and external documents such as customer drawings.

Responsibilities: Department Managers: Maintain appropriate revision levels at each operation to preclude the use of obsolete or inappropriate documents. Forward procedure changes referenced in the QM to the General Manger Quality Assurance for approval. Documentation Coordinator: Review and process changes in controlled documentation for appropriate approvals, references, format, and distribution. Procedure: Controlled documents will be reviewed for adequacy and approved (or rejected) by the same function or organization that performed the original review unless specifically designated otherwise. Assigned personnel shall have access to appropriate background information to assist in the review and approval process. A summary of changes and a description of the nature of the changes shall be accessible. Any obsolete documents retained for legal or knowledge preservation purposes will be properly identified.  CONTROL OF NON-CONFORMING PRODUCTS Purpose: To establish a procedure to prevent inadvertent use of suspect or known non-conforming products or materials. Scope: Suspect and known non-conforming material found in our process which includes raw materials, work in process or final quality inspection. References: QCP-0189 Non Conforming Product QCP-0315 Material Inspection List of items falling under the of NON CONFORMING PRODUCT category: Any fabric/yarn/made-up failing test result as stipulated by Customer or given specifications Product failing in Metal detection Wrong design/color/pebbling. It is the responsibility of all concerned departments to report non-conformance at any stage of process to the senior management. The moment non conformity is noticed, the product is clearly identified as rejected and packed/baled and removed from production unit immediately. Evidence of transfer from production unit is to be made available on TEXLYNX request. This clearly states that use of this material is not allowed. The vendors only have the authority to use/release of non-conforming materials after getting written approval from customer/TEXLYNX. Definition: Defective product does not meet specifications. It shall be visibly identified and separated from acceptable product. Procedure: Material not meeting specification requires a decision to determine if the material is fit for its intended use. Affected areas evaluate the discrepancy to determine the appropriate corrective action. This information is reviewed and reported to cognizant personnel. Cooperation of all departments involved is necessary for effective and efficient operation of this system. (Procedures: Material Deviation Request). A Stop Shipment Notification will be issued when circumstances are discovered and investigated which indicates the quality of products or the systems controlling and assuring integrity of product quality is compromised. (Procedure: Stop Shipment Notification) Product shipped to customers that is found to be subsequently non-conforming is subject to product recall. (Procedure: Product Recall). Non-conformances shall be reviewed, analyzed and prioritized by appropriate personnel per P-0189: Non Conforming Product. Decisions shall be made with regard to any further processing of non-conforming products. QA will, in consultation with concerned Merchandiser (If required customer approval will be sought) will decide course to be followed for non-conforming products, i.e. rework, sort, waiver (use as is), re-grade or scrap as described in P-0190 Regrade/Scrap. Non-conforming products to the customer s specification will not be shipped without authorization to do so. Prior approval for product or process changes will be coordinated where required. Concessions will be negotiated through the Merchandising Department. Product shipped under these circumstances will be appropriately disclosed to the customer. The waiver will be tracked when required by the customer. Product with visible evidence of rework is considered non-conforming. A description of the non-conformances will be recorded. Rework or sort instructions shall be clear and accessible to those carrying out the instructions. Rejected material that has been reworked or sorted shall be re-inspected by TEXLYNX for conformance to requirements.

PROCEDURE FOR REWORK/REPAIR OF NON CONFORMING MATERIAL: Metal detected goods: Metal detector is used to manually remove metal and stick it on the Metal Detection Logbook. If fabric/yarn is dyed it is sent back for reprocessing (Stripping & re-dyeing) / return to supplier. Wrong Design: It is removed from the production. Wrong Color: It is removed from the production. The analysis, treatment, disposition and verification of corrective actions for non-conforming products shall be documented, quantified and prioritized for tracking. This will also include signatures of authorized representatives, dates and quantities involved.  CORRECTIVE AND PREVENTIVE ACTION Purpose: To provide a procedure to prevent occurrence and/or recurrence of actual or potential non-conforming products. Scope: Corrective Action programs maintained by TEXLYNX include raw material rejects, work in-process rejects, customer returns or complaints, non-conformances found during internal audits and failure to satisfy 100% on time delivery. Preventive Action programs include facilitated problem solving by cross functional teams at various levels of the organization, Brainstorming, Analysis, Preventive Maintenance, Training, Calibration and the process is governed by the Plan, Do, Check and Act Cycle. References: P-0286 Corrective Action Procedure P-0308 Managing Processes (AQP) P-0414 Preventive Action P-0190 Regrade/Scrap Responsibilities: Manufacturing Supervisors Review quality records within manufacturing operations to help determine the cause of problems and coordinate the appropriate Corrective or Preventive Actions. Procedure: Reports of non-conformances, customer complaints, trend analyses of processes, quality cost and other issues of non-conformity shall be evaluated, prioritized and their causes determined. Records are to be maintained. Appropriate corrective / preventive actions shall be taken to deal with them based on the risks encountered by not taking action. The effectiveness of such action shall be documented and monitored by the issuer. Mistake proofing methodology will be used whenever feasible. Corrective action and associated responsibilities shall be documented. Possible results of such action include improvements to production processes, reduction of scrap and cycle time improvements for the affected process as well as similar processes. These improvements shall include changes to documentation. Records of analyses will be maintained and be made available to customers when required. Corrective actions will be applied to other similar processes. Customer Returns will be analyzed, corrective actions will be implemented and a response to the customer using their format (when prescribed) will be used. The effectiveness of preventive or corrective action shall also be taken into account in the review and evaluation of the Quality System. This will be reviewed by the Manager of Quality Assurance and the Quality Steering Committee as required.  QUALITY RECORDS Purpose: To provide procedures to demonstrate the achievement of the required product quality and of the effective operation of the Quality System Scope: Records that relate to the Quality System including hard copies and electronic media. Reference: P-0314 Record Retention Quality System Records: Records to verify the effectiveness of our operations and Quality System shall be readily retrievable (24 hours), legible and maintained with regard to the elements of the Quality System described. They shall be maintained in a suitable environment to prevent deterioration. Quality records shall include records of y The management review,

y y y y y y y y y y y y y y y y

Contract review; Design validation and verification reviews; Audit reports, Evidence of the monitoring of inspection, Measuring and test equipment, Training, Approved vendor list, Customer supplied product, Product identification and traceability; Process control, Positive recall information, Inspection and test records results, Non-conformance information, Corrective actions, Internal audits and Quality related records from suppliers.

Customer requirements for specific records will be maintained. The ultimate disposition of Quality Records will be in accordance with standard business practices. The types of records, the retention duration times and the responsibilities for their safekeeping are specified. (procedure ---)

 INTERNAL QUALITY AUDITS

Purpose: To provide a procedure to verify that current Quality procedures are effective and comply with documented procedures including our working environment and the effectiveness of the Quality System. Scope: Internal audits conducted by TEXLYNX personnel. References: P-0311 Internal Audit Procedure P-0029 Guidelines for Auditing Quality Systems Responsibilities: Manager, QA Establish the frequency (at least annually) and priority of Internal Audits based on the importance of activities. Publish Audit results to auditees and the Quality Steering Committee. Oversee the effectiveness of Internal Audits. Procedure: Internal Quality Audits are scheduled and conducted in accordance with P-0311 Internal Audit Procedure by qualified auditors working to an audit plan and an audit checklist. Audits will be conducted by personnel independent of those having direct responsibility for the activity being audited and shall include a review for a suitable working environment. Audit activities will cover all shifts of operations. The audit frequency will be adjusted according to findings. Corrective Actions shall be assigned, reviewed and verified for effectiveness by the auditors in a timely manner.  TRAINING Purpose: To establish a policy for providing employees with the necessary training to perform job responsibilities that affects the quality of our product. The company encourages individual growth through in-house training programs and provides a tuition plan for formal training through local colleges and technical schools. Scope: Training programs that affect the quality of our product. Reference: P-H001 Development Responsibility: The Human Resources Manager is the focal point of training activities. Definition: Training can take many forms including classroom instruction, on the job training, specific skills training, videotapes, and / or general meetings.

Procedure: Training is a strategic issue affecting the future of TEXLYNX. Training needs for the organization will be identified by management. They shall be based on factors such as introduction of new or improved equipment, processes and procedures. Personnel performing specific assigned tasks shall be qualified on the basis of education, training and / or experience. Appropriate records of training will be documented and a system to measure the effectiveness of training will be established.  SERVICING Purpose: To establish and maintain a procedure for performing and verifying that our service meets specified requirements and that a suitable method of feedback exists from the customer back to the appropriate individual or department within TEXLYNX.  STATISTICAL TECHNIQUES Purpose: To provide a procedure to determine the need and selection of the appropriate statistical techniques to establish, control and verify process and product capabilities. Scope: Manufacturing Processes within the Quality System. References: P-0339 SPC Procedure P-0007 Product Quality Planning and Control Plan Responsibilities: QA Manager Identify training needs and coordinate appropriate training Coordinate development of Control Plans, FMEA s, Process Flow Diagram Coordinate Control Plan changes or warrants through the customer Assure suitable measurement equipment and techniques are used (GR&R) Oversee measurement of continuous improvement activities Monitor adherence to Control Plan and PPAP requirements Coordinate communication of SPC Data between TEXLYNX and the customer Procedure: The need to monitor (or to stop monitoring) a particular characteristic, the method of monitoring, equipment used, inspection or frequency will be determined by quality assurance with input from manufacturing personnel and engineering and / or Task Team. These will be recorded in the Control Plans and communicated to the customer as required. Statistical trends are to be used, evaluated and responded to with the purpose of preventing non-conformance, reducing variation, continuously improving our process and product quality. Statistical methods include summary data, checklists, charts, Failure Mode and Effect Analysis (FMEA), Control Plans, short and long term capability studies. These records shall be available to appropriate personnel for review. Quality Assurance and Process Engineering shall take leadership roles in the use of Statistical methods throughout the organization. Statistical methods training shall be included in the training requirements program and will be encouraged in all departments. Training will include the basic concept of variation, stability, control charts and problems associated with over adjustment.  CONTINUAL IMPROVEMENT Purpose: To establish a comprehensive continual improvement program that ensures quality and conformance to customer requirements by seeking to continually improve manufacturing processes and methods.  PRODUCT SAFETY 1. All Production areas in the company are completely free of loose metal, wires & objects or other Metal particles. - The Production areas are completely free of pins, staples and paperclips. - There is no swing Needle or Needle parts loose in the Production. - There are no other dangerous pieces of metal or other particles in the production area. For example: Wire, Screw, Nails, Glass and other metal items used by mechanics or wireman. - Factory employees are not allowed to leave keys, jewelries, Hair Clips or other metal objects loose on tables. 2. All Hand Sewing Needles and pins are carefully controlled to prevent them accidentally being left in Product. - Metal detector detects at the time of metal contamination checking in materials receiving section. - All Clippers are locked in cupboard when not in use. A total count record of all pins and needles is maintained in the register.

- All Clippers are returned to the supervisor and record is maintained. 3. All metal tools used in production are secured Clippers and are tied to the table. METAL DETECTION: Received Stitched products are successfully passed through a calibrated metal detector immediately after being returned to the main contract factory. a. Metal detector is tested/calibrated at least 2 times in a day and every time when it is switched on using the 1.0 mm test sample. All tests are recorded. b. If on any test sample does not activate the detector, all items processed since the previous test is retrieved and rechecked. c. Upon detection of metal: The non-conforming product(s) is examined, if the contaminant is found it is removed. The product is retested & is then accepted. d. Failure to find and remove the contaminant will result in the product being rejected and the item is destroyed. e. Written record is maintained of the style, details of the contamination and action is taken. f. If batch is rejected then 100% re-examination of the stock takes place. g. The metal detector is maintained regularly. Note: - Metal detection will be used at two stages in the factory: (A) Where goods received from sub-contractor & are being counted. Reason: - To eliminate any metal content in goods receipt from sub-contractor (B) In Packing Dept. when goods are ready to be packed in carton. Reason: - To eliminate any clippers / scissors / any other metal part from being packed with the pieces.