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Page 1 of 69 Page no. 1 JAGANNATH UNIVERSITY, DHAKA FACULTY OF BUSINESS STUDIES DEPARTMENT OF FINANCE LEGAL ENVIRONMENT OF BUSINESS COURSE CODE : FIN-1206 COMPLIANCE REPORT OF ANANTA APPARELS & FASHION LTD.

Legal Environment of Business-ANANTA GROUP OF INDUSTRY LTD

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Page 1 of 69

Page no. 1

JAGANNATH UNIVERSITY, DHAKA

FACULTY OF BUSINESS STUDIES

DEPARTMENT OF FINANCE

LEGAL ENVIRONMENT OF BUSINESS

COURSE CODE : FIN-1206

COMPLIANCE REPORT

OF

ANANTA APPARELS & FASHION LTD.

Page 2 of 69

Page no. 2

COMPLIANCE REPORT

OF

ANANTA APPARELS & FASHION LTD.

Submitted To:

Sheikh Alamgir Hossain

Lecturer

Department of Finance

Faculty of Business Studies

Jagannath University, Dhaka

Submitted By:

Group No. – 10

Of

Legal Environment Of Business

7th Batch

Department of Finance

Jagannath University, Dhaka

Submission Date: March 01, 2014.

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Page no. 3

GROUP PROFILE

List of Group Members

Sl. No. Name ID

01 Sabiha Jhumur

B120203010

02 Maleka Akter

B120203106

03z Farhana Ferdousi

B110203075

04 Jasim Uddin

B120203111

05 Md. Mahamudar Rahman

B120203112

06 Abir Ahmed

B120203113

07 Anisur Rahman

B120203114

08 Pronoy Kumar Mondol

B120203115

09 Md. Al Amin

B120203119

10 Ashiqur Rahman

B120203130

11 Shohel Bhuyan

B120203121

12 Prokash Kanti Rudra

B120203122

13 Md. Mamun Hasan Ridoy

B120203132

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Executive Summary

This report is prepared based on primary and secondary

information & practical experiences in Ananta Apparels &

Fashion Ltd. in Dhaka. This Project program helped us to

acquire the knowledge about the environment of factory of

Garments sector in our country. This program helped us to

improve our theoretical knowledge into practical and realistic

work environment. Ananta Apparels & Fashion Ltd. is one of

the reputed and familiar garments in home and abroad for their

better producing and designing activities of the denim, cargoes

and children clothes. It is pleasure to us that maximum Factories

Act are followed by Ananta.

Though they fail to follow few provisions regarding Factories

Act, it is negligible than those of followed.

We also observed that the relationship among the management,

employees and workers is better condition that is effective to

make decision in any situation.

From our investigation, Ananta Apparels & Fashion Ltd. is more

favourable by all the Factories Act than other garments.

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Page no. 5

LETTER OF TRANSMITTAL

March 01, 2014,

Sheikh Alamgir Hossain

Lecturer,

Dept. of Finance,

Faculty of Business Studies

Jagannath University

Subject: Submission of the Compliance Report.

Dear Sir,

It is our pleasure to submit our Term Paper on “Compliance Report of Ananta Apparels & Fashion” as a requirement of the course “The Legal

Environment of Business.”

We tried our best to gather relevant information for constructing a

complete report as outlined. The preparations of this report enable us to

a great extent to complete our theoretical knowledge with practical analysis. We would like to express our profound gratitude for your kind

and conscious guidance in preparing this report in the giving time.

Thank you very much for your heartiest co-operation.

Yours sincerely,

Group No.-10

BBA 7th Batch

Department of Finance,

Jagannath University.

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ACKNOWLEDGEMENT

It is a great pleasure for us to submit this Copliance Report. Our

first thanks go to Sheikh Alamgir Hossain, Lecturer & our

course teacher, who gave us his utmost assistance and sincere

co-operation with effective guidelines to make this report

worthwhile.

We have benefited in many ways from the criticisms and ideas

of the expert people of Ananta Apparels & Fashion we have visited.

We highly appreciate and thank Major Md Khorshed Alam

Jahangir, General Manager (Operation) of Ananta Group, to learn

about various aspects of Hospital Industry during our first visit

to him.

We would like to give special thanks to those people who helped

us a lot by proving information & Suggestions-

Md. Mahabub Alam Manik, Sr. Executive (H.R.D),

Main Uddin Mizi, Deputy Manager (Compliance),

Mrs. Rabyea Akter, ( Compliance Officer)

And supervisor Hamid, who helped to visit whole factory

We also indebted to all those, other than mentioned above, who

gave us assistance and suggestions in preparing this Compliance

Report.

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Page no. 7

Table of Contents

Serial

No. Topics Page No.

01. Overview of ananta apparels & fashion ltd. O8

02. Supplliers

03. Clients

04. The main product of Ananta

05. Profile of Human Resource

06. Definition under factories Act

07 Provision of health

08. Provision of safety

09. Provision of welfare

10. Workmen’s compensation Act

11. Trade Union

12. Complied by the provision of health

13. Complied by the provision of safety

14. Complied by the provision of welfare

15. Findings of Ananta apparels & fashion ltd.

16. Recommendation

17. Conclusion

18. Appendix

19. Reference

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Page no. 8

OVERVIEW OF ANANTA APPARELS & FASHION LTD.

LOCATION

Corporate Office :

Ananta Plaza,

136, Elephant Road,

Dhaka 1205, Bangladesh.

Factory Locations :

Ananta Apparels Ltd

136, Elephant Road,

Dhaka 1205, Bangladesh

Ananta Denim Technology Ltd.

Kanchpur, Nayabari, Sonargaon,

Narayangong, Bangladesh

Contact Information

Phone: +88-02-9660159-60

Fax: +88-02-8615738

E-mail: [email protected]

Web: www.ananta-bd.com

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The Profile of Ananta Group

The Sister concerns of Ananta Group ---

Name Location

Ananta Apparels Ltd. 1 & 2 136 Elephant Road, Dhaka

1205

Ananta Fashion ltd. 136 Elephant Road, Dhaka

1205

Ananta Plaza 136 Elephant Road, Dhaka

1205

Ananta Denim Technology

Ltd.

Noyabari, Kanchpur,

Sonargaon, Narayanganj

Ananta Casual Wear Ltd. Kunia, Targach, K B Bazar,

Gazipur

DnV Clothing Ltd Plot # 100, 101, Road, - 01,

Adamjee EPZ, Narayanganj

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Since its inception in 1991, Ananta has grown to be one of the

leading apparel solution providers in Bangladesh. Engaged in

the marketing, development and manufacturing of apparel,

Ananta employs 17,000 people across the company and has an

annual turnover of over $100 million.

Through a wide range of products & services, Ananta has earned

the goodwill of reputed brands from across the globe. Producing

over 20.4 million pieces of garments per year, it is among the

largest vendors in Bangladesh for both Gap and H&M. Ananta

has consistently excelled with a strong performance record of

30% annual growth over the last few years, and has earned

several awards & recognitions such as the Bangladesh "Best

Exporter Award" in 2002 and the Walmart "Best Vendor

Award" in 2004.

Ananta's success is rooted in its investments in human capital

and world class manufacturing facilities. they possess the skills,

experience, infrastructure and financial strength necessary to

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attain customer satisfaction through excellence in product

quality, flexibility and cost competitiveness. The company is

always exploring new markets across the world with an

experienced perspective, contemporary professionalism and

high-end technology. Ananta Group welcomes all their

prospective customers to visit and evaluate their factories

firsthand.

Ananta is a trendsetter in the apparels industry. They provide the

highest value products and services possible to their customers.

They seek to foster long term relationships with their partners

and provide industry leading benefits and opportunities to their

employees.

To extend its position as a world-class manufacturer, Ananta

strives to achieve global standards in quality, cost, service and

scale of operation. They are focused on using innovative

processes, technologies & machines to manufacture the finest

products at a reasonable cost. By being responsive to their

customers requirements and anticipating changes in market

trends, they hope to provide a superior level of service than they

are accustomed to. They are committed to the success of all the

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partners that they work with and try best to accommodate their

needs. Finally, they believe that their employees are their

greatest assets and invest in their(employee) welfare and

development during and beyond the time that they(employee)

work for them.

Since its inception in 1991, Ananta has grown to be one of the

leading apparel solution providers in Bangladesh. Engaged in

the marketing, development and manufacturing of apparel,

Ananta employs 17,000 people and has an annual turnover of

over $100 million.

Through a wide range of products & services, Ananta has earned

the goodwill of reputed brands from across the globe. Producing

over 20.4 million pieces of garments per year, it is among the

largest vendors in Bangladesh for both Gap and H&M. Ananta

has consistently excelled with a strong performance record of

30% annual growth over the last few years, and has earned

several awards & recognitions such as the Bangladesh "Best

Exporter Award" in 2002 and the Walmart "Best Vendor

Award" in 2004.

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November 2008: Ananta signs joint-venture agreement with

Crystal Group, Pacific Textiles, Bros Holdings and Fast

Retailing to establish a vertical garment production facility in

Bangladesh.

June 2008: Ananta signs deal with global enterprise software

leader SAP to implement a customized Enterprise Resource Planning system.

Facts at a Glance:

• Leading apparel solution provider based in Bangladesh

• Operating since 1991 with strong industry experience

• Achieved a turnover of over $100 million

• Employs a direct labor force of over 17,000 workers

• Capacity to produce 20.4 million pieces of woven bottoms

per year

• Platinum supplier for H&M woven bottoms business

• RFP vendor for The GAP denim business

• ISO 9001:2001 certified manufacturing facilities

• Strong quality assurance process with AQL of 1.5

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• SAP ERP (AFS Platform) implementation

• EDI System integrated with Buyer's backend system

Future Initiatives:

Ananta is committed to enhancing its capabilities to serve its

customers better. It is planning to expand its manufacturing

capacity over the next 3 years to reach production of 30 million

pieces of woven bottoms a year, with special focus on producing

premium denim products which require extensive washing and

finishing effects. In addition to producing mens formal suits,

sweaters and metal buttons the company is continually exploring

opportunities to diversify its product portfolio

Design

Ananta has an in-house design team that is continuously

involved in analyzing the latest trends in the apparels industry.

This effort culminates in the development of product collections

twice a year to showcase their capabilities to potential and

existing clients. Their design team has extensive knowledge of

the different fabrics and finishing technologies and is able to

work directly with customers to suggest innovative and cost-

effective solutions to various design challenges.

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Ananta also provides a comprehensive product development lab

where their customers can work side by side with their design

team to experiment and develop samples. This reduces the cost

and time required for product development.

MANUFACTURING

Ananta specializes in manufacturing woven bottoms. They are

equipped with 35 fully integrated production lines spread across

300,000 square feet of ergonomically designed production

floors. Run by a highly efficient workforce of more than 6,000

people, the company has the capacity to produce one million

pieces per month. Some of the machines that Ananta uses to

ensure quality products for sewing are from Juki, Brothers, Vibe

Mac etc.

Ananta follows best manufacturing practices, and our highly

skilled and experienced Industrial Engineering and Quality

Assurance teams ensure that we are able to deliver quality

products on a consistent basis.

They take pride in offering safe, friendly and comfortable work

environments for our employees - all of their facilities exceed

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the compliance requirements of some of the top retailers of the

world such as The Gap Inc., H&M, Walmart, Carters, OshKosh,

J.C Penny, Dickies and others.

FINISHING

Ananta has extensive experience in apparel washing and

finishing, and their highly skilled team of washing experts can

confidently handle the most critical washes required in the

industry.

Ananta has invested in state-of-the-art finishing facilities

capable of handling more than 30,000 pieces per day. In

particular, they utilize high-end washing and dyeing machines

from Tonello (Italy) and Tolkar (Turkey). This ensures

consistent quality for various wet process options such as

bleaching, tinting, over-dyeing and different enzyme, resin and

ozone washes. They also use specialized machines to achieve

various dry process effects such high intensity laser etching, 3D

whiskering, oven wrinkling, grinding and PP spray. In strict

compliance with international environment standards, our

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finishing facilities have integrated biological Effluent Treatment

Plants (ETP) which decontaminate all waste water discharge.

SOURCING

Ananta helps customers by sourcing items on their behalf from

Bangladesh. The company nominates and oversees second- and third-tier

vendors for clients so they don't have to contend with a plethora of local

suppliers. The sourcing team offers complete logistics, quality assurance

and timely dispatch of goods to their valued customers.

Sourcing Strengths

• Long terms relationships with multiple vendors across different

product categories including knitwear, sweaters and woven bottoms.

• In-house Pattern making and sample development facilities

• Dedicated team of highly qualified and talented merchandizers to

manage orders

• Real Time tracking and reporting of all processes using their

customized Enterprise Resource Planning (ERP) solution from SAP.

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• Strong in-house quality assurance team to ensure AQL of 1.5 for all

product categories.

Ananta marketing research and trade analysis experts are prepared to

answer questions regarding your business.

Their vision, values and management philosophy are the

underlying force of all their actions and initiatives. Steered by a

group of dynamic & young individuals with strong academic

backgrounds, Ananta adds value by bringing in fresh ideas

focused on qualitative growth, innovation & long-term business

partnerships.

Mrs. Qamrun Nahar Zahir is the Chairman of Ananta Group and

is responsible for vetting all strategic decisions and investment

opportunities of the company. She offers over 25 years of strong

leadership experience spanning several sectors including retail

banking, insurance, real estate and education. Mrs. Zahir is the

Chairman of United Commercial Bank and Janata Insurance

Ltd. She is also the founder of Dhaka Women's College. Mrs.

Mrs. Qamrun Nahar Zahir

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Zahir holds a Bachelors Degree from Dhaka University and a

Masters Degree from Karachi University.

Mr. Sharif Zahir

Mr. Sharif Zahir is the Managing Director of Ananta Group and

is responsible for all executive decisions of the company. Over

the last 6 years, Mr. Zahir has spearheaded several sales and

marketing initiatives to substantially grow the business with

Ananta’s key accounts. Under his tenure, the Group’s annual

turnover clocked a consistent 30% on average year-to-year

growth during the last few years. Mr. Zahir is also the Director

of United Commercial Bank and National Finance Ltd. Mr.

Zahir graduated from University of Texas at Austin, USA with a

degree in Finance and Economics.

Mr. Asif Zahir

Mr. Asif Zahir joined Ananta as a Director in August 2008.

Prior to joining Ananta, Mr. Zahir spent several years working

as a Product Manager at Google, Inc. where he focused on

developing applications for internet enabled phones. Mr. Zahir

graduated from Stanford University USA with a degree in

Computer Science and Business Administration. At Stanford,

Mr. Zahir was recognized as a President's Scholar and a

Mayfield Fellow.

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Mr. Syed Ishtiaq Alam

Mr. Alam has ten years of Management Consulting experience

in the Financial Services, Insurance, Apparel and Retail sectors.

Prior to joining Ananta, Mr. Alam was based out of Deloitte

Consulting’s New York headquarters as a Manager where he

was responsible for assisting leading Insurance companies, Wall

Street Investment banks and Apparel/Retail clients implement

multi-year projects including strategy/planning, program/project

management, develop business processes, project

implementation and rollout. Mr. Alam also sits on the Board of

Directors of Eastern Insurance Co. Ltd. Mr. Alam earned his

Bachelors Degrees (with distinction) in Mathematics, Physics

from the University of Pennsylvania and a Masters Degree in

Computer and Information Science also from the University of

Pennsylvania.

Mr. Mohaymen Farhad

Mr. Mohaymen Farhad joined as a Director at Ananta in

November 2008. Graduating from University of Houston, USA,

with a Management Information System (M.I.S.) degree, he has

years of experience in a wide range of leadership positions &

served in multiple operational and managerial roles at

organizations like Enron, The World Bank and Grameen. Prior

to joining Ananta Group, Mr. Farhad worked as the Chief

Operating Officer of a Norwegian Telenor subsidy company, in

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the telecom sector. Mr. Farhad also serves as an advisor at an

US based, non-profit organization playing instrumental role in

setting up & supporting computer labs for young students in

underprivileged communities of Bangladesh.

Human Capital

At Ananta we believe that our employees are our greatest asset.

The wage and benefit programs that Ananta offers far exceed the

standards set by international agencies and the national

legislature.

These include:

• Medical facilities with in-house doctors and nurses

• Group life and health insurance plans for all employees

• Free, biannual eye camps for examination and treatment

• Free day care center located within our own premises

• Employee savings schemes and emergency fund

• Transportation facilities for remote employees

• Cultural club with professional music and dance instructors

for employees

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• Safety programs and routine drills to prepare for

emergencies

• A strict no-recruitment policy for under-aged candidates

Ananta has a progressive management team committed to

recruiting and developing the best talent in the apparel

manufacturing industry. Ananta believes in continuous human

resource development and provides all employees with

extensive training and counseling. All of our employees are

encouraged to set their own development goals, and everyone

participates in biannual performance reviews to determine

promotions and bonuses.

INDUSTRIAL ENGINEERING

Ananta has a strong industrial engineering department

committed to implementing the latest lean manufacturing

practices. The team is responsible for overall capacity planning

and work balancing for the different production units at Ananta.

By using Standard Minute Values (SMVs) for each process used

in assembling a product, the team is able to accurately estimate

the cost and time for manufacturing a particular style, which

helps to reduce uncertainties and downtime.

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At the factory floor, the Industrial Engineering team tracks

productivity for individual workers and line units, which enables

Ananta to implement an innovative performance based incentive

system for the production staff. The team also tracks all inputs

and work-in-progress through the production lines, ensuring a

steady process flow and improving efficiency of the production

organization.

QUALITY ASSURANCE

Ananta is committed to providing the highest quality products,

and all of their facilities are ISO 9001 certified. They have an

experienced and highly skilled Quality Assurance Team which

reports directly to senior management, working along-side but

independently from the Production and Merchandizing teams.

All garments pass through strict quality control checkpoints at

every stage of production allowing us to achieve an inline

Acceptable Quality Level (AQL) of 1.5. Ananta is officially

certified to perform final inspection on behalf of its major

buyers. This allows our clients to reduce their overhead as

required, without compromising high standards for the quality of

the products.

IT INFRASTRUCTURE

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Ananta seeks to continuously improve itself by implementing

software solutions that help standardize processes, measure

performance and improve efficiency. We have partnered with

enterprise software leader SAP to implement a state-of-the-art

Enterprise Resource Planning (ERP) system based on the

Apparel and Footwear.

VALUE ADDED SERVICE

Ananta provides several special programs to its clients that

allow for reduced manufacturing lead times and better product

development flexibility:

• Vendor Managed Inventory (VMI) - Ananta can help

reduce the operational costs of its customers by managing

production and inventory levels based on actual consumer

demand. They are able to act on weekly sales updates from

customers and ship replenishments directly to the customer retail

or distribution centers.

• Staged Development - Ananta offers to work closely with

client development teams to respond to last minute design and

trend changes. This is achieved by segmenting the product

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development process into several stages to reduce the overall

lead time - for example, by selecting and booking the fabric

first, and deciding on washing and other finishing details at a

later time.

• Quick Product to Market : Ananta is able to ship goods

within 8 weeks of order confirmation using an accelerated

sampling, sourcing and logistics processes. They have a

dedicated team of designers and merchandisers to ensure quick

turnaround of samples and close monitoring of sourcing

requirements, and use faster shipping vessels to ensure that their

products reach destination stores in the shortest amount of time

possible.

• Final Inspection - Ananta currently offers final inspection

services for some of its major buyers by relying on its strong

quality assurance team. This allows their clients to reduce their

overhead as required, without compromising high standards for

the quality of the products.

SOCIAL RESPONSIBILITY

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Ananta provides several special programs to its clients that

allow for reduced manufacturing lead times and better product

development flexibility:

Commitment to our Community

Ananta is deeply conscious of the needs of the communities it

operates in and hopes to create strong goodwill among its

neighbors. Some of their social initiatives include:

• Monthly blood collection from employees and donation

campaigns.

• Free, biannual eye camps for examination and treatment.

• Disaster rescue and aid for victims of annual floods and

cyclones.

Environment Stewardship:

Ananta develops all its facilities and products with strict

consideration to the environment. In particular, Ananta has taken

care to focus on several areas including

• Investing in biological Effluent Treatment Plants to

decontaminate all waste water discharge.

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• Biannual tree plantation programs to help offset our carbon

footprint.

• Rainwater harvesting to reduce the impact on our

freshwater supplies.

Learn more about Ananta's growth and future initiatives:

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Figure __ growth and future initiatives

Suppliers

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Page no. 29

Founded in 1991 by Ms. Pinghua Mao, Shanghai Huaxiang

Group is one of the most respected sweater manufacturers in

China with production of over 6 million units and sales of over

$60 million annually, Huaxiang customers include leading

brands and retailers, Ann Taylor Loft, Victoria's Secret, H&M

as well as higher-end brands Escada, Burberry and Chloe.

Known for their high quality and service, Shanghai Huaxiang

Group has earned several awards and recognitions including

"one of the best suppliers" from Mast Industries Inc. in 2009 and

"one of the best women leader of Enterprises in Shanghai" in

2011. Shanghai Huaxiang is a Gold reted supplier to H&M.

T&S Buttons Co. Ltd. (HK) founded in 1982 is one of the

world's larget manufacturers and distributors of buttons, with the

abilitiy and expertise to deliver and extensive product offering

ranging from Shell buttons, wood buttons, polyeser buttons to

metal buttons amongest others.

T&S Buttons Hong Kong supplies its products to such well

known brands as Polo Ralph Lauren, Guess, DKNY, Levi's,

Victoria's Secret, GAP & Espirit to name a few.

T&S Buttons Hong Kong is also a key supplier to the H&M

brands, and has been handling a business volume in excess of

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US$ 2 milion per annum. The T&S Group currently has

manufacturing plants in China and Sri Lanka and a warehousing

facility in the USA, with offices in HK, Los Angeles and

Taiwan

Brandot International Limited is an investment company

specializing in joint venture partnerships in the apparel and

textile industry. We invest in private companies that show

outstanding potential and sustainable long-term competitive

advantage. As an organization with extensive apparel and textile

industry experience, Brandot's competitive advantage rests in

our ability to offer unique perspectives that add value to our

joint venture companies. Brandot was founded in 2001 by

Martin Trust, an entrepreneur with over 50 years of apparel and

textile industry experience.

Time International Trading S.R.L has been operating in the

Romanian market for over 15 years as an established, reputed

formal suits manufacturer primarily catering to the EU market. It

is a family owned business with over 1,000 work-force across 3

factories in Alexandria and Bucharest, Romania and a vast

international market penetration.

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The Frontier Fund is a registered investment fund focusing on

investing in listed securities as well as the securities of privately-

held companies in Bangladesh. The Fund's target sectors include

pharmaceuticals, auto and ancillaries, healthcare, education,

financial services, retail and distribution, telecommunications

and consumer goods.

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CLIENTS

Through a wide range of high quality fashion garments for men,

women and children, Ananta Group has marked a distinguished

presence in various countries including USA, UK, Europe and

Canada.

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Ananta offers its employees a professional work

environment with exceptional career growth opportunities. They

are committed to recruiting and developing the best talent in the

apparel manufacturing industry, and are looking for smart,

ambitious and hardworking people to join them. Ideal candidates

should have experience working in well-known compliant

factories at home and abroad producing woven bottoms for

customers such as The GAP, H&M and C&A.

They encourage potential candidates to apply with a resume and

cover letter at [email protected]

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The Main Product of Ananta Apparels & Fashion Ltd.

There are several products are made in Ananta Apparels &

Fashion.

These are :

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1. Denim

Ananta specializes in manufacturing denim jeans with advanced

finishing requirements. These include processes such 3D

whiskering, laser etching, oven wrinkling and various ozone,

enzyme and resin based washes.

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2. Cargoes

Ananta has substantial experience in producing various types of

cargo bottoms based on canvas, twill, polyester, viscose and

other fabrics. These products are often characterized by

complicated stitching and assembly details which are efficiently

managed by their experienced production teams.

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3. Children

Ananta has over a decade of experience producing various

children and babies products with special finishing details such

as embroidery, printing, sequin, beads and other attachments.

Special emphasis is placed on all aspects of product safety

including needle detection, packaging and accessory attachment.

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The profile of Human Resource

Categories No. of person

Admin Staffs 77

Office Staffs 180

Supervisors 772

Workers 3527

Manpower Management

Managing

Director

Director

Executive

Director

Merchandisi

ng

Director

Director

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There is only one shift

(day shift) 8am – 8pm.

Ananta Apparels & Fashion Ltd.

(Human Resources Management)

Organogram

Executive HR 2 IT Engineer 1

Jr. Executive HR

10

IT officer 5

HR officer

Manager 1

Compliance

o02020024officer5

HR officer

Managing Director 1

Executive director 1

Human Resources

Manager 1

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Definitions under the Factories Act

Factory:

The term factory defined in section 2(m) of the Act-Factory

any premises including the precincts thereof-

a) Where a manufacturing process is carried on.

b) Where ten or more workers are working if power is

used.

Where twenty or more workers are working if no power is used

Worker:

According to the Factories Act 1965 sec 2(1), Worker means

any person engaged in any work connected with or incidental

to a manufacturing process. The term includes persons

engaged directly and also those who are engaged through an

agency.

Adult:

According to the Factories Act 1965 sec 2(a), “Adult means a

person who has completed his eighteen year of age.”

Child:

According to the Factories Act 1965 sec 2(c) -“Child means a

person who has not completed his eighteen year of age.”

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Adolescent :

Adolescent means a person who has completed his fifteenth

year of age but has not completed his eighteenth year

Young Person :

Young person means a person who is either a child or an

adolescent.

Calendar Year :

Calendar year means the period of twelve months beginning

with the first day of January in any year.

Inspector:

According to the Factories Act 1965 sec 9-“Inspector is the

person who enforces the provisions of the Factories Act and

other industrial laws.”

Machinery:

According to the Factories Act 1965 sec 2(j)- “Machinery

includes prime movers, transmission machinery and all other

appliances whereby power is generated, transformed,

transmitted or applied.”

Occupier:

According to the Factories Act 1965 sec 2(n) - “occupier of a

factory means the person who has ultimate control over the

affairs of the factory.”

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Provisions Regarding the Factory Act

According to the Factories Act 1965 there are three

provisions:

a) Provisions Regarding the health of workers

b) Provisions Regarding the safety of workers

c) Provisions Regarding the welfare of workers

Provision of health

1. Cleanliness

Every factory shall be kept clean and free from dirt, and the

outflow of drains etc. The floors must be cleaned. Drainage shall

be provided. Inside walls, partitions and ceilings must be

repainted at least once in five years. When washable water-paint

is used they must be painted once every three years and washed

at least every period of six months.

Sec. 11, as amended in 1976.

2. Disposal of wastes and effluents

The waste materials produced from the manufacturing process

must be effectively disposed of. Sec. 12

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Page no. 43

3. Ventilation and Temperature

There must be provision for adequate ventilation by the

circulation of fresh air. The temperature must be kept at a

comfortable level. Hot parts of machines must be separated and

insulated.(Sect. 13)

Section 13(2) provides that the Government may prescribe a

standard of adequate ventilation and reasonable temperature for

any factory and direct that proper measuring instruments at such

places and in such position as may be specified, shall be

provided and such records as may be prescribed, shall be

maintained.

Section 13(3) provides that if it appears to the Chief Inspector

that excessively high temperatures in any factory can be reduced

by the adoption of suitable measures, he may issue an order in

writing specifying measures to be adopted and may order to

carry out the measures before a specified date.

4. Dust and fume

If the manufacturing process used gives off injurious or

offensive dust and fume steps must be taken so that they are not

inhaled or accumulated. The exhaust fumes of internal

combustion engines must be conducted outside the factory.

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Page no. 44

5. Artificial humidification

The water used for this purpose must be pure. It must be taken

from some source of drinking water supply. That Government

can frame rules regarding the process of humidification.

6. Overcrowding

There must be no overcrowding in a factory. In factories

existing before the commencement of the Act there must be at

least 350 c.ft. (or 55 cubic meters) of space per worker. For

factories built afterwards, there must be at last 500 c.ft. (or 75

cubic meters) of space. In calculating the space, and account is

to be taken of space above 14ft. (or 5 meters) from the floor. ----

----Sec. 16

According to the section 16(2) there shall be in every work room

of a factory in existence on the date of the commencement of

this Act at least 14.2 cubic meters of space for every worker

employed therein.

7. Lighting

Factories must be well lighted. Effective measures must be

adopted to prevent glare or formation of shadows which might

cause eyestrain.

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Page no. 45

8. Drinking water

Arrangements must be made to provide a sufficient supply of

wholesome drinking water. All supply points of such water must

be marked “drinking water.” No such points shall be within 20 ft

of any latrine, washing place etc. factories employing more than

250 workers must cool the water during the hot weather. __ Sec.

18

Section 18(2) of the amending Act provides that the place of

drinking water shall not be situated within six meters of any

washing place, urinal latrine, spittoon, open drain carrying

sullage or effluent or any source of contamination. A shorter

distance can be approved in writing by Chief Inspector.

9. Latrines and Urinals

Every factory must provide sufficient number of latrines and

urinals. There must be separate provision for male and female

workers. Latrines and urinals must be kept in a clean and

sanitary condition. In factories employing more than 250

workers, they shall be of prescribed sanitary types. __ Sec. 19.

10 . Spittoons

A sufficient number of spittoons must be provided at convenient

places, in a clean and hygienic condition. ___ Sec. 20.

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Page no. 46

Provision regarding the safety of workers:

1. Fencing of machinery:

All dangerous machinery must be securely fenced e. g., moving

parts of prime movers and flywheels connected to every prime

movers, electric generators, etc.

2. Work on or near machinery in motion:

Work on or near machinery in motion must be carried out only

by Specially trained adult male workers wearing tightly fitting

Clothes.

3. Employment of young person’s on dangerous machines:

No young person shall work at any dangerous machine unless

he has been specially instructed as to the dangers and the

Precautions to be observed, has received sufficient training

about the work, and is under the supervision of some person

having through knowledge and experience of the machine.

4. Striking gear and devices for cutting off power:

In every factory suitable devices for cutting off power in

emergencies from running machinery shall be provided and

maintained in every workman.

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Page no. 47

4. Self-acting machines:

Moving parts of a Self-acting machine must not be allowed to

come within 45 cms. Of any fixed structure which is not part of

the machine.

5. Casing of new machinery:

In all machinery installed after the commencement of the act,

certain parts must be sunk, encased or otherwise effectively

guarded. E.g., set screw, bolt , toothed gearing etc.

7. Woman and children near cotton openers:

Woman and children must not be allowed to work near cotton

openers, except in certain cases.

8. Hoists, lifts, chains etc:

Every hoist and lift must be so constructed as to be safe. There

are detailed rules as to how such safety is to be secured. There

are similar provisions regarding lifting machine, chains, and

ropes and lifting tackle

9. Revolving machinery:

Where grinding is carried on, the maximum safe working speed

of every revolving machinery connected therewith must be

notified. Steps must be taken to see that the safe speed is not

exceeded.

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Page no. 48

10. Pressure plant:

Where any operation is carried on at a pressure higher than the

atmospheric pressure, steps must be taken to ensure that the safe working pressure is not exceeded. __ Sec. 31.

11. Floors, stares, and means of access:

All floors, steps, stairs, passage and gangway shall be of sound

construction and properly maintained. Handrails shall be

provided where necessary. Safe means of access shall be

provided to the place where the worker will carry on any work. ___Sec. 32.

12. Pits, sumps, openings in floors etc. :

Pits, sumps, openings in floors etc. must be securely covered or fenced. ___Sec. 33

13. Excessive weights :

No worker shale be made to carry a load so heavy as to cause him injury. ___Sec. 34.

14. Protection of eyes:

Effective screen or suitable goggles shall be provided to protect

the eyes of the worker from fragments thrown off in course of

any manufacturing process and from excessive light if any ___Sec. 35.

15. Precautions against dangerous fumes :

No person shall be allowed to enter any chamber, tank etc.

where dangerous fumes are likely to be present, unless it is

equipped with a manhole or other means of going out. In such

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Page no. 49

space no portable electric light of more than 24 volts shall be

used. Only a lamp or light pf flame proof construction can be

used in such space. For people entering such space suitable

breathing apparatus, reviving apparatus etc. shall be provided.

Such places shall be cooled by ventilation before any person is

allowed to enter. __ Sec. 36 and 36A.

16. Explosive or inflammable gas etc.:

Where a manufacturing process produces inflammable gas, dust,

fume, etc. steps must be taken to enclose the machine

concerned, prevent the accumulation of substances and exclude

all possible sources of ignition. Extra precautionary measures

are to be taken where such substances are worked at greater than

the atmospheric pressure. __ Sec. 37.

17. Precaution in case of fire:

Fire escapes shall be provided. Windows and doors shall be

constructed to open outwards. The means of exit in case of the

fire shall be clearly marked in red letters. Arrangements must be

made to give warning in case of fire. ___ Sec. 38.

18. Specifications of defectives etc. and safety of buildings

and machinery

If any building or machine is in a defective or dangerous

condition, the inspector of factories can ask for the holding of

tests to determine how they can be made safe. He can also direct

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Page no. 50

the adoption of the measures necessary to make them safe. In

case of immediate danger, the use of the building or machine

can be prohibited. ___ Secs. 39, 40.

19. Maintenance of Buildings

If the Inspector of Factories thinks that any building in a factory,

or any part of it is in such a state of disrepair that it is likely to

affect the health and welfare of the workers, he may serve on the

occupier or manager or both in writing specifying the measures

to be done before the specified date. ____ Sec. 40A.

20. Safety officers

The Government may notify to the occupier to employ a number

of Safety Officers in a factory

a) Wherein one thousand or more workers are ordinarily

employed, or

b) Wherein any manufacturing process or operation which

involves the risk bodily injury, poisoning, disease or any

other hazard to health of the persons employed in the

factory. ___ Sec. 40B

21. Rules

The Government may make rules providing for the use of such

further devices for safety as may be necessary. __ Sec. 41.

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Page no. 51

Provision of welfare

1. Washing facilities (Sec. 42.)

In every factory ----

(a) Adequate and suitable facilities shall be provided and

maintained for the use of the workers therein ;

(b) Separate and adequately screened facilities shall be

provided for the use of male and female workers ;

(c) Such facilities shall be conveniently accessible and shall

be kept clean. The Government may make rules

prescribing adequate standards of facilities for washing.

2. Facilities for storing and drying clothing (Sec.43.)

The Government may make rules requiring the provision of

suitable places for keeping clothing not worn during working

hours and for the drying of wet clothing. The Government can

frame rules providing for keeping clothing with safety.

3. Facilities for sitting (Sec. 44.)

(1) In every factory suitable arrangements for sitting shall be

provided and maintained for all workers obliged to work

in a standing position, in order that they may take

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Page no. 52

advantage of any opportunity for rest which may occur

in course of work.

(2) If in the opinion of the Chief Inspector workers in a

particular room are able to do their work efficiently in a

sitting position , he may by an order in writing direct the

occupier of the factory to provide sitting arrangements

before a specified date.

(3) The Government may by notification in the official

Gazette direct that the aforesaid provisions shall not

apply specified cases.

4. First-aid appliance (Sec. 45.)

Every factory must provide first aid boxes or cupboards. They

must contain the prescribed materials and they must be in charge

of persons trained in first aid treatment. Factories employing

more than 500 persons must maintain an ambulance room

containing the prescribed equipment and in charge of the

prescribed medical and nursing staff.___Sec. 45.

5. Canteens :

Where more than 250 workers are employed, the Government

may require the opening of canteen or canteens for workers.

Rules may be framed regarding the food served ; its

management etc. ___Sec. 46.

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Page no. 53

6. Shelters :

In every factory where more than 150 workers are employed

there must be provided adequate and suitable shelters or rest

rooms and a lunch room (with drinking water supply) where

workers may eat meals brought by them. Such room must be

sufficiently lighted and ventilated, maintained in cool and clean

condition. The standards may be fixed by the Government.

___Sec. 47.

7. Crèches :

In every factory where more than 30 workers are employed, a

room shall be provided for the use of the children (below 6

years) of such women. The room shall be adequate size, well

lighted and ventilated, maintained in a clean and sanitary

condition and shall be in charge of a woman trained in the care

of children and infants. The standards shall be laid down by the

Government.___ SEC. 48.

8. Welfare officers :

Welfare officer must be appointed in every factory where 500 or

more workers are employed. The Government may prescribe the

duties, qualifications etc. of such officers._ Sec. 49.

9. Rules:

The Government may make rules regarding the welfare of

workers.__ Sec. 50.

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Page no. 54

Workmen’s Compensation Act

The workmen’s Compensation Act came into force from 1st

July, 1924.

The Act provides for the payment of compensation by certain

classes of employers to their workmen, for injury by accidents.

The Workmen’s Compensation Act does not apply to factories

covered by the Employees State Insurance Act.

The Amendment of 1976, The Workmen’s Compensation Act,

was passed with the object of providing suitable scales of

compensation for the higher wage levels beyond tk. 500. The

reason is that all wages have been increased. Before the

amendment, the Act covered workmen whose wages did not

exceed tk. 500 per month.

The latest amendment to the Act was made in 1984.

Defences of the employer

Prior to the passing of this Act, the employer was liable to pay

compensation only if he was guilty of negligence. Even in case

of proved negligence, the employer could get rid of his liability

by using any of the following defences:

1. The Doctrine of Assumed Risk :

If the employee knew the nature of the risks he was undertaking

when working in a factory, the employer had no liability for

injuries. The court assumed in such case that the workman had

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Page no. 55

voluntarily accepted the risks incidental to his work. The

doctrine followed from the rule Volenti Non Fit Injuria, which

means that one, who has volunteered to take a risk of injury, is

not entitled to damages if injury actually occurs.

2. The Doctrine of Common Employment :

Under this rule, when several persons work together for a

common purpose and one of them is injured by some act or

omission of another, the employer is not liable to pay

compensation for the injury.

3. The Doctrine of Contributory Negligence :

Under this rule a person is not entitled to damages for injury if

he was himself guilty of negligence and such negligence

contributed to the injury.

The three aforesaid defences and the rule “on negligence no

liability.” Made it almost impossible for an employee to obtain

relief in cases of accident.

Two ways of claiming compensation:

a) Civil suit for damages and

b) Claim for compensation under the Act.

Ananta has a agreement with Delta Insurance for

compensation.

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Page no. 56

Trade union facilities

Trade union:

Trade union means any number of persons associated together

for their own benefit, for the improvement of their working

conditions, for the protection of the interests of workers with

respect to their employers, for regulating the relations between

employers and workers, for promoting good feeling and

understanding between themselves and between worker and

employer and includes the provision of financial benefits to

members; “registered” means registered under this Act.

APPROVAL, LICENCING AND REGISTRATION

It is necessary to obtain a licence before a factory is started.

Section 6 provides that the government may make rules

requiring, for the purposes of this Act, the submission of plans

or any class or description of factories to the Chief Inspector or

the Government, and the plans and specifications of a factory

and its location. The amendment of 1976 provides that any

replacement addition to the factory will not be allowed if it does

not reduce the minimum clear space required for safe working

around the plant or machinery or adversely affect the

environmental conditions from the evolution or emission of

steam, heat or dust or fumes injurious to health.

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Page no. 57

NOTICE OF OCCUPIER

Section 7 provides that the occupier of a factory must, at least 15

days before he begins to occupy or use any premises as a

factory, send to the Chief Inspector of factories a written notice

containing the following particulars.

1) The name and situation of factory ;

2) The name and address of the occupier ;

3) The name and address of the owner of the premises or

building (including the precincts thereof)

4) The address to which communication relating to factory

may be sent;

5) The nature of the manufacturing process to be carried on in

the factory during the next twelve month;

6) The total rated horse power installed or to be installed in

the factory, which shall not include the rated horse power

or any separate stand-by plant;

7) The name of the manager of the factory for the purposes of

the Act;

8) The number of workers likely to be employed in the

factory;

9) Such other particulars as may be prescribed;

The rules stated above are enforced because the plans and

specifications of the factory must insure proper measures of

health, safety and welfare of the workers.

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Page no. 58

The Amendment Act of 1987 prescribed the general duties of

the occupier in regards to the health, safety and welfare of the

workers in his factories. (Sec. 7-A). In accordance with section

7-A(1), every occupier shall ensure, as far as reasonably

possible, the health, safety and welfare of all workers while they

are at work in the factory.

Every occupier shall prepare a statement in respect of the health

and safety of the worker and bring the statement to the notice of

all workers

Section 7B provides that, “Every person who designs,

manufactures, imports or supplies any article for use in the

factory shall ensure so far as is reasonably practicable that the

article is so designed and constructed as to be safe and without

risks to the health of the workers when properly used.”

He must provide adequate information in connection with the

use of the article and about the use of which it is designed and

tested.

For the purpose of this section, article shall include plant and

machinery.

In Ananta Apparels & Fashion Ltd. has no Trade Union

facilities.

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Page no. 59

Ananta Apparels & Fashion Ltd.

The following complied by this factory:

Provision of Health

From our overview_________________

Sec. 11 – Cleanliness: Ananta has kept/maintain clean to keep

free from dirt, waste and bad smell. It has effective cleaning

team who have done clean all floors, stairs, walking spaces,

canteen, store room, sitting place. In short, they keep clean all

over the factory.

Sec. 12 – Disposal of waste and effluents: Ananta has three

stored spaces where they have disposed of all wastes and

effluents materials due to manufacturing process.

Sec. 13 – Ventilation and Temperature: Ananta has sufficient

fan and light in its working place. It has adequate windows and

ventilation to enter air and light naturally in its all working room

and storing room.

Sec. 14 – Dust and Fume: In Ananta by reason of the

manufacturing process carried on, there is given off any dust or

fumes or other impurity of such a nature and to such an extent as

is likely to be injurious or offensive to the workers employed

therein, effective measures is taken to prevent its accumulation

in any work.

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Page no. 60

Sec. 15 – Artificial Humidification: (1) In Ananta Apparels &

fashion Ltd. in respect of Governments rules, the air is

artificially increased, and applies some rules.

• (a) prescribing standards of humidification;

• (b) regulating the methods used for artificially increasing the

humidity of the air;

• (c) directing prescribed tests determining the humidity of the

air to be correctly carried out and recorded; and

• (d) Prescribing methods to be adopted for securing adequate

ventilation and cooling of the air in the work-rooms.

Sec. 16 – Overcrowding: If we consider this condition in three

categories like bad, good and better; we can say that Ananta

remains in good position.

Sec. 17 – Lighting: In Ananta, in every part of a factory where

workers are working or passing, there are sufficient and suitable

lighting, (natural or artificial, or both) are available. All glazed

windows and skylights are using in here for the lighting of the

work-room. All is done in here according to the Government

prescribes standards of sufficient and suitable lighting for

factories or for any class or description of factories or for any

manufacturing process.

Sec. 18 – Drinking Water: In Ananta Apparels and fashion Ltd.

effective arrangements is provided and maintain at a suitable

point conveniently situated for all workers employed therein, a

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Page no. 61

sufficient supply of wholesome pure drinking water. All such

points is legibly marked "Drinking Water" in a language

understood by the majority of the workers.

Sec. 19 – Latrines and Urinals: Ananta has sufficient latrines

and urinals in all floors for their male and female workers

separately. For keeping neat and clean it has a sweeper team.

Sec. 20 – Spittoons: To keep and hygienic condition, Ananta

provides a sufficient no. of spittoons at convenient places. They

maintain a spittoon among four workers in the factory.

Complied Provision of Safety of Workers

Sec. 21 – Fencing of machinery: Ananta maintain this provision

according to rules.

Sec.22 – This provision is not applicable for Ananta.

Sec. 23 – Employment of young person on dangerous machines:

Ananta do not permit to work at any dangerous machine unless

he has been fully instructed.

Sec. 28 -- Host and lifts: This condition is well in Ananta group.

Lifting machines chairs, ropes, and lifting and tickets: from our

overview. Lifting machines chains, ropes and lifting tickets are

in good condition.

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Page no. 62

Sec. 32 -- Floors, stairs and means of access: All floors, steps,

stairs passage and gangways constructed and maintained

properly.

Sec. 34 -- Excessive weights: There is no excessive weights

package of garments.

Sec. 38 -- Precaution in case of fire: Ananta provides with such

means of escape in case of fire. In Ananta the doors affording

exit from any room is not be locked or fastened so that they can

be easily and immediately opened from inside while any person

is within the room.

In Ananta special power system is available & effective

and clearly audible means of giving warning in case of fire

to every person employed there in.

A free passage-way giving access to each means of escape

in case of fire is maintained for the use of all workers in

every room of the factory.

They have ten fire fighter in Ananta Plaza.

Sec. 40A -- Maintenance of buildings: Ananta plaza is approved

by the RAJUK. The building code of Ananta Plaza is _____.

Sec. 40B -- Safety officers : Ananta has a safety officer. Who

makes consciousness the worker in about various matters by the

seminar.

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Page no. 63

Complied by Provision of Welfare of Workers:

Sec. 42 – Washing facilities: Ananta has adequate and suitable

facilities for washing clothes during working time for the

workers.

Sec. 43 – Storing and Drying: there are three/four selves for

storing cloth during in every room in working time.

Sec. 44 – Sitting facilities: Ananta maintains a proper sitting

arrangement for standing workers.

Sec.45 – First Aid: It offers on campus medical facilities round

the clock. Certified medics and nurses attend Ananta's people

for their necessary medical attentions during working hours.

Its medical center is quite capable of attending many

emergencies also.

It has two doctors and three nurses to provide this service.

they have a contract to provide any emergency services

with Maries stop.

They have two ambulances carrying any seriously injured

worker.

Sec. 46 – Canteens: Ananta has four canteens in different floors.

In each canteen they have two women for maintaining

cleanliness.

Sec. 47 – Shelters: Ananta’s people use canteen as a rest room.

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Page no. 64

Sec. 48 – Crèches: Ananta has a nice crèche for infant of women

workers. There are two women for caring these infant. They

have a service contract with Maries stop.

Sec. 49 – Welfare Officers: It has six welfare officers.

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Page no. 65

FINDINGS OF ANANTA APPARELS & FASHION LTD.

Provision of Health

1. Ventilation and Temperature: In Ananta, there is no

opportunity of sufficient natural air and light in the working

place.

2. Dust and Fume:

Provision of Safety

1. Fencing of Machinery:

2. Employment of young person on dangerous machines:

3. Striking gear and devices for cutting off power :

4. Women and children near cotton openers:

5. Protection of eyes:

6. Precautions against dangerous fumes:

7. Explosive or inflammable gas etc.:

Provision of Welfare

No findings.

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Page no. 66

RECOMMENDATION

From our investigation of this garment, we find some

provisions that the garments doesn’t provide for the workers but

those are necessary for the health, safety and welfare of the

workers.

Provision of Health

1. Ventilation and Temperature: In Ananta, they have to

manage sufficient natural air and light in the working place.

2. Overcrowding: They have to minimize their workers

crowding, workers conversation between them and reduce

sound of machines.

Provision of Safety

1. Safety Officers: Ananta has to provide one more safety

officer in the factory. Because there are more than 3500

workers in the factory.

Provision of Welfare

1. Crèches: They have to provide more toys for children in

the crèches.

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Page no. 67

CONCLUSION

Ananta Apparels & Fashion Ltd. is one of the reputed and

familiar garments in home and abroad for their better producing

and designing activities of the denim, cargoes and children

clothes. It is pleasure to us that maximum Factories Act are

followed by Ananta.

Though they fail to follow few provisions regarding Factories

Act, it is negligible than those of followed.

We also observed that the relationship among the management,

employees and workers is better condition that is effective to

make decision in any situation.

From our investigation, Ananta Apparels & Fashion Ltd. is more

favourable by all the Factories Act than other garments.

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Page no. 68

APPENDIX

ERP = Enterprise Resource Planning

AQL = Acceptable Quality Level

SMV = Standard Minute Values

VMI = Vendor Managed Inventory

Page 69 of 69

Page no. 69

RERERENCE

www.bgmea.bd.com

www.annata-bd.com

Major Md Khorshed Alam Jahangir,

General Manager (Operation)

Tel : (88-02) 9660159, 8622203

Cell : 017130952

[email protected]

Md. Mahabub Alam Manik

Sr. Executive (H.R.D)

Tel: (88-02) 9898601, 8810617, 8810618

Cell: 01722 3373301

Fax: (88-02) 8810656

[email protected]

Main Uddin Mizi

Deputy Manager (Compliance)

Tel: (88-02) 8614905, 8622205

Cell: 01986 067100

Fax: (88-02) 8810656

E-mail: [email protected]