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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.
Page 3 of 69
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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Page no. 4
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.
Page 5 of 69
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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Page no. 6
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.
Page 7 of 69
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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Page no. 9
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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Page no. 11
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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Page no. 12
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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Page no. 13
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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Page no. 16
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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Page no. 19
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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Page no. 20
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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Page no. 21
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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Page no. 22
• 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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Page no. 25
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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Page no. 26
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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Page no. 27
• 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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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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Page no. 33
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]
Page 34 of 69
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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
Md. Mahabub Alam Manik
Sr. Executive (H.R.D)
Tel: (88-02) 9898601, 8810617, 8810618
Cell: 01722 3373301
Fax: (88-02) 8810656
Main Uddin Mizi
Deputy Manager (Compliance)
Tel: (88-02) 8614905, 8622205
Cell: 01986 067100
Fax: (88-02) 8810656
E-mail: [email protected]