AUDIT CORRECTIVE ACTION PLAN (CAP)
Non-Compliance Finding (S) Recommended Corrective Action(S)
Monitoring & Documentation
Description Of Non Compliance 1
No notice sent to the inspector of factories
pertaining to the weekly rest day work
No compensatory office provided to the
worker working on weekly off.
Description Of Non Compliance 3
Factory has not provided payroll for the 7
security guards employed through
Protector Security Services P. Limited so
the compliance to these guards could not
Legal requirement
According to Section 52(1) of The
Factories Act, 1948, No adult worker
shall be required or allowed to work in a
factory on the first day of the week
(hereinfafter referred to as the said day),
unless -
(a) he has or will have a holiday for
whole day on one of the three days
immediately before or after the said
day, and
(b) the manager of the factory has,
before the said day or the substituted
day under clause (a) whichever is
earlier, -
(I) delivered a notice at the office of the
Inspector of his intention to require the
worker to work on the said day and of
the day which is to be substituted, and
(ii) Displayed a notice to that effect in
the factory
Recommended corrective action
Factory shall ensure to sent the notice
to the inspector of factories
Legal Requirement
According to Section 13A of the
Payment of Wages Act, 1936, every
employer shall maintain such register
and records giving such particulars of
 be verified for minimum wages, overtime
hour's payment and benefits
Description Of Non Compliance 1
Out of 20 Personnel files verified 2 files
were found without valid age proof records
Child Labour
Description Of Non Compliance 1
Chemical container (While petrol) were not
labeled and no MSDS were not available
for the same in the finishing section
Health & Safety
persons employed by him, the work
performed by them, the deduction made
from their wages, the receipts given by
them and such other particulars and in
such form as may be prescribed
Recommended Corrective action
Factory shall ensure to provide payroll
for the security guards too.
Legal Requirement 1
According to Schedule IB (I) (I) & (iv) The
Industrial Employment ( Standing
Orders) Central Rules 1946iv) Record
of age, - (a) Every workman shall
indicate his exact date of birth to the
employer or the officefr authorised by
him in this behalf, at the time of entering
service of the estabnlishment. The
employer of the officer authorised by
him in this behalf may before the date of
birth of a workman is entered in his,
service card, require him to supply ;-
Recommended corrective action
factory shall ensure to provide the age
proof records for all the workers as required
Legal Requirement 1
According to rule 62 C (1) Tamil Nadu
Factoryu Rules 1950. The occupier of
every factory carrying on a "hazardous
process" shall arrange to obtain or
develop information in the form of
Material Safety Date Sheet (MSDS) in
respect of every hazardous substance
or m,aterial handled in the manfacture,
transportation and stroage in the
factory. It shall be accessible upon
request to a worker for reference.
Recommended corrective action
Factory shall ensure tom label all the
chemicals stored in containers and shall
display the appropriate MSDS (Material
Safety Datasheet) in all the areas of
storage and usage.
 Health & Safety
Description Of Non Compliance 2
Mock fire drill not conducted once in two
months
Description Of Non Compliance 3
The factory has not conducted water test
for the drinking water provided at the
factory for workers
Description Of Non Compliance 4
The factory has employed more than 250
workers however no canteen facility
provided for the workers
Description Of Non Compliance 5
Broken needle records maintained for one
Health & Safety (Domitories / Housing
section of factory properly but not for the
other section.
Legal Requirement 2
According to rules 61 (12c) of the Tamil
Nadu Factories Rules 1950, fire fighting
drills shall be held as often as
necessary and at least once in every
period of two months.
Recommended Corrective action
Factory shall ensure to conduct mock
fire drill once in 02 months
Legal Requirement 3
According to rule 35 of the Tamil Nadu
Factories Rules 1950, the water
provided for drinking shall be suppliers -
(a) from a public water -supply system,
or (b) from any other source approved
in writing by the Health Officer:
Recommended corrective action
Factory shall ensure to test the drinking
water for pot ability
Legal Requirement 4
According to Section 46 (1) of The
Factories Act, 1948 The state
government may m,ake rules requiring
that in any secialised factory wherein
more than two hundred and fifty
workers are ordinarilly employed, a
canteen or canteens shall be provided
and maintained by the occupier for the
use of the workers
Recommended corrective action
Factory shall ensure to provide canteen
as per local law
Legal Requirement
As per the Client Requirement
Recommended corrective action
Factory shall ensure to maintain the broken
needle records for all sections
Health & Safety (
Descritption Of Non Compliance 1
It was noted factory is contributing
Provident Fund on the basic and D.A
bifurcation done by the factory itself, which
is less than the minimum wages.
Compensation & Benefits
Descritption Of Non Compliance 2
The ESI deduction is not rounded off to
next one rupees as per the requirement
Descriptiopn Of Non Compliance 3
The factory has not contributed ESI for the
overtime payment and attendance bonus
provided to the workers
Legal Requirement
According to Section 6 of The Employee's
Provident Fund and Miscellaneous Provision
Act, 1952. The contribution which shall be
paid by the employer to the fund shall be
12% of basic wages, dearness allowance
and retaining allowance if any
Recommended corrective action
Factory shall ensure to contriobute the
PF deductions according to the minimum
wage to be paid for the workers
Legal Requirement
According to Rule 51 of The Employees
State Insurance (central) Rules, 1950, The
Government of India Ministry of labour and
eimployment vide their notification
N.S-38912/1/2003-SS 1
dated 26.08.04 has amended Rule 51
of the ESI (central) Rules.1950 relating
to rounding of contribution to next
higher rupee. The factory shall follow
the same.
Recommended corrective action
Factory shall ensure to deduct ESI
contribution as per local law.
Legal Requirment
As per Section 2 (22) of the Employees
State Insurance Act 1948, "Wages
"means all remuneration paid or
payable in cash to an employee, if the
terms of the contract of employment express
or implied were fulfilled and
includes any payment to an employee
in respect of any period of authorized
leave, lock-out, strike, which is not
illegal or layout, and other additional
remuneration, if any, paid at intervals
not exceeding two months, but does not
include--
a) any contribution paid by the employer
to any pension fund or provident fund or
under this Act
b) any travelling allowance or the value
of any travelling concession
c) any sum paid to the person employed
to defray special expenses entailed on him

Descriptiopn Of Non Compliance 3
The factory has paid less than minimum
rate of wages prescribed by local law
currently for 33 workers.
Descriptiopn Of Non Compliance 1
No compensatory off provided for the weekly According to Section 52 (1) of The Factories Act,
rest day within 03 days for workers as well 1948, No adult woker shall be required or allowed
as security guards
Hours of Work
by the nature of his employment or
Any gratuity payable on discharge
Recommended corrective action
The factory shall ensure to provide ESI
deduction for the overtime payment and
bonus also
Legal Requirment
According to Section 12 of the Minimum
Wages Act, 1948, The employer shall pay
to every employee engaged in scheduled
employment under him wages, at a rate not
less than the minimum rate of wages fixed by
such notification for that class of employees in
that employment without any deduction except
as may be authorized within such time and
subject to such conditions as may be
prescribed. According to the Minimum Wages
Notification for Employment in Tailoring Industry
G.O (2D) No.74, Labour and Employment,
dated 10/12/2004 Notification No. II (2) /
LE/98/2005, Published in T.N. Government
Gazette, Part II, Section 2, dated 02/02/2005 at
pages 58 59n Revised DA payable for the period
for the period from 01/04/2008 to 31/03/2009
shall be Rs532 per month. This calculates
INR 93.65 per day and INR 2435 per month as
per Zone-B for Helpers Category )
Recommended corrective action
Factory shall ensure to provide minimum rate of
wages to the workers as per requirment
Legal Requirment
to work in a factory on the first day of the week
(hereinafter referred to as the said day ) unless -
(a ) he has or will have a holiday for whole day on
one of the three days immediately before or after
the said day, and
(b) the manger of the factory has before the said
day or the substituted day under clause
(a) whichever is earlier -
(I) delivered a notice at the office of the Inspector
of his intention to reuire the worker to work on the
said day and or the day which is to be
substituted, and (ii) Displayed a notice to that
Hours of W
Descriptiopn Of Non Compliance 2
Overtime hours exceeding the legal limit for
workers as well as security guards
Descriptiopn Of Non Compliance 3
NOC for Air and Water expired on.
September 19.2007, but no renewal
obtained so for
Environmental:
Sub-Contracting & Homework
Descriptiopn Of Non Compliance 1
Factory has doing sub - contracting work for As per the client requirement
washing and embroidery. For this no
approval from the Client.
effect in the factory
Recommended corrective action
Factory shall ensure to provide alternate day off
for the weekly rest day work
Legal Requirment 2
According to Section 64 (4) of The Factories Act,
1948, in making rules under this section, the
State Government shall not exceed, except in
respect of exemption under clause (a) of
sub-section (2) the following limits of work
inclusive of overtime -
(I) the total number of hours of work in any day
shall not exceed ten (ii ) the spread over,
inclusive of intervals for rest, shall not exceed
twelve hours in any one day. (iii) the total
numbers of hours in a week including overtime
shall not exceed sixty (iv ) the total numbers of
hours of overtime shall not exceed fifty for any
one quarter
Recommended corrective action
Factory shall ensure to restrict the overtime
hours within the legal limit
Legal Requirment 3
As per the Section 24 and 25 of the water (prevention
and Control of Pollution ) Act 1974 - The applicant
shall make an application along with prescribed fee for
grant of fresh consent at least 120 days before the date
of expiry of this consent As per the Section 21 of the
Air (Prevention & Control of Pollution) Act 1981.-The
applicant shall make an application along with
prescribed fee for grant of fresh consent at least 120
days befor the date of expiry of this consent
Recommended corrective action
Factory shall ensure obtain the NOC from the consent
department
Legal Requirment 1
Recommended corrective action
Sub-Contracting & Hom Factory shall ensure to obtain approval from the client
before doing sub contracting
 Compliance Target
nded Corrective Action(S) Factory Proposed Action Step(S)
Date(S)

No adult worker
llowed to work in a
y of the week
to as the said day),

e a holiday for
he three days
r after the said

e factory has,
r the substituted

at the office of the

ion to require the
e said day and of
e substituted, and
to that effect in

ective action
o sent the notice

n 13A of the
Act, 1936, every
ain such register
ch particulars of