Since she was 12, Jessica has been spinning cotton in the fabric mills of southern India, mostly to be used in the clothes of Western fashion brands.

Now in her late teens, Jessica is not only struggling with health issues caused by the constant inhalation of cotton fibres, but she's fighting to receive the full lump sum payment her family was promised for years of bonded labour.

Jessica's story is typical of some 300,000 young women in the southern Indian state of Tamil Nadu, where they've been lured with promises of money and safe accommodation but instead been abused and exploited.

"I stayed at the hostel where there were 300 other girls," Jessica told a labour rights advocate for a recent report. "There were only 10 bathrooms. Twenty girls were squeezed into one room."

The 2013 Rana Plaza factory collapse that killed 1136 garment workers in Bangladesh shone a spotlight on the use of dirt-cheat labor by major brands. In the wake of the collapse, new reports show some companies are making progress in stamping out child labour and exploitation.

A report by Baptist World Aid shows 77 per cent of surveyed fashion companies now know their suppliers at the final stage of production and 79 per cent know where their fabric is produced. Both figures are up from 50 per cent three years ago.

But when it came to raw materials, only 5 per cent were aware of who their suppliers were.

"If companies don't know or don't care who their suppliers are than they cannot ensure that workers are not being exploited," said advocacy manager Gershon Nimbalker.

Among the worst ranked companies – largely based on their transparency and willingness to engage with the researchers – were luxury brand Oroton, streetwear retailer General Pants, children's brand Pumpkin Patch and active-wear label Lorna Jane. Each were given a D or F.

Of the 87 companies surveyed, six were given the A grade, including Inditex (owner of Zara), Adidas and Audrey Blue.

One of the most improved was denim brand Jeanswest, which scored a B, reflecting its recent efforts to profile their factories on their website and create a range accredited by Ethical Clothing Australia.

"Our job is certainly not done, however we have a long-term strategy to keep traceability at the forefront of everything we do," said a Jeanswest spokesperson.

A separate report by aid group Oxfam, found only four out of 12 major fashion retailers in Australia had taken action to ensure the transparency of their supply chains.

It criticised brands such as Cotton On, Best & Less and Just Group (owner of Just Jeans and Peter Alexander) for withholding the names and locations of their factories.

Oxfam's survey of shoppers found 21 per cent were happy to pay more than $10 extra for ethically made clothes. The survey showed 30 per cent were happy to fork out an extra $5-10, and nearly half between $2-5.

"This is incredible, given that just $1 more would mean a substantial difference to a worker earning only $20 a week," said Oxfam Australia's Helen Szoke.

Carolyn Kitto from Stop the Traffik said there had been massive changes in the global fashion industry in the past 20 years, including the increased frequency of cheap collections, to the detriment of the labour force.

She met Jessica in November in Tamil Nadu, home to 65 per cent of India's fabric mills, where the Sumangali labour scheme is widespread. Girls as young as 11 are lured with the false promise of a lump sum payment at the end of a set period which can be used as dowry.

"The family, usually from poor and rural villages, are happy to agree. They think their daughter's virtue will be protected, but in fact they could be sexually abused. They're forced to work ridiculously long hours," she said.

"Jessica was told if she wants her lump sum payment, she would have to sleep with the supervisor. What's amazing about her is that she's part of a women's trade union there."

Luke Bunt, managing director of Pumpkin Patch Ltd said the company was "investing significant time and resources to achieve full ethical and social compliance".

Oroton, General Pants and Lorna Jane did not respond to requests for comment.