The auditor arrives tomorrow. Do you know where your fire drill records are? Can your workers explain the grievance procedure in their own words? Is your latest chemical disposal licence current?

For hundreds of Indian factories every year, these questions trigger panic — because SMETA audit preparation was treated as a last-minute scramble rather than an ongoing operational discipline.

Under SMETA 7.0, this approach is no longer survivable. With semi-announced audits now the norm and Management Systems Assessment (MSA) probing your everyday systems — not just your audit-day documents — factories that prepare properly and consistently are the ones that pass. Those that don’t, face non-conformances, buyer displeasure, and expensive re-audits.

This checklist from Greendot Management Solutions — built from 25+ years of on-the-ground experience with Indian MSMEs — gives you 30 concrete actions to take before your auditor walks through the gate.

Start at least 90 days before your audit — not 90 hours. First-time auditors: allow 90 days minimum. Renewal audits: allow 60 days. Semi-announced audits under SMETA 7.0: maintain permanent readiness

SECTION A: Documentation & Records

Documentation is the foundation of any SMETA audit. Auditors spend 30–40% of their time reviewing records. Gaps here trigger automatic non-conformances — regardless of what your actual practices are.

#	Document	What Auditors Check	Common Gap in India
1	Employment Contracts	Every worker has a signed contract in local language with pay, hours, leave, and notice period clearly stated	Contracts missing for contract/temporary workers
2	Wage & Payslip Records	12 months of payslips showing basic, OT, deductions — cross-checked against bank statements	Wage records show round figures; no OT breakdown
3	Attendance & Working Hours Logs	Daily attendance vs payroll; OT hours must not exceed legal limits; 1 day rest in 7	Biometric data not maintained; manual registers have corrections
4	Age Verification Documents	DOB proof for all workers — especially those appearing young — to confirm no child labour	No age proof for casual / daily wage workers
5	Labour Licences & Statutory Registrations	Factories Act licence, ESIC, EPFO, Contract Labour licence — all current and displayed	Licences expired or not renewed after workforce increase
6	Health & Safety Policy	Signed by MD/CEO, dated, posted in local language, communicated to all workers	Policy exists but is 5+ years old and never updated
7	Accident & Near-Miss Register	All incidents logged with date, nature, injury, corrective action — for minimum 3 years	Only major accidents recorded; near-misses not tracked
8	Fire Drill & Emergency Records	At least 2 fire drills per year, with dates, attendees, and findings documented	Last drill was before previous audit — 18 months ago
9	Training Records	H&S induction for every new worker; ongoing training evidence with signatures	Training done verbally; no attendance sheets or records
10	Grievance Register	Log of all complaints raised, by whom (role, not name), action taken, resolution date	Grievance box exists but is never opened; no register maintained

SECTION B: Health, Safety & Facility Compliance

#	Area	What Auditors Check	Common Gap in India
11	Fire Safety Equipment	Extinguishers — correct type, serviced annually, accessible, not blocked. Hydrants functional.	Extinguishers last serviced 3+ years ago; some discharged
12	Emergency Exits & Signage	All exits clearly marked in local language, unlocked during working hours, unobstructed	Exit doors locked from inside; signage only in English
13	Machine Guarding	All moving parts guarded; guards cannot be bypassed; PPE posted at each machine	Guards removed for ‘efficiency’; no lockout/tagout procedure
14	PPE Availability & Usage	Correct PPE available, in good condition, workers trained to use it, usage actually observed	PPE is stored, not worn; workers claim it is uncomfortable
15	First Aid Facilities	Stocked first aid box, first aider identified and trained, records of use maintained	Box has expired items; no trained first aider designated
16	Welfare Facilities	Clean drinking water, functional toilets (ratio to workers), canteen/rest area if applicable	Separate male/female toilets missing; water coolers not maintained
17	Chemical Safety (MSDS/SDS)	SDS for every chemical, in local language, accessible at point of use, workers trained	SDS in English only; workers unaware of chemical hazards
18	Electrical Safety	No exposed wiring; switchboards enclosed; earthing certificates current; no overloading	Extension cords overloaded; no annual electrical safety audit

SECTION C: Worker Awareness & Rights

This is where most Indian factories lose points. Auditors conduct confidential worker interviews — and what workers say matters enormously. Coaching workers is strictly prohibited and considered an integrity violation.

#	What Workers Must Know	How to Prepare
19	Their own wages and deductions	Conduct monthly team briefings where HR explains payslips. Workers must understand basic, OT, PF, ESI, and net pay.
20	Their working hours and OT entitlement	Post shift timings on notice boards. Brief all workers on daily hours, weekly rest, and OT calculation method.
21	How to raise a grievance — and feel safe doing so	Test your grievance mechanism: does it work? Are workers comfortable using it? Post grievance process in all languages spoken in the factory.
22	Their right to leave and not be penalised	Ensure workers know their earned leave, sick leave, and casual leave entitlements. Check that managers don’t penalise workers for taking legitimate leave.
23	Basic H&S rules, emergency procedures, and who to report to	Conduct quarterly H&S awareness sessions. Workers should be able to name the fire assembly point, the first aider, and the grievance officer.

Never Coach Workers What to Say to Auditors

Instructing workers on how to respond to auditor questions is treated as a serious integrity violation under SMETA 7.0.

If auditors discover coached responses, it results in automatic Critical findings and can trigger buyer rejection of the audit report entirely. The right approach: fix the actual conditions, train workers on their rights, and let them speak truthfully.

SECTION D: Environment (4-Pillar Audits)

If you are undergoing a 4-Pillar audit, these four areas are consistently the most common source of non-conformances in Indian pharma, chemical, and engineering factories.

#	Area	Preparation Action
24	Environmental Licences & Consents	Check expiry dates on all environmental licences — consent to operate, effluent discharge, hazardous waste authorisation. Renew any that are within 3 months of expiry.
25	Waste Manifest & Disposal Records	Maintain a waste inventory register. Ensure all hazardous waste has a licensed disposal vendor with current agreement. Keep all waste manifests for minimum 3 years.
26	Energy & Water Usage Data	Compile 12 months of electricity bills, fuel consumption, and water usage records. If no tracking system exists, begin now and at minimum document the last 3 months.
27	Environmental Management Policy	Create a 1-page Environmental Policy signed by the MD. Assign a named Environmental Manager. Post the policy in the factory in local languages.

SECTION E: Business Ethics (4-Pillar Audits)

#	Area	Preparation Action
28	Anti-Bribery & Corruption Policy	Draft a formal Anti-Bribery and Anti-Corruption Policy. Have it signed by the MD, dated, communicated to all employees, and posted on the notice board.
29	Whistleblower / Speak-Up Mechanism	Establish a confidential reporting channel (a suggestion box, a helpline number, or a named ethics officer). Ensure workers are aware of it and trust it.
30	Code of Conduct & Sub-supplier Disclosure	Create a Code of Conduct document for employees. Identify and disclose all sub-suppliers, contract manufacturers, and home workers in your Sedex account.

Recommended Preparation Timeline

90 Days Before: Complete gap analysis against all 30 checklist items. Priorities Critical and Major gaps.
60 Days Before: Fix all Critical gaps. Begin documentation upgrades. Conduct first worker awareness session.
30 Days Before: Conduct mock audit. Brief all department heads. Verify all licenses and permits are current.
7 Days Before: Final document review. Ensure workers know their rights. Confirm auditor logistics. Audit Day: Be transparent, be cooperative, answer honestly

Frequently Asked Questions

Q1: What happens if the auditor finds a non-conformance?

Non-conformances are normal — especially in first audits. You receive a Corrective Action Plan (CAP). Critical findings must be resolved immediately. Major findings within 30–60 days. Minor within 90 days. Upload evidence on Sedex. Your buyer monitors your CAP closure in real time.

Q2: Can I do a pre-audit myself without a consultant?

Yes. Use this 30-item checklist as your internal pre-audit tool. Walk through every area, document what is in place, identify gaps, and assign an owner and deadline to each gap. For higher-stakes audits or first-time audits, a professional mock audit with a consultant is strongly recommended.

Q3: Do workers need to be told the audit is happening?

Semi-announced audits — where the factory is given a short window (typically 24–48 hours) of notice — are now the preferred model under SMETA 7.0. Unannounced audits are also possible. You cannot guarantee full advance notice. This is why permanent readiness is the only sustainable strategy.