Indian Factory Audit Checklist Template

Use this checklist to structure a factory assessment before approving an Indian supplier for sampling or bulk production. Record the evidence you review, distinguish verified facts from supplier statements and assign an action owner to every unresolved issue. This is a buyer working template; it is not a social-compliance certification, statutory audit or guarantee that the factory will meet every future order requirement.

Audit record

Buyer / company: ____________________ Audit date: ____________________

Supplier legal name: ____________________ Factory address: ____________________

Contact / role: ____________________ Product category: ____________________

Audit type: ☐ Desktop review ☐ Site visit ☐ Remote video review ☐ Specialist third-party audit

Scope / processes to assess: ____________________________________________________

1. Legal identity and site verification

☐ Supplier legal name and registration details recorded.
☐ Registered office and actual production-site addresses recorded separately.
☐ Site signage, location and contact details checked.
☐ Bank beneficiary name checked against the contracting entity; changes independently verified.
☐ Relevant licences, registrations and insurance evidence requested where applicable.
☐ Site ownership, lease or operating arrangement clarified where material to the project.
☐ Name on quotation, purchase order, invoice and payment instructions reconciled.

2. Product and process capability

☐ Factory has made the same or a materially comparable product construction.
☐ Main processes and machines observed or documented.
☐ Production flow from raw material to finished goods mapped.
☐ Capacity stated by product, process, shift and period—not only an overall factory figure.
☐ Bottleneck machinery, seasonal capacity and current loading discussed.
☐ Skilled operators and technical supervision identified.
☐ Product examples, sample room and development process reviewed.
☐ Maintenance, calibration and machine downtime controls reviewed where relevant.

3. Material and inventory controls

☐ Approved material sources and key sub-suppliers recorded.
☐ Incoming material inspection and acceptance records reviewed.
☐ Lot, batch, colour and material traceability demonstrated.
☐ Storage conditions, segregation and stock identification reviewed.
☐ Rejected, non-conforming or obsolete material controls reviewed.
☐ Material substitutions require written buyer approval.

4. Quality management and production controls

☐ Quality responsibilities and escalation contacts identified.
☐ Approved sample and specification control process reviewed.
☐ In-line and final inspection records sampled.
☐ Defect classification and acceptance criteria documented.
☐ Rework, repair and concession approval processes reviewed.
☐ Corrective and preventive action records available for review.
☐ Testing capability and external laboratory arrangements identified.
☐ Packing, carton marking and final release checks reviewed.

5. Subcontracting and supply-chain transparency

☐ All outsourced processes and locations disclosed.
☐ Subcontractor approval and monitoring process reviewed.
☐ The factory can trace materials and semi-finished goods across subcontractors.
☐ No undisclosed production transfer without buyer approval is permitted in the order terms.
☐ Capacity and lead time include subcontracted process constraints.

6. Workforce, safety and environmental review

For a basic buyer assessment, record the visible site conditions and the documents reviewed. Where the buyer requires a formal social, labour, health-and-safety or environmental audit, appoint a competent specialist or recognised audit programme appropriate to the buyer’s code and destination-market requirements.

☐ Site access, emergency exits and evacuation routes reviewed.
☐ Fire-safety equipment, inspection records and emergency arrangements reviewed.
☐ Machine guarding, electrical safety and housekeeping reviewed.
☐ Worker facilities and welfare arrangements reviewed.
☐ Employment, working-hour and wage records sampled only where authorised and within audit scope.
☐ Chemical storage, handling, waste and environmental permits reviewed where relevant.
☐ Certificates and audit reports checked for site, scope, validity and issuing body.

7. Evidence and action log

For each finding, record the evidence source, risk, required action, owner and due date. Use “not verified” where evidence was not available; do not convert an unverified supplier statement into a pass.

Area / finding	Evidence reviewed	Status	Risk / action required	Owner / due date
________________	________________	☐ Pass ☐ Open ☐ Fail ☐ N/A	________________	________________
________________	________________	☐ Pass ☐ Open ☐ Fail ☐ N/A	________________	________________
________________	________________	☐ Pass ☐ Open ☐ Fail ☐ N/A	________________	________________

8. Assessment outcome

Recommendation: ☐ Proceed to sample ☐ Proceed subject to actions ☐ Reassess after corrective action ☐ Do not approve at this stage

Key risks / conditions: _________________________________________________________

Assessor: ____________________ Buyer approval: ____________________

How this checklist should be used

Assess capability against the actual product and order. A factory may be suitable for one process but not another, and a site visit does not guarantee the quality of future shipments. Reassess when the production site, key processes, subcontractors or ownership change.

For audit coordination in India, contact connect@vanguard-sourcing.com. Any formal audit scope, evidence access and reporting standard should be agreed before the visit.

For more India sourcing guidance, visit the International Buyer Sourcing Resources hub or browse the International Sourcing Knowledge Centre. Practical buyer tools are available in the India Sourcing Buyer Toolkit.

Vanguard Sourcing