56. Obligations of licensees having licensee Form VII.
(1)The validity of a license granted in Form VII shall be subject to the manufacturer's compliance with the conditions contained in these rules and in the license.(2)The licensee having a license in Form VII shall mark all firearms and ammunition that it manufactures in the manner as specified in rule 58.(3)The licensee company shall comply with the Foreign Direct Investment (FDI) policy of the Government of India and the regulations framed under the Foreign Exchange Management Act, 1999 (42 of 1999) as notified by the Reserve Bank of India in case of foreign direct investment in the said company.(4)The licensee shall comply with the security guidelines as contained in the Security Manual prepared by the Ministry of Defense, department of defense production, for licensed defense industries.(5)The licensee shall maintain records of all firearms, their parts, components and/or ammunition manufactured by it as specified in rule 65 in addition to the conditions specified or forming part of the license in Form VII.(6)The licensee shall store all firearms, their parts, components and/or ammunition manufactured by it as specified in Form VII.(7)The licensee shall permit, and shall cooperate fully with, inspections carried out by the licensing authority (or such other body as may be designated by it) of the licensee's facilities, particularly in respect to the safe and secure storage of firearms and ammunition.(8)The licensee shall immediately notify the licensing authority on occurrence of any theft, loss or unintentional destruction of firearms or ammunition stored at its premises.(9)The licensee shall notify the licensing authority within three working days on occurrence of any of the following events, namely:-(i)change of address of its registered office;(ii)change in the directors, in which case the licensee shall provide the licensing authority with the names and addresses of each new director, along with the particulars and documents specified in rule 53 for directors.(10)The licensee shall ensure that all employees who have access to completed manufactured firearms or ammunition within the manufacturing or proof-testing facility are technically competent to handle the same.(11)The work-in-progress and finished goods inventory for each type of firearm and ammunition at any given time shall not exceed two times of the total annual turnover in the last financial year or annual licensed capacity, whichever is lower:Provided that in case of a company having multi-unit facility, total of the annual licensed capacity or total turnover of the company shall be considered.(12)The licensee shall maintain complete database of inventory and distribution chain down to the dealer/end user for domestic distribution and end users in case of export.(13)The licensee shall carry out only batch production in a manufacturing cycle.
