MIRA INFORM REPORT

Report Date :

26^th June 2006

IDENTIFICATION DETAILS

Name :	BANNARI AMMAN SUGARS LIMITED
Registered Office :	252, Mettupalayam Road, Coimbatore – 641 043, Tamilnadu, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	01-12-1983
Com. Reg. No.:	18-1358
CIN No.: [Company Identification No.]	Li5421t21983PLC001358
TAN No.: (Tax Deduction & Collection Account No.)	CMBB03043F
PAN No.: [Permanent Account No.]	AAACB8933G
Legal Form :	Public limited liability company. The company’s shares are listed on the stock exchange
Line of Business :	Manufacturer of Sugar, Molasses, Granite Blocks, Polished Granite Slabs, Polished Granite Tiles, Monuments, Rectified Spirit, Denatured Spirit, Denatured Spirit, Netural Spirit, Fusel Oil and Bio Compost.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 8000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. It is faring well. Financial position is good. Payments are usually correct and as per commitments. Trade relations are fair. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long run

LOCATIONS

Registered Office :	252, Mettupalayam Road, Coimbatore – 641 043, Tamilnadu, India
Tel. No.:	91-422-2450045/2451515/2302277
Fax No.:	91-422-2431199/2305599
E-Mail :	bascbe@giasmd01.vsnl.net.in / bascbe@vsnl.com
Website :	http://www.bannari.com
Factory 1 :	Ø Sugar Unit, Co-Generation & Granite Processing Alathukombai, Erode District, Tamilnadu Ø Distillery Sinnapuliyur, Erode District, Tamilnadu Ø Bio-Compost Modur, Erode District, Tamilnadu Ø Wind Mills Radhapuram, Irukkandurai And Karunkulam Villages Radhapuram Taluk Tirunelveli District Ø Sugar Unit, Co-Generation, Distillery & Bio-Compost Alaganchi, Mysore District, Karnataka

DIRECTORS

Name :	Sri S V Balasubramanlam
Designation :	Chairman & Managing Director
Age :	65 years
Qualification :	B.Com, ACA, ACS
Date of Appointment :	9^th October 1985
Experience :	40 years
Name :	Sri V Venkata Reddy
Designation :	Vice Chairman
Name :	Sri S V Alagappan
Designation :	Director
Name :	Sri S G Subrahmanyan
Designation :	Director
Name :	Sri P L Sivanappan
Designation :	Director
Age :	75 years
Date of Appointment :	6^th February 1984
Experience :	50 years
Name :	Sri A K Perumalsamy
Designation :	Director
Age :	65 years
Date of Appointment :	18^th May, 1984
Experience :	40 years
Name :	Sri S V Arumugam
Designation :	Director
Name :	Sri E P Muthukumar
Designation :	Director
Name :	Sri B Saravanan
Designation :	Joint Managing Director
Age :	32 years
Qualification :	Commerce Graduate
Experience :	5^th July 2000
Other personal
Name :	Sri N Solairajan
Designation :	Executive President
Name :	Sri P Dharmalingam
Designation :	Executive President (Unit I)
Name :	Sri R Murugesan
Designation :	Vice President
Name :	Sri V L Rajagopal
Designation :	Vice President (Unit I)
Name :	Sri A Ramaswamy
Designation :	Vice President (Distillery Division)
Name :	Sri K Sundaramoorthi
Designation :	Vice President (Distillery Unit)
Name :	Sri R Ramgopal
Designation :	Assistant Vice President (Unit II)
Name :	Sri C Palaniswamy
Designation :	Company Secretar

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters	4455957	46.71
UTI & Mutual Funds	105293	1.10
Bank & Insurance Companies	4400	0.05
Other Corporate Bodies	787928	8.26
Indian Public	3644133	38.20
NRI/OCB’s	541989	5.68
Total	9539700	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Sugar, Molasses, Granite Blocks, Polished Granite Slabs, Polished Granite Tiles, Monuments, Rectified Spirit, Denatured Spirit, Denatured Spirit, Netural Spirit, Fusel Oil and Bio Compost.
Products :	Item Code No. Product Description 17019902 White Crestal Sugar 22072000 Industrial Alcohol 68022301 Granite Block and Slabs

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity
Tamilnadu – Sugar	Tones Per day	NA	4000
Karnataka– Sugar	Tones Per day	NA	5000
Granite Slabs	Sq. Mtr Per annum	50000	50000
Granite Tiles	Sq. Mtr Per annum	95000	10000
Monuments	Sq. Mtr Per annum	2500	2500
Tamilnadu –Industrial Alcohol	Millions Ltrs. Per annum	24	16.33
Karnataka - Industrial Alcohol	Kilo Ltrs. Per day	60	60
Tamilnadu - Power	MW Per Hour	NA	20
Karnataka- Power	MW Per Hour	NA	16 and 20
Tamilnadu - Power		NA	8750 KWH

GENERAL INFORMATION

No. of Employees :

2200

Bankers :

Ø Punjab National Bank

Ø Bank of Baroda

Ø Canara Bank

Ø The Federal Bank Limited

Ø The Karur Vysya Bank Limited

Ø Union Bank of India

Ø Indian Overseas Bank

Ø State Bank of Travancore

Ø State Bank of India

Ø The Lakshmi Vilas Bank Limited

Facilities :

SECURED LOANS	Rs. in millions
FROM BANKS
Cash Credit Loans	1264.648
Packing Credit	62.308
Term Loans	895.610
	2222.566
FROM OTHERS Sugar Development Fund	398.303
Total	2620.869
UNSECURED LOANS
Loan under Sales tax deferral scheme	462.169
Sugar Development Fund	10.240
Total	472.409

Banking Relations :	Good
Auditors :	Ø M/s P N Raghavendra Rao & Co Chartered Accountants Ø Internal Auditors M/S Srivatsan & Gita Chartered Accountants Ø Cost Auditor Sri M Nagarajan Cost Accountant
Associates :	Bannari Amman Spinning Mills Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- Each	Rs.100.000 millions
100,000	Redeemable Shares	Rs. 100/- each	Rs.10.000 millions
	Total		Rs. 110.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9,539,700	Equity shares	Rs. 10/- each	Rs. 95.397 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		95.397	95.397	95.397
3] Reserves & Surplus		2007.014	1619.233	1326.596
NETWORTH		2102.411	1714.630	1421.993
LOAN FUNDS
1] Secured Loans		2620.869	2636.700	2292.645
2] Unsecured Loans		472.409	397.700	342.685
TOTAL BORROWING		3093.278	3034.400	2635.330
DEFERRED TAX LIABILITIES		501.030	423.630	367.923
TOTAL		5696.719	5172.660	4425.246
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3311.549	2736.999	2240.483
Capital work-in-progress		100.949	49.748	141.946
INVESTMENT		34.043	33.821	33.472
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2315.092	2607.416	2061.225
	Sundry Debtors	535.728	750.158	300.752
	Cash & Bank Balances	29.524	23.309	21.072
	Other Current Assets	87.820	58.968	89.498
	Loans & Advances	221.091	192.585	263.538
Total Current Assets		3189.255	3632.436	2736.085
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities and Provisions	939.077	1280.344	726.740
Total Current Liabilities		939.077	1280.344	726.740
Net Current Assets		2250.178	2352.092	2009.345
TOTAL		5696.719	5172.660	4425.246

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	4758.049	5527.679	4096.561
Profit/(Loss) Before Tax	562.621	459.333	226.909
Provision for Taxation	49.157	72.358	30.235
Profit/(Loss) After Tax	513.464	386.975	196.674
Export Value	319.723	293.144	NA
Import Value	67.553	NA	NA
Total Expenditure	4195.428	5068.346	3869.652

QUARTERLY RESULTS

PARTICULARS	30.06.2005	30.09.2005	31.12.2005
Type	1st Qtr	2nd Qtr	3^rdQtr
Sales Turnover	1186.80	1302.40	1847.500
Other Income	05.50	05.00	0.300
Total Income	1192.30	1307.40	1847.800
Total Expenditure	965.60	886.60	1428.000
Operating Profit	226.70	420.80	419.800
Interest	23.60	29.00	31.200
Gross Profit	203.10	391.80	388.600
Depreciation	93.60	106.70	111.800
Tax	09.30	60.40	57.300
Reported PAT	90.70	218.00	220.100

200509 Quarter 2 - Expenditure Includes (Increase)/Decrease in stock in Trade Rs (296.216) million Consumption of Raw Material Rs 591.431 million Power & Fuel Rs 380.315 million Staff Cost Rs 51.741 million Other expenditure Rs 159.368 million Tax Includes Provision for Current Tax Rs 60.404 million Deferred Tax Rs 6.666 million Status of Investor Complaints for the quarter ended September 30, 2005

200512 Quarter 3 :-- Expenditure Includes (Increase)/Decrease in stock in Trade Rs 158.953 million Consumption of Raw Material Rs 673.511 million Power & Fuel Rs 385.196 million Staff Cost Rs 48.564 million Other expenditure Rs 161.825 million Tax Includes Provision for Taxation Rs 57.287 million Deferred Tax Rs (0.609) millions.

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt-Equity Ratio	1.61	1.81	1.77
Long Term Debt-Equity Ratio	0.81	0.81	0.74
Current Ratio	1.11	1.07	1.02
TURNOVER RATIOS
Fixed Assets	1.14	1.34	1.23
Inventory	2.04	2.09	1.94
Debtors	7.83	9.29	10.54
Interest Cover Ratio	5.59	4.10	2.84
Operating Profit Margin(%)	19.98	17.98	15.70
Profit Before Interest And Tax Margin(%)	13.62	12.44	9.70
Cash Profit Margin(%)	15.03	12.32	9.58
Adjusted Net Profit Margin(%)	8.67	6.78	3.58
Return On Capital Employed(%)	13.78	13.80	9.17
Return On Net Worth(%)	22.85	21.12	9.41

STOCK PRICES

Face Value	Rs. 10 /-
High	Rs. 875.00
Low	Rs. 869.95

LOCAL AGENCY FURTHER INFORMATION

Promoted by S V Balasubramanian and K S Thirumalaiswamy, Bannari Amman Sugars (BASL) manufactures sugar using the conventional double sulphitation process. It was incorporated in Dec.'83 and in Sep.'85 it came out with a public issue to set up a sugar plant to crush 1250 TCD of cane at Alathukombai in Tamilnadu and expanded to 2500 TCD in the year 1997. The unit in Erode district gone for expansion in March 2003 by increasing the capacities to 4000 TCD. The expansion was funded partly by term loans and rest by internal accruals. 

 Later in Sep.'92 it came out with a rights issue to establish a new sugar factory with a daily cane crushing capacity of 2500 TCD at Alaganchi in Mysore district and in the year 2001 the Karnataka unit went for a expansion mode by increasing the capacities to 5000 TCD. 

 To overcome the seasonal factors in operations and the cyclical nature of the sugar industry, it has consciously diversified into the lucrative field of granite exports by setting up a 100% EOU in Nov.'90, at Alathukombai to produce 50,000 sq mtr of polished granite slabs and 60,000 sq mtr of granite tiles pa. It has acquired / taken on lease several quarries in Tamilnadu, Karnataka, Andhra Pradesh and Rajasthan. Coimbatore Alcohol and Chemicals was amalgamated with BASL in 1995. 

 The Co-generation plant has commissioned its operations with 20 MW capacity in August 2002. The expansion of co-generation from 16 MW to 36 MW in Karnataka is under implementation stage. The project outlay is Rs.550 millions and is expected to be completed by March,2004.

Profile

The company's sugar unit-l situated in Tamilnadu started with an installed capacity of 1250 TCD in the year 1986 and expanded to 2500 TCD in the year 1997 and 4000 TCD in the year 2003. The company has installed a 20 MW co-generation plant in this unit which commenced its operation on 26.8.2002.

The company's sugar unit-ll situated in Karnataka started with an installed capacity of 2500 TCD in the year 1992 and expanded to 5000 TCD in the year 2000. The cogeneration plant in this unit started with an installed capacity of 16 MW in the year 2000 and expanded to 36 MW in the year 2004. The company has a distillery unit in Tamilnadu which was acquired by way of Amalgamation in the year 1995. The Company has also a distillery unit in Karnataka which commenced its operation on 23.3.2005. The company's granite processing unit adjacent to its Tamilnadu sugar unit started in the year 1992.

The company has bio-compost units in Tamilnadu and Karnataka with full fledged bio-compost monitoring laboratory which converts sugar industry pressmud into useful bio-compost manure.

The company has installed 7 Wind Turbine Generators having capacity of 1250 KWH each in southern part of Tamilnadu which commenced its operation in February - March 2005.

Bannari Amman's strategy is to produce high quality finished products, optimum utilisation of by-products and also be cost effective. The consistent endeavour is to pursue profitable growth strategies for the benefit of all concerned.

Biodata

Bannari Amman Sugars Limited (BASL) was incorporated in December 1983. The company was promoted by S V Balasubramanian and K S Thirumalaiswamy to manufacture sugar in Southern India. Now, it has scattered its activities in Distillery, Granites, Co-generation of Power, Wind Mills operations.  

BASL came out with a public issue in Sep' 1985, to set up a sugar plant in Alathukombai in Tamil Nadu. This plant was commissioned with initial capacity of 1250 tonnes of cane crush per day. It manufactures sugar using the conventional double sulphitation process. The company's success in its first venture, led the company to make a next step towards its way. In 1992 the company had set up a sugar mill with a daily cane crushing capacity of 2500 TCD in Alaganchi village, Mysore district in the state of Karnataka. This project was financed by rights issue of zero interest fully convertible debentures of Rs. 1968.75 lakhs, secured redeemable non-convertible debentures for Rs. 140 millions issued to Citibank N.A. and term loan of Rs. 8 crores received from ICICI Ltd. Total capacity of sugar mills in Tamil Nadu and Karnataka increased to 4000 TCD & 5000 TCD over the period. 

The company diversified its activity in several segments. As a first step, it started to manufacture Citric Acid in 1987 with annual capacity of 5,400 tonnes. Subsequently it diversified into the lucrative field of granite exports by setting up a 100% EOU in Nov' 1990, at Alathukombai to produce 50,000 sq mtr of polished granite slabs and 60,000 sq mtr of granite tiles per annum. It has acquired and taken on lease several quarries in Tamil Nadu, Karnataka, Andhra Pradesh and Rajasthan.  

In 1995, Coimbatore Alcohol and Chemicals Limited (CACL) amalgamated with BASL. The company allotted 20,00,000 equity shares of Rs. 10/- each at a premium of Rs. 80/- per share to the shareholders of CACL as per the scheme of amalgamation. 

The company made its next diversification for Co-generation of power in the year 2000. It has set up a co-generation power plant with an installed capacity of 16 MW in the sugar factory in Karnataka. The company has also set up a 20 MW co-generation plant at Alathukombai in Aug' 2002 and an additional 20 MW co-generation plant at Alaganchi in Mar' 2004. Total capacity of co-generation power plant stands at 56 MW.  

During 2004-05, the company has diversified into windmill operation and commissioned 7 wind turbine generator at Radhapuram in the state of Tamil Nadu. The windmill has started its operation.

OUTLOOK

During the current year also, due to acute drought conditions prevailed during the previous years, the sugar production is expected to be lower with consequential lower production of by-products. However, the prices of sugar are expected to firm up further. The Granite division would register better turnover and realisations. The establishment of distillery at the company's sugar unit at Nanjangud and installation of wind turbine generators will make significant contribution to the revenue.

During the year under review, the company has crushed 1.99 lakh tonnes of cane in the sugar factory in Tamilnadu as against the estimated cane crush of 1.50 lakh tonnes. In Karnataka sugar factory, 8.84 lakh tonnes of sugarcane has been crushed as against the estimated cane crush of 10 lakh tonnes. 0.51 lakh tonnes of raw sugar was processed in the Sugar Unit in Tamilnadu and 0.06 lakh tonnes of raw sugar was processed in the sugar unit in Karnataka. Free sugar prices remained favourable throughout the year.

Distillery Division

The distillery in Sinnapuliyur, Erode District in the State of Tamilnadu has worked for 282 days and produced 13.21 lakh B.Ltrs of Rectified Spirit and 110.13 lakh B.Ltrs of Neutral Spirit.

In Karnataka Sugar factory, a distillery with a capacity to produce 60 kilo litres of alcohol per day commenced its operations on 23.3.2005.

Granite Division

85,616 square meters of Granite Slabs, 7,496 square meters of Granite Tiles and 2,495 square meters of Granite Monuments were produced. The granite division has maintained steady progress.

Co-generation of Power

The co-generation plant in Tamilnadu had generated 1,228.11 lakh units of power and exported 950.70 lakh units to Tamilnadu Government Grid. In Karnataka sugar factory, the 16 MW co-generation plant had generated 593.82 lakh units of power and the 20MW co-generation plant had generated 235.42 lakh units of power and exported 362.58 lakh units and 96.73 lakh units respectively to Karnataka Government Grid, Due to shortage of bagasse, the production in co-generation plant at Karnataka Sugar Unit could not be optimized.

Wind Mills

During the year under review, the Company has installed 7 Wind Turbine Generators in Radhapuram Taluk, Tirunelveli District in the State of Tamilnadu. The windmills had generated 71,630 units of power upto 31.3.2005 and exported the same to TNEB grid.

Prospects for the Current year 2005-2006

During the current financial year it is estimated to crush 6 lakh tonnes of sugarcane in the sugar factory in Tamilnadu and 12 lakh tonnes of sugarcane in the sugar factory in Karnataka. The Distillery unit in Tamilnadu is estimated to produce 120 lakh B.Ltrs of spirit. The windmills and the distillery in Karnataka Sugar Unit are expected to work for the full year and make significant contribution to the revenue of the company. The sugar prices are expected to remain firm. Demand for granite products is expected to improve further.

Fixed Assets :

Ø Land-Free hold

Ø Land-Lease hold

Ø Buildings

Ø Plant and Machinery

Ø Furniture, Fixtures,

Ø Office and Canteen

Ø Equipments

Ø Live Stock

Ø Motor Vehicles

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.40
UK Pound	1	Rs.84.50
Euro	1	Rs.58.32

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions