MIRA INFORM REPORT

Report Date :

10^th May, 2006.

IDENTIFICATION DETAILS

Name :	BEICO INDUSTRIES LIMITED
Formerly Known As :	BEICO INDUSTRIES LIMITED
Registered Office :	# 04-01/02, Kewal Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	16/01/1980
Com. Reg. No.:	11-22112
TAN No.: (Tax Deduction & Collection Account No.)	NSKB01023B MUMB11215B
PAN No.: (Permanent Account No.)	AAACB2543A
Legal Form :	Closely held public limited liability company.
Line of Business :	Manufacturing and selling of electrical grade insulating paper film backed, electrical insulating materials and enamelled copper wire.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 375000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track. Trade relations are fair. Financial position is good. Payments are correct and as per commitments. The Company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	# 04-01/02, Kewal Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India
Tel. No.:	91-22-24938675 /24934330/8685/8674/24973838/24954333
Fax No.:	91-22-24938685
E-Mail :	1. beico@bom3.vsnl.net.in 2. beico@vsnl.com
Website :	http:/www.beicoindustries.com
Area :	600 sq. ft.
Location :	Industrial
Corporate Office :	v 04-01/02, Kewal Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra
Tel. No.:	91-22-24938675 (Extn. 108)
Fax No.:	91-22-2493 8685
E-Mail :	beico@bom3.vsnl.net.in
Factory 1 :	Ambad: Insulation Division: B-68/2, MIDC Area, Ambad, Nashik – 422 010, Maharashtra
Area :	40000 sq. ft. (Owned)
Location :	Industrial
Factory 2 :	Gonde: Enamelled Wire Division: Gat No. 487 / 488, Village Gonde Dumala, Taluka - Igatpuri, District Nashik – 422 403, Maharashtra
Area :	16800 sq. ft. (owned)
Location :	Industrial
Sales Depot:	v 2B, Aminazar Industrial Estate, 127, Amli, Near 66 KVA Station, Silvassa, Dadra & Nagar Haveli – 396 230

DIRECTORS

Name :	Mr. Nikhil Manohardas Sanghvi
Designation :	Director
Address:	39, Bharati, Manikrao Lotlikar Marg, Mumbai – 400 019
Date of Birth:	09.03.1953
Date of Appointment:	16.01.1980
Name:	Mrs. Divya Nikhil Sanghvi
Designation:	Director
Address:	39, Bharati, Manikrao Lotlikar Marg, Mumbai – 400 019
Date of Birth:	21.11.1958
Date of Appointment:	23.03.1992
Name :	Mr. Narendra Vanmalidas Vhora
Designation :	Director
Address:	B/603, Krushal Towers, Bharat Glass Factory Compound, M. G. Road, Chembur, Mumbai - 400 089
Date of Birth:	30.12.1951
Date of Appointment:	01.04.1994
Name :	Mr. Gajanan Damodar Waghmare
Designation :	Director
Address:	9, Ravimani CHS, "Sadicha", Mith Bunder Road, Opp. Customs Quarters, Thane (East) - 400 603, Maharashtra
Date of Birth:	02.10.1942
Date of Appointment:	04.04.1998
Name :	Mr. Dolar Ratilal Koya
Designation :	Director
Address:	45, Tomlin Circle, Burr Ridg E IL - 60521, USA
Date of Birth:	08.10.1936
Date of Appointment:	29.09.1997
Management Team
Name:	Mr. Jayant Dangaria
Designation :	Vice President - Wire Division
Name:	Mr. Subhash Madane
Designation :	Vice President - Manufacturing
Name:	Mr. Pramod Pai
Designation :	General Manager - Marketing
Name:	Mr. Deepak Dodhiwala
Designation :	General Manager - Administration

KEY EXECUTIVES

Name	Mr. N. M. Sanghvi
Designation	Director
Age	47 years
Qualification	I. Com.
Experience	27 years
Date of Joining	01.04.1991
Previous Employment	The British Electric Insulating Company Private Limited – Managing Director

MAJOR SHAREHOLDERS

The company's entire share capital (100%) is held by Sanghvi family.

BUSINESS DETAILS

Line of Business :	Manufacturing and selling of electrical grade insulating paper film backed, electrical insulating materials and enamelled copper wire.
Products :	Electrical Insulating Material
	Electrical Grade Insulating Paper
	Enamelled Copper Wire
Brand Names :	"FLEXILAM", "CLASSELEX", "BEICOFLEX", "NEMEX", "KAPTOR","BEKOSOL".
Agencies Held :	v Dupont, USA v John C. Dolphco, USA
Exports to :	Singapore and Thaiwan
Imports from :	Germany, France and U. K.
Terms :
Selling :	Against Contract (60 days), other or L/C terms.
Purchasing :	Against Credit (30 days) or L/C terms.

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Electrical Grade Insulating paper film Backed	1500 M. T.	475.554 M. T.
Enamelled Copper Wire	204 M. T.	169.022 M. T.

GENERAL INFORMATION

Trade Terms :

v August Krempel Soehne Company GmbH, Stuttgart, Germany

v Dupont Japan Limited, Tokyo

v Kenekal KGA, Dusseldrof, Germany

Customers :

v Philips India Limited, Mumbai, Maharashtra

v Keltron Limited, Trivandrum

v Crown Televisions Limited, Ahmedabad, Gujarat

v BPL India Limited, Bangalore, Karnataka

v Asia Brown Boveries Limited

v Bharat Bijlee Limited

v Crompton Greaves Limited

v CG Newage Electricals Limited

v L G Electronics

v Forbes Group

v Indian Railways

v Invensys

v Laxmi Electricals

v TVS Group

v MICO Limited

v Pricol

v Siemens Limited

v Telemecanique and Controls

No. of Employees :

88

Bankers :

v State Bank of India, Mumbai, Maharashtra

v State Bank of India, Silvassa

v HDFC Bank, Mumbai, Maharashtra

v ABN Amro Bank, Mumbai

v Bank of Maharashtra, Nashik, Maharashtra

v Dena Bank, 31/33, Ambalal Doshi Marg, Fort, Mumbai – 400

023

v HDFC Bank Limited - Secured

Facilities :

Secured Loan	Amount (in Millions)
Term Loan from Bank	16.044
Working Capital Loans from Bank	16.099
(Including Foreign Currency Loan
Rs. 12.494 millions P.Y. Rs. Nil)
Flat Sundaram Auto Finance	0.000
Unsecured Loans
From Others
Directors	3.176
Shareholders	5.793
Financial Institution	0.000

Interest accrued and due

Loans from Bank (State Bank of India, Worli) as Cash Credit Demand Loan/FCNR Loan are secured by way of first charge by hypothecation of company’s entire stock of raw material, stocks in process, finished goods, consumable stores, spares, packing material, goods in transit and covered by documents of title thereto in favour of bank and book debts; second charge on the company’s fixed assets located at factories situated at Gonde Tal. Igatpuri District Nasik and Ambad, MIDC, Nashik and personal guarantee of one of the director of the Company. FCNR Loan for Rs. 12.494 millions is due within a year.

Overdraft facilities from Bank (HDFC, Worli), is secured by collateral securities of Directors and Others.

Banking Relations :	Good
Auditors :	v Gunderia & Company Chartered Accountants 1011, Stock Exchange Towers, Dalal Street, Mumbai – 400 023, Maharashtra
Tel. No.:	91-22-22650675 / 22651757
Associates :	v Beico Investment Private Limited v Michman Investment Private Limited v Beico Agencies v Plastimat Corporation

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30,00,000	Equity Shares	Rs. 10/- each	Rs. 30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30,00,000	Equity Shares	Rs. 10/- each	Rs. 30.000 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	30.000	30.000	30.000
2] Reserves & Surplus	61.191	46.748	41.892
NETWORTH	91.191	76.748	71.892
LOAN FUNDS
1] Secured Loans	32.143	16.620	11.381
2] Unsecured Loans	8.970	18.793	13.148
TOTAL BORROWING	41.113	35.413	24.529
DEFERRED TAX LIABILITIES	8.587	8.377	7.665
GRAND TOTAL	140.891	120.538	104.086
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	61.583	65.869	62.827
Capital work-in-progress	27.816	0.000	0.527
INVESTMENTS	0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	32.964	34.323	28.133
Sundry Debtors	46.488	34.882	33.747
Cash & Bank Balances	1.973	7.351	3.622
Loans & Advances	29.635	21.150	14.488
Total Current Assets	111.060	97.706	79.990
Less : CURRENT LIABILITIES & PROVISIONS
Current Liabilities	23.809	19.005	22.830
Provisions	35.759	24.032	16.428
Total Current Liabilities	59.568	43.037	39.258
Net Current Assets	51.492	54.669	40.732
MISCELLANEOUS EXPENSES	0.000	0.000	0.000
GRAND TOTAL	140.891	120.538	104.086

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	255.693	197.074	161.283
Profit/(Loss) Before Tax	37.134	19.772	12.694
Provision for Taxation	13.956	7.912	4.698
Profit/(Loss) After Tax	23.178	11.860	7.996
Export Value	4.075	3.057	0.898
Import Value	74.344	45.323	44.084
Total Expenditure	209.535	166.676	140.603

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	9.06	6.01	4.95
Net Profit Margin (PBT/Sales)	(%)	14.52	10.03	7.87
Return on Total Assets (PBT/Total Assets}	(%)	18.52	12.10	8.85
Return on Investment (ROI) (PBT/Networth)		0.41	0.25	0.17
Debt Equity Ratio (Total Liability/Networth)		1.10	0.56	0.54
Current Ratio (Current Asset/Current Liability)		1.86	2.27	2.03

LOCAL AGENCY FURTHER INFORMATION

3. Review of Operations:

Business Highlights

The increased focus on sunrise businesses enabled the Company to generate higher revenues and profits. Revenues in legacy business also grew significantly. Total Gross Revenues increased by almost 30% to Rs. 256 Million from Rs. 197 Million in the previous year.

Revenues of our Insulation Division were higher at Rs. 178 Million as against Rs. 119 Million in the previous year. Overall Volumes were higher at 466 Metric Tonnes against 422 Metric Tonnes in the previous year. These results were mainly achieved by higher volume of Sales and Revenues from new generation products.

The Insulation Division's ISO 9001:2000 certification was renewed during the year.

The volumes at the Bhoomi Insulations Unit at Silvassa have substantially grown to include High Value products.

New Machinery for the Additional Unit being set up Silvassa were delayed due to production problems at the Supplier allowing only for low key operations. The new machines are expected to be fully operational by the second half of FY 2005-06 and will contribute significantly to Revenues.

The Wire business of the Company is now a decade old. During this period the Company has earned a name as a producer of high quality wires and the Company is well placed to expand these activities significantly.

New machines ordered for our Silvassa Unit which commenced activities in the previous year have been received during the year and have since been commissioned. The Company purchased additional premises for the Wire business and the new machines have been located at these premises. With continued upswing for the Company's wires, plans are being made for substantial expansion.

Gross Revenues of the Wire Division once again increased by 45% to Rs. 68 Million from Rs. 47 Million on increased production of 170 Metric Tonnes against 140 Metric Tonnes in the previous year.

The rise in Copper Prices are a matter of concern. The Company sells it Wires on Transformation basis as such is generally insulated from Cost Increases in Copper. However this affects the long term profitability for the Company's wire business to a certain extent.

The Company's thrust on expanding its manufacturing businesses caused a decline in Trading activities. Trading revenues were significantly lower at Rs. 11 Million against Rs. 24 Million in the previous year.

Financials

Strict Cost Control enabled the profits from operations to increase by 34% to Rs; 47 Million from Rs. 35 Million against increase in revenues of less than 30%

During the year the Company negotiated for additional Term Loans of Rs. 16 Million towards the cost of the new wire machines since installed at Silvassa.

However strict Inventory Control and better management of Working Capital allowed the company to substantially decrease its working Capital requirements allowing it to reduce Unsecured Loans by more than half.

Consequently while total Borrowed Funds increased by Rs. 5.7 Million there was a 34% decrease in Financing Expenses. Total Financing costs were Rs. 2.7 Million as against 3.7 Million in the previous year.

It is necessary to augment the availability of Long Term Funds with the Company considering the business plan of the Company.

With this in mind the Company is proposing to raise the Authorised Capital from Rs. 30 Million to Rs. 100 Million.

It is also proposed to increase the Paid up Capital from Rs. 30 Million to Rs. 40 Million by issue of Rights Shares to the existing holders of the Company's Equity shares in the ratio of 1:3 at Par i.e at the Face Value of Rs. 10.00.

Expansion:

The continuing buoyant market conditions have created a huge growth for the Company's products. The company is working on plans to add substantial capacity for the manufacture of both its manufactured Products - Insulation Materials and Enamelled Wires. The Company is formulating innovative plans to expand capacity significantly at significantly lower costs.

These Capital Expenditure plans will entail substantial investment. The Company is examining various options to raise these resources.

Current Year's Outlook:

The sharp improvement in the business climate in general and the Electrical Industry in particular allowed the Company to do extremely well in the first quarter of the current year. Gross Revenues were higher by more than 15% compared to the previous year. The growth could have been higher but for the fact that the implementation of VAT caused considerable disturbances in various parts of the country.

The Company expects that year end figures will show considerable improvement over the first quarter.

The Company's new machines at Silvassa have commenced production. This has added almost 100% to the installed capacity. The increased production has been fully absorbed by the Company's customers.

The operations of the Insulation Division at Silvassa are also likely to be fully streamlines by the end of the first half of the Financial year.

Energy Conservation measures taken:

A) New initiatives to improve processes at the Insulation Division at Gonde will allow higher volumes to be produced without a corresponding increase in energy consumed.

B) The new plants to make Enamelled Copper Wires are now being run at rated speeds thus requiring lower energy consumption per unit of wire produced.

C) Impact of the measures (A), and (B) above for reduction of energy consumption and consequent impact on the cost of production of goods.

The actual impact can only be quantified at the end of the year.

Disclosure of particulars with respect to absorption of Technology

Research & Development (R & D)

1. Specific areas in which R & D carried out by the Company

2 Benefits derived as a result of the above R & D ---- N.A----

Will depend on future conditions

3. Future plan of action. Will depend on the future conditions

4. Expenditure on R & D. ---- N.A----

(a) Capital

(b) Recurring

(c) Total

(d) Total R & D expenditure as a percentage of total turnover

Technology absorption, adaptation and innovation

1. Efforts, in brief, made towards technology absorption, ---- N.A----

adaptation and innovation.

2. Benefits derived as a result of the above efforts, e. g.

product improvement, cost reduction, product development ---- N.A----

import substitution, etc.

3. In case of imported technology (imported during the last 5 ---- N.A----

years reckoned from the beginning of the financial year,

following information may be furnished:

(a) Technology imported

(b) Year of import

(c) Has technology been fully absorbed?

(d) If not fully absorbed, areas where this has not taken

place, reasons therefore and future plans of action.

Foreign Exchange Earnings and Outgo:

Total Foreign Exchange used and earned during the year

	2004-05 (Rs. in Millions)	2003-04 (Rs. in Millions)
Used	71.96	45.65
Earned	4.08	3.06

Foreign Currency Transactions

Transactions in Foreign Currency are recorded at rates of exchange in force at the time of

realisation / payment except those outstanding on the date of the Balance Sheet which are

converted at the appropriate exchange rate prevailing at the close of the year. The gain or loss due to fluctuation of exchange rate is adjusted to Profit & Loss A/c.

Borrowing Cost

All borrowing costs other than those attributable to qualifying Fixed Assets are recognized as

expenses in the same period in which they have been incurred

Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax for timing differences between the book profits and tax profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from the timing differences are recognized to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Contingent liabilities in respect of:

	As on 31.03.05 (Rs. in Millions)	As on 31.03.04 (Rs. in Millions)
Excise Duty – Under appeal	3.699	3.699

Estimated amount of Contracts remaining to be executed on capital account and not provided for is Rs. 1.510 Millions (Previous Year Rs.0.192 Millions/-).

(a) Cash Credit Demand loan / FCNR Loan / Term Loan from Bank are secured by way of first

charge by hypothecation of company's entire stock of imported / indigenous raw materials,

stocks in process, finished goods, stores and spares, stored in company's premises and / or

elsewhere in transit and covered by documents of title thereto in favour of bank and book

debts; first charge on the company's existing fixed assets located at factories situated at

Gonde Tal. Igatpuri Dist. Nasik and Ambad, MIDC, Nasik and personal guarantee of one of

the directors of the Company.

Term loan is secured against fixed assets acquired through such loan and further secured as

above. Amount due within a year Rs.4.5 Millions (Previous year Nil).

FCNR Loan amount due within a year Rs. 12.346 Millions (Previous year Rs. 12.494 Millions

(b) Overdraft facility from Bank is secured by pledge of Government of India 8.5% Relief Bonds

owned by Directors and Others.

Current years outlook

The year under report was probably the worst for the company in a long time. However the lessons learnt during this period have been put to good use during the current year.

Sales in all the segments in which the company operates are better. Revenues in the Insulation business in the first four months of the current year are up by over 12%, wire is up by over 55% and trading by 37%.

The company expect 6 months revenues to be more than 25% higher over the previous year.

The company will be commissioning its new wire machines during September and hopes to install another machine by January, 2003.

This should enable the company to substantially increase the Revenues from its wire business in the second half of the financial year.

The company is hopeful of increasing year on year revenues by 50% with a consequent rise in net profits.

The company also earned the distinction of being the only company in its field in India to obtain ISO 9002 certification for its Insulation Division.

The company’s fixed assets of important value include land (freehold and leasehold), building, plant and machinery, furniture and fixtures, computers and motorcars.

FIXED ASSETS

Freehold land, Leasehold land, Building, Plant and Machinery, Furniture and Fixtures, Computers and Motorcars.

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. 45.05
UK Pound	1	Rs. 84.96
Euro	1	Rs. 57.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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