MIRA INFORM REPORT

Report Date :

16.02.2007

IDENTIFICATION DETAILS

Name :	PIX TRANSMISSIONS LIMITED
Registered Office :	J-7, MIDC, Hingna Road, Nagpur Via Mumbai, Nagpur – 440 016, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	22.07.1981
Com. Reg. No.:	11-24837
CIN No.: [Company Identification No.]	L25192MH1981PLC024837
TAN No.: [Tax Deduction & Collection Account No.]	MUMP16300E
PAN No.: [Permanent Account No.]	AAACP6016C
Legal Form :	It is a public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of “V” Belts, Raw Edge, Poly V-Belts, Variable Speed Belts, Fire Resistant Belts, Antistatic Belts, Oil & Heat Resistant Belts, Dry Cover Belts, etc.

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 1250000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	J-7, MIDC, Hingna Road, Nagpur Via Mumbai, Nagpur – 440 016, Maharashtra, India
Tel. No.:	91-7104-236501 (5 Lines) –236503/504/ 237051 / 237729
Fax No.:	91-7104-236505 / 236506 / 235753
E-Mail :	pixtrans@nagpur.dot.net.in, spaul@pixtrans.com, pixtran@bom2.vsnl.net.in
Website :	http://www.pixtrans.com
Factory :	Ø (Unit no. 1) J-7, MIDC Hingna, Nagpur - 440 016 Ø (Unit no. 2) K-36, K-37, k-38, MIDC Hingna, Nagpur - 440 016 Ø (Unit no. 3) Bazargaon, Amravati Road, Nagpur-440 023
Branches :	Pals Building, 1^st Road, TPS iv, Bandra - [West] Mumbai - 400 050

DIRECTORS

Name :	Mr. Pratipal Singh Sethi
Designation :	Chairman
Name :	Mr. Amarpal Sethi
Designation :	Managing Director
Name :	Mr. Sukhpal Singh Sethi
Designation :	Director
Name :	Mr. Sonepal Singh Sethi
Designation :	Director
Name :	Mr. Haresh Eidnani
Designation :	Director
Name :	Mr. Krishna K. Bhat
Designation :	Director
Name :	Mr. Jose Jacob
Designation :	Director
Name :	Mr. Joe Paul
Designation :	Director
Name :	Mr. L. N. Gupta
Designation :	Director
Name :	Shri Darshan Singh Chadha
Designation :	Director
Name :	Shri Rishipal Sethi
Designation :	Director
Name :	Shri Narindar Kumar
Designation :	Director
Name :	Shri Pradeep Havnur
Designation :	Director
Name :	Mr. Aqueel A Mulla
Designation :	Director
Name :	Mr. Shybu Varghese
Designation :	Company secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters (Indian Promoters including directors and their relatives)	5049979	51.53
Mutual Funds, UTI
Banks, Financial Institutions, Insurance companies (Central/State Government Institutions/Non Government Institutions)	3000	0.03
Private/ Bodies corporate	633064	6.46
Indian Public	4079275	41.63
NRI / OCB’s	19763	0.20
Clearing Members	14919	0.15
Total	9800000	100.000

BUSINESS DETAILS

Line of Business :

Manufacturer of “V” Belts, Raw Edge, Poly V-Belts, Variable Speed Belts, Fire Resistant Belts, Antistatic Belts, Oil & Heat Resistant Belts, Dry Cover Belts, etc.

Products :

Item Code No.	401010.02
Product Description	“V” Belts

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
J-7, Hingna
V Belts in Nos.	10.000 millions	6190535
Bazargaon
V Belts in Nos.	6.000 millions	2261566
High Pressure Hoses in Meters	6.000 millions	4495713.25

GENERAL INFORMATION

Suppliers :

1. Exclusive Diamond Products

2. Gujrat Polymers

3. Ideal Enterprises

4. John Steel Tech. Private Limited

5. Kailash Timber Corp.

6. Merchem Limited

7. Noble Catalyst

8. N. C. Corporation

9. Om Tex Chem. Private Limited

10. Plasto Pack (I) Private Limited

11. Paper Combines

12. Progressive Products

13. Roshan Industries

14. SOS Enterprises

15. Shrjnath Packers

16. Unipack

17. Uttkarsh Packers Private Limited

No. of Employees :

1200

Bankers :

v State Bank of India

v Andhra Bank

v ING Vysya Bank Limited

v State Bank of Hyderabad

Facilities :

SECURED LOAN	31.03.2006
UNIT TRUST OF INDIA
200000- 13.5% Non-Convertible Debenture redeemable after there years in three yearly instalment	4.400
Term Loan from State Bank of India, Nagpur	192.266
From Bank against hypothecation of stock	64.666
Cash Credit from Bank secured by hypothecation of stocks	123.033
From Parties against hypothecation of cars and moulds	4.285
From parties against bill discounting	13.253
1. Loan From State Bank of India, Industrial Finance Branch, Nagpur Secured By Charge By Way of Hypothecation of All Moveable Properties [Except Book Debts and Stocks] Including Moveablemachineries, Spares, Tools and Accessories Present and Future Installed and Kept in Loose / in Cases at Bazargaon and K-37, K-38 and further by Personal Gurantees of Shri Pratipal Singh Sethi. Shri Amarpal Sethi, Shri Sukhpal Singh Sethi And Shri Sonepal Sethi. 2. 2,00,000-13.5/% Non-Convertible Debenture is Secured by Pari-Pasu on all immoveable and movable assets of Bazargaon. Pari-Pasu Charge Creation is Pending
Total	401.905
UNSECURED LOAN
From Bank due to excess issue of cheques	4.237
From Promoters / relatives	184.152
Special Capital Incentive	2.500
Loan under sales tax deferral scheme of sicom	94.038
	284.927

Banking Relations :	Satisfactory
Auditors :	S. C. Bandi and Company Chartered Accountants Mumbai, Maharashtra
Associates/Subsidiaries :	Pix South America Importacao E Exportacao De Correias E Mangueiras Limited
Joint Venture :	Pix Europe Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10,500,000	Equity Shares	Rs. 10/- each	Rs. 105.000 millions
450000	Non – Convertible 6% cumulative	Rs. 100/- Each	Rs. 45.000 Millions
	Total		Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9,800,000	Equity Shares	Rs. 10/- each	Rs. 98.000 millions
435000	Non – Convertible 6% cumulative	Rs. 100/- Each	Rs. 43.500 Millions
Less:	Allotment Money in arrears from Public other than directors		Rs. 0.011 millions
	Total		Rs. 141.489 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		141.489	97.989	97.989
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		190.688	172.643	162.853
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		332.177	270.632	260.842
LOAN FUNDS
1] Secured Loans		401.905	390.048	246.108
2] Unsecured Loans		284.927	256.206	206.235
TOTAL BORROWING		686.832	646.254	452.343
DEFERRED TAX LIABILITIES		58.098	63.919	59.100
TOTAL		1077.107	980.805	772.285
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		673.772	648.234	471.043
Capital work-in-progress		34.717	3.025	0.000
INVESTMENT		11.295	11.296	11.295
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	191.838	173.187	142.044
	Sundry Debtors	219.550	207.699	152.437
	Cash & Bank Balances	41.269	22.526	15.353
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	75.084	54.763	65.480
Total Current Assets		527.741	458.175	375.314
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	142.506	124.538	85.523
	Provisions	28.271	15.504	0.000
Total Current Liabilities		170.777	140.042	85.523
Net Current Assets		356.964	318.133	289.791
MISCELLANEOUS EXPENSES		0.359	0.117	0.156
TOTAL		1077.107	980.805	772.285

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	1211.319	1000.612	794.971
Profit/(Loss) Before Tax	23.741	22.800	17.942
Provision for Taxation	5.680	6.469	6.234
Profit/(Loss) After Tax	18.061	16.331	11.708
Export Value	704.691	593.406	465.699
Import Value	256.067	213.701	166.793
Total Expenditure	1111.104	919.385	726.818

QUARTERLY RESULTS

PARTICULARS	30.06.2006 (1^st Quarter)	30.09.2006 (2^nd Quarter)	31.12.2006 (3^rd Quarter)
Sales Turnover	296.400	337.500	362.600
Other Income	0.000	0.200	0.200
Total Income	296.400	337.700	362.800
Total Expenditure	249.000	275.700	304.100
Operating Profit	47.400	62.000	58.700
Interest	13.400	23.200	19.500
Gross Profit	34.000	38.800	39.200
Depreciation	22.300	22.700	26.200
Tax	3.400	6.000	3.000
Reported PAT	8.300	10.100	10.000

200606 Quarter 1 –

Expenditure Includes (Increase) / Decrease in Stock in Trade (Finished Goods) Rs (11.500)million Consumption of Raw Materials Rs 128.800 million Staff Cost Rs 29.700 million Other Expenditure Rs 102.000 million Tax Includes Provision for Current Tax Rs 3.000 million Fringe Benefit Tax Rs 0.400 million Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 34 Complaints disposed off during the quarter 34 Complaints unresolved at the end of the quarter Nil 1. Above results is subject to a Limited Review by the auditor of the Company as per Listing agreement with the Stock Exchange and has been taken on record by the Board of Directors at their meeting held on July 27, 2006. 2. The Company is engaged in the business of Rubber Products and there is no reportable Segment as per Accounting Standard (AS 17) Segment Reporting. 3. Previous Period figures have been re-grouped wherever considered necessary.

200609 Quarter 2 –

Expenditure Includes (Increase) / Decrease in Stock in Trade (Finished Goods) Rs (24.50)million Consumption of Raw Materials Rs 180.10 million Staff Cost Rs 31.30 million Other Expenditure Rs 88.80 million Tax Includes Provision for Current Tax Rs 5.40 million Fringe Benefit Tax Rs 0.60 million Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 25 Complaints disposed off during the quarter 25 Complaints unresolved at the end of the quarter Nil 1. Above results is subject to a Limited Review by the auditor of the Company as per Listing Agreement with the Stock Exchange and has been taken on record by the Board of Directors at their meeting held on October 20, 2006. 2. The Company is engaged in the business of Rubber Products and there is no reportable Segment as per Accounting Standard (AS 17) Segment Reporting. 3. Previous Period figures have been re-grouped wherever considered necessary.

200612 Quarter 3 –

Expenditure Includes (Increase) / Decrease in Stock in Trade (Finished Goods) Rs (7.200)million Consumption of Raw Materials Rs 168.900 million Staff Cost Rs 28.200 million Other Expenditure Rs 114.200 million Tax Includes Provision for Current Tax Rs 2.60 million Fringe Benefit Tax Rs 0.40 million Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 47 Complaints disposed off during the quarter 47 Complaints unresolved at the end of the quarter Nil 1. The auditors of the company have carried out limited review of the financial results for the quarter ended December 31, 2006 in compliance with Clause 41 of the listing agreement. The above financial results have been reviewed by the audit committee and taken on record by the Board of Directors at its meeting held on January 27, 2007. 2. The company is engaged in the business of Rubber Products and there is no reportable Segment as per Accounting Standard (AS 17) Segment Reporting. 3. Provision for deferred taxation & FBT will be provided at the year end. 4. Previous period figures have been re-grouped where ever considered necessary.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	2.21	2.07	1.72
Long Term Debt Equity Ratio	1.63	1.54	1.26
Current Ratio	1.25	1.33	1.41
TURNOVER RATIOS
Fixed Assets	1.20	1.20	1.16
Inventory	6.62	6.34	5.80
Debtors	5.65	5.55	5.62
Interest Cover Ratio	1.29	1.27	1.30
Operating Profit Margin (%)	15.02	16.44	16.05
Profit Before Interest and Tax Margin (%)	8.69	10.60	9.73
Cash Profit Margin (%)	7.83	7.48	7.80
Adjusted Net Profit Margin (%)	1.50	1.63	1.47
Return on Capital Employed (%)	10.84	13.00	11.14
Return on Net Worth (%)	6.47	6.13	4.59

STOCK PRICES

Face Value	Rs. 10/-
High	Rs. 34.15/-
Low	Rs. 33.00/-

LOCAL AGENCY FURTHER INFORMATION

Sales / Business Performance / Finance

The company's performance has been satisfactory, sales turnover has increased by over 21% in the current year. 

In recognition of its outstanding export performance the company has received from Capexil export award in 'Vee Belt segment' for the year 2004-2005. The company has the distinction of bagging this award continuously for last several years. The Company is planning for further expansion in the Belts & Hoses segments in the current year. 

Industry structure and developments 

The Company is a manufacturer of Belts and Hoses. The Belts are used in various Industries, both Industrial, Agricultural and Automobiles. High Pressure Wire Braided Hoses will be ideally suited for dumpers, cranes, coal cutters, loaders, shovels, excavators, tractors, harvesters, hydraulic roof supporters, equipment used in surface and underground mining, steel and cement industry, aviation, earth moving equipments, oil exploration, agricultural, engineering and several other industries where safety and performance norms are of utmost importance. 

Opportunities and Threats 

The Products manufactured are

Belts 

Hoses 

The Company's products are well accepted in the market both in Domestic as well as Export market because of its superior quality. The Company's products are sold to various original equipment manufacturers as well as in the replacement market. The Company is gradually increasing its share in the domestic market. 

Outlook 

The Company expects to utilize maximum production capacity in the Belting section as well as in the Hose section. The economy is now picking up both in the domestic market as well as in the international market, and the Company expects to do much higher turnover of sales in the current year compared to the year ending March, 2006. 

Risks and concerns 

There is acceptability of the products both in the local and export markets due to their superior quality and competitive prices. 

The company is in continues process of cost control and has undertaken various cost reduction measures and steps to optimize productivity by improving the production processes and controlling wastage. This is expected to result in significant saving in costs. 

Internal control systems and their adequacy

The company holds an IS09002 & QS9000 Certification and all procedures relating to the operating functions of the company have been documented and are followed. The management is of the opinion that there are adequate internal control systems in the company commensurate with its size and the nature of business. 

Discussion on financial performance with respect to operational performance

Sale of manufactured products during the period 2005-2006 was Rs.1207.838 Millions compared to Rs.999.100 Millions during 2004-2005, an increase of 21% in terms of value. 

The company is engaged in the business as manufacture of “V” belts, raw edge, poly V-belts, variable speed belts, fire resistant belts, antistatic belts, oil & heat resistant belts, dry cover belts, etc.

The company is in trade terms with :

Ø Jurgyan Industries

Ø P. K. Enterprises

Ø Prabhu Packaging

Ø R. K. Engineering Works

Ø Shree Mahabir & Company

Ø Technomech Structural

Ø Vision Textiles

Ø Reena Enterprises

The company’s fixed assets of important value include plot, factory premises, plant and machinery, furniture and fixture, office equipment and vehicles.

The company has also established process for production of high pressure braided hoses.

Website details attached

Company profile

PIX TRANSMISSIONS LIMITED, is the fastest upcoming Global Leader in Power Transmissions Business. Established in 1982 at Nagpur in India. It is engaged into the manufacturing of a wide range of world-class quality V-Belts and Hoses to suit various Power Drive needs, such as Wrap Construction V-Belts, Cut Edge Belts, Ribbed Belts, Synchronous Belts, Hoses and Hose Assemblies.

The company offers most advanced and complete range of high quality products not only at competitive price but also provides an in-depth technical advice on various Power Transmission needs.

CERTIFICATIONS AND ACHIEVEMENTS

The company has distinguished itself in the industry by having number of approvals from various Global Certifying Authorities.

• It is an ISO/TS 16949:2002 registered company

• It is the recipient of ATEX certification from Germany for its Fire Resistant Antistatic Belts (FRAS), the  belts being guaranteed for explosion protection, ATEX certificate is a mandatory requirement in Europe for the belts  involved in applications using explosive material

• It has achieved prestigious approval for Hoses from U. S. Dept. of Labor i.e. MSHA (Mines Safety and Health Administration), it is a governing body for any mechanical products which is to be used in Mining application, which certifies the Flame Resistant properties of the Hose outer cover by carrying out stringent tests at their laboratories.

• Its product conforms to all major international standards such as DIN, SAE, BCS and EN.

MARKETING & DISTRIBUTION NETWORK

Its extensive Marketing and Distribution network is spread over more than 45 countries globally, ensures that it can respond rapidly to the changing customer needs. The company has established overseas offices in UK, Brasil and Germany, in order to serve its customers better. Its products are exported to over 65 countries across the world

CUSTOMER SATISFACTION

PIX's stress on consistency in quality has qualified it as a trusted and reliable manufacturer of V-Belts and Hoses and it also counts some of the largest OEM's to its account. The company is committed to the up-gradation and continuous improvement of technology and processes to maximize customer satisfaction.

PRODUCT RANGE

At present the company produces an extensive range of products in terms of V-Belts and Hoses. It manufactures entire range of Belts and Hoses used in Industrial and Automotive application, which includes

-

• Wrapped Construction Belts

• Cut Edge Cogged/Plain Belts

• Ribbed V-Belts

• Synchronous Belts

• Lawn and Garden Belts

• Variable Speed Belts

• Antistatic Belts

• FRAS (Fire Resistant  Antistatic) Belts

• Oil and Heat Resistant V-Belts

• Agriculture Belts

• Hoses and Hose Assemblies

Logical development and adoption of new techniques in material and production handling gives its product a qualitative edge over its competitors. With such a wide range of products PIX caters to all the Power Transmission Needs of a customer. Thus, thinking globally under the present fast changing scenario, PIX's acceptance is based on the firm belief which says -

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. 44.09
UK Pound	1	Rs. 86.59
Euro	1	Rs. 57.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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