MIRA INFORM REPORT

Report Date :

16.03.2007

IDENTIFICATION DETAILS

Name :	ARVIND CHEMICALS LIMITED
Registered Office :	15, Ganesh Chandra Avenue, 2^nd Floor, Hare Street, Kolkata-700013, West Bengal
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	20.03.1992
Com. Reg. No.:	21-54815
CIN No.: [Company Identification No.]	L24298WB1992PLC054815
Legal Form :	Public Limited Liability Company. The Company’s shares are listed on Stock Exchanges.
Line of Business :	Wholesalers of Industrial Chemicals

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 250000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	15, Ganesh Chandra Avenue, 2^nd Floor, Hare Street, Kolkata-700013, West Bengal, India
Tel. No.:	91-33-22119952
Fax No.:	91-33-22113433
E-Mail :	info@arvindchemicals.com
Website :	http://www.arvindchemicals.com
Factory 1 :	E-226, RICO Industrial Area, BAgru Extension, Jaipur-303007, Rajasthan, India

DIRECTORS

Name :	Mr. Ramesh Chandra Bajoria
Designation :	Chairman
Name :	Mr. Saurabh Poddar
Designation :	Director
Name :	Mr. S L Khandelwal
Designation :	Director
Name :	Mr. S. K. Poddar
Designation :	Director
Name :	Mr. Arvind Bajoria
Designation :	Managing Director, CEO

KEY EXECUTIVES

Name :	Ms. Payal Kejriwal
Designation :	Company Secretary and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters and Persons acting in Concert	1967953	65.592
Financial Institutions, Banks, Mutual Funds, etc.	Nil	Nil
FIIs	Nil	Nil
Indian Public (Including Private Corporate Bodies)	1032145	34.401
NRIs	1	Nil
Clearing Members	201	0.007
Total	3000300	100

BUSINESS DETAILS

Line of Business :	Wholesalers of Industrial Chemicals
Products :	Coke, Foam and Coir Mattress

GENERAL INFORMATION

No. of Employees :

About 150

Bankers :

v Indusind Bank Limited

v Punjab National Bank

Facilities :

Secured Loans (Rs. In millions) :

From Rajasthan Financial Corporation
Term Loan	11.469
Working Capital Term Loan	2.171
From Punjab National Bank
Cash Credit Account	5.019
Total	19.767

Unsecured Loans :

From Body Corporate : Rs.116.910 millions

Banking Relations :	Satisfactory
Auditors :
Name :	B. Singhal & Company Chartered Accountants
Address :	46, B.B. Ganguly Street, Kolkata-700012, West Bengal, India
Associates/Subsidiaries :	v Arvind International Limited v Aparna Polyproduct Limited v Arvind Coirfoam Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000300	Equity Shares	Rs.10/- each	Rs.30.003 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		29.143	25.339	25.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		35.695	28.219	27.200
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		64.838	53.558	52.500
LOAN FUNDS
1] Secured Loans		19.767	19.007	15.200
2] Unsecured Loans		116.910	6.310	20.200
TOTAL BORROWING		136.677	25.317	35.400
DEFERRED TAX LIABILITIES		5.029	4.776	0.000
TOTAL		206.544	83.651	87.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		25.389	25.882	29.800
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		38.214	14.833	14.800
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	119.844	2.495	1.800
	Sundry Debtors	13.371	99.948	63.900
	Cash & Bank Balances	4.090	13.409	9.600
	Other Current Assets	0.000	0.325	0.000
	Loans & Advances	55.703	44.571	7.000
Total Current Assets		193.008	160.748	82.300
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	49.111	117.100	38.600
	Provisions	1.341	1.225	1.100
Total Current Liabilities		50.452	118.325	39.700
Net Current Assets		142.556	42.423	42.600
MISCELLANEOUS EXPENSES		0.385	0.513	0.700
TOTAL		206.544	83.651	87.900

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
Sales Turnover		192.591	328.348	282.300
Other Income		6.980	0.914	(50.500)
Total Income		199.571	329.262	231.800
Profit/(Loss) Before Tax		4.040	1.615	8.100
Provision for Taxation		0.369	0.579	1.600
Profit/(Loss) After Tax		3.671	1.036	6.500
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses	1.114	0.734	0.700
	Administrative Expenses	2.841	3.433	1.800
	Raw Material Consumed	42.513	27.320	213.800
	Miscellaneous Expenses	NA	NA	0.500
	Salaries, Wages, Bonus, etc.	NA	NA	0.400
	Interest	2.560	1.955	2.300
	Power & Fuel	NA	NA	0.300
	Depreciation & Amortization	1.414	1.456	1.400
	Other Expenditure	145.088	292.749	2.500
Total Expenditure		195.530	327.647	223.700

SUMMARISED RESULTS

PARTICULARS	30.09.2006 (Full Year)
Sales Turnover	252.100
Other Income	12.900
Total Income	265.000
Total Expenditure	257.500
Operating Profit	7.500
Interest	2.700
Gross Profit	4.800
Depreciation	2.100
Tax	0.000
Reported PAT	3.900
Dividend (%)	50.000

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	31.12.2006 (1^st Qtr.)
Sales Turnover	19.200
Other Income	6.600
Total Income	25.800
Total Expenditure	24.000
Operating Profit	1.800
Interest	1.000
Gross Profit	0.800
Depreciation	0.300
Tax	0.000
Reported PAT	0.500

200612 Quarter 1

Notes

Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (6.146)million Purchases Rs 28.882 million Staff Cost Rs 0.190 million Other Expenditure Rs 1.048 million EPS is Basic and Diluted 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 Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on January 30, 2007. 2. The figures have been regrouped and rearranged, wherever necessary. 3. The Financial results for the quarter ending December 31, 2006 as appearing in the above statement have been subject to Limited Review by the Statutory Auditors of the Company.

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt-Equity Ratio	1.37	0.57	0.65
Long Term Debt-Equity Ratio	1.25	0.42	0.57
Current Ratio	1.83	1.36	1.48
TURNOVER RATIOS
Fixed Assets	2.65	10.16	8.45
Inventory	1.37	154.28	10.34
Debtors	1.48	4.05	5.83
Interest Cover Ratio	0.43	1.46	4.52
Operating Profit Margin(%)	3.23	1.99	4.18
Profit Before Interest And Tax Margin(%)	1.55	1.54	3.68
Cash Profit Margin(%)	(0.36)	0.75	2.80
Adjusted Net Profit Margin(%)	(2.03)	0.30	2.30
Return On Capital Employed(%)	0.93	6.16	13.23
Return On Net Worth(%)	(2.87)	1.89	13.56

STOCK PRICES

Face Value	Rs.10.00/-
High	Rs.32.10
Low	Rs.29.30

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE :

The Gross profit of the Company during the year under review was Rs. 10.855 millions thereby showing an increase by 28% as compared to last year. The net profit after also showed a surge by 254% as compared to last year.

The Company has provided Rs. 0.253 millions towards Deferred Tax Liabilities for the current year as per Accounting Standard - 22 'Accounting for Taxes on Income' issued by the Chartered Accountants of India.

AMALGAMATION :

The Board in its meeting held on 30th May 2005 have since approved a Scheme of proposed merger of Fast Capital Securities Limited. and Vartika Traders Private. Limited (both being unlisted companies) with the company. The Directors feel that such amalgamation will bring in the scattered resources - both financial and managerial under one roof and will accord the economics of scale to the company apart from ensuring advantages under various laws. An Application under clause 24 (f) of the Listing Agreement for obtaining no objection certificate has been made to the Stock Exchanges for the proposed merger. Further action in the matter will be taken on obtaining the required certificate from BSC.

INDUSTRY STRUCTURE AND DEVELOPMENTS :

MANUFACTURING DIVISION :

The Polyurethane foam industry in India is quite unorganized with limited number of organized players. Though there has been consistent growth in the PU foam industry in India, the per capita consumption is still among the lowest in the world as compared to developed and developing countries. With the growing Indian Economy and huge thrust on the growth of infrastructure sector by the Indian Government, the PU Foam industry is likely to post much better growth rates in the coming years. Further, with the improving purchasing power of the Indian consumers and the growing awareness of the consumers for use of PU Foam as against the traditional usage of rubber foam and other materials, the demand for PU Foam is expected to increase substantially. With the continuous improvements in the conditions of the PU Foam industry, the products available are expected to become cheaper and more affordable with better quality standards.

ACL is an established and one of the leading manufacturers of PU Foam in India. The Company's products are very well accepted in the market. Further, the proximity of the company's manufacturing units to the most prominent markets in the northern part of the country has greatly helped the company to effectively compete with other established manufacturers in the country.

The company continues to examine and explore other markets and segments to enlarge its operations and attain

growth in consonance with the changing needs of the customers.

TRADING DIVISION :

The Company trades in coke. Coke is a derivate of coking coal. It is the main source of heat and is also the reducing agent required to facilitate the conversion of metallurgical ores into metal during the smelting process. Coke has a huge demand in Steel industry, Cement industry , pit furnaces for small castings and gas producers among others.

Coke has a huge demand globally and also in India, which is on the rise considering the fact that there is a global shift of Steel making from the developed to the developing countries and India is fast emerging as the chosen destination.

OPPORTUNITIES & THEREATS :

MANUFACTURING DIVISION :

The product of the cmpany constitutes polyurethane foam which is extensively used in the Transort, Automobile, Packaging, Electronics, Garments, Leather, Shoes and Furniture Industries. With the increase in industrial activities in the country, the demand for Polyurethane Form is expected to increase which may result in better price realization for final products. With the improvement in per capita income and life style of Indian customers, demand for flexible PU Foam is expected to increase substantially; Increased penetration of products in rural and semi-urban markets will directly benefit the company. There are certain states in India where the opportunity for growth is high. The company will leverage this opportunity by various marketing initiatives such as brand building, restructuring dealers and introduction of new products.

The products of the company being material intensive which constitutes about 90% of its cost of production, the profitability of the company depends on the movement of the prices and availability of the raw materials. The company imports substantial part of its raw material requirement and any change in regulatory norms or foreign exchange fluctuations may result in an increase in manufacturing costs, which in turn, may affect margins or demand in a highly competitive and price sensitive situation. The company operates in a globally competitive business environment. The entry of new players has made the market more competitive affecting the margins of all participants.

The company is countering this threat by a stronger focus on reducing costs, increasing efficiency of operations and better quality.

TRADING DIVISION :

There is a huge gap between the Demand and Supply of Coke, and hense the company seeks to realize better prices with the continuous growth in steel sector.

Company’s fixed assets include Freehold Land, Factory Building, Other Building, Plant and Machinery, D.G. Set, Laboratory Equipments, Electrical Installation, Fire Fighting Equipments, Furniture and Fixtures, Computer, Motor Vehicle, Air Conditioner, Office Equipments, Office Equipments.

Website Details :

Arvind Chemicals Limited is involved in the manufacture of Polyurethane foam and trading of coke, a derivative of coking coal. It was incorporated on 20th March, 1992 under the name Arvind Chemicals Private Limited. Its name was changed to Arvind Chemicals Limited with effect from 16th December, 1994. The shares of the company are listed on the Calcutta Stock Exchange Association Limited and Bombay Stock Exchange Limited.

Manufacturing Unit

ACL, an ISO 9002 company, is one of the leading manufacturers of Polyurethane Foam (PU Foam) in India. PU Foam is extensively used in Transport, Automobiles, Packaging, Electronics, Garments, Leather, Shoes and Furniture Industries. The Company's manufacturing unit located in Bagru, Jaipur is used to manufacture a wide range of products ranging from mattress, sofa and pillows. The proximity of its manufacturing unit to the most prominent markets in the northern part of the country has made its products well established in the market and helped it compete effectively with the other players in the sector. It is constantly exploring other markets and segments to enlarge its operations and attain growth in consonance with the changing needs of the customers.

Industry Scenario

The Polyurethane foam industry comprises of few organized players. With the per capita consumption of foam relatively low in the country, there is tremendous scope for the sector to grow. The Indian economy is looking very robust and the high importance placed on the infrastructure sector augurs faster growth for the PU Foam industry in India in the coming years. The purchasing power of the consumers have improved considerably, and this coupled with the growing awareness of benefits of using PU Foam over rubber foam and other materials, is expected to propel the demand for foam substantially. Increased spending on research and development in the sector will have dual benefits of better quality and cheaper products, leading to increased penetration in rural and semi-urban markets. The Company will leverage this opportunity by various marketing initiatives such as brand building, restructuring dealers and introduction of new products.

Trading Division

ACL is involved in trading of coke, a derivative of coking coal. It is the main source of heat and is also the reducing agent required to facilitate the conversion of metallurgical ores into metal during the smelting process. Coke has a huge demand in steel industry, cement industry, pit furnaces for small castings and gas producers among others. It has a huge demand globally. With a global shift in steel manufacturing units from the developed to the developing nations, and India being one of the most favoured destinations, the steel making capacity in the country is set to grow in manifolds, thus resulting in an increase in demand for coke.

Code of Conduct for Directors & Executives

Introduction:

Arvind Chemicals Limited (ACL) defines Corporate Governance as a systematic process by which companies are directed and controlled keeping in mind the long-term interest of the shareholders. It firmly believes that good Corporate Governance is the foundation of corporate excellence. It focuses on equitable treatment of all shareholders and reinforce that it is "the company" and it belongs to you, the shareholders.

ACL is committed to good Corporate Governance by creating an environment based on entrepreneurship, professionalism and pursuit for excellence. Its Corporate Governance is based on two core principles:

v Management must have executive freedom to drive the enterprise forward without undue restraints; and

v This freedom of management should be exercised within a framework of effective accountability.

ACL is also committed in protecting and enhancing shareholder value by meeting its obligations and conducting its affairs ethically and lawfully. In pursuance of the commitment, the Board of Directors of ACL has adopted this Code of Conduct (Code) together with such policies and procedures that are intended to guide Executives and Directors in performance of their duties and responsibilities and ensure compliance with the Company's conduct.

All executives and Directors shall discharge their duties assigned to them and must be accountable for their performance and actions to the Company. They should not indulge themselves in such actions which will be demeaning the image of the Company.

This document has been approved by the Board on the belief that it would help the Executives and Directors to achieve the Company's goals in accordance with the laws, rules and regulations of the countries in which the Company carries on Business.

The content of this document are subject to changes / modification depending on the changing circumstances. Each Director and Executive is expected to become familiar with the content of this document and in case of any doubt specific clarification can be obtained from the Company Secretary.

Code of Conduct:

Every Director / Executive shall discharge his / her responsibilities at all times and in such manner so as to ensure that there is compliance with all the Laws, Rules and Regulations as may be applicable to the Company or to the transaction or to the person.

Every Director / Executive shall avoid being in situations that give rise to conflict between the personal interests of the person and the interest of the Company. Where such a situation is not avoidable, the person shall disclose the matter in writing to his / her superior and in the case of any Director; such disclosure should be made to the Board.

Every Director / Executive shall discharge his / her responsibilities at all times and in such manner so as to ensure there is full and fair disclosure as required by law, in the Accounts maintained and presented by the Company.

Every Director / Executive shall treat any data or information of the Company which has not been published or disclosed previously as confidential information and shall not disclose or transmit the same to any person who is not an Employee or Director of the Company, without permission of his / her superior or the Chairman of the Board, unless such disclosure is as per the requirements of any law, or any lawful agreement to which the Company is a party.

Every Director / Executive shall strictly adhere to the Insider Trading Code of the Company.

Every Director / Executive shall at all time ensure proper use of Company's funds, assets and property.

No Director / Executive shall knowingly suppress from the Company a material fact, which can be detrimental to the interest of the Company.

Every Director / Executive shall ensure maintenance of a healthy and safe work environment in the Company.

Every Director / Executive shall avoid discrimination and harassment in any form, on the basis of race, religion and gender.

Every Director / Executive shall adhere to fair and lawful competitive practices pertaining to the operations of the Company.

Every Director / Executive must ensure that he / she does not exploit opportunities arising out of the place of work or in course of work, for personal gain.

Every Director / Executive shall ensure that no political contribution is made whether directly or indirectly on behalf of the Company, without permission by way of a resolution of the Board of the Company.

Every Director / Executive shall ensure that no statement is given to the press or any other form of media without due authorization by the person's superior or the Vice Chairman or the Board of the Company.

Every Director / Executive must at all times so conduct himself / herself, so as to give respect to human beings and human values.

For the purpose of the above 'Company' shall mean Arvind Chemicals Limited, 'Director' shall mean a member of the Board of Directors of the Company including nominees of any institution or body and 'Executive' shall mean any person appointed to the Executive cadre of the Company whether as confirmed employee or not. However in case of any person serving on the Board of the Company as a nominee of any institution or organization, this code shall apply to such person during his / her tenure as Director of the Company, subject to anything contained herein which is repugnant to the Code of Conduct or the Service Rules of the institution or organization who have appointed such person as its nominee on the Board.

All persons to whom the Code applies shall sign a statement confirming there adherence to the Code within 15th December, 2005, in the first instance and within the 15th of April, in every subsequent year.

Board of Directors

Composition and category

The Board of Directors of the Company consists of eminent persons with professional expertise. As on 31st December, 2005 the constitution of the Board was:

One Promoter, Non-Executive Director

One Promoter, Executive Director

Two Independent, Non-Executive Directors

One Non-Executive Director

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.43.98
UK Pound	1	Rs.85.59
Euro	1	Rs.58.49

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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 EXPLANATIONS

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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