MIRA INFORM REPORT

Report Date :

04.04.2008

IDENTIFICATION DETAILS

Name :	SAMI LABS LIMITED
Registered Office :	19/1 and 19/2 II Phase, Peenya Industrial Area, Chokkasandra Village, Bangalore 560058, Karnataka
Country :	India
Financials (as on) :	31.03. 2006
Date of Incorporation :	19.04.1991
Com. Reg. No.:	08-11880
CIN No.: [Company Identification No.]	U01520KA1991PLC011880
TAN No.: [Tax Deduction & Collection Account No.]	BLRS02025C
PAN No.: [Permanent Account No.]	AADCS2549E
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacture and export of herbal extracts, fine chemicals, spice oleoresins, etc. (Garcinea Extracts, Gynema Extracts, Gugulipids, etc.) Subject is a research based transnational health science company, manufacture and marketing of high-tech standardized speciality phy to chemicals nutraceutic cosmoceuticals and biotech products worldwide.

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 2600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Available information indicates high financial responsibility of the company. Trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company can be considered good for normal business dealings. It can be regarded as a promising business partner in a medium to long term.

LOCATIONS

Registered Office/ Head Office/R & D Centre/ Corporate Office :	19/1 and 19/2 II Phase, Peenya Industrial Area, Chokkasandra Village, Bangalore 560058, Karnataka, India
Tel. No.:	91-80-28397973 / 28397975 / 28397978
Fax No.:	91-80-28373035
E-Mail :	niranjanprasad@samilabs.com mail@samilabs.com gvreddy@samilabs.com
Website :	http://www.samilabs.com
Factory :	Ø Plot No.30-35, KIADB Industrial Area, Kunigal Industrial Area, Kunigal, Tumkar District, Karnataka (Export oriented unit manufacturing fine chemicals and harbal extracts.) Tel No. : 91-958132220164/290482/292831/292834 Fax No.: 91-958132290724 Location : Owned Area: 5.20 Ø No.3-E, Yadavagiri Industrial Area, Yadavagiri, Mysore 570020, Karnataka Tel No. : 91-958212415538/2535930 Fax No.: 91-958212515890 Location : Owned Area: 0.50 (Manufacturing Oleoresins and Herbal Extracts) Ø 104/1, Unit No.3, 13^th KM, Singasandra Village, Hosur Road, Bangalore 560068, Karnataka (Processing and Packing) Tel No. : 91-51100219 Location : Leased Area: 1.00 Ø No.19/3, 20/1, 20/2, Bhavikeri Village, Kasoba Hobli, Nelamangala Taluka, Bangalore District Tel No. : 91-80-7723446/7723431 Fax No.: 91-80-7725360 Location : Owned Area: 6.73 Ø Plot No. 12/A, Shapoorji Pallonji Biotech Park, Phase 1, Shamirpet Mandal, Rangareddy District, Hyderabad Tel No. : 91-40-23480388/418 Fax No.: 91-958132290724 Location : Owned Area: 4.60
Branches	Ø XL-216/B-2, Layam Square, Layam Road, Kochi 682011, Kerala Ø Mumbai C/o: Sabinsa Corporation, 121 Ethel Road West, Unit 6, Piscataway, New Jersey 08854, USA Ø 102, Arvind Chambers, W. E. Highway, Andheri (East), Mumbai-400 069 Telephone No. : 91-22 56981992 / 56981993 / 6981994 / 5601220 Telefax No. : 91-22 56981992 / 1993 / 1994 E-mail: mumbai@samilabs.com

DIRECTORS

Name :	Dr. Muhammed Majeed
Designation :	Chairman and Managing Director
Address :	138,8^th Cross, 3^rd Main, RMV II Stage, HIG Layout, Dollars Colony, Bangalroe-560094
Date of Birth/Age :	25.09.1948
Qualification :	B.Pharma, MS (Pharma)
Date of Appointment :	19.04.1991
Name :	Mrs. Sami Faazal
Designation :	Director
Address :	No. 31, Mathew Court, Piscataway, New Jersey-08854, USA
Date of Birth/Age :	15.01.1973
Date of Appointment :	19.04.1991
Name :	Dr. M D Nair
Designation :	Director
Address :	Sagarika, Flat No.11, No. 14, 3^rd Seaward Road, Calmikinagar, Thiruvanmiyur, Chennai-600041
Date of Birth/Age :	10.07.1929
Qualification :	PH.D
Date of Appointment :	15.02.1996
Name :	Mr. Cheppattu Abdulla Anzar
Designation :	Wholetime Director
Address :	564, 1^st Main Road, 2^nd Stage, 3^rd Block, RMV Extension Dollars Colony, Bangalore 560096, Karnataka, India
Date of Birth/Age :	30.05.1970
Qualification :	M.Com
Date of Appointment :	16.04.1999
Name :	Dr. R K Bammi
Designation :	Wholetime Director
Address :	Ashirwad, 758, 100 ft. Road, Indiranagar, Bangalore-560038
Date of Birth/Age :	01.05.1937
Qualification :	BSC-HONS, MS., PHD
Date of Appointment :	27.10.1999
Name :	Mr. Humayun Dhanrajgir
Designation :	Director
Address :	F-41, Dhanraj Mahal, C S M Road, Apollo Bunder, Mumbai-400039
Date of Birth/Age :	02.12.1936
Date of Appointment :	12.01.2002
Name :	Mr. P N Venugopalan
Designation :	Director
Address :	707, Sunrise B, Raheja Vihar, Chandivali Farm Road, Powai, Mumbai-400072
Date of Birth/Age :	15.10.1941
Date of Appointment :	02.11.2001
Name :	Mr. Todd Norton
Designation :	Director
Address :	267 East Oakridge Drive Elk Ridge, Utah-84651, USA
Date of Birth/Age :	30.03.1962
Date of Appointment :	30.06.2006
Name :	Mr. Badmaey Vladimir
Designation :	Director
Address :	1440, Forest Hill, New York, USA
Date of Birth/Age :	13.04.1951
Date of Appointment :	12.03.2002
Name :	Mr. Ronald Micetich
Designation :	Director
Address :	12, Braeside Terrace, Sherwood Park, Albert, Canada
Date of Birth/Age :	28.05.1931
Date of Appointment :	23.03.2001
Name :	Mr. Tapan Ray
Designation :	Director
Address :	302 – C, Falcons Castle, Senapati Bapat Marg, Elphinston Road, Mumbai 400013, Maharashtra, India n
Date of Birth/Age :	28.12.1948
Date of Appointment :	10.11.2004

KEY EXECUTIVES

Name :	Mr. Venkataramana Reddy
Designation :	Secretary
Address :	No. 188, Prabhat, 3rd Cross, 4th Main Road, Bangalore 560024, Karnataka, India
Date of Birth/Age :	01.07.1962
Date of Appointment :	03.04.1998

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

[As on 31.03.2007]

Names of Shareholders	No. of Shares
Dr. Muhammed Majeed	954851
Ms. Sami Fazal	45000
Ms Abita Beevi	144
Ms Anju Majeed	1
Mr. C A Anzar	1
Mr Shaheen Majeed	1
Dr. R K Bammi	1
Dr. S Natarajan	1
TOTAL	1000000
Equity Share Break-up [ As on 31.12.2006]	Percentage of Holding
Foreign Holdings	95.50
Directors or relatives of the Directors	4.50
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture and export of herbal extracts, fine chemicals, spice oleoresins, etc. (Garcinea Extracts, Gynema Extracts, Gugulipids, etc.) Subject is a research based transnational health science company, manufacture and marketing of high-tech standardized speciality phy to chemicals nutraceutic cosmoceuticals and biotech products worldwide.
Products :	· Standardised Herbal Extracts · Natural Cosmeceuticals · Probiotics and Enzymes · Spice Extracts · Minerals · Fine Chemicals · Phytochemicals Oils
Exports :
Countries :	North America, Middle East, Europe, Australia, Japan, Dubai, USA and UK.
Imports :
Countries :	China, USA, South Africa, Pakistan, UK, Germany, Japan, Holland, Sri Lanka, Moroccom, Italy, France, Singapore
Terms :
Selling :	L/C (90 days) and Credit (60 days)
Purchasing :	L/C (30 days) and CAD Basis

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Herbal extracts and fine chemicals	Tons	--	4000	3235

GENERAL INFORMATION

Suppliers :	Ø Avon Ø Al Kawathar Import and Export, Moroco Ø Lonza Limited, Holland Ø J. K. Helen Curtis Ø Ishana Spice Exports, Sri Lanka Ø Estee Lauder Ø Sinochem Shandong Import and Export Group Corporation, China Ø Sabinsa Corporation, USA Ø Shimadzu Asia Pacific PTE Limited, Singapore Ø Amway Ø Gordes, HLL And L Oreal
Customers :	Ø Sami Labs Inc., USA Ø Sabinsa Corporation, Japan and USA Ø Gee Lawson, UK Ø Handbury Free Zone Exports, Dubai Ø Quest Vitamins, Australia
No. of Employees :	Office/Others:150 and Production:600 (Total: 750)
Bankers :	Ø State Bank of India, Overseas Branch, M G Road, Bangalore 560001 Ø Axis Bank Limited, Bangalore 560025 Ø Export Import Bank of India, Cuffeparade, Mumbai 400005
Facilities :	State Bank of India Credit Limit : Rs. 462.000 millions Axis Bank Limited Credit Limit : Rs. 78.000 millions

Banking Relations :	Good
Auditors :
Name :	S. R. Batliboi and Associates Chartered Accountants
Address :	UB City, Canberra Block, 12^th and 13^th Floor, No. 24, Vittal Mallya Road, Bangalore 560001, Karnataka, India
Tel. No.:
Subsidiaries :	In USA, Japan, Australia, South Africa and Middle East
Group Companies:	Sabinsa Corporation, USA Anju Phytochemicals Private Limited, Bangalore Organica Aromatics Private Limited, Bangalore Sami Labs Inc, USA and Bangalore American Formulary, Bangalore Sami Investments and Financials Services Private Limited Hanbury FZE, Dubai Sabinsa Japan Corporation, Japan Sabirsa Australia PTY Limited M. G. P. Herbals Care Private Limited CIN No.: U01117TZ2003PTC010791

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 100 Each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 100 Each	Rs. 100.000 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		100.000	100.000	100.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		550.481	447.821	370.501
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		650.481	547.821	470.501
LOAN FUNDS
1] Secured Loans		966.496	810.308	345.175
2] Unsecured Loans		89.984	100.396	32.001
TOTAL BORROWING		1056.480	910.704	377.176
DEFERRED TAX LIABILITIES		35.611	49.691	27.095
TOTAL		1742.573	1508.216	874.772
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		504.018	488.284	307.522
Capital work-in-progress		248.208	26.861	0.085
INVESTMENT		23.897	32.783	24.382
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	534.947	561.815	201.903
	Sundry Debtors	538.962	310.939	385.437
	Cash & Bank Balances	14.882	49.586	11.814
	Other Current Assets	0.305	65.753	0.000
	Loans & Advances	127.019	220.633	61.564
Total Current Assets		1216.115	1208.726	660.718
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	217.076	237.601	102.921
	Provision	32.589	10.837	15.588
Total Current Liabilities		249.665	248.438	118.509
Net Current Assets		966.450	960.288	542.209
MISCELLANEOUS EXPENSES		0.000	0.000	0.574
TOTAL		1742.573	1508.216	874.772

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover	1527.702	1645.698	705.410
Other Income	34.491	1.503
Total Income	1562.193	1647.201	705.410
Profit/(Loss) Before Tax	92.990	211.906	53.042
Provision for Taxation	27.219	29.372	2.701
Profit/(Loss) After Tax	120.209	182.534	50.341
Export Value	1430.892	1524.625	595.745
Import Value	114.890	359.491	132.898
Expenditure:
Cost of Sales	834.711	869.497
Personal Expenses	135.805	119.341
Operating and Other Expenses	340.962	351.097
Financial Charges	83.404	47.790
Depreciation	74.321	47.570
Total Expenditure	1469.203	1435.295	652.367

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	7.69	11.08	0.071
Net Profit Margin (PBT/Sales)	(%)	6.08	12.87	0.08
Return on Total Assets (PBT/Total Assets}	(%)	5.40	12.48	0.05
Return on Investment (ROI) (PBT/Networth)		0.14	0.38	0.11
Debt Equity Ratio (Total Liability/Networth)		2.00	2.11	2.05
Current Ratio (Current Asset/Current Liability)		4.87	4.86	5.58

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

9^th July, 1991 under the name of “Samichemicals and Extracts Private Limited”

Name and form changed to “Sami Chemicals And Extracts Limited” 01^st July, 1997

Name again changed to “Sami Labs Limited” from 27^th May 2000

PREMISES

Ø Peenya: Owned and shared by group, Land: 217244 Sq.ft, Buildup: 19695 Sq.ft

Ø Kunigal : Owned, Land: 5 Acres, Builtup: 100000 Sq.ft

Ø Mysore: Owned, Land: 24000 Sq.ft, Builtup: 27000 Sq.ft

Ø Singasandra: Owned, Land: 3 Acres. Builtup: 16000 Sq.ft

Ø Nelamangala: Owned

TRADE REFERENCES:

11. Sabinsa Corporation, USA
12. Anju Phytochemicals Private Limited, Bangalore
13. Organica Aromatics Private Limited, Bangalore
14. Sami Labs Inc, USA and Bangalore
15. American Formulary, Bangalore
16. Sami Investments and Financials Services Private Limited
17. Hanbury FZE, Dubai
18. Sabinsa Japan Corporation, Japan
19. Sabirsa Australia PTY Limited
20. Jiyangy’n Eastern Medical Raw material Company Limited
21. Zhejiang Medicines and Health pro import and Export company.

Form 8

This Form is for	Modification of Charge
Charge identification number of the charge to be modified	80033807
Corporate identity number of the company	U01520KA1991PLC011880
Name of the company	SAMI LABS LIMITED
Address of the registered office or of the principal place of business in India of the company	19/1 and 19/2 II Phase, Peenya Industrial Area, Chokkasandra Village, Bangalore 560058, Karnataka
Type of charge	Book Debts Movable Property
Particular of charge holder	Axis Bank Limited Esquire Centre, No. 9, M. G. Road, Bangalore 560001, Karnataka, India
Nature of description of the instrument creating or modifying the charge	Undertaking Cum Indemnify Deed Letter of Acknowledgement of debt [both the above pertain to the same charge]
Date of instrument Creating the charge	25.06.2007
Amount secured by the charge	Rs. 105.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	[a] Rate of interest EPC/PSC/FBP/FBD – upto 180 days PLR – 4.5% p.a. [i.e. 9.5% p.a. at present] payable monthly beyond 180 days and upto 270 days PLR 2.5% p.a. [i.e. 11.5% p.a. at present] payable monthly PCFC : LIBOR + 100bps p.a. [b] Terms of repayment EPC will be allowed upto 270 days or expiry of contracts/export letters of credit for shipment, whichever is earlier. PSC – Maximum 180 days from the date of shipment LER/Worling Capital – one year LC – Inland LC maximum usance upto 90 days Import LC maximum usance upto 180 days [c] Margin EPC – 25% LC – 10% [d] Extent and operation of the charge The Charge shall operate to the extent of Rs. 105.000 Millions plus commission, interest, costs, expenses and other charges thereon. [e] Others The said amount of Rs. 105.000 Millions comprises EPC/PCFC Rs. 65.000 Millions, LC Rs. 30.000 Millions, LER Rs. 10.000 Millions
Short particulars of the property charged	Hypothecation by way of pari passu first charge on the current assets on the company at Neelamangla, Singasandra, Mysore and Kunigal or at any other place and pari passu second charge on plant and machinery and fixed assets at Neelamangla, Singasandra, Mysore and Kunigal
Date of latest modification prior to the present modification	02.09.2005
Particulars of the present modification	By the above the charge on the current assets/fixed assets said above shall cover the present modified limits aggregating Rs. 105.000 Millions All other terms and conditions remain unchanged.

Name of the company	SAMI LABS LIMITED
Presented By	G. V. Reddy
1) Date and description of instrument creating the change	Unattested deed of hypothecation dated 28.03.2005 executed by Sami Labs Limited [therein and hereinafter referred to as the Borrower] in favour of Export Import Bank of India [Exim Bank] a certified true copy whereof is attached hereto.
2) Amount secured by the charge/amount owing on the securities of charge	Loan of USD 4 Millions including any converted Rupee amounts consequent upon default, in the case of foreign currency loan together with interest, compound interest, additional interest by way of liquidated damages [in case of default] costs, charges, expenses and all other monies payable by the Borrower to Exim Bank under the loan agreement dated 28.03.2005 made between the Borrower and Exim Bank.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of the Borrowers movable fixed assets, both present and future, briefly described in schedule III to the deed of hypothecation including its movable plant and machinery, equipment, appliances, furniture, vehicles, machinery spares and stores, tools and accessories, whether or not installed.
4) Gist of the terms and conditions and extent and operation of the charge.	[a] the charge created by the aforesaid deed of hypothecation shall operate as a continuing security by way of a first charge for the due repayment by the Borrower to Exim Bank of the Loan of USD 4 Millions including any converted Rupee amounts consequent upon default in the case of foreign currency loan together with payment of interest, compound interest, additional interest by way of liquidated damages [in case of default], costs, charges, expenses and all other monies payable by the Borrower to Exim Bank in terms of the said loan Agreement. [b] the said charge shall rank in the order of priority set out in Schedule IV to the Deed of Hypothecation
5) Name and Address and description of the person entitled to the charge.	Export Import Bank of India Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400005
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

AS PER WEBSITE DETAILS:

City-based Sami Labs (SL), an assertive and role-defined new generation limited company with closely-held shares, is gradually emerging as a giant in the Indian health sciences business landscape. The company which reported Rs 3000.000 Millions business last year, expects to clock a turnover as high as Rs 5000.000 Millions by the end of this calendar year. Moreover, the company is scouting for acquiring two or three companies in the herbal science segment, preferably in Germany.

A closer look at the company shows that with its clearly focused research programmes, unique business model, and unitary structure of organisation that the company is well-poised to equal or even overtake the largest biotechnology company of India, Biocon, in a matter of few years. The company’s ambitious plans are built on the bedrock of three chemicals: forslean, forskolin and curcumin, the former two derived from a plant of Ocimum family and the latter one from turmeric.

Dr Muhammad Majeed, Managing Director, Sami Labs, was bullish on the strategy of the company to rely on nature’s boon in the form of a wild plant Coleus Forskohlii for its ambitious growth. The company has already clinched partnership with a huge population of farmers in order to contract-cultivate thousands of acres of land in states namely Andhra Pradesh, Chattisgarh, Karnataka, Kerala and Tamil Nadu, fetching them Rs 6 a kilo for the root of the plant.

‘‘Acquisition is the major thing they are looking at; but mainly in Europe. They have started negotiations with certain groups and manufacturing companies which have similar lines of business. They are working on it right now. They would spend Rs 1000.000 Millions for acquisition,’’ Dr Muhammad Majeed told Express Pharma Pulse.

The medicinal compounds Forslean (patented by Sami for diabetes) and Forskolin (in phase-III clinical trials for glaucoma) along with Curcumin from which Sami has developed tetrahydrocurcumin, a white powder in quite contrast to its natural yellow colour which the US market abhors, will be the drivers of the company’s profit, from as varied a market from the US of America to Japan in the world map.

Sami patented the science behind Forslean’s action in reducing obesity without affecting the bio mass index (BMI) of human body. This characteristic made the chemical a big hit in the west, mainly in the US and in the East mainly in Japan. The company foresees geometric proposition of growth in demand for this product. The company has done studies in developed countries including Japan and the USA .Its effectiveness was confirmed.

‘‘A study has been completed in Kansas state university now which would be published in the Journal of Obesity,’’ Dr Majeed said. A Mumbai-based centre has completed a clinical study on the same chemical along with Manipal Medical centre in Bangalore, which has completed another study recently.

Elaborating on the study, Dr Majeed added: ‘‘All studies show a co-relation between the administration of this medicine and the loss in body weight and body fat. Fat reduction is about three to four per cent and weight reduction to two to three. However, sensible diet and exercise are essential for the effectiveness of reducing obesity even with the use of Forslean.’’

This paper earlier reported on the phase III clinical trials of forskolin in curing Glaucoma, which would open up a marketshare of Rs 200.000 Millionsfor the company in two years, domestically.

Having developed tetrahydro curcumin, which adds ten times value to the base product, the company is in a formidable position in the western market, according to Dr Majeed. ‘‘It is the most effective skin lightening agent, without any side effect, and hence widely used,’’ he informs. When hinted at the finding of Dr Padmanabhan and his team in the Indian Institute of Science on curcumin’s effectiveness as a combination drug with existing first line drugs to fight malaria, Dr Majeed offered, ‘‘They are passionate about curcumin; I am very keen on working with Dr Padmanabhan on curcumin. In case IISc is OK, clinical trials on curcumin can be done in the Clinworld facility.’’ He further added: ‘‘Public knew curcumin as a cheese coloured substance exported from Kochi, until I published a paper on its effectiveness as an anti-oxidant. That report really prompted the US market. I have a patent on that, eventhough, others are also selling curcumin in the US market.’’

Sami is aiming big bucks. When value added, (ie, yellow curcumin converted into white powder), the additional cost will become US $50 to $120 per kilo. Sami sells it at US $300 dollars a kilo in the overseas market. The remarkable job done by Sami’s research establishment is enabling the body to get rid of its burden of converting turmeric into curcumin; instead, now it needs to just absorb the tetrahydro curcumin.

The company has set up a new plant in Salem to process Coleus Forskohlii, which would handle large volumes (about fifty tonnes on a daily basis). It is setting up two new plants in Hyderabad, one will be operational in August this year and the other in the early part of next year, it is learnt. The dosage forms of products from the company would come out of its new Nelamangala facility in Bangalore.

SLL is arguably the first pharmaceutical company in India engaging in contract farming across the country. In Tamil Nadu it has contract farming in more than 9,000 acres which would go upto 15,000 acres soon, in Karnataka and Andhra, 5000 acres each, 10000 acres in Chattisgarh, where as in Kerala, cultivation has begun in a modest 250 acres in the beginning, C A Anzar, a director of the company informed. Dr Majeed expects more than 20,000 acres to go on full-fledged cultivation, this year itself and Coleus Forscohlii would bring in 20 per cent of the total revenue.

Sami has at least 70-72 products comprising nutraceuticals, specialty fine chemicals and cosmoceuticals in its kitty. From garlic, the company has isolated selenium and developed selenium di peptides, which are faster absorbed, faster acting and more pharmacologically effective. The company has got American patent for the product. It markets the product as ’garlic select.’

HIGHLIGHTS

• Initial allocation of Rs 1000.000 Millions for acquisition in Europe alone
• Presence in all the three segments of health science business—fermentation-based biotechnology, synthetic chemistry and herbal extractions
• To be a Rs 5000.000-Millions company by year-end and a Rs 20000.000-Millions company in few years.
• Well established research facility, two new plants in Andhra, one in Salem and one in Bangalore
• Attain status of a true MNC with presence in Asia, North America and Europe
• Unique scheme of contract cultivation with farmers across the country for bulk production of forslean and forskolin from Coleus Forskohlii

Bangalore-based Sami Labs Limited is honoring its farming community engaged in the cultivation of Coleus, a medicinal plant, on June 18 at Aattur near Salem . More than 5,000 farmers will be honored from the district of Salem and adjoining districts as well.

As part of this programme, Sami Labs will compliment the farmers with 25 motorbikes and 300 sovereigns. More than 5,000 farmers are currently cultivating Coleus in Salem and 14 adjoining districts. Sami Labs is extending them support by facilitating bank loan, crop and insurance and a buy back arrangement.

The company has invested close to Rs 100.000 Millions in Salem and adjoining districts for Coleus cultivation. For this fiscal, Sami will expand its Coleus cultivation to 15-20,000 acres of land and will cover regions in Tamil Nadu, Karnataka, Andhra Pradesh, Punjab , Maharashtra and Chattisgarh. The investment for cultivation will be to the tune of Rs 500.000-60.000- Millions , said company officials.

Sami has also evolved a special model of cultivation for the farmers in and around Salem . Initiated seven years ago with a handful of farmers, today, the Sami Model of Coleus Cultivation has grown into a co-operative venture with more than 5,000 farmers involved directly and thousands of farm labourers indirectly in Salem and adjoining districts of Tamil Nadu. The Salem project has been done in association with MGP Herbals Care Private Limited

Coleus forskohlii has been known to be useful for lowering blood pressure as well as ocular pressure in glaucoma. In the 90s, Sami Labs and its associate company in the US, Sabinsa Corporation discovered another property of this plant. It was found that taken internally forkolin, the main ingredient of the plant, broke down fat in the body without affecting other tissues.

Coleus forskohlii, is a six month crop, which is grown only in the rainy season and contains forskolin only in roots. It is multiplied by stem cuttings and hence the expenses on replanting are high. Sami Labs scientists are now trying to develop a variety, which will contain forskolin in its stems in addition to roots so that the plant becomes a perennial crop where only stems will be harvested, and leftover roots will sprout again to give a new crop of stems for next season.

Dr Muhammed Majeed is a native of Kollam in Kerala, who made it big in the United States , thanks to his commitments to work, professionalism and hardwork.

After taking B Pharm from Trivandrum Medical College , Dr Majeed went to America in 1975 where he took MS in Pharmacy and PhD in Industrial Pharmacy. He worked in some major pharma companies like Pfizer Inc, Carter-Wallace and Paco Research which earned him valuable experience in the latest technology in drug formulations. Later he dictated his own career by successfully integrating the latest technology with traditional Indian practice of medicine called Ayurveda. It was the beginning of a new success story. He came out with a new line of products based on Ayurveda, where the actives for the drugs were extracted from the herbs.

It was Dr Muhammed Majeed, who introduced to the Americans the curative effects of the time tested Ayurvedic treatment popular in India . The persistent efforts made by Dr Majeed in the early nineties in the field of Ayurveda had its effect on the Americans. They started recognizing the potential of Ayurveda and called it the Alternative medicine. By 2000 it became Complementary medicine and now it is known as Integrated medicine. Dr. Majeed is a pioneer in the field of nutraceuticals, which the people in the West look to, for quality of life.

Sabinsa Corporation based out of US, yet another company incorporated by Dr Muhammed Majeed is the international marketing arm of Sami Labs Limited.

Sami Labs Limited is a research based transnational organization which has successfully integrated cutting edge technology with deep-rooted traditional Indian knowledge. In an economy driven by knowledge and innovation, Sami Labs has to its credit 19 US and international patents. With subsidiaries in the USA , Japan , Australia , South Africa and the Middle East , Sami Labs is involved in the manufacturing and exporting extracts of botanical extracts including herbal and spice extracts as well as pharmaceutical intermediates and fine chemicals.

Sami was established by a scientist-cum- entrepreneur, Dr. Muhammed Majeed in 1991 as a small scale unit in Singasandra, Bangalore . Within a short span of 5 years, the company achieved an impressive export turnover. The company has several manufacturing units in Karnataka, namely at Singasandra, Kunigal and Mysore where various fine chemicals and herbal extracts are manufactured in compliance with cGMP standards. Sami has a team of highly qualified scientists who work in fully equipped R&D and Quality Control laboratories at Peenya, Bangalore . These laboratories are recognized by the Government of India.

RESEARCH AND DEVELOPMENT ARM

The Research and Development unit of Sami Labs Limited is located at Peenya in Bangalore . The Research and Development team is committed towards the development of quality herbal extracts, fine chemicals, specialty chemicals and cosmeceuticals through innovative research. Besides this they are also involved in the research of New Drug Discovery. In addition to the research and development facilities, Sami Labs has full-fledged laboratories in the areas of Phytochemistry, Organic Chemistry, Tissue Culture, Biotechnology and Quality Control.

STANDARDIZED HERBAL EXTRACTS

This division is involved in the isolation and development of active ingredients from herbs for various therapeutic applications. They are also into providing custom requirements for the clients with regard to purity of herbal extracts and development of new products.

PLANT BIOTECHNOLOGY

The focus here is mainly on rare medicinal plants, which will require large-scale cultivation. The scientists over here isolate the high-yielding varieties and multiply them through tissue culture techniques in the laboratory.

AGRICULTURAL PRIORITIES

More than 14,000 acres of medicinal plant cultivation is undertaken by Sami Labs in different parts of India for Coleus forskohlii (Coleus), Curcuma longa (Turmeric), Trifolium pretense (Red clover), Melissa officinalis (Lemon balm) and Rosmarinus officinalis (Rosemary)

NUTRACEUTICALS

Some of the herbal extracts that are manufactured at Sami Labs have nutraceutical properties also. A nutraceutical product is any food or a food supplement that has medicinal or health benefits.

SYNTHETIC CHEMISTRY

The thrust at Sami Labs is mainly on Nutraceuticals. A Nutraceutical product can be developed either through a natural source or it can be derived synthetically. Sami Labs has set up a strong synthetic chemistry division to manufacture some of these synthetically derived nutraceuticals and drugs.

Sami Labs' expertise in synthetic chemistry extends from simple Friedel Crafts reaction to complex Asymmetric Synthesis. Sami has an excellent analytical testing facility, which is the core strength for Synthetic Chemistry.

This division currently works on:

Development of drug and drug intermediates

• Development of seleno amino acids and other nutraceuticals
• Development of steroidal molecules
• Development of peptides for cosmeceuticals

FERMENTATION TECHNOLOGY

Sami Labs entered the biotechnological age with the commissioning of a new production facility at Nelamangala, near Bangalore . The first biotechnology/fermentation products to be manufactured at this facility were probiotics. Several new products are in the research pipeline, at the biotech R&D facility at Nelamangala.

CARBON DIOXIDE SCFE

With the strict regulations on VOC and ODC emissions and the rigid examination of the solvent residues that goes into any pharmaceutical, medical or nutraceutical products, the need for a Super Critical Fluid Extraction becomes essential. Sami set up this facility in 2002. It is the first commercial unit to be established with indigenous technology developed by the Indian Institute of Technology (IIT) Mumbai. It uses carbon dioxide in its critical phase as extraction medium. The unit is fully computerised and it avoids industrial pollution and ensures safety of its products when compared to traditional extraction methods.

INTELLECTUAL PROPERTY DEVELOPMENT

Innovation had been the key driving force behind Sami's success. The scientist of Sami and Sabinsa are credited with 19 US and International Patents and another 24 are on their way. Sabinsa is also the winner of Thomas Alva Edison Patent Award in the state of New Jersey (USA) in 2004.

Bangalore , March 26: Sami Labs Limited a Rs 2590.000- Millions transnational health science company is setting up two phytochemical extraction units in Karnataka and Andhra Pradesh, at a total cost of Rs 480.000 Millions. And they are recruiting about 300 people for the two plants. The company's workforce currently numbers 7OO-plus in India and 75 in the marketing offices in USA , Japan and Australia .

"They require around 100 people for the phytochemical extraction unit in Genome Valley , Hyderabad which will be ready in four months. Around 200 people will be required for the extraction unit at Dabaspet (between Peenya &

Tumkur) in Karnataka," averred Muhammed Majeed, founder and MD. Sami Labs Limited The company is looking out for chemical and mechanical engineers, chemists, scientists and B.Sc graduates at various levels-entry level, with 3-5 years of experience and above 15 years of experience. Of the total staff requirement of 300, around 45 support staff will be hired.

Sami has two biotechnology units, one is a plant biotechnology unit and the other is a fermentation biotechnology unit. "They in India are 20 years behind as far as biotechnology goes. They need to attract more scientists, courses and degrees in biotechnology need total refurbishing and premier institutes in biotechnology need to be set up," said Majeed. Even after recruiting students who have completed their degrees in Biotechnology, a minimum 6 months training is necessary in order for them to become productive, added Majeed. .

The company acknowledges its social obligations and has assisted Indian farmers in the adoption and cultivation of useful herbs, from around the world and processing and extracting these for export to developed countries. "They have empowered 2,500 farmers from 18 districts of Tamilnadu who are now able to support themselves. They provide them with training and expertise in growing these herbs," said Majeed.

The company has started empowering farmers in Kolehalli in Karnataka and plans to expand this base to cover many more districts. "Soon they will have a network of farmers in Maharastra and Hyderabad too." he added.

Sami Labs, the Bangalore-based nutraceuticals company (group turnover Rs 2500.000 Millions), is expanding its global footprint.

The company, after focusing on US and Europe, is now eyeing South America with a manufacturing base in British Guyana and a marketing presence in Brazil.

Currently, Sami Labs has four manufacturing facilities in India and subsidiaries in the US, Japan, South Africa and Dubai.

“They plan to set up subsidiaries in both countries with investments totalling $20.000-30.000 million,”said Sami Labs MD Muhammed Majeed.

The company will adopt a ‘hub and spoke’ model for market penetration . British Guyana provides easy access to Latin American countries while Brazil opens up research and marketing opportunities, he added.

For the domestic market, the company will upgrade its manufacturing facilities in Karnataka and set up two phyto-chemical extraction units in Andhra Pradesh, each at a cost of Rs 100.000-120.000 crore. With 17 patents to its credit, the company’s R&D spend is around 8-10 per cent of its revenue.

Ernst & Young, a consultancy, will raise private equity and negotiate with institutional investors.

AWARDS

Thomas Alva Edison Patent Award for Tetrahydropiperine - 2005

Received Thomas Alva Edison Patent Award for the year 2004

ACQUISITION

Sami Labs is on a drive to grow as a global conglomerate in health science. As part of this expansion program, they are looking for acquisition, joint venture, strategic alliance, licensing and marketing opportunities in Europe, South East Asia, UAE and South Africa in the following domain:

• Nutraceuticals and Cosmeceuticals
• Phytonutrients
• Biotechnology
• Pharmaceutical Generics
• Fine Chemicals and Specialty Chemicals
• Custom Synthesis
• Contract Research
• Clinical Research

PROFILE

Sami Labs Limited, is a research oriented transnational health science company, which is a leading producer of nutraceuticals, cosmeceuticals, standardised herbal extracts, fine chemicals, specialty chemicals and probiotics.The Government of India, honored us with the National Award for Quality Products (Basic Drugs) in the year 1994. Today they have 17 US and 6 International patents.

HISTORY

"The vision of a research scientist takes on social and commercial expressions." This in short explains the genesis and growth of Sami Labs Limited

Dr. Muhammed Majeed Founder, Chairman and Managing Director of Sami Labs Limited, was born and brought up in Kerala ( India ). It was his urge to establish himself not just as a scientist but also an entrepreneur that made him fly beyond his home turf. So in 1975, after obtaining his degree in pharmacy, he proceeded to USA where he completed his MS in Industrial Pharmacy from Long Island University , New York after which he took his doctorate in the same field from St John's University , New York . Then he gained valuable experience working in Pfizer Inc, Carter-Wallace and Paco Research.

In 1988, Dr Majeed established Sabinsa Corporation in the state of New Jersey , USA with the objective of importing and marketing generic drugs into the US for the drug molecules coming off patent.

Very soon he introduced into the US market a new line of products based on Indian herbal plants. It was Dr Muhammed Majeed who introduced to the Americans that Ayurveda from India can act as a complete curative to their various ailments. The persistent efforts made by Dr Majeed in the early nineties in the field of Ayurveda did reap benefits among the Americans. They started recognizing the potential of Ayurveda and termed it the Alternative medicine. By 2000 it became popular as the Complementary medicine and now it is called as the Integrated medicine.

To facilitate the increased demand for innovative application-based products, Sami Labs Limited (formerly known as Sami Chemicals & Extracts Limited) was set up in 1991 at Singasandra in Bangalore ( India ) as a research and development facility. Today the main thrust and focus of Sami is on new product development and market oriented research.

To cater to the expanding global market, Sami Labs has presence and strategic alliances in USA , Europe , Japan , Australia , Middle East and South Africa .

The global revenue of the company stood at USD 110 million (for 2005), with an employee strength of 50 people in USA and Japan , more than 1000 in India and over 100 scientists worldwide. Sami Labs is into farming also covering 40,000 acres of land in India.

PRODUCTS

Subject is into the manufacturing of Standardised Herbal Extracts, Cosmeceuticals, Probiotics, Spice Extracts, Minerals, Fine Chemicals, Phytochemicals and Oils used in the nutritional, pharmaceutical and the food industry.

Some of the flagship products are:

ForsLean ^®

ForsLean is manufactured by a proprietary process and is a standardized extract from the roots of the Coleus Forskohlii plant, the only known plant source of Forskolin. Forskolin can be used to promote treat lean body mass and in the treatment of mood disorders.

ForsLean is a registered trademark of Sabinsa Corporation and is the only Coleus Forskohlii preparation supported by US Patent # 5,804,596.

Sabinsa Corporation, the international marketing arm of Sami Labs Limited received the Thomas Alva Edison Patent Award for the year 2004 for ForsLean. This annual award instituted by the Research & Development Council of New Jersey, honors the most important scientific breakthroughs and revolutionary product innovations originating in New Jersey . ForsLean received this honor in the Consumer/ Small Company category.

This is the second award for ForsLean in the innovation arena. The product had earlier won the Best New Product award in 2001 at Nutracon.

Gugulipid ^®

Gugulipid is a registered trademark (Registration date: 21 July, 1992) of Sabinsa Corporation. Sabinsa introduced Gugulipid to the US market in 1990.

Gugulipid is a standardized extract prepared from the oleogum resin (gum resin) of Commiphora mukul, an Indian medicinal tree that has been clinically proven to reduce the levels of harmful serum lipids in the bloodstream. The active ingredients responsible for the maintenance of healthy cholesterol levels are the guggulsterons, specifically guggulsterone E and guggulsteron Z. For more details Visit www.gugulipid.com

Bacopin ^®

Bacopin, a registered trademark of Sabinsa Corporation, is a standardized extract prepared from the leaves of the Bacopa Monnjera plant. It is standardized for a minimum of 20 percent bacosides A & B, the active ingredients beneficial in the support of cognitive functions. For more details Visit www.bacopin.com

Bioperine ^®

Bioperine is a standardized extract from the fruit of Piper Nigrum L (black pepper) or Piper Longum L (long pepper). It contains a minimum piperine content of 95 percent compared to the 3-9 percent and 3-5 percent found in raw forms of Piper Nigrum and Piper Longum, respectively. Bioperin may be co-administered with various nutrients for both human and animal health. For more details Visit www.bioperine.com

This agreement allows Sabinsa to get its innovative and efficacious active ingredients into the hands of cosmetic and personal care companies by tapping into Goldschmidt's extensive customer base.

Sabinsa Group, a wholly-owned subsidiary of Sami Labs Limited, India, announced it has established an exclusive marketing partnership with Goldschmidt Personal Care, a wholly-owned subsidiary of Degussa GmbH, in which Goldschmidt will distribute select specialized, standardized botanical extracts from Sabinsa, all specifically developed for cosmeceutical use, to the personal care industry worldwide. This agreement allows Sabinsa to get its innovative and efficacious active ingredients into the hands of cosmetic and personal care companies by tapping into Goldschmidt's extensive customer base.

In today's cosmetics arena, a critical step to success is the ability to apply technology to build a concept where products are efficient, safe and properly formulated. The goal of this partnership is to develop and deliver even more unique products to meet the needs of customers and consumers by leveraging the key strengths of each company.

Willy Klipp, senior vice president and general manager of Degussa's business line Goldschmidt Personal Care states, "this agreement essentially allows us to offer novel nature-derived active ingredients to our broad customer base and reinforce our position as a preferred partner for the development of innovative products and new applications."

Sami Labs Limited, at its national award winning research centre in Bangalore, India, developed these cosmeceutical products which have been tested for safety and efficacy in their biological research laboratory by advanced in vitro systems like cell lines and bioassays.

"Working with Degussa Goldschmidt Personal Care not only allows for deeper and more broad market penetration for our line of cosmeceuticals, but permits us to focus on our core competency of developing safe and effective ingredients for the global market," stated Madhu Subramanian, executive vice president of global operations, Sabinsa. "This partnership is seen as the initial and first step of a closer collaborative venture between Goldschmidt and Sabinsa."

"It is a perfect fit as Sabinsa's strength lies in the identification of bio-active compounds from Indian habitats, whereas we bring additional competence in the field of modern cosmetic claim substantiation and extensive formulation know-how to the table," comments Dr. Peter Lersch, head of R&D Care Ingredients/Biotechnology, Goldschmidt Personal Care.

Initial products developed through the partnership are expected to be launched in the second half of 2007. They will complete Degussa's well-known product portfolio, which consists of a unique range of organic and silicone-based specialties and active ingredients specifically designed as raw materials for personal care products.

Degussa's business line Goldschmidt Personal Care is a leading global manufacturer and supplier of raw materials, additives and active ingredients for the cosmetics industry. All business activities are strongly supported by application technology, as well as by in-house research and development. A dedicated team of highly skilled professionals is committed to excellence and customer satisfaction. Among other products, Degussa is specialized in manufacturing human skin identical sphingolipids including Ceramides by biotech means. Screening, identification and confirmation of biological activities for novel ingredients is carried with state-of-the-art cell and molecular biology including the use of DNA-Chip technology, cell cultures, artificial skin models and the validation of results in in-vivo studies.

Sabinsa has proven itself as the quality supplier of claim substantiated nutraceutical actives and brings the same commitment to the development of new cosmeceuticals. "At Sabinsa, we strongly believe in creating the future from the past, and continually look at botanicals with a long history of use to determine if there are bio-active compounds that can be successfully isolated and manufactured for today's marketplace," noted Dr. Muhammed Majeed, founder and CEO, Sabinsa. "By leveraging the key strengths of both companies, we are confident we can develop and deliver even more innovative and efficacious products that meet the needs of consumers."

Founded on the modern application of standardized Phytonutrients, Sabinsa/Sami Labs has established itself as a manufacturer and supplier of high-quality fine chemicals, organic intermediates and standardized botanical extracts. Sabinsa/Sami Labs also provides custom synthesis from lab scale to pilot to commercial scale. Sabinsa/Sami Labs has over 40 new cosmeceutical blends in its pipeline which are new innovative products based on its own original research.

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. 39.95
UK Pound	1	Rs. 79.41
Euro	1	Rs. 62.49

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	NO
--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 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