MIRA INFORM REPORT

Report Date :

18.12.2008

IDENTIFICATION DETAILS

Name :	INTERNATIONAL HOMETEX LIMITED.
Registered Office :	401,Sumer Kendra, Pandurang Budhkar Marg, Worli, Mumbai – 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	07.09.1989
Com. Reg. No.:	053349
CIN No.: [Company Identification No.]	L99999MH1989PLC053349
TAN No.: [Tax Deduction & Collection Account No.]	MUMI06347F
Legal Form :	Public limited liability company. Company's Shares are Listed on the Stocks Exchange .
Line of Business :	Manufacturer and Exporter of Cotton, Readymade Garments and Terry Towels.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2713880
Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an old established company having moderate track. Company’s profitability is under server pressure and has incurred a loss during 2007-08. Trade relations are fair. However, no complaints have been heard. The Company can be considered for business dealings, with slight caution, initially.

LOCATIONS

Registered Office :	401,Sumer Kendra, Pandurang Budhkar Marg, Worli, Mumbai-400018, Maharashtra, India.
Tel. No.:	91-22-24984292
Fax No.:	91-22-24984154
E-Mail :	info@intlhometex.com
Website :	http://www.intlhometex.com
Factory :	G-1, MIDC Indsutrial Area, Mahad, Dist. Raigad, Maharashtra, India.

DIRECTORS

Name :	Mr. V. K. Agrawal
Designation :	Chairman
Name :	Mr. Vineet Agrawal
Designation :	Vice Chairman and Managing Director
Name :	Mr. A. Indu Sekhar Rao
Designation :	Director
Name :	Mr. V. N. Gupta
Designation :	Director
Name :	Mr. Sanjeev Bindra
Designation :	Director
NAME :	Mr. Rakesh Agrawal
Designation :	Director

KEY EXECUTIVES

Name :	Mr. K. R. Agrawal
Designation :	Vice President(Finance) and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on :31.03.2007

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters Holding :
Indian Promoters	4835046	27.4695
Non Promoters Holding
Institutional Investors
Banks, Financial Institutions, Companies(central/State Govt.institutions/ Non-Govt. Institutions)	100	0.0006
Flls	1300000	7.3857
Others
Private Corporate Bodies	1780093	10.1133
Indian Public	9171910	52.1086
NRIs/OCBs	501010	2.8464
Any Other clearing Member	13356	0.0759
Total	17601515	100.0000

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Cotton, Readymade Garments and Terry Towels.
Products :	Cotton Terry Bath Rone, Cotton Terry Towel, High Tenacity PP Yarn, Other Polymidenylonyar
Brand Names :	Piece Dyed Dobby, Royal Touch, Rib, Plaid, Luxor Cleopatra, Corduroy, Luxor Diamond, Honey Comb, Yarn Dyed Dobby Velour, Calm Stripes, Canana, Seward Stripes, Block Stripes, Piece Dyed Jacquard Velour, Sculptured Sheared, Pearl.
Exports :
Products :	Cotton Terrry Bath Rone, Cotton Terry Towel, High Tenacity PP Yarn, Other polymidenylonyar.
Countries :	United States, Australia, France, United Kingdom, Italy.
Imports :
Products :	Capital Goods, Spares

PRODUCTION STATUS: (As On 31.03.2007)

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Terry Towels/Fabric	2180	2180	1997
High Tenacity Nylon 6 and Polypropelene Yarn	3300	2350	1046

GENERAL INFORMATION

No. of Employees :

343

Bankers :

· State Bank of India

· The South Indian Bank Limited

· Indian Overseas Bank

· Union Bank of India

Facilities :

Particulars	31.03.2007 Rs. In millions
SECURED LOANS
Credit Limit/ Term Loans from Banks	368.182
Hire Purchase Finance	3.286
UNSECURED LOANS
Loans from Directors and their Relatives	5.550
Fixed Deposits- Public	0.720
Others	17.265

Banking Relations :	-
Auditors :
Name :	Pravin Mandhane and Company Chartered Accountant.
Associates/Subsidiaries :	· Siddhant Exports Private Limited · Glone Co-generation Power limited · Essvi International · Siddhant Industries Private Limited · Trimbak Power Company Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
24000000	Equity shares	Rs.10/- each	Rs.240.000 Millions
8250000	6.50% Redeemable Cumulative Preference Shares	Rs.10/-each	Rs.82.500 Millions
	Total		Rs.322.500 Millions

Issued, Subscribed :

No. of Shares	Type	Value	Amount
17601515	Equity Shares	Rs.10/- each	Rs.176.015Millions
6885000	6.50% Redeemable Cumulative Preference Shares	Rs.10/- each	Rs.68.850 Millions
	Total		Rs.244.865 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
17601515	Equity Shares	Rs.10/- each	Rs.176.015 Millions
6155500	6.50% Redeemable Cumulative Preference Shares	Rs.10/- each	Rs.61.550 Millions
	Share Application Money		Rs.70.673
	TOTAL		Rs.308.238 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		308.243	240.865	207.800
2] Reserves & Surplus		234.533	207.261	149.300
NETWORTH		542.776	448.126	357.100
LOAN FUNDS
1] Secured Loans		371.468	358.306	244.300
2] Unsecured Loans		23.535	14.449	22.300
TOTAL BORROWING		395.003	372.755	266.600
TOTAL		937.779	820.881	623.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		470.381	351.365	373.600
Capital work-in-progress		70.298	178.804	35.900
INVESTMENT		56.534	0.000	0.000
DEFERREX TAX ASSETS		24.500	21.500	N.A.
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	208.377	171.908	144.600
	Sundry Debtors	118.223	56.275	36.800
	Cash & Bank Balances	6.845	8.980	5.700
	Loans & Advances	74.001	78.633	62.800
Total Current Assets		407.446	315.796	249.900
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	64.604	38.510	35.800
	Provisions	32.573	18.124	14.200
Total Current Liabilities		97.177	56.634	50.000
Net Current Assets		310.269	259.162	199.900
MISCELLANEOUS EXPENSES		5.797	10.050	14.300
TOTAL		937.779	820.881	623.700

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		559.700	372.550	279.900
Other Income		7.274	11.311	13.600
Total Income		566.974	383.861	293.500
Profit/(Loss) Before Tax		22.603	32.492	12.700
Provision for Taxation		2.900	2.900	1.000
Profit/(Loss) After Tax		22.703	51.092	12.600
Earnings in Foreign Currency :
	Export Earnings, Commission, Other Earning	157.396	156.361	N.A.
Total Earnings		157.396	156.361	NA.
Imports :
	Stores & Spares	0.163	0.204	N.A.
	Capital Goods	43.668	54.640	N.A.
	Others	11.362	33.713	N.A.
Total Imports		55.193	88.557	N.A.
Expenditures :
	Cost of Goods Sold	387.204	248.699	N.A.
	Administrative Expenses	76.285	52.180	N.A.
	Other Expenditure	80.882	50.490	280.300
Total Expenditure		544.371	351.369	280.300

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2007 1stQuarter	30.09.2007 2nd Quarter	30.12.2007 3^rd Quarter	31.03.2008 4thQuarter
Sales Turnover	146.700	128.200	118.100	110.900
Other income	0.000	0.100	1.800	0.000
Total Income	146.700	128.300	119.900	110.900
Total Expenditure	122.200	103.400	97.700	96.700
Operating Profit	24.500	24.900	22.200	14.200
Interest	10.500	10.900	13.300	14.100
Gross Profit	14.000	14.000	8.900	0.100
Depreciation	7.700	7.700	7.600	8.900
Tax	0.100	0.100	0.000	0.000
Reported PAT	6.200	6.200	1.200	-8.900

SUMMARISED RESULTS

PARTICULARS	30.09.2008 Full Year
Sales Turnover	624.500
Other Income	5.800
Total Income	630.300
Total Expenditure	534.900
Operating Profit	95.400
Interest	78.900
Gross Profit	16.500
Depreciation	49.800
Tax	0.300
Reported PAT	-33.600
Dividend(%)	0.000

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	0.86	0.83	0.71
Long Term Debt-Equity Ratio	0.86	0.51	0.09
Current Ratio	3.01	1.54	0.90
Turnover Ratios
Fixed Assets	0.94	0.72	0.61
Inventory	2.94	2.35	1.97
Debtors	6.41	8.00	9.39
Interest Cover Ratio	2.24	2.31	1.76
Operating Profit Margin(%)	18.28	21.74	17.15
Profit Before Interest And Tax Margin(%)	13.35	15.41	10.50
Cash Profit Margin(%)	11.83	20.05	11.15
Adjusted Net Profit Margin(%)	6.90	13.72	4.50
Return On Capital Employed(%)	9.11	8.27	5.30
Return On Net Worth(%)	9.77	14.62	4.02

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject was incorporated as Trimbak Fibres Industries, a private limited company, in Sep.'89. It was taken over by the present management in Dec.'89. In Feb.'92, TIL was converted into a public limited company and got its presentnameinMay'92.  

TIL went public in Oct.'93 with FCDs of Rs 300 each to part-finance a 100% EOU (inst. cap. : 2725 tpa) at Mahad, Maharashtra. The company entered into a technical collaboration with Cointex, Hunger Gueistrasse, Switzerland. 

As a part of its backward integration programme, TIL set up a spinning unit to meet its requirements of quality yarn as well as to increase the terry towel capacity by 25% on achieving full operation of its present capacity. 

The name of the company has been changed during the May 2004,from Trimbak Industries Ltd to International Hometex Limited.

FIXED ASSETS:

· Leasehold land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office and Other Equipment

· Motor Vehicles.

PERFORMANCE:

The sales and other income of the company for the year under review was Rs. 566.974 Millions as compared to Rs. 383.861 Millions for the previous year. There is an increase of 47.50%in sales and other income of the company as compared with the previous year. The company had made a Profit of Rs. 22.703 Millions during the year against Rs. 51.092 Millions for the previous year.

EXPANSION AND DIVERSIFICATION:

MULTIFILAMENT YARN(MFY) AND BATH MAT

The company has been able to put the MFY division on stream during the course of the year under review. The capacity Utilization was around 45% for the year under review. The company has now in the process of setting up the down activities and envisaged to complete the same by October 2007.

The company now envisage to start the setting up of the Bathmat from Jan 2008 onwards. It has a 18 month construction time and is envisaged to go on stream by the third quarter of 2009. The capital outlay for the project is about Rs. 250 million and the funding for the same is currently being tied up by the company.

ACQUISITION OF SHARES IN A US COMPANY

During the current year the company had taken step to acquire about 27% shares in Gordon and Ferguson Inc(GFI). The company is based in New york, USA and is in the business of importing and distribution of Textiles. GFI also owns three brands of repute in USA. The company will now sell its product directly to the US retailers thus improving its margins. The company will also have access for these brands for the Indian market.

POWER PLANT

The company is in the process of setting up a mini power plant of about 3.5 MW at a capital outlay of Rs.75.00 millions. This will have the advantage of reducing the power cost of the company by around 45% as well as making the steam available for the Towel division at negligible costs. The project is envisaged to be completed in about 18 months time.

PREFRENCE SHARES

The company has issued Redeemable Cumulative Preference Shares of Rs. 24.000 millions during the year.

RETAILING

The Board of Management have shown their keen desire for the company to make a foray into retailing of Home Textiles on a pan India basis. The company is studying the viability of the same and the various formats for retailing. The company is also in talks with Venture capitalists. And is taking a good look at the finance models available for the retailing venture.

OVERALL REVIEW :

The Home Textiles market continues to grow for the Indian product. Having said that the composition of growth and export percentage have changed. The one single factor that has led to decline in the growth of export percentage have changed. The one single factor that has led to decline in the growth of export of Textile goods from India is the appreciation of the Indian Rupees. A10% appreciation of the Rupees vis-à-vis the dollar in the year under review great challanges to all exporters owing to stiff competition from neighboring countries as well as continued growth in capacities within the country. A combined effect of the same has been and erosion of margins as well as capacities being under utilization within the country. If the Rupees continues its appreciation as is anticipated it to even maintain its exports at current levels.

On the other hand the retail market in India is getting more organized with the set up of new retail chains across India. Also with the per capita consumption seeing rise within India the demand for Home Textile goods has increased significantly. Thus demand for goods from within the country having increased dramatically, more and more manufacturers are turning to the local market for selling their products. Thus some of the unutilized capacities have been moved towards the local market and although the price realization may not be very remunerative to start with, but with the organized retail trade growing rapidly in India it is a question of time when these capacities shall be gainfully employed for sales within India.

One of the major worries for the industry remains the continued investment in additional capacities in almost every sphere of Home Textiles. With funds under TUFS being available and the scheme having been extended, additional investments at lower funds cost are being set up across the countries. However, this leaves the existing units at a disadvantage and in a scenario of over capacity within the country the new investment will merely boil down to being a swap in capacities from old to new in the long term.

BUSINESS SEGMENT:

Industry Structure and Development :

Towel Division :

The hectic pace of investment in the Home Textiles industry continues unabated. Also during the period under review the Rupee appreciated sharply against the dollar. A combines effects of the same has been the under utilization of capacities. New capacities have lost some business and all this because the industry has not been able to increase its market size owing to Rupee appreciation which is making the Indian Home Textiles steeply priced when compare to our competing countries. It is anticipated that the trend shall continue in the medium term thus putting pressure on capacity utilization as well as profitability.

A couple of factors helped the industry. Firstly, a stable cotton helped the industry at a tine when it would have been unable to absorb the shock of any rise in raw material prices. Secondly, the growth the country. This has helped in reducing the under utilization of capacities to start with and with a promise of being a big market in the medium term,especially with the growth of organized retail trade within country.

Multi Filament Yarn Division :

The company`s new venture is the manufacture of polypropylene, Nylon and Polyester multi filament yarn. The industry has been an increase in raw material prices owing to the firming up of crude prices. Most of the increase, the industry has been able to pass on, which has led to the increased prices of the end product. Also, cheaper imports mainly from China has had some effect on the demand for Indian manufactured goods. The industry has tried to mitigate this by importing its requirement of raw materials and thus trying to keep its margins intact.

Opportunities and Threat :

The company is committed towards being a niche player in Bath Textiles. Its vision to be a Bath solution company is a step closer. The product quality has been well appreciated in the market and the company is now in its second phase of setting up the downstream facilities for manufacture of value added yarn for the Home Textiles sector. This phase is set to be completed by October 2007 and the company is already inundated with orders for its products from Oct/Nov 2007. The company`s plane for the setting up of the Bathmat manufacturing plant shall be taken up from Jan 2008 onwards and has a completion time of 18 months.

The company Terry Towel division continued to maintain its share in the value added segement.

The company could maintain the profit levels owing to better utilization of capacities as its UVR eroded by around 9% in the year under review. Thus competition is severe and prices tend to be under pressure especially in a scenario where demand from developed countries have either stagnated of have reduced a bit because of slow down in their economies.

During the year under review, electricity prices were raised in Maharashtra. In the new price structure the per unit cost of electricity has risen from Rs. 3.90/ unit to an average price of around Rs.5.70/unit i.e. a46% increase in the electricity cost. The company has been unable to pass on this increase in cost to the buyers in full as competition from other manufacturers within the country has made it difficult for any upward revision in prices. On the other hand the company was able to save in the purchase of furnace oil by 15% and owing to better utilization of the steam generated from the boiler the company has been able to bring down the Furnace oil consumption from 0.91/ltrs/kg of fabric to 0.81 ltrs/kg of fabric i.e. a saving in consumption by 11%. However, in the Multi Filament Yarn division the company continues to bear the brunt of rise in Electricity cost and is exploring the possibility of setting up a mini power plant of about 3.5 MW to bring the cost of electricity down to Rs. 2.75/unit and have the steam available at negligible cost.

On the marketing front, the company has taken steps to acquire a 275 holding in a USA based company viz., Gordon and Ferguson inc. The company is in the textile import and distribution business and had a turnover of about usd 20 million for the year ended 31.12.2006. G and F also owns three strong brands in the US market. Also, the company has access to these Brands for the Indian market and is studying the best way possible launch these brands in Indian market and is studying the best way possible launch these brands in India in the mid terms.

The company is also studying the feasibility of getting into retailing. The company plans to retail Home Textiles on a pan India basis. Once it has been able to make a bankable report on its foray into retail the management shall approach the shareholders for their necessary approvals.

Risks And Concerns :

The towel division continues to be plagued by over capacity. Also with stiff competition from Pakistan and China on the low to mid end from Turkey and Brazil on the mid to high end there is a difficulty in getting remunerative prices. This continues to have a negative impact on the profitability of the company.

The rise in electricity cost is hampering the Multi Filament Yarn division. Any further increase in the same shall have adverse impact on the division working. The company is in the process of setting up a mini power plant to meet its requirement as almost 50% of current costs of steam and electricity. The company plans to complete the same in 18 months time.

The appreciation of Rupee by around 15%in last 18 months had deeply affected the working of the company. The UVR in the towel division is down 9% owing to the same and it is only because of capacity utilizations that profit could be maintained. Although the government did increase the DEPB by 3% it has been too late as also grossly insufficient to meet the requirements. If the rupee continues to appreciate in the future the company`s profits and capacity utilizations will be adversely affected.

Outlook :

It has been the companys endeavour to be a multiproduct company and to be in the value added sector. To this end all steps taken by the company are slowly and steadily falling into place. The company`s aim to be a bath solution company is set to fructify in the year 2009 once the bath mat project is set up. The company now has a marketing arm in one of the biggest markets for Home Textiles i.e. USA. Thease shall have the effect of helping the company to maintain a 15-20% growth levels in the next few years as well as improve the realizations of the companys product.

Steps taken to set up the power plant shall result in huge savings as combined billing for these two for both division included on 85% capacity basis is about Rs. 35.000 millions per year and this can be got down to about Rs.35.000 millions per year and this can be got down to about Rs20 millions annually. This saving of Rs. 15.000 millions will help reduce cost and shore up the margins.

The company is very optimistic that with all the above efforts taken in the prior years the company is now set to have sustained growth and to meet the challenges that the industry faces currently and in the future.

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 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.47.33
UK Pound	1	Rs.73.33
Euro	1	Rs.66.69

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		35

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.	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