MIRA INFORM REPORT

Report Date :

23.06.2008

IDENTIFICATION DETAILS

Name :	J C T LIMITED
Registered Office :	Village Chohal, District Hoshiarpur – 146024, Punjab
Country :	India
Financials (as on) :	31.03.2007
Year of Establishment :	28.10.1946
Com. Reg. No.:	16-4565
CIN No.: [Company Identification No.]	L17117PB1946PLC004565
TAN No.: [Tax Deduction & Collection Account No.]	JLDJ00405G/JLDJ00404F
PAN No.: [Permanent Account No.]	AAACJ6733E
Legal Form :	Public Limited Liability Company. Company's Shares are Listed on the Stocks Exchange
Line of Business :	Manufacturer and Marketer of Yarn, Cloth, Fents, Rags and Chindies, Nylon Filament Yarn, Polyester filament yarn, Polyester Chips, Nylon Chips, Steel Wire, Polyester Staple Fibers and Partially Oriented Yarn

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 8800000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Thapar Group of Companies, a large industrial house. Subject is an old company in the group but not faring well. It has substantial accumulated losses and profit margin is always pressure. It’s payments are reported as slow and delayed. The company can be considered for normal business dealing at usual trade terms and conditions with some caution.

LOCATIONS

Registered Office :	Village Chohal, District Hoshiarpur – 146024, Punjab, India
Tel. No.:	91-11-23329608/23322860
Fax No.:	91-11-23327707
E-Mail :	jctdelhi@del2,vsnl.net.in
Website :	http://www.jcttextiles.com
Corporate Office :	Thapar House, 124, Janpath, New Delhi - 110 001
Factory :	Located At :- Phagwara-144401, Punjab, India Filament Hoshiarpur (Punjab), India

DIRECTORS

Name :	Mr. Samir Thapar
Designation :	Vice Chairman and Managing Director
Qualification :	Graduate in Business Administration from California, U.S.A.
Date of Appointment :	02.06.1994
Name :	Mr. Rajmohan Singh
Designation :	Director (Operation)
Name :	Mr. Mahesh Sahai
Designation :	Director
Name :	Mr. Gordhan Kathuria
Designation :	Director
Name :	Mr. Apar Singh Dugal
Designation :	Director
Name :	Dr. Satya Pal Narang
Designation :	Director
Name :	Mr. Sujit Kumar Mandal
Designation :	IFCI Nominee and Director
Name :	Mr. M. M. Thapar
Designation :	Chairman and Managing Director
Qualification :	Degree in Engineering from University of Pennsylvania, U.S.A.
Date of Appointment :	29.01.1957
Name :	Mr. Lokanath Mishra
Designation :	IFCI Nominee
Name :	Mr. M. P. M. Menon
Designation :	UTI Nominee
Name :	Mr. J. N. Pandey
Designation :	Allahabad Bank Nominee

KEY EXECUTIVES

Name :	Mr. S. C. Saxena
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2007

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters	179597463	52.25
Non-Promoters (Institutions/ Banks/ Mutual Funds/ State Government)	39198313	11.41
Others (Corporate Bodies/ Individuals)	124873268	36.34
Total	343669044	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Marketer of Yarn, Cloth, Fents, Rags and Chindies, Nylon Filament Yarn, Polyester filament yarn, Polyester Chips, Nylon Chips, Steel Wire, Polyester Staple Fibers and Partially Oriented Yarn

Products :

Item Code No. (ITC Code)	Product Description
5208 and 5210	Textiles
540233 and 540242	Polyester and Nylon Filament Yarn

Exports :

Countries :

Ø South Africa

Ø Sri Lanka

Ø Bangladesh

Ø Dubai

Imports :

Countries :

Far East and Europe

Terms :

Purchasing :

L/C, D/A and D/P

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Ring Spindles	Nos.		52715	N.A
Rotor Open	Nos.		2568	N.A
Looms	Nos.		640	N.A
Synthetic Filament including Industrial Yarn/ tyre core	Tones		14000	17702206
Polyester/nylon chips	Tones		1000	192185
Cloths	Mtrs		N.A	44589
Fents, rags and Chindies	Kgs		N.A	577241
Nylon Fiament yarn	Tones		N.A	10772213
Polyester Filament yarn	Kgs		N.A.	885

GENERAL INFORMATION

No. of Employees :	600
Bankers :	Ø IFCI Limited Ø Allahabad Bank Ø Bank of Baroda Ø Punjab National Bank Ø Punjab and Sind Bank Ø State Bank of Bikaner and Jaipur Ø State Bank of India Ø State Bank of Patiala Ø State Bank of Travancore

Banking Relations :	Satisfactory
Auditors :
Name :	S. P. Chopra and Company Chartered Accountant
Address :	F-31, Connaught Place, New Delhi-110001, India
Memberships :	Confederation of Indian Industry
Associates :	Ø Chohal Exports Limited Ø Polytex Fibres Trading Limited Ø Rajdhani Trading Company Limited Ø Kidarnath Kishanchand Finance adn Investments Limited Ø Narandas Rajaram and Company Limited, Ø Ratendon Invesments and Holdings Limited. Ø JCT Electronics Limited. Ø Provestment Securities Private Limited. Ø JCT Chemicals and Fibres Limited. Ø India International Airways Limited. Ø CNLT (Far East) Berhad Ø Karam Chand Thapar and Bros. Limited
Subsidiaries :	Ø Rajdhani Trading and Company Limited Ø Gupta and Syal Limited Ø JCT (International) Pte Limited

CAPITAL STRUCTURE

As on 31.03.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Redeemable Preference Shares	Rs.100/- each	Rs. 500.000 Millions
600,000,000	Equity Shares	Rs. 2.50 each	Rs. 1500.000 Millions
	TOTAL		Rs. 2000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
343669044	Equity Shares	Rs. 2.50/- each	Rs. 859.172 Millions
3628406	Optionally partially convertible preference shares	Rs. 100/- each	Rs. 362.840 Millions
	TOTAL		Rs. 1222.013 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.032007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		1222.013	1222.013	1233.612
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		952.761	1071.296	1131.770
4] (Accumulated Losses)		(395.426)	(502.196)	(610.612)
NETWORTH		1779.348	1791.113	1754.770
LOAN FUNDS
1] Secured Loans		1983.699	1413.157	1864.321
2] Debentures ( Non-convertible)		312.933	380.779	0.000
3] Unsecured Loans		1910.177	612.286	363.151
4] Fixed Deposits		105.357	110.215	0.000
TOTAL BORROWING		4312.166	2516.437	2227.472
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6091.514	4307.550	3982.242
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2834.112	2577.648	1564.940
Capital work-in-progress		1794.501	257.404	82.552
Machinery in transit		44.000	57.028	16.864
INVESTMENT		782.352	689.225	412.904
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1412.723	1198.649	1082.149
	Sundry Debtors	323.750	382.730	493.603
	Cash & Bank Balances	98.045	97.750	107.830
	Other Current Assets	0.012	0.013	0.047
	Loans & Advances	418.179	355.105	1578.216
Total Current Assets		2252.709	2034.247	3261.845
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1422.043	1135.709	1195.728
	Provisions	194.117	172.294	161.135
Total Current Liabilities		1616.160	1308.003	1356.863
Net Current Assets		636.549	726.244	1904.982
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6091.514	4307.550	3982.243

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		5533.945	5605.760	6672.176
Other Income		163.473	449.613	0.000
Total Income		5697.418	6055.373	6672.176
Profit/(Loss) Before Tax		127.986	110.763	23.741
Provision for Taxation		21.217	2.347	2.697
Profit/(Loss) After Tax		106.769	108.416	21.044
Earnings in Foreign Currency :
	Export Earnings	0.000	442.000	668.676
Imports :		0.000	170.362	85.646
	Raw Materials
Expenditures :
	Manufacturing Expenses	1498.785	1491.063
	Selling and Administrative Expenses	251.770	233.542
	Payment and provision for Employee	575.488	577.163
	Raw Material Consumed	2573.700	2616.847
	Purchases made for re-sale	23.815	13.272
	Excise Duty	233.021	357.115
	Increase/(Decrease) in Finished Goods	[143.031]	[81.734]
	Managerial Remuneration	3.058	3.396	6648.435
	Auditors Remuneration including other services and expenses	2.091	1.428
	Provision for doubtful debts	0.098	1.354
	Interest	202.562	194.972
	Depreciation & Amortization	179.754	239.129
	Other Expenditure	168.321	297.063
Total Expenditure		5569.432	5944.610	6648.435

QUARTERLY RESULTS

PARTICULARS	30.06.2007 1^st Quarter	30.09.2007 2^nd Quarter	31.12.2007 3^rd Quarter
Sales Turnover	1318.700	1294.400	1307.500
Other Income	14.300	17.100	9.100
Total Income	1333.000	1311.500	1316.600
Total Expenditure	1215.600	1169.800	1155.900
Operating Profit	117.400	141.700	160.700
Interest	57.300	70.400	73.000
Gross Profit	60.100	71.300	87.700
Depreciation	43.300	58.500	73.200
Tax	3.100	1.600	2.600
Reported PAT	13.700	11.200	11.900

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	2.00	1.41	1.38
Long Term Debt-Equity Ratio	1.33	0.84	0.89
Current Ratio	0.83	1.15	1.51
TURNOVER RATIOS
Fixed Assets	0.81	0.90	1.13
Inventory	4.24	4.92	6.00
Debtors	15.67	12.80	13.35
Interest Cover Ratio	1.54	0.39	1.04
Operating Profit Margin(%)	9.11	5.67	8.95
Profit Before Interest And Tax Margin(%)	5.86	1.40	4.03
Cash Profit Margin(%)	4.96	2.07	5.06
Adjusted Net Profit Margin(%)	1.71	[2.19]	0.14
Return On Capital Employed(%)	5.82	1.70	6.10
Return On Net Worth(%)	5.26	[-6.57]	0.56

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Incorporated in 1946 under the name Jagatjit Cotton Textile Mills and renamed JCT in 1989. The company was promoted by M M Thapar, the chairman and the managing director. The company is into textiles, filament yarn, steel and export trade. Subject’s subsidiaries are Gupta and Syal, Chohal Investments, Poly Investments and JCT Fibres. 

 In 1980-81, JCT entered into a technical collaboration with Zimmers, Germany, to set up a nylon-6 filament yarn plant at Hoshiarpur, Punjab, which was commissioned in 1982. A technical agreement was also entered into with E I Dupont, US, to set up a PSF plant. In 1990, Sterling Steels & Wires and Kidarnath Kishanchand (P) Ltd were amalgamated with JCT. One of the subsidiary, JCT Fibres, was amalgamated with JCT in Apr.'94. 

 During 1998, the company entered into a slump sale agreement with Polysindo Group of Indonesia for sale and hive-off its losing synthetic fibre business. It also commissioned its Wire Rope plant during the year, which has been well accepted in the market. 

 In 1999, it increased the installed capacity of synthetic filament yarn, polyester filament yarn, chips, steel wire, strand wires, wire rope, polyester staple fiber, partially oriented yarn and looms to 9000 tonnes, 6000 tonnes, 13500 tonnes, 45000 tonnes, 3000 tonnes, 9000 tonnes, 75000 tonnes 16500 tonnes and 1694 nos respectively. The company has replaced 120 NMM looms with 22 Airjet looms at Phargwara unit of textile division. This will definitely reduce cost of production and also enhance the quality of fabric.

OPERATIONS 

 During the year, the gross turnover of the Company comprising of Textile Units and Filament Unit was marginally higher by about 2% as compared to immediately preceding year. The previous year included the turnover of Steel Division also for two months which has since been hived off. Operational profit before depreciation and excluding the other income is higher during the year as compared to previous year. However, Net Profit before tax is almost the same as in the previous year.

Textile Units 

 The production of fabric at Textile Unit at Phagwara was lower during the year as compared to previous financial year due to ongoing modernization programme, which required dismantling and re-locating some of the existing machinery resulting into loss of production. The margins, however, improved during the year on account of change in product mix. The 2nd CDR, which was commissioned during 2005-06, has helped the Unit to produce more dyed fabrics and cater to high end market segments of ready made garments and exports.

 Major investments were made in the Textile Unit at Phagwara including the setting up of a Greenfield 50,000 Meters per day Performance Fabric Unit based on Nylon and Polyester Filament Yarns. The fabric produced out of this unit will cater to Sportswear, Active-wear, Work-wear and other segments requiring Performance Fabric. With sampling under progress with some of the leading International Brands, the Plant is likely to come into full commercial production by October, 2007. 

 One-third of the total production capacities in the existing Plant at Phagwara catering to the low-end Domestic segments were old. This capacity is now being replaced with State-of-the-art Machines in Spinning, Weaving and Processing. This includes the addition of 20,000 new spindles, 82 Airjet/Rapier looms and another set of Pre-Treatment and Continuous Dyeing Ranges. With this, total production of export quality fabric would increase from 2 million meters a month to 3.2 million meters per month. All the machines under the Modernization Plan are expected to be commissioned by mid-August, 2007. After completion of the modernization, the unit will be totally focused on processed fabric which has better margins and is required by International Brands. 

 Under the Modernization-cum-Expansion Plan, the Company is adding another 50 Ton Husk Fed Boiler and simultaneously putting up an 8 MW Turbine. This would make Textile Operations at Phagwara almost self-sufficient for their energy requirement. The said 50 Ton Boiler and 8 MW Turbine are likely to be commissioned by end of December, 2007. 

 With the above investments, the profitability of the Textile Unit at Phagwara is likely to go up by almost 70%. 

 The working at Textile Unit at Sriganganagar, which was effected due to strike in the previous financial year, has been normal during the financial year 2006-07. However, as the machinery of the Unit is very old, the yarn and fabrics produced by it cater to low end market segments only, where margins are very negligible. 

 Recently the labour at the Textile Unit at Sriganganagar has gone on illegal strike. Management is in serious negotiation with the Labour Unions to sort out the matter on long term basis so that production is not effected due to their frequent strikes or go-slow tactics. 

Filament Unit 

 The demand for Nylon Yarn continued to remain sluggish during the financial year. The product also faced competition from imports of yarn at cheaper rates. This resulted into under utilization of the capacities at the unit. However, the profit margins at the unit improved on account of better product mix, improvement in efficiencies of FDY production and commissioning of 6 MW power plant. The power plant is also eligible for carbon credit. 

 Looking to the sluggish market condition, the new investment for capacity enhancement was kept in abeyance. However, keeping in mind the objective of cost savings and improvement in the quality it is proposed to add new FDY lines and increase capacity of high value added dyed yarns along with other energy saving devices. 

 FINANCE 

 During the year, Company issued 2.5% Foreign Currency Convertible Bonds (FCCB) aggregating to US$ 30 million for financing the capital expenditure for the expansion and modernization of its operations. As per the terms of the issue, the bondholders have the option to convert the FCCBs into fully paid-up equity shares during the currency of these Bonds. These Bonds, otherwise, are redeemable on 8.4.2011 at a premium of 20.075%.

 Company has also been sanctioned term loans of Rs. 1.800 million by the consortium of banks under Technology Upgradation Fund (TUF) for the modernization cum expansion plans for the Company's Textile and Filament Units. To tide over the requirement of funds for capital expenditure, a short-term loan of Rs. 200 million from a Bank is being repaid out of the term loans sanctioned as aforesaid. 

 During the year the Company repaid the term loan instalments of Rs. 138.69 million. Zero Rate Debentures (ZRDs) of the value of Rs. 67.85 million were also redeemed as per stipulated terms. The Company is regular in repayment of loans/ redemption of debentures and interest due thereon to all the lenders/holders. 

CONTINGENT LIABILITIES NOT PROVIDED FOR

(a) Claims against the Company not acknowledged as debts : Rs. 4.52 million (Previous year : Rs. 4.43 million).

(b) Guarantees given by the bankers on behalf of the Company : Rs. 29.73 million (Previous year : Rs. 39.15 million).

(c) Unutilised amount of letters of credit established : Rs. 3.70 million (Previous year: Rs. 2.47 million).

(d) Disputed liabilities not adjusted as expenses in the Accounts for various years being in appeals towards:

Particulars	As on 31.03.2007 [Rs In Millions]
Sales tax	6.390
Income Tax	15.280
Excise Duty	149.910
Stamp Duty	18.770
Custom Duty	18.610
Others	14.750

FIXED ASSETS

Ø Land, Building

Ø Leasehold Building

Ø Plant and Machinery

Ø Furniture and Fixtures

Ø Office Equipments

Ø Vehicles and Scrap.

As Per Website Details

Profile

Subject one of the leading manufacturers of textiles, is the flagship company of the Thapar Group one of the largest Indian conglomerates

JCT Limited' other operations include Filament Yarn, Steel Wires and Wire Ropes; overseas operations include a textile mill in Malaysia and offices in Singapore and Dubai. JCT was the first to set up a Color Picture Tube plant in India ( manufactured by JCT Electronics Ltd., in technical collaboration with Hitachi Ltd, Japan).  

Commencing production in 1951,Textile unit of JCT limited has over five decades grown to be one of the largest textile manufacturers in India. With two integrated textile facilities in Phagwara
(Punjab) and Sriganganagar (Rajasthan), a daily production capacity of 1,25,000 metres, and a product range consisting of some of the finest cotton and blended fabrics, it has established a name for itself in markets in India and abroad.

JCT’s plant in Malaysia

    It was also the first textile manufacturer in the country to introduce eco-friendly fabrics made of organic cotton.   

     JCT's textile division was the first in the industry in India to be accredited with an ISO 9002 certification in 1996, an achievement possible by the desire to excel in every sphere of its operations - spinning, weaving and processing, as well as exercising stringent quality control at each stage of production.

     The company has a balanced model for growth concentrating not just on improving its production techniques but also being a responsible corporate citizen contributing socially towards causes such as literacy and environment, and encouraging the development of sports and sports persons.

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.42.97
UK Pound	1	Rs.84.75
Euro	1	Rs.66.72

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.	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