MIRA INFORM REPORT

Report Date :

15.03.2008

IDENTIFICATION DETAILS

Name :	MAHINDRA GUJARAT TRACTORS LIMITED
Registered Office :	Near Vishwamitri Railway Overbridge, Vishwamitri, Vadodara-390 011
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	31.03.1978
Com. Reg. No.:	04-3127
CIN No.: [Company Identification No.]	U34100GJ1978PLC003127
TAN No.: [Tax Deduction & Collection Account No.]	BRDM01211A
PAN No.: [Permanent Account No.]	AABCG1042L
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Manufacturer  of tractors

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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an old and established company and a part of Mahindra and Mahindra Group. Company’s profitability is under severe pressure. It has huge accumulated losses. Payments are reported as slow but correct. In view of strong promoters, the company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Near Vishwamitri Railway Overbridge, Vishwamitri, Vadodara-390 011, INDIA
Tel. No.:	91-265-231 1617 / 233 9547
Fax No.:	91-265-233 8156
E-Mail :	mgti_mm@satyam.net.in mgtl@mahindragujarat.com marketing@mahindragujarat.com iyer.sangameshwar@mahindra.com
Website :	www.mahindragujarat.com
Branches :	Lucknow 2/170, Viram Khand, Gomti Nagar, Lucknow - 226020 - Uttar Pradesh Tel No / Fax No.: 91-522-4044262 Jaipur Flat No. G - 5 B, Shubham Apartment, D - 255,Devi Marg, Bani Park, Jaipur - 302016 - Rajasthan Tel No / Fax No.: 91-141 5108652 Bhatinda Lovely House, 20081, ST. No.3, SJS Nagar, Bhatinda - 151001(Punjab) - Punjab Tel No / Fax No.: 91-164-2241227 Chennai Old No. 23 / 7, New No. 26 / 7, 1st Floor, Shanti Appt, Venkataraman Street, Chennai - 600011 - Tamilnadu Tel No / Fax No.: 91-44 25519671 Nashik Shop No. 5, Suyojit Trade Centre, 2nd Floor, Opp. Rajiv Gandhi Bhavan, Saranpur Road, Nashik - 422002 (MS.) – Maharashtra Tel No / Fax No.:: 91-253 -2314540 Bhopal E-1 / 87-B, Area Colony, Bhopal - 462 016 (MP) – Madhya Pradesh Tel No / Fax No.: 91-755-4269222 Patna 126, Pataliputra Colony, Patna - 800013 (Bihar) – Bihar Tel No / Fax No.: 91-6122 -2271394

DIRECTORS

Name :	Mr. Avinash Kumar
Designation :	Director
Address :	K -13 Sector -20, Gandhinagar – 382 020, Gujarat, India
Date of Birth/Age :	28.03.1948
Date of Appointment :	18.10.2006
Directorship in other Companies:
CIN of the Company:	L99999GJ1962PTC001121
Name of the company	Gujarat State Fertilizers And Chemicals Limited
Designation:	Director
CIN of the Company:	L24110GJ1976PLC002903
Name of the company	Gujarat Narmada Valley Fertilizers Company Limited
Designation:	Director
CIN of the Company:	U74999GJ1999SGC035459
Name of the company	Gujarat Informatics Limited
Designation:	Director
CIN of the Company:	U45201GJ2000PLC038035
Name of the company	Gujarat Infocity Limited
Designation:	Director
CIN of the Company:	U91110GJ1968PLC001582
Name of the company	Gujarat Agro Industries Corporation Limited
Designation:	Chairman
CIN of the Company:	U45201GJ1978PLC003124
Name of the company	Gujarat State Land Development Corporation Limited
Designation:	Chairman
CIN of the Company:	U65410GJ1975PLC002693
Name of the company	Gujarat State Seeds Corporation Limited
Designation:	Chairman
Name:	Indira Jitendra Parikh
Designation :	Director
Address :	Parmita 203 Nehru Park Vastrapur, Satellite, Ahmedabad – 380 015, India
Date of Birth/Age :	29.08.1943
Date of Appointment :	10.03.2000
Name :	Mr. Sanjay Shrenik Lalbhai
Designation :	Director
Address :	Lalbaug Shahibaug, Ahmedabad – 380 004, Gujarat, India
Date of Birth/Age :	10.04.1954
Date of Appointment :	18.12.1999
Name :	Mr. Amarendra Lalsingh Rakesh
Designation :	Director
Address :	Collector’s Bunglow, Godhara -3879 001, Gujarat, India
Date of Birth/Age :	21.07.1964
Date of Appointment :	03.06.2004
Name :	Mr. Anjanikumar Choudhari
Designation :	Director
Address :	No. 4, 8^th Floor, New Sachivalaya Gandhinagar , Gujarat, India
Date of Birth/Age :	21.07.1964
Date of Appointment :	03.06.2004
Name :	Mr. U Y Phadke
Designation :	Director
Address :	208/210, V S Mrg, Near Hinduja Hospital , Mumbai – 400 016, Maharashtra, India
Date of Birth/Age :	19.11.1950
Date of Appointment :	18.12.1999
Name :	Mr. Gautam Nagwekar
Designation :	Director
Address :	Prasahanti 15 Kalanagar. Bandra East, Mumbai – 400 051, Maharashtra, India
Date of Birth/Age :	10.08.1957
Date of Appointment :	30.04.2004
Name :	Mrs. Indira J Parekh
Designation :	Director
Address :	203 Nehru Park Vastrapur, Ahmedabad , Gujarat, India
Date of Birth/Age :	29.08.1943
Date of Appointment :	10.03.2000
Name :	Mr. Sanjay Lalbhai
Designation :	Director
Address :	Lalbaug Shahibaug, Ahmedabad, Gujarat, India
Date of Birth/Age :	10.04.1954
Date of Appointment :	18.12.1999
Name :	Mr. Subhash Modak
Designation :	Manager
Address :	64, Ajit Nagar Society, Bpc Road, Alkpauri, Vadodara – 390 005, Gujarat, India
Date of Birth/Age :	20.04.1953
Date of Appointment :	09.09.2005
Name :	Mr. Raghunath Murti
Designation :	Director
Address :	53 Venus Apartment, 87 Cuffe Parade, Mumbai – 400 005, Maharashtra, India
Date of Birth/Age :	31.10.1948
Date of Appointment :	20.03.2003
Date of Ceasing:	15.03.2005
Name :	Mr. Partha Banerjee
Designation :	Manager and Chief Executive Officer
Address :	MD’s Bungalow, Mahindra Gujarat Tractor Limited, Vishwamitiri, Near Railway, Over bridge, Vadodara – 390 011, Gujarat, India
Date of Birth/Age :	24.09.1954
Date of Appointment :	25.03.2002
Date of Ceasing:	09.09.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (As on 31.03.2007)		No. of Shares
Equity Shares
Governor of Gujarat		6120784
Mahindra and Mahindra Limited		9181181
Others		14
	Total	15301979
Preferences Shares
Governor of Gujarat		5000000
	Total	5000000
	Grand Total	20301979

Equity Shares Breakup (Percentage of Total Equity): [As on 31.03.2007]:-

Sr No.	Category	Percentage
1	Government [Central and State]	40.00
2	Bodies Corporate	60.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer  of tractors

Products :

· Shaktimaan - 30

· Shaktimaan - 35

· MG 312

· MG 353

· MG 405

· MG 453

Products Description	ITC Code No.
Tractor	8701
IC Engine	8408
Tractors parts	8708

Brand Names :

"Shaktimaan"

GENERAL INFORMATION

Bankers :	State Bank of India Address: Specialised Commercial Branch Mandvi, Baroda – 390 017, Gujarat, India
Banking Relations :	Satisfactory
Auditors :
Name :	A F Ferguson and Company Chartered Accountants
Address :	Allahabad Bank Building, Bombay Samachar Marg, Mumbai – 400 001, Maharashtra, India
Holding Company :	Mahindra and Mahindra Limited
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs.200.000 millions
10000000	Preference Shares	Rs. 10/- each	Rs.100.000 millions
		Total	Rs.300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15301979	Equity Shares	Rs. 10/- each	Rs.153.019 millions
5000000	Preference Shares	Rs. 10/- each	Rs.50.000 millions
		Total	203.019 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		203.019	203.019	203.019
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		21.713	21.713	21.712
4] (Accumulated Losses)		0.000	0.000	[433.273]
NETWORTH		224.732	224.732	[208.542]
LOAN FUNDS
1] Secured Loans		41.146	52.474	59.746
2] Unsecured Loans		177.001	167.029	157.889
TOTAL BORROWING		218.147	219.503	217.635
DEFERRED TAX LIABILITIES		1.266	1.908	1.758
TOTAL		444.145	446.143	10.851
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.287	13.086	14.710
Capital work-in-progress		0.000	4.272	0.000
INVESTMENT		0.461	0.461	0.461
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	117.099	122.120	133.037
	Sundry Debtors	80.678	35.060	82.628
	Cash & Bank Balances	19.684	15.745	13.944
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11.005	9.546	10.304
Total Current Assets		228.466	182.471	239.913
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	213.295	165.758	208.292
	Provisions	36.563	36.936	35.941
Total Current Liabilities		249.858	202.694	244.233
Net Current Assets		[21.392]	[20.223]	[4.320]
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
PROFIT & LOSS A/C		446.789	448.547	0.000
TOTAL		444.145	446.143	10.851

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover		780.165	641.730
Other Income		7.893	9.205
Total Income		788.058	650.935
Profit/(Loss) Before Tax		[13.897]	[23.187]
Provision for Taxation		1.375	[0.056]
Profit/(Loss) After Tax		[12.522]	[23.131]
Expenditures :
	Raw Material Consumed	609.430	520.503
	Consumption of stores and spares parts	6.142	5.278
	Increase/(Decrease) in Finished Goods	0.496	[31.946]
	Salaries, Wages, Bonus, etc.	74.380	67.661
	Payment to Auditors	0.240	0.210
	Interest	17.745	19.842
	Insurance Expenses	0.327	0.500
	Power & Fuel	10.596	12.041
	Depreciation & Amortization	2.391	2.717
	Other Expenditure	80.206	77.313
Total Expenditure		801.953	674.119

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	NA	[1.58]	[3.55]
Net Profit Margin (PBT/Sales)	(%)	NA	[1.78]	[3.61]
Return on Total Assets (PBT/Total Assets}	(%)	NA	[6.95]	[9.11]
Return on Investment (ROI) (PBT/Networth)		NA	0.06	0.11
Debt Equity Ratio (Total Liability/Networth)		[2.11]	[1.88]	[2.21]
Current Ratio (Current Asset/Current Liability)		0.91	0.90	0.98

LOCAL AGENCY FURTHER INFORMATION

FORM 8:-

Corporation identity number or foreign company registrations number of the company	U34100GJ1978PLC003127
Name of the company	MAHINDRA GUJARAT TRACTORS LIMITED
Address	Near Vishwamitri Railway Over bridge, Vishwamitri, Vadodara -390 011, Gujarat, India
This Form is for	Modification of charge
Type of Charges	Immovable Property
Particular of the charge holder	State Bank of India Address: Specialised Commercial Branch, Mandvi, Vadodara – 390 017, Gujarat, India Email ID: agm.04086@sbi.co.in
Nature or description of the instrument creating charge	Rectification Agreement
Date of the instrument creating charge	11.11.2006
Amount Secure by the charge	Rs. 100.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest: 11.00% Monthly rest Terms of repayment: working capital – On Demand Margin: 25% on RM, SIP, F, G Extent and operation of the charge: The credit facilities are secured by registered mortgage over the part of company land bearing survey no. 611 of village manjalpur, Vishwamitri , Baroda admeasuring 10 Acres and building thereon. Hypothecation of entire assets of the company consisting of stocks of raw materials , work in progress, finished goods stores and spares and receivables both present and future.
Short particulars of the Property charged	The credit facilities are secured by registered mortgage over the part of company’s land bearing survey no. 611 of village Manjalpur, vishwamitri, Baroda, admeasuring 110 Acres and building thereon. Hypothecation of entire current assets of the company consisting of stock of raw materials, work in progress , finished goods, stores and spares and receivables both present and future.
Particulars of the present modification	Earlier the deed of English mortgage executed covering credit facilities of Rs. 100.000 millions stated as term loan only, whereas the document intended to cover various credit facilities aggregating to Rs. 100.000 millions. By this execution the charge coverage be modified to cover Term Loan – Rs. 15.000 millions CC – Rs. 60.000 millions LC Rs. 20.000 millions BG – Rs. 5.000 millions

Name of the company	MAHINDRA GUJARAT TRACTORS LIMITED
Presented By	Mr. Rajiv Sarin , The manager
1) Date and description of instrument creating the change	Deed of English mortgage for term loan on 12.03.2001
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 100.000 millions
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	During the continuance of security the company the mortgage unto the State Bank of India the mortgage: Grants conveys, transfer and assures all and singular , the land , hereditaments and premises together with building tenaments , now standing thereon or be erected in future on land bearing survey No. 611 at Manjalpur in the District Baroda. Assigns transfers and assures all and singular the engines , boilers, motors machinery whether fixed or movables and whether attached to the said freehold and or leasehold land and building or not the plant equipments, tools, appliances accessories, etc and Charges as a Floating charge all the property and assets of the mortgagor for the time being both present and future other than specifically mortgaged premises but including goodwill , book and other debts and outstanding monies which become due to it during the continuances of this security collectively known as “General Security”.
4) Gist of the terms and conditions and extent and operation of the charge.	Repayment of loan with interest @3.50% p.a above State Bank advance rate with a minimum of 15.50% p.a The mortgagor · To keep the mortgaged premises and its parts in good and substantial state of repair and working order · To keep the mortgaged property adequately insured to pay all the ground rents, rates, taxes, etc in respect of mortgaged property · Mortgagee and its servants and agents to enter into mortgaged property and inspect at all reasonable times form time to time. · Not ot remove any plant and / or machinery without prior consent or mortgagee. · Power to sell and / or appoint receiver the mortgaged premises or any part thereof by mortgage in case of defaults · Right to appoint and / or remove a Director
5) Name and Address and description of the person entitled to the charge.	State Bank of India Address: Specialised Commercial Branch Mandvi, Baroda – 390 017, Gujarat, India
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

WEBSITE DETAILS:

The company is an ISO 9001:2000 company, is a subsidiary of Mahindra and Mahindra (M and M). The company was incorporate in the state of Gujarat on 31st March, 1978 in the name and style of Gujarat Tractor Corporate Limited promoter by the Government of Gujarat. The company was taken over by Mahindra and Mahindra holds 60% equity in MGTL and balance 40% is with the Government of Gujarat (GOG). The company is engaged in manufacturing of tractors which are marketed under "Shaktimaan" brand.

Press Release

Mahindra Gujarat launches New Shaktimaan tractors in Maharashtra

New Shaktiman S 30 and S 35 to help strengthen M&M’s position in the 35-40 HP segment

Pune, September 27, 2006:

Mahindra & Mahindra, leader in Indian tractor market, today unveiled a new 30 HP tractor and a 35 HP tractor variant of the popular Shaktimaan brand from the stable of Mahindra Gujarat Tractors Ltd, a subsidiary of Mahindra’s Farm Equipment Sector. The new Shaktiman range of tractors offers a powerful 3 cylinder engine and better transmission coupled with low fuel consumption and low maintenance cost. Both the tractors have a modern four speed gear box with optimized gear ratios and offer a high torque engine to pull heavier load and implements. These new tractors provide an easy and effortless driving experience to the farmer and are economically priced.

The new tractors are conceived and designed keeping in mind the peculiar requirements of the farmers in Maharashtra. These new tractors boast of an attractive compact design with an ultra modern style and an in-built head lamp and come with a heavy duty long life dry dual clutch and hydraulic pump for better efficiency. They offer three cylinders with individual cylinder heads and wet cylinder liners. Air cleaner includes oil bath type with cyclone single transparent pre-cleaner and the brakes involve mechanical expanding disc type foot brake for each rear wheel.

Mr Gautam Nagwekar, Executive Vice President – Farm Equipment Sector, M&M said, “We are grateful to our customers and for their trust and continued support to the Shaktimaan brand. The Indian tractor market continues to be dominated by 35- 50 HP tractors and we are confident that the new Shaktimaan range of tractors will help us augment our market share in this category. We will be targeting Maharashtra, Gujarat and Karnataka this year and will focus on other states by early 2007. We are always striving to better our offering and the new Shaktimaan range signifies our strong commitment to the farmers of Maharashtra.”

Mr. Subhash Modak, Senior General Manager, Mahindra Gujarat Tractor said, “The new Shaktimaan range of tractors will appeal to the farmer seeking a powerful modern tractor. Shaktimaan range is available in the 30 HP- 45 HP engines and has been well received with sales increasing year after year. We sold 2751 tractors last year, an increase of 12.3% and currently have over 26 dealers in Maharashtra. We hope to garner increased sales and strengthen our position in the 35 HP- 40 HP segment, the most lucrative in India.”

The new Shaktimaan range is the result of extensive consumer behavior studies done with prospective customers in the 30- 35HP segment, and rigorous field tests done in Maharashtra to establish superior product performance. The new products are Bharat III compliant which make them eco-friendly. They also include hi-tech hydraulics, new transmission and a heavy duty gear box along with sealed, dry disc brakes that is good for puddling operations. Both the new tractors can be fitted with implements such as a 2 bottom plough, 9 and 11 tyne cultivator, a 13 tyne disc harrow and a 4.2 mt rotavator.

The Shaktiman range of tractors is available in four variants; 2 cylinders 30 HP and 3 cylinder 35 HP, 40 HP and 45 HP engine.

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.40.45
UK Pound	1	Rs.82.25
Euro	1	Rs.63.20

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	---
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING 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