MIRA INFORM REPORT

Report Date :

03.10.2008

IDENTIFICATION DETAILS

Name :	RAJRATAN GLOBAL WIRE LIMITED
Registered Office :	11 / 2 Meera Path, Dhenu Market, Indore – 452003, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	09.09.1988
Com. Reg. No.:	10-4778
CIN No.: [Company Identification No.]	L27106MP1988PLC004778
Legal Form :	Public Limited Liability Company. The Company’s shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Carbon Steel Wires

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 :	USD1900000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	“Rajratan House“ 11 / 2 Meera Path, Dhenu Market, Indore – 452003, Madhya Pradesh, India
Tel. No.:	91-731-2533716 / 2534103 / 2546401
Fax No.:	91-731-2542534
E-Mail :	rgwl@rgwl.co.in
Website :	http://rgwl.co.in
Works :	200 – B, Sector – 1, Pithampur, Indore, Madhya Pradesh, India
Tel. No.:	91-7292 – 253429 / 253375
Fax No.:	91-7292 – 253357

DIRECTORS

Name :	Mr. Chandanmal Chordia
Designation :	Chairman and Whole Time Director
Name :	Mr. Sunil Chordia
Designation :	Managing Director
Name :	Mr. Mofatraj Munot
Designation :	Director
Name :	Mr. Nihalchand Kothari
Designation :	Director
Name :	Mr. S. S. Mehta
Designation :	Director
Name :	Mr. P. D. Nagar
Designation :	Additional Director
Name :	Mr. Abhishek Dalmia
Designation :	Director
Name :	Mr. Chandrashekhar Bobra
Designation :	Director
Name :	Mr. Dilip Deshmukh
Designation :	Director
Name :	Mr. Deepesh Trivedi
Designation :	Executive Director and COO

KEY EXECUTIVES

Name :	Mrs. Aakanksha Khandelwal
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (As on 30.06.2008)	No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group
Indian
Individuals/Hindu Undivided Family	2000520	45.97
Bodies Corporate	492520	11.32
Public shareholding
Institutions
Financial Institutions/Banks	2305	0.05
Foreign Institutional Investors	10100	0.23
Non-institutions
Bodies Corporate	951998	21.88
Individuals – i. Individual shareholders holding nominal share capital up to Rs. 0.100 Millions	605516	13.91
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions	163480	3.76
Any Other (i) NRIs	11856	0.27
Clearing Members	90032	2.07
Market Maker	6586	0.15
Hindu Undivided Families	16887	0.39
TOTAL	4351800	100

BUSINESS DETAILS

Line of Business :

Manufacturer of Carbon Steel Wires

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
P.C. Wire Unit	MT	10000	10000
Tyre Bead Wire Unit	MT	30000	40000

GENERAL INFORMATION

Bankers :

· State Bank of India, Commercial Branch, A. B. Road, Near G.P.O., Indore – 452001, MadhyaPradesh

· IDBI Bank Limited, Alankar Chamber, Ratlam Kothi, A.B. Road, Indore – 452001, Madhya Pradesh

Facilities :

Particulars	31.03.2006	31.03.2005
	Rs. In Millions
Secured Loans
(A) Term Loans 1) State Bank of India, Commercial Branch, 2)Indore 3) IDBI Bank, Indore 4) Technology Development Board, Delhi 5) Indusind Bank, Indore	51.863 21.500 30.700 -	65.000 27.500 39.500 32.800
(B) Interest Bank, Indore	2.302	2.275
© Working Capital Loan from State Bank of India Industrial Finance Branch, Indore 1) State Bank of India, Indore CC Loan A/c 2) Export Bill Discounting 3) Export Packing Credit 4) W.C.D.L. (CP Link)	105.403 1.695 - -	- 4.143 2.570 80.000
(D) Working Capital Loan From IDMI Bank, Indore Short Term Loan	35.000	10.000
(E) From HDFC Bank against hypothecation of Vehicles	0.575	0.859
(F) Interest free loan under deferred sale tax scheme (MPSIDC)	16.528	16.528
Total	265.569	278.469
Unsecured Loan
Shareholders	1.982	1.328
Directors	2.489	2.742
Corporate Bodies	0.263	1.075
Deferred Sales Tax under incentive scheme of State Government	11.862	11.862
Total	16.597	17.009

Banking Relations :

Satisfactory

Auditors :

Name 1 :

Trilok Jain and Company

Chartered Accountants

Address :

Bansi Trade Centre, M.G. Road, Indore – 452001, Madhya Pradesh, India

Name 2 :

Fadnis and Gupte

Chartered Accountants

Associates/Subsidiaries:

• M/s Rajratan Resources Private Limited
• M/s. Rajratan Investment Limited
• M/s. Swaraj Technocraft Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4351800	Equity Shares	Rs.10/- each	Rs.43.518 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		43.500	43.500	43.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		333.700	326.300	298.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		377.200	369.800	342.000
LOAN FUNDS
1] Secured Loans		456.300	418.800	265.600
2] Unsecured Loans		47.400	20.100	16.600
TOTAL BORROWING		503.700	438.900	282.200
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		880.900	808.700	624.200
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		450.000	443.400	401.400
Capital work-in-progress		13.800	28.900	23.000
INVESTMENT		145.600	56.500	23.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	70.600	100.700	76.300
	Sundry Debtors	256.500	243.600	200.800
	Cash & Bank Balances	7.100	1.100	3.800
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	51.800	47.800	41.700
Total Current Assets		386.000	393.200	322.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	107.400	101.700	100.000
	Provisions	7.400	12.200	25.700
Total Current Liabilities		114.800	113.900	125.700
Net Current Assets		271.200	279.300	196.900
MISCELLANEOUS EXPENSES		0.300	0.600	0.900
TOTAL		880.900	808.700	624.200

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1205.500	1092.500	1141.651
Other Income		4.900	4.500	1.495
Total Income		1210.400	1097.000	1143.146
Profit/(Loss) Before Tax		18.300	50.700	87.068
Provision for Taxation		5.900	17.800	27.456
Profit/(Loss) After Tax		12.400	32.900	59.612
Earnings in Foreign Currency :
	F.O.B. Value of Exports	NA	NA	59.199
	Other Expenditure	NA	NA	6.130
Total Earnings		NA	NA	65.329
Imports :
	Others	NA	NA	18.353
Total Imports		NA	NA	18.353
Expenditures :
	Manufacturing Expenses	49.700	56.300	297.175
	Administrative Expenses and Selling Expenses	48.200	51.800	52.772
	Raw Material Consumed	774.100	604.400	634.806
	Payment to and for Employees	39.600	34.400	30.289
	Interest	44.800	27.100	18.309
	Depreciation & Amortization	29.300	27.500	22.727
	Other Expenses	206.400	244.800	0.000
Total Expenditure		1192.100	1046.300	1056.078

QUATERLY RESULTS

PARTICULARS	30.06.2008
Type	1^st Quarter
Sales Turnover	383.200
Other Income	0.400
Total Income	383.600
Total Expenditure	325.000
Operating Profit	58.600
Interest	16.000
Gross Profit	42.600
Depreciation	7.500
Tax	11.600
Reported PAT	23.500

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt-Equity Ratio	1.26	1.01	0.91
Long Term Debt-Equity Ratio	0.71	0.57	0.54
Current Ratio	1.21	1.29	1.41
TURNOVER RATIOS
Fixed Assets	2.08	2.05	2.46
Inventory	14.07	12.34	13.00
Debtors	4.82	4.92	6.31
Interest Cover Ratio	1.41	2.87	5.75
Operating Profit Margin(%)	7.66	9.64	11.21
Profit Before Interest And Tax Margin(%)	5.23	7.12	9.22
Cash Profit Margin(%)	3.46	5.53	7.21
Adjusted Net Profit Margin(%)	1.03	3.01	5.22
Return On Capital Employed(%)	7.47	10.87	17.41
Return On Net Worth(%)	3.32	9.24	18.79

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE HIGHLIGHTS/OPERATIONS: 

In line with the goal of becoming the leader in the country and global supplier of bead wire, the installed capacity of tyre bead wire unit increased from 25000 MT to 30000 MT .The overall sales turnover of the Company has increased by 10.04% i.e. from Rs. 1037.400 millions to Rs. 1141.600 millions. Profit before depreciation and tax also increased from Rs. 89.047 millions to Rs. 109.795 millions thereby recording an increase of 23.30% from last year. Net profit after current tax and deferred tax also rose to Rs. 59.612 millions as against Rs. 45.657 millions in last year. This was possible because of improved sales and Company's efforts to save cost of consumables, power and selling and general administration overheads.

PROSPECTS: 
The Indian economy continued to showcase buoyancy in its growth parameters, in the presence of a strong backing from a robust industrial growth rate achieved last year. This was reflected by a positively accelerated GDP from 7.5 per cent in 2004-05 to 8.1 per cent in 2005-06

The business prospects of the Company move according to the growth and performance of the Automobile and Tyre industries. The Indian automobile industry exhibited a growth of 20% during FY'05 and has continued to grow at around 16% during last financial year while the Indian tyre industry is growing at 10-12% every year. Additionally, the export of automobiles and tyres, which has recorded a remarkable increase during the last few years, provides their Company a further opportunity for growth .The Indian Road network which is already the second largest in the world with over 3.3 million kilometers, is being further enhanced, which will multiply the tyre consumption thereby increasing the demand for tyre bead wire proportionately

While there are many positives as they enter FY07, given the current volatile situation of steel prices, there is some uncertainty about raw material availability and prices and its impact on margins. However their Company has made adequate arrangements for its raw material requirements and has the financial capability to import additional requirement should the need arise.

P.C. UNIT:

Company’s directors are discussing the long-term prospects of P.C. Wire business and it is being deliberated that P.C. wire business does not fall in line with philosophy and culture of the Company any more. It also takes away valuable management time, which may otherwise be used for the speedy growth of bead wire business. A final view and decision will be taken in the next Financial year but slowing down of business will have an adverse effect on the top line in the coming year though this will have overall positive effect on the bottom line due to more focused efforts.

WIND MILL PROJECT:

During the year, the Company has purchased four additional wind mills with a total capacity of 1 M.W. from Steel Tubes of India Limited at a cost of Rs. 10.000 millions to further reduce their cost of energy. Investment made in FY05 in one wind mill of 1.25 M.W. has contributed Rs. 8.157 millions as total gross earning through power generation in FY 06

UTILISATION OF PROCEEDS FROM PREFERENTIAL ALLOTMENT:

The Company has received Rs.61.322 millions on 31st March 2005, through preferential allotment of 6, 01,200 shares Rs.10/- each at a premium of Rs.92/- per share. Last year part of proceeds amounting to Rs. 28.750 millions have been utilized to repay part of term loan and the balance was used in the expansion project completed during the year.

MANAGEMENT DISCUSSION AND ANALYSIS 

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

Subject started making tyre bead wire 10 years back that time six more companies were in the business and one more Company entered business after us. Over these years, the Indian tyre bead wire industry has consolidated, while many strong players decided to quit the business, their Company has come to occupy prominent position in the industry which today has only three major players in the Country. Their Company comes in at second position with a domestic market share of 35%. As domestic market share increases, it becomes increasingly difficult to grow at a rate faster than the market rate of about 10-12%. With a view to enhancing their growth prospects, the Company has, over the years, been working towards building an export market.

They are happy to report that they have now secured ten international approvals including that from Pirelli, Europe. They would now be supplying to three of the world's top five tyre manufacturers -Bridgestone, Goodyear and Pirelli. They will continue to gain inroads into the remaining to namely German Continental and French Michelin. 

It has been understood during their interaction with multinational tyre companies, that they like to buy from fewer suppliers who have big capacity and technical capabilities. They also want their supplier to supply material to multi locations.

As their vision is 'to become a favoured supplier of head wire to global tyre companies' they have to align their efforts in-line with the customer requirements, and to achieve this they need to continuously built their capabilities to supply them at multi locations, which may require us to have facilities overseas as well.

2. OPPORTUNITIES AND THREATS:

The fate of tyre bead wire industry is linked to the tyre industry, which in turn is linked to the automobile industry, driven by a robust demand, the tyre industry is growing at a rate of about 12% annually. Major demand (60%) of tyres in India comes from replacement market while OEMs and export account for the balance (40%).

In the last few years, they have seen some of the Indian tyre companies acquiring businesses overseas and their strong relationship with them will get us more exports.

Budget 2006 has been rewarding for tyre industry by way of reduction in custom duties on inputs and increase in duties on imported tyres. And with the government's emphasis on development of infrastructure, particularly roads, the demand for their product is bound to increase in proportion to the increase in tyre production and their Company is well positioned to capitalize on this opportunity.

3. FINANCIAL PERFORMANCE v/s OPERATIONAL PERFORMANCE:

Financial year 2005-06 brought new opportunities of growth for the Company. Simultaneously, operational efficiencies have shown encouraging improvement. This resulted in an improvement in operating margins by 24%, in PBT by 21% and PAT by 31%.

The raw material consumption to sales has come down to 64% due to production of more value added product and reduction in wastages. The increase in excise duty is due to increase in the rate by 4% during the year. The manufacturing expenses to sales have increased by 1% due to increase in cost of consumables and energy. The employee cost has increased by 30% on account of higher salaries and increase in the no. of employees for expansion the increase in interest and financial charges is due to interest on term loan for expansion of installed capacity. The increase in depreciation cost is due to increase in gross block by Rs.75.800 millions during the year. 

WEBSITE DETAILS:-

Company Profile:

Subject is a manufacturer of High Carbon Steel Wires in India. The Company is manufacturing Prestressed Concrete Wire and Strends since 1991 and started making Tyre Bead Wire since 1995.

Subject has most modern factory at Pithampur, which is 25 Km from Indore, a prominent business city in Central India .The quest for quality, excellence and progress driven by the total dedication of a competent and professional management team is the hallmark of RGWL.

In a short span of time subject has achieved leadership position in Tyre Bead Wire business in India having a global scale of operation and export into various countries besides supplying to all Indian Tyre manufacturers.
The Company is committed to supply quality product as per the specific requirement of its customers.

RGWL’s Tyre Bead Wire manufacturing unit is certified for ISO / TS 16949 : 2002 and P.C. Wire and Strands Unit is certified for ISO 9001 (2000) by M/s TUV Rheinland Germany.

Tyre Bead Wire

Tyre Bead Wire is a high carbon bronze coated steel wire used in all tyres. The main function of bead wire is to hold the tyre on the rim and to resist the action of the inflated pressure, which constantly tries to force it off. The bead is the crucial link through which the vehicle load is transferred from rim to the tyre. It significantly affects the safety, strength, and the durability of tyres

Following basic properties are required in the making of tyre bead wire:

• Consistency in physical properties
• Combination of high tensile and ductility,
• Uniform and appropriate bronze coating,
• Strong adhesion of wire to the rubber,
• Uniform winding and proper coil dimensions

Product Range

Following sizes of bead wire are being regularly manufactured by them

· 0.89 MM NT / HT

· 0.96 MM NT / HT

· 1.295 MM HT

· 1.60 MM HT

· 1.65 MM HT

· 1.83 MM NT / HT

· 2.00 MM NT

· 2.20 MM NT

· 2.40 MM NT

They can also supply Bead Wire in other sizes and Higher Tensile grades as per the specific customer requirement

Fixed Assets:

• Freehold
• Lease Hold Land
• Site Development and Shed
• Plant and Machinery
• ETP and Machinery
• Electrical Instalation
• Office Equipments
• Furniture and Fixture
• Vehicles
• Computers and Pheripherals
• ERP Software

R and D Assets

• Building
• Equipments
• Furniture Fixture

OTHER INFORMATION:-

Audited Financial Result for the year ended 31.03.2008

Particulars	Quartered Ended on 31.03.2008
	(Rs. In Millions)
Net Sales / Income From operations	325.301
Other Income	0.205
Total Income	325.506
Expenditure
(Increase) / Decrease in stock in the trade and work in progress	[3.986]
Consumption of raw materials	237.048
Manufacturing Expenditure	32.624
Employee Cost	11.567
Depreciation	7.628
Other Expenditure	15.731
Total	300.612
Interest	12.938
Minority Interest	0.000
Profit / Loss from Ordinary Activities before tax	11.956
Tax expenses including Deferred Tax	1.549
Profit / Loss from Ordinary Activities after tax	10.407
Extra Ordinary Item (net of Tax Expenses)	---
Net Profit / Loss for the period	10.407
Paid up Equity Shares share capital (Face Value : Rs. 10/- per share)	43.518
Reserve excluding revaluation reserves as per balance sheet of previous accounting year	----
Earning per share (EPS)	0.239
Aggregate of non promoters shareholding
Number of Shares	185876.000
Percentage of Shareholding	4.271
No. of Complaints received and resolved	0.200

Notes:-

· The above results have been reviewed by the audit committee and taken on records in the board meeting.

· Board of directors have recommended the dividend of 10% (i.e. Rs. 1 per Equity Shares of Rs. 10/-each)

· Trial production was successfully commenced at Thailand plant during the year and it is expected to commence commercial production in July 2008, Consolidated figures stated represent Audited results of the company and its 100% Subsidiary Company Rajratan Thai Wire Company Limited, Thailand

· Previous figures have been regrouped, reworked, wherever necessary.

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.46.96
UK Pound	1	Rs.83.91
Euro	1	Rs.66.36

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	4
--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		52

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