Interim Report for 9 months ended 31st January 2009.

Notes.

1

Inventories.

Inventories can be analyzed as follows:

31st Jan

31st Jan

2009

2008

Ro. ' 000

Ro. ' 000

Raw materials

752

572

Standing Crops/Beef herds

366

505

Finished goods

72

53

Spares and consumables

222

255

Less: Provision

-65

-65

1347

1320

Finished goods at 31.1.2009 represent 4 days of sales (2008: 4 days)

2

Trade Receivables

At 31st January 2009 trade receivables can be analyzed as follows:

31st Jan

31st Jan

2009

2008

Ro. ' 000

Ro. ' 000

Trade receivables

758

694

Less: Provisions

-40

-40

718

654

3

Segment Reporting

The Company operates in one business segment of Agriculture and Livestock development.

All relevant information relating to primary segment is disclosed.

Interim Report for 9 months ended 31st January 2009.

Notes

4

Bank loans and overdrafts

These can be analyzed as follows:

31st Jan

31st Jan

2009

2008

Ro. ' 000

Ro. ' 000

Bank loans

      1,465

      1,737

Overdrafts

        652

        448

      2,117

      2,185

Less: Current maturities of bank

     -1548

-1,248

loans and bank overdrafts.

Long term element of bank loans

        569

        937

The Bank loans bear interest at rates ranging between 5.00% to 7.03% per annum.

The Bank overdraft facilities bear interest at rates between 6.5% to 7.5. %.

per annum and are renewable on   December 2008.

Bank loans are repayable within as detailed below:

The maturity of the bank loans:

31st Jan

31st Jan

2009

2008

Ro. ' 000

Ro. ' 000

Due within 1 year

     1,548

      1,248

Due after more than 1 year

        569

        937

      2,117

      2,185

Interim Report for 9 months ended 31st January 2009.

Notes

5

Investment in associates and subsidiaries.

Associates (See also Note 7 )

Investments in Associates are accounted for using the equity method.

The Associates of Services/Manufacturing Company SAOG are as follows:

31st January 2009.

31st January 2008.

Company

Holding

Company

Holding

-

-

-

-

Subsidiaries ( See also Note 7)

Interim Report for 9 months ended 31st January 2009.

Notes

6

Investments

Investments include all long term and short term investments of the company, excluding

only those associates and subsidiaries listed in Note 5. All marketable securities are

carried at their open market value. Unquoted investments are carried at cost adjusted for

any permanent diminutions in value.

Investments can be analyzed as follows:

Market

Market

Book

Book

Value

Value

Value

Value

31.01.2009

31.01.2008

31.01.2009

31.01.2008

Cost**

Ro. ' 000

Ro. ' 000

Ro. ' 000

Ro. ' 000

Ro. ' 000

Marketable securities - MSM

Banking

Investment

Insurance

Services

Industrial

Government Bonds

-

-

-

-

-

Marketable securities - Foreign by Sector

Banking

Industrial

Bonds

-

-

-

-

-

Unquoted and other investments

Unquoted Omani shares

Investment fund units*

Term deposits

Unquoted foreign shares

Other

Total

-

-

-

-

-

Carried at lower of net asset value, net realizable value or market value.

Cost of investments held on …………..

Interim Report for 9 months ended 31st January 2009.

Notes

6

Investments (continued)

Investment income

Realized

Realized investment income represents gains and losses on disposal of investments and

other realized investment related gains and losses.

Unrealized

Marketable securities are recorded at their open market value. Movements in the carrying

values of marketable securities are taken to unrealized investment income.

Interest

Interest receivable for term deposits and bonds is included in investment income.

Investment income can be analyzed as follows:

31st Jan

31st Jan

2009

2008

Ro. '000

Ro. '000

Realized

-

-

Unrealized

-

-

Dividends

-

-

Interest on Term Deposits and Bonds

-

-

-

-

Interim Report for 9 months ended 31st January 2009.

Notes

7

Details of Significant Investments.

Details of all the reporting company's investments, including associates and subsidiaries,

for which either, the reporting company's holding represents 10% or more of the issuer's

share capital, or , the reporting company's holding exceeds 10% of the market value of

the reporting company's investment portfolio, are provided as follows as of …………

Market

Book

Cost

Holding

Number of

Value

Value

%

Securities

Ro. 000's

Ro. 000's

Ro. 000's

MSM Quoted securities

Foreign Listed securities

Market Value as of 31.01.2009.

-

-

-

MSM Unquoted securities

-

-

-

Foreign Unlisted securities

-

-

-

Total as of 31.01.2009.

-

-

-

*

Provide the name and location of the issuer, the class of security, and the name of B32

the market in which the security is listed.

Interim Report for 9 months ended 31st January 2009.

Notes

8

Related Parties and Holders of 10% of the Company's shares.

Holders of 10% or more of the Company's shares may include companies, individuals, or

families. Families are included if the shares of the family members total 10% or more of

the company's shares. Members of the family of an individual are those that may be

expected to influence, or be influenced by, that person in their dealings with the

company.

The nature of significant transactions involving related parties or holders of 10% or more

of the company's shares, or their family members, and the amounts involved during the

period were as follows.

31st Jan

31st Jan

SALES

2009

2008

Ro. '000

Ro. '000

Omzest. Dairy Products

58

67

Areej Vegetables & Oils. Dairy Prdts.

National Heater Industries Dairy prods.

2

1

60

68

Expense Items

Items of expense which were paid to related parties or holders of 10% or more of the

company's shares, or their family members, during the period can be further analyzed to

follows:

31st Jan

31st Jan

2009

2008

Ro. '000

Ro. '000

Mezoon Travels Air tickets

14

19

Muscat Cold Stores. Dates

2

2

Muscat Contracting. Cleaning

2

17

Zawawi Trading Co.       Spares.

2

3

Zawawi Business Machines. Computer parts

0

6

Riyam Computer Services. Computer services.

4

2

Muscat Insurance Co.   Insurance

53

51

HE. Dr. Omar Zawawi . Rentals.

38

20

115

120

Interim Report for 9 months ended 31st January 2009.

Notes

8

Related Parties and Holders of 10% of the Company's shares. (continued)

Loans, Advances, Receivables Due, Provisions & Write-offs.

Loans, advances or receivables due from related parties or holders of 10% or more of the

company's shares, or their family members, minus all provisions and write-offs which

have been made on these accounts at any time, are further analyzed as follows:

31st Jan

31st Jan

2009

2008

Ro. '000

Ro. '000

Omzest

16

16

Provisions

-

-

Write-offs

-

-

Receivable from related parties.

16

16

Interim Report for 9 months ended 31st January 2009.

Notes

9

Provisions

Changes to the level of provisions during the period can be analyzed as follows:

Provisions for:

Advances &

Value of

Inventories

Receivables

Investments

Other

Total

Beginning balance

46

0

65

111

of Provisions

Provided during the period

0

0

0

0

(Released)

0

0

0

0

during the period.

"(Written Off)

during the period

0

0

0

0

Provisions Balance as of

46

0

65

111

31.01.2009.

The book value of assets before and after provisions can be shown as follows:

Book Value of

Advances &

Inventories

Assets

Receivables

Investments

Other

Total

Value of Assets

934

0

1412

2346

before Provisions

Provisions Balance

-46

0

-65

-111

as of 31.01.2009.

Book value of Assets

888

0

1347

2235

as of 31.01.2009.

Interim Report for 9 months ended 31st January 2009.

Notes

10

Shareholders

All those shareholders of the company who own 10% or more of the company's shares.

whether in their name, or through a nominee account, and the member of shares they had

are as follows:

31st Jan

31st Jan

2009

2008

Ro. '000

Ro. '000

Common Share Holders

shares

HE. Dr. Omar Abdul Muneim Al Zawawi.

162814

163

163

Brig. Waleed Omar Zawawi.

136037

136

136

Al Khuwair Dev. Services.

175838

176

176

Wilayat Holding Company Ltd. LLC.

126984

127

127

Preferred Share Holders.