Directors Report :    English / Arabic

Unaudited Consolidated Balance Sheet:
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Unaudited Profit and Loss Account : 
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Unaudited Consolidated Cash Flow Statement: 
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Statement of change in Equity:
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Notes  : English / Arabic

Published Accounts: English / Arabic

	Interim Report for 6 months ended 31st Oct 2008.
	Notes.
1	Inventories.
	Inventories can be analysed as follows:
		31st Oct		31st Oct
		2008		2007
		Ro. ' 000		Ro. ' 000
	Raw materials	788		646
	Standing Crops/Beef herds	347		443
	Finished goods	36		69
	Spares and consumables	233		238
	Less: Provision	-65		-65
		1339		1331
	Finished goods at 31.10.2008 represent 2 days of sales (2007: 5 days)
2	Trade Receivables
	At 31st October 2008 trade receivables can be analysed as follows:
			31st Oct	31st Oct
			2008	2007
			Ro. ' 000	Ro. ' 000
	Trade receivables		917	783
	Less: Provisions		-40	-40
			877	743
3	Segment Reporting
	The Company operates in one business segment of Agriculture and Livestock development.
	All relevant information relating to primary segment is disclosed.

Page 6

	Interim Report for 6 months ended 31st October 2008.
	Notes
4	Bank loans and overdrafts
	These can be analysed as follows:
		31st Oct	31st Oct
		2008	2007
		Ro. ' 000	Ro. ' 000
	Bank loans	1,737	1,683
	Overdrafts	543	369
		2,280	2,052
	Less: Current maturities of bank	-1,243	-1,169
	loans and bank overdrafts.
	Long term element of bank loans	1,037	883
	The Bank loans bear interest at rates ranging between 4.75% 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 repayble within as detailed below:
	The maturity of the bank loans:
		31st Oct	31st Oct
		2008	2007
		Ro. ' 000	Ro. ' 000
	Due within 1 year	1,243	1,169
	Due after more than 1 year	1,037	883
		2,280	2,052

Page 7

	Interim Report for 6 months ended 31st October 2008.
	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 October 2008			31st October 2007
	Company		Holding	Company		Holding
	-		-	-		-
	Subsidiaries ( See also Note 7)

Page 8

	Interim Report for 6 months ended 31st October 2008.
	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 analysed as follows:
		Market		Market	Book	Book
		Value		Value	Value	Value
		31.10.2008		31.10.2007	31.10.2008	31.10.2007
							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 realisable value or market value.
	Cost of investments held on …………..

Page 9

	Interim Report for 6 months ended 31st October 2008
	Notes
6	Investments (continued)
	Investment income
	Realised
	Realised investment income represents gains and losses on disposal of investments and
	other realised investment related gains and losses.
	Unrealised
	Marketable securities are recorded at their open market value. Movements in the carrying
	values of marketable securities are taken to unrealised investment income.
	Interest
	Interest receivable for term deposits and bonds is included in investment income.
	Investment income can be analysed as follows:
		31st Oct	31st Oct
		2008	2007
		Ro. '000	Ro. '000
	Realised	-	-
	Unrealised	-	-
	Dividends	-	-
	Interest on Term Deposits and Bonds	-	-
		-	-

Page 10

	Interim Report for 6 months ended 31st October 2008.
	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 31.10.2008.		-		-	-
	MSM Unquoted securities
			-		-	-
	Foreign Unlisted securities
			-		-	-
	Total as of 31.10.2008		-		-	-
*	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.

Page 11

	Interim Report for 6 months ended 31st October 2008.
	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 Oct		31st Oct
	SALES	2008		2007
		Ro. '000		Ro. '000
	Omzest. Dairy Products	44		55
	National Heaters. Dairy products	1
		45		55
	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 analysed to
	follows:
			31st Oct	31st Oct
			2008	2007
			Ro. '000	Ro. '000
	Areej Veg & Oil Derivates. Butter, Ghee.			-
	Mezoon Travels Air tickets		12	12
	Muscat Cold Stores. Dairy products.		2	-
	Zawawi Business Machine. AMC		0	4
	Muscat Contracting. Rentals		13	12