HAREL MALLAC & CO. LTD

PROVISONAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2006

UNAUDITED CONDENSED BALANCE SHEETS AS AT DECEMBER 31, 2006

UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY - FOR THE YEAR ENDED DECEMBER 31, 2006

GROUP

COMPANY

Revaluation

Fair

and Other

Value

Retained

Unaudited

Audited

Unaudited

Audited

Capital

Reserves

Earnings

Total

Rs'000

2006

2005

2006

2005

COMPANY

Rs'000

ASSETS EMPLOYED

Balance at January 1, 2006

112,594

27,979

194,245

577,356

912,174

Non current assets

1,005,891

1,039,124

1,081,148

985,659

Fair value adjustment

(5,395)

Movement in reserve

Current assets

913,978

813,870

97,068

215,382

Net (expense)/income recognised directly in equity

(5,395)

Total assets

1,919,869

1,852,994

1,178,216

1,201,041

Release to income statement on disposal of investments

(13,319)

113

(13,206)

Net profit

39,249

Total recognised (expense)/income for 2006

(18,714)

39,362

20,648

EQUITY AND LIABILITIES

Capital and reserves

Dividends

(20,267)

Shareholders' interests

967,447

1,006,344

912,555

912,174

Balance at December 31, 2006

112,594

27,979

175,531

596,451

912,555

Minority interests

231,871

224,913

Total equity

1,199,318

1,231,257

912,555

912,174

Balance at January 1, 2005

112,594

27,979

131,937

598,493

871,003

Non-current liabilities

205,250

81,885

125,609

22,574

Fair value adjustment

66,954

Current liabilities

515,301

539,852

140,052

266,293

Net income/(expense) recognised directly in equity

66,954

Total equity and liabilities

1,919,869

1,852,994

1,178,216

1,201,041

Release to income statement on disposal of investments

(4,646)

(8,681)

(13,327)

Net profit

5,559

Total recognised income/(expense) for 2005

62,308

(3,122)

59,186

Dividends

(18,015)

Balance at December 31, 2005

112,594

27,979

194,245

577,356

912,174

Revaluation

Fair

and Other

Associate

Value

Retained

Minority

Capital

Reserves

Earnings

Total

Interest

Total

Rs'000

UNAUDITED CONDENSED INCOME STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2006

GROUP

COMPANY

Balance at January 1, 2006

112,594

52,343

57,065

123,623

660,719

1,006,344

224,913

1,231,257

Unaudited

Audited

Unaudited

Audited

Fair value adjustment

4,654

1,864

6,518

2006

2005

2006

2005

Transfer to retained earnings on disposal of associates

(1,470)

1,470

Rs'000

Adjustment arising on acquisition of

associates

18,799

(98,740)

(79,941)

(3,995)

(83,936)

Revenue

1,860,761

1,208,031

187,328

335,306

Movement in reserves

5,550

5,618

2,476

8,094

Exchange difference

519

534

Profit before finance costs and exceptional items

50,676

(362)

40,978

56,723

Other movements

(5,523)

3,518

607

318

(1,080)

(1,594)

(2,674)

Net income/(expense) recognised directly in equity

546

20,847

(93,479)

1,856

(70,230)

(1,234)

(71,464)

Exceptional items

29,291

109,522

4,880

(44,975)

Finance costs

(30,467)

(15,102)

(16,551)

(5,027)

Release on disposal of investment in other securities

(13,253)

113

(13,140)

127

(13,013)

Share of results of associates

30,139

41,879

Net profit

8,866

55,874

64,740

15,631

80,371

Total recognised income/(expense) for 2006

546

29,713

(106,732)

57,843

(18,630)

14,524

(4,106)

Profit before tax

79,639

135,937

29,307

6,721

Taxation

Dividends

(20,267)

Holding and subsidiary companies

732

(9,904)

9,942

(1,162)

Dividends payable to Minority

(7,566)

(20,267)

(7,566)

(27,833)

Profit for the year

80,371

126,033

39,249

5,559

Balance at December 31, 2006

112,594

52,889

86,778

16,891

698,295

967,447

231,871

1,199,318

Attributable to:

Balance at January 1, 2005

112,594

49,676

37,999

138,252

535,125

873,646

70,256

943,902

Equity holders of the company

64,740

120,401

39,249

5,559

Minority interest

15,631

5,632

Fair value adjustment

12,611

80,371

126,033

39,249

5,559

Transfer to retained earnings on disposal of associates

(6,553)

6,553

1,010

Transfer to retained earnings on acquisition of subsidiar

(5,946)

5,946

Basic earnings per share

Adjustment arising on acquisition of subsidiary

(Rupees & Cents)

5.75

10.69

3.49

0.49

and associates

(26,924)

40,219

13,295

155,465

168,760

Net assets per share

Movement in reserves

302

(Rupees & Cents)

85.92

89.38

81.05

81.01

Exchange difference

3,867

(821)

3,046

1,786

4,832

Number of ordinary shares

11,259,388

Other movements

(1,200)

1,350

1,224

1,374

(7)

1,367

Net income/(expense) recognised directly in equity

2,667

(11,668)

(14,313)

53,942

30,628

158,254

188,882

Notes to preliminary results:

Release on disposal of investment in other securities

(316)

(614)

(930)

1.The condensed provisional financial statements for the year ended December 31, 2006 are unaudited. The accounting policies used in the

Net profit

30,734

89,667

120,401

5,632

126,033

preparation of the above financial statements are consistent with those used in the annual financial statements

Total recognised income/(expense) for 2005

2,667

19,066

(14,629)

143,609

150,713

163,272

313,985

for the year ended 31 December 2005.

Dividends

(18,015)

Dividends payable to Minority

(8,615)

2.Brief review of activities and of the results:

(18,015)

(8,615)

(26,630)

Group's revenue shows an increase of 54% as compared to the corresponding period in 2005. The increase in turnover is mainly due to:

(i) incorporating The Mauritius Chemical & Fertilizer Industry Limited ("MCFI") as a subsidiary for the full year 2006 as compared to only

Balance at December 31, 2005

112,594

52,343

57,065

123,623

660,719

1,006,344

224,913

1,231,257

2 months in 2005 and

(ii) the other SBU's showing a total increase in revenue of 19 % over last year

UNAUDITED CONDENSED CASH FLOW STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2006

GROUP

COMPANY

Profit before finance costs and exceptional items has increased to Rs50.7M mainly due to MCFI and the improved performance of several SBU's.

Unaudited

Audited

Unaudited

Audited

2006

2005

2006

2005

3.Taxation has been provided at the rates of 15% and 22.5% of taxable profits where applicable.

Rs'000

4.The condensed provisional results are available for inspection at the company's registered office, 18 Edith Cavell Street, Port Louis.

Operating activities

Net cash from operating activities

69,414

64,297

38,493

24,966

This condensed provisional results are issued pursuant to Listing Rule 12.20.

The Board of Directors of Harel Mallac & Co Ltd accepts full responsibility for the accuracy of the information contained in this report.

Investing activities

Net cash used in investing activities

(24,990)

(89,584)

(54,732)

(161,554)

Financing activities

Net cash from financing activities

42,098

17,455

57,410

8,714

Increase / (decrease) in cash and cash equivalents

86,522

(7,832)

41,171

(127,874)

Movement in cash and cash equivalents

At January 1,

12,232

22,497

(70,784)

57,090

Increase / (decrease)

86,522

(7,832)

41,171

(127,874)

Effect of Foreign Exchange difference

675

(2,433)

At December 31,

99,429

12,232

(29,613)

(70,784)

By order of the board

JEAN-MARC ULCOQ, F.C.C.A

Company Secretary

March 27, 2007