THE  MAURITIUS  CHEMICAL  AND  FERTILIZER  INDUSTRY  LIMITED ( MCFI)
ABRIDGED UNAUDITED INTERIM REPORT FOR THE SIX  MONTHS ENDED 31 DECEMBER 2005 (MUR'000) ISSUED PURSUANT TO LISTING RULE 12.21
GROUP COMPANY GROUP COMPANY
                        6 months to                         6 months to                         6 months to                         6 months to
1.  INCOME   STATEMENT 31.12.05 31.12.04 31.12.05 31.12.04 4.   CASH  FLOW  STATEMENT 31.12.05 31.12.04 31.12.05 31.12.04
Turnover 316,802 578,147 222,703 480,903 Net  cash  flows  from  operating  activities    37,262 141,353    20,250 128,584
Cash  flows  from  investing  activities    50,672   -    51,088   -
Operating profit for the period 18,823 27,398 8,441 253    87,934 141,353    71,338 128,584
Share of profit of associate companies 5,737 1,903            -              -   Cash  flows  from  financing  activities (17,838) (86,768) (17,838) (90,393)
Profit before exceptional item 24,560 29,301 8,441 253 Increase  in  cash  and  cash  equivalents    70,096    54,585    53,500    38,191
Profit on sale of investment 26,666   - 26,666            -   Cash and cash equivalents at beginning    28,758      7,968      7,953 (7,924)
Profit  before  taxation 51,226 29,301 35,107 253 Cash and cash equivalents at end    98,854    62,553    61,453    30,267
Taxation (7,248) 3,474 (2,474) 5,284
Profit  after  taxation 43,978 32,775 32,633 5,537 5. SEGMENTAL  INFORMATION  -  GROUP            REVENUES               RESULTS
Minority  interest (381) 154   -   -
Net profit/(loss) for the period attributable 43,597 32,929 32,633 5,537 Fertilizers   227,873   516,181      5,987    19,724
 to MCFI  shareholders Trading    81,432    54,559    11,748      8,115
Services      7,497      7,407      1,088 (441)
Earnings  per  share       (MUR) 1.98 1.50        1.48 0.25 Total   316,802   578,147    18,823    27,398
Net  assets  per  share   (MUR) 23.27 21.90 17.89 17.32
The financial statements are unaudited and have beeen prepared in compliance with International Financial Reporting Standards and using the same accounting policies as the financial year ended 30 June 2005.

COMMENTS

Despite the closure of the NPK complex fertiliser plant reducing turnover substantially, the Company's operating profit rose by MUR 8.2 M compared to the corresponding six months of the previous year. This, together with MUR 26.7M of profit on disposal of the Société du Port investment and MUR 3.8 M of increased share of profit of associate companies, resulted in Group earnings per share going up to MUR 1.98 and enabling the January 2006 interim dividend payment of Rs 1.00.
 
The current accounting period will be extended to 18 months so as to end on 31 December 2006 which is the next balance sheet date of our holding company, Harel Mallac & Co. Ltd.  A higher market share achieved following the introduction of ammonium nitrate based NPK blended fertilisers and the rental of the former ammonia tanks to Total (Mauritius) Ltd, will impact favourably on profitability.
 
Projects associated with the seafood hub are presently being envisaged on our premises situated alongside a quay, namely, the construction of a coldroom and tuna processing unit.

By order of the Board
Ramdass Chiniah
Company Secretary
29 March 2006

MCFI's Board of Directors accepts full responsibility for the accuracy of the above report, copies of which are available free of charge at the registered office.

2. BALANCE SHEET BALANCE  SHEET 31.12.05 30.06.05 31.12.05 30.06.05
ASSETS
NON-CURRENT ASSETS
Property,  plant  and  equipment 156,219 154,274 141,469 140,542
Intangible  assets 333 833   -   - 6.
Investments 59,165 78,597 68,365 87,764
215,717 233,704 209,834 228,306
CURRENT  ASSETS 420,282 355,181 269,115 232,998
TOTAL  ASSETS 635,999 588,885 478,949 461,304
EQUITY  AND  LIABILITIES
Share  capital 220,064 220,064 220,064 220,064
Reserves 292,003 261,950 173,723 161,184
SHAREHOLDERS'   INTEREST 512,067 482,014 393,787 381,248
Minority  interest 4,412 4,032            -              -  
Deferred  taxation 17,082 13,817 15,784 13,473
Retirement  benefit  obligations 3,461 3,461 3,461 3,461
  Obligation under finance lease 2,533   - 2,533
NON-CURRENT  LIABILITIES 23,076 17,278 21,778 16,934
CURRENT  LIABILITIES 96,444 85,561 63,384 63,122
TOTAL  EQUITY  AND  LIABILITIES 635,999 588,885 478,949 461,304
3. STATEMENT  OF  EQUITY  CHANGES 31.12.05 31.12.04 31.12.05 31.12.04
Opening  balance   482,014   499,762   381,410   408,796
Fair  value  adjustment      1,750 (7,838)      1,750 (7,838)
Revaluation  reserve    - (23,158)            -   (23,158)
Exchange difference on consolidation      6,712         794            -              -  
Net  profit for the year    43,597    32,929    32,633      5,537
Dividend (22,006)            -   (22,006)            -  
Closing  balance   512,067   502,489   393,787   383,337