The Board of Directors (the "Board") of Meghmani Organics Limited ("Meghmani") refers to the article headlined 'Meghmani sees better H2 after lacklustre Q2 results' on page 5 of The Business Times of 21 November 2006 (the "Article").
We refer to paragraph eighth of the Article which stated that 'He [Mr Ashish Soparkar, Managing Director] said Meghmani's Q3 revenue is 'very likely' expected to cross the one billion rupees mark. According to him, the fourth quarter has traditionally been the company's best.'
The above statement was made in response to a question from analysts at a results briefing. The Board wishes to clarify that the statement was made in the context of the revenue achieved by Meghmani in the past two consecutive quarters, Q1 FY07 and Q2 FY07, both of which exceeded the one billion rupee mark. This information was disclosed in the material used at the briefing and subsequently posted on SGXNet on 20 November 2006.
In addition, based on past years' performance, it is a fact that the fourth quarter is traditionally the strongest quarter for Meghmani given the cycles associated with the agricultural season in the Company's type of business.
We also refer to paragraph 10 of the article which stated that 'Mr Soparkar also said that the company is in talks to acquire another agrochemical company, having identified several takeover candidates.'
The Board wishes to highlight that Meghmani's intentions to acquire a company in the agrochemical business has been previously disclosed on SGXNet. Please refer to page 20 of the Company's FY2006 briefing material which was posted on SGXNet on 22 May 2006.
We also refer to paragraphs 14 and 15 of the article which stated that 'He also indicated that it could consider a partial buy-back of its shares in Singapore if the Indian shares perform better. "We are concerned about diluting the shares, so instead of offering more shares in the Indian market, we will be very happy to get an honourable exit from part of (our) holding on the Singapore Exchange and sell it in India, where the demand is higher,"'
The Board wishes to clarify that this statement was made in response to a query from analysts. The partial share buy-back suggestion was put forth by an analyst present at the briefing and the response from management was that Meghmani could consider this suggestion of a partial buy-back of its Singapore shares. The Board wishes to highlight that the statement does not constitute any form of firm commitment from the management.
By Order of the Board
Kamlesh Dinkerray Mehta
21 November 2006