Ishaan Infrastructure & Shelters Ltd Management Discussions

OVERVIEW

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31st March, 2026.

The Management Discussion and Analysis have been included in consonance with the Code of Corporate Governance as approved by the Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contain certain forward-looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in this report consequent to new information or developments, events or otherwise.

INDUSTRY STRUCTURE AND DEVELOPMENTS.

The real estate industry is an important and growing sector of the economy, covering residential, commercial, industrial and other property-related activities. The sector is largely influenced by economic growth, interest rates, availability of finance, infrastructure development, government policies, regulatory approvals and demand for properties.

The industry is capital intensive and generally involves long development and investment cycles. Market conditions, property prices, construction costs and changes in customer preferences can significantly affect the performance and profitability of businesses operating in this sector.

The Company continues to focus on its real estate business and closely monitors developments in the sector. Management remains committed to adopting a cautious approach towards investment and development opportunities, with emphasis on efficient utilization of resources and long-term value creation.

OPPORTUNITIES AND THREATS.

OPPORTUNITIES:

The Company sees potential opportunities in the real estate sector arising from increasing urbanization, infrastructure development and growing demand for residential and commercial properties. The Company may also benefit from opportunities to acquire, develop or monetise properties at commercially viable terms. Prudent investment decisions and effective utilisation of existing assets may support future revenue generation and profitability.

THREATS:

There are, however, a number of factors that can spoil the party. Land costs, which are a major Constituent of housing costs in metros; have risen much faster than property prices. Listing out the challenges for the real estate market in India, a report by Price Waterhouse Coopers said that the Indian governments tax policy was not in tandem with the liberalization initiatives being undertaken in the sector. According to it, "There are no substantial tax incentives for real estate development except in the limited circumstances. Even in these situations, the tax incentive windows have a short life left".

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE.

The Company is primarily engaged in the real estate business and accordingly operates predominantly in a single business segment. There are no separate reportable business or product segments requiring separate performance analysis.

During the year under review, the Companys activities remained focused on its real estate operations. However, the Company did not generate profit during the year, primarily due to the nature and timing of its real estate activities and the absence of sufficient revenue generation during the reporting period.

Management continues to focus on developing and monetising real estate opportunities with the objective of improving revenue generation and profitability in the coming years.

OUTLOOK

The Company remains focused on its real estate business and will continue to explore suitable opportunities for growth and value creation. Management will adopt a prudent approach towards investments, control costs and focus on efficient utilisation of resources. The Company aims to improve revenue generation and profitability in the coming years.

RISKS AND AREAS OF CONCERN

Our strength is our determination and team work, weakness is the low equity base, opportunities are multiples and threats are the vibrations in the economy and government policies.

In any business, risks and prospects are inseparable. As a responsible management, the Companys principal endeavor is to maximize returns. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has carried out the internal audit in-house and has ensure that recording and reporting are adequate and proper, the internal controls exist in the system and that sufficient measures are taken to update the internal control system. The system also ensures that all transactions are appropriately authorised, recorded and reported. Exercises for safeguarding assets and protection against unauthorised use are undertaken from time to time. The Companys audit Committee reviewed the internal control system. All efforts are being made to make the internal control systems more effective. All these measures are continuously reviewed by the management and as and when necessary, improvements are affected.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and Generally Accepted Accounting Principles in India.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

The company had sufficient numbers of employees at its administrative office. The company recognizes the importance of human value and ensures that proper encouragement both moral and financial is extended to employees to motivate them. The company enjoyed excellent relationship with workers and staff during the last year.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE:

Ratio	For the year ended 31 March, 2026	For the year ended 31 March, 2025	% Variance	Reason for changes by more than 25%
1 Current ratio	19.78	17.16	15.25%	N.A.
2 Debt equity ratio	0.00	0.00	0.00%	N.A.
3 Debt service coverage ratio	0.00	52.16	-100.00%	Company has repaid debt during the year.
4 Return on Equity	-3.89%	-0.87%	347.20%	Company has incurred loss during the year.
5 Inventory turnover ratio	N.A.	N.A.	N.A.	N.A.
6 Trader receivable turnover ratio	N.A.	N.A.	N.A.	N.A.
7 Trade payable turnover ratio	N.A.	N.A.	N.A.	N.A.
8 Net capital turnover ratio	N.A.	N.A.	N.A.	N.A.
9 Net profit ratio	N.A.	N.A.	N.A.	N.A.
10 Return on capital employed	-3.70%	0.26%	1505.31%	Company has incurred loss during the year.
11 Return on investment	N.A.	N.A.	N.A.	N.A.