Lake Shore Realty Ltd Management Discussions

A NEW FOUNDATION

In 2025, your Company transformed itself, stepping onto a new path as a developer and manager of real estate, infrastructure, hospitality and allied projects across India.

THE INDIAN ECONOMY

FY 2025-26 was a landmark year for the Indian economy. At a nominal GDP of roughly USD 4.2 trillion, India overtook Japan to become the worlds fourth-largest economy and remained the fastest- growing major economy, expanding by about 7.4- 7.6% in real terms and accelerating to 8.2% in the second quarter, led by resilient consumption and sustained public capital expenditure. A rising middle class, over 430 million strong and set to approach one billion by 2047, anchors a powerful consumption story.

A CHANGING INDIA: DEMOGRAPHICS AND THE NEW CONSUMER

Indias deepest advantage is demographic. With a median age of about 29 years ? against roughly 38 globally - nearly two-thirds of Indians are of working age, and urbanisation, near 35% today, is set to approach 50% by 2050. The defining force in real estate is a young, aspirational generation of millennial and Gen-Z households that demands far more of where it lives and works: industry surveys show buyers seeking homes priced between Rs 90 lakh and Rs 1.5 crore roughly doubling since the pandemic, and sales of Rs 4-crore-plus homes rising about 28% in 2025. Buyers now seek integrated live-work-play environments, not shelter alone.

THE INDIAN REAL ESTATE OPPORTUNITY

Real estate is the countrys second-largest employer and a growing driver of GDP, its contribution rising from about 7% toward an estimated 13%, with the sector projected to treble to around USD 1 trillion by 2030. In FY 2025-26, office leasing scaled record highs led by Global

Capability Centres, institutional investment held near all-time peaks, and land deals reached record volumes. REITs, SM REITs, InvITs and AIFs have widened access, while redevelopment, sustainability and technology are reshaping how Indian cities are built.

THE MUMBAI TRANSFORMATION

Mumbai is the centre of gravity of Indian real estate ? and a city being physically remade. A generational infrastructure build-out is set to make it a world-class, well-connected region within five to ten years: the 21.8-km Atal Setu (Indias longest sea bridge) opened in January 2024, the Coastal Roads first phase in March 2024, and the Navi Mumbai International Airport in 2025; an expanding Metro, including the underground Aqua Line and an airport express, is knitting the region together; and the Mumbai-Ahmedabad high-speed rail line is under construction. One brokerage estimates roughly USD 60 billion of projects across the region in the coming years.

The market is responding. The Mumbai Metropolitan Region drew over USD 1.2 billion of institutional capital in 2025, posted record monthly property registrations, and saw redevelopment agreements rise about 16% as acute land scarcity makes redevelopment the principal engine of supply ? with marquee deals ranging from a roughly Rs 10,000-crore luxury redevelopment in Worli to society redevelopments worth over Rs 1,000 crore across the western suburbs. Against this backdrop, your Company is evaluating development and redevelopment opportunities in select micro-markets, including D. N. Nagar (Andheri West), Opera House and Churchgate, subject to due diligence, definitive agreements and the requisite regulatory approvals.

OPPORTUNITIES AND THREATS

Opportunities

• Demographic-led and premium housing demand

• Government policy, smart-city and infrastructure investment

• Redevelopment of ageing urban building stock

• Growing REIT and institutional participation

• Technology- and sustainability-led ("smart") development

Threats

• Regulatory and approval-related delays

• Volatility in interest rates and inflation

• Land acquisition and title complexity

• Funding constraints

• Environmental and legal risks

SEGMENT-WISE / PRODUCT-WISE REPORTING

The Company presently operates in a single segment and does not have segment- or product- wise performance to report.

OUTLOOK

The medium-term outlook for Indian real estate, and for Mumbai in particular, is among the most constructive of any major market ? underpinned by demographics, urbanisation, institutional capital and infrastructure. Over the coming decade, smart mobility and smart infrastructure ? transit- oriented development, digitised land records and green, technology-enabled buildings ? are expected to transform how India and Mumbai live and work. Your Company intends to build its platform deliberately, securing the right opportunities, governance and execution capability before scaling.

RISKS AND CONCERNS

The sector is exposed to macroeconomic cycles, regulatory change, execution and approval risk, and affordability constraints, which can affect project timelines, costs and returns. As an early-stage entrant in real estate, the Company also faces the risks of assembling a new team and pipeline, managed through disciplined evaluation, governance oversight and project-level controls.

INTERNAL CONTROL SYSTEM AND ADEQUACY

The Company has put in place an internal control system commensurate with its size and the nature of its business, monitored continuously for effectiveness. It has appointed PGS & Associates, Chartered Accountants (FRN: 122384W), Mumbai, to carry out the internal audit covering nearly all aspects of the Companys working. These controls give reasonable assurance over reliable reporting, statutory compliance, asset safeguarding and proper authorisation of transactions. The internal audit reports are reviewed periodically by the Audit Committee, which has concluded that, as of 31 March 2026, the Companys internal financial controls were adequate and operating effectively.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial performance of the Company has been given separately in the Directors Report.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The Company regards its people as central to its progress and is building a leadership and governance team to support its new strategic direction.

RATIO ANALYSIS

(Under Ind-AS)

Sr. no	Ratios	Units	FY 2026	FY 2025
1.	Debtors Turnover Ratio	Times	0	0
2.	Inventory Turnover Ratio	Times	0	0
3.	Interest Coverage Ratio	Times	0	0
4.	Current Ratio	Times	31.26	47.94
5.	Debt- Equity Ratio	Times	0	0
6.	Operating Profit Margin	%	0	0
7.	Net Profit Margin	%	0	0
8.	Earnings Per Share	R	(0.47)	2.08

DETAILS OF CHANGE IN RETURN ON NET WORTH

During the year under review, the Return on Net Worth (RONW) was (0.81)% as compared with (3.60)% in the previous year, to be finalised on the basis of the audited financial statements.

DISCLOSURE OF ACCOUNTING TREATMENT

In preparing the financial statements, the Company has followed the Indian Accounting Standards under Section 133 and other applicable provisions of the Companies Act, 2013. The significant accounting policies, consistently applied, are set out in the Notes to the Financial Statements.

CAUTIONARY STATEMENT

Statements in this Report describing the Companys objectives, expectations and the industry environment ? including projects under evaluation and economic, demographic and market data from third-party sources ? are "forward-looking" within the meaning of applicable laws and rest on assumptions. Actual results may differ materially. The Company undertakes no obligation to update any forward-looking statement publicly.

For and on behalf of the Board

Lake Shore Realty Limited (Formerly know as Mahaan Foods Limited)

Sd/-

(Bhairavi Chandrakant Goswami)

Date: 19th June, 2026

Chairperson & Managing Director

Place: Delhi

DIN:00576641