RECENT INDUSTRIAL SCENARIO

Indias construction sector stands as a cornerstone of the nations economic strategy, pivotal in addressing critical infrastructure needs and providing substantial employment opportunities. Infrastructure construction and real estate assets like offices, retail, housing, and data centres have been the major focus areas for both the government and the private sector. Sustainable development remains a key focus within Indias construction sector, with government entities and private developers increasingly adopting green building practices and energy- efficient technologies. The Governments continued emphasis on infrastructure development through investments in roads, highways, railways, airports, metro rail projects, affordable housing, smart cities and logistics infrastructure has strengthened the long- term outlook of the sector.

Indias construction sector is poised for substantial growth, supported by significant government initiatives, robust investments in logistics and warehousing infrastructure, and a steadfast commitment to sustainable development. The sectors role in enhancing infrastructure, facilitating urbanization, and driving economic growth underscores its critical importance in Indias broader economic strategy. The trajectory of Indias construction sector reflects its integral role in shaping the countrys economic landscape. With ongoing initiatives like PMAY- U, HRIDAY, etc. substantial investment commitments, a focus on sustainability through green building practices, and advancements in logistics and warehousing infrastructure, the sector is not only meeting current infrastructure demands but also setting the stage for long- term economic resilience and sustainable urban development across the nation. The India Building Construction Market is projected to grow from USD 271.13 million in 2023 to an estimated USD 596.63 million by 2032, with a compound annual growth rate (CAGR) of 9.14% 9.14% from 2024 to 2032. This growth is driven by rapid urbanization, increasing population, and significant infrastructure development.

The real estate sector is one of the most globally recognized sectors. The real estate sector comprises four sub sectors - housing, retail, hospitality and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi- urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. The high demand for affordable housing dominates the housing market. The real estate sector shows promise with a projected 9.2% 9.2% CAGR from 2023 to 2028. Foreign investors pump around US 3.1 3.1 billion yearly into Indian real estate, with a 37% 37% YoY increase in foreign inflows in the first half of 2024. Technology companies held the highest share in leasing activity at 22% 22% during first quarter of 2024. Engineering and manufacturing (E&M) companies accounted for 13% 13% , and banking, financial services and insurance account for 12% 12% . Flexible space operators increase by 48% 48% , showcasing their notable contributions. The real estate sector in India is expected to reach US 1 1 trillion in market size by 2030, up from US 200 200 billion in 2021. By 2027, it will contribute 13% 13% to the countrys GDP. The emergence of nuclear families, rapid urbanisation and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial, and retail. Rapid urbanisation in the country is pushing the growth of real estate. The Indian real estate market is projected to experience a substantial increase, potentially reaching a value of US 5-7 5 - 7 trillion by the year 2047, with the possibility of surpassing US 10 10 trillion.

GLOBAL ECONOMY

The global construction market size has been grown strongly in the recent years. It will grow from 6152.39 6152.39 Billion to 17045.95 17045.95 billion in 2025 at compound annual growth rate (CAGR) of 5.5% 5.5% . The growth in the historic period can be aributed to the increasing infrastructure development, increase in renovation activities, rapid growth in early population and risw in domestic manufacturing. The construction market is expted to be in strong growth in the coming years. It shall grow from 21260.80 21260.80 BILLION IN 2029 at a compound annual growth rate (CAGR) of 5.7% 5.7% . The growth of the forcasted period can be attributed to rising

urbanization, increasing population growth, increasing government support and rapid industrialization. The value of the global construction market in 2024 grew by an estimated 2.3% 2.3% with a total value of over 15,000 billion US dollars. This means a registered net slowdown with respect to 2023, which closed with an increase in investments of more than 4% 4% . Forecasts for 2025 indicate a moderate improvement in the overall situation of the global construction market, with growth expected to be 2.8% 2.8% . Further strengthening of market dynamics is expected for next year. The graph below summarizes the trend for last year and the forecast for 2026 in the various geographical areas.

It is clear that the construction sectors financed through public funding (infrastructure, energy and utilities) benefitted from the higher growth rates and enjoy a more positive outlook in terms of growth in the upcoming years. The commercial and industrial sectors, on the other hand, registered more moderate rates of growth, while the global residential sector encountered a recession last year, which will leave space for it to remain more or less stagnant in 2025. The main driver behind this positive outlook for infrastructure constructions is the energy sector, where extraordinary investment plans have been put in place by Governments to sustain the construction market (and the economy in general). The main one is the package of measures called Build Back Better with a value of 1.2 trillion dollars, which was presented by the Biden administration in the USA and received bipartisan support. Various national plans of considerable value have been implemented in Europe with funds aimed mainly at the construction of infrastructures.

The global market is primarily driven by rapid urbanization and population growth, which increases the requirement for commercial and residential spaces significantly. Moreover, the implementation of government policies, including tax incentives, affordable housing initiatives, and infrastructure investments, further stimulates market activity. Additionally, continual technological advancements, such as smart home innovations, virtual tours, and digital transaction platforms, enhance accessibility and streamline processes for buyers and investors. Global Real Estate Market size was valued at USD 3.9 trillion in 2023 and is poised to grow from USD 4.11 trillion in 2024 to USD 6.31 trillion by 2032, growing at a CAGR of 5.5% 5.5% during the forecast period (2025- 2032). The United States stands out as a key regional market and is witnessing growth due to the countrys strong job market and economic growth, creating a consistent demand for both residential and commercial properties.

The United Nations (UN) states that by 2050, 68% 68% of the worlds population is expected to reside in urban areas. Changing age demographics, such as the millennial generation entering the housing market, impact preferences for housing types and locations. The aging population drives demand for retirement communities or healthcare facilities. Understanding these demographic shifts is essential for developers, investors, and policymakers to anticipate and meet shifting real estate needs. Demographic factors significantly shape the market, encompassing aspects like population growth, age distribution, and urbanization. The presence of large economies like China and India with their huge population is one of the major reasons for the growth of real estate development and investment in properties. The favorable government policies and regulations are some of the reasons for the growth of the real estate market in the Indian region. Increasing spending on rental services and homeownership by millennials is one of the major reasons for the growth of the real estate industry.

INDIAN REAL ESTATE SECTOR

The Indian real estate sector continues to demonstrate resilience and remains one of the major contributors to the countrys economic growth. Rising urbanisation, increasing household income, improved infrastructure connectivity and favourable Government policies continue to support demand across residential and commercial segments.

The Indian real estate market is projected to experience robust growth driven by factors like rapid urbanization, increasing disposable incomes, and rising demand for residential and commercial properties. The real estate industry in India is Segmented by property type, including residential, commercial, industrial, and land, the market is further divided into sales and rental operations, operating through both online and offline modes to cater to diverse consumer preferences and enhance accessibility. Regional segmentation illustrates

varied growth dynamics across different areas, emphasizing localized market conditions and opportunities. Key government initiatives, such as investments in smart city projects and tax exemptions, alongside environmental and regulatory concerns, shape sustainable practices within the sector. The burgeoning population fuels the demand for infrastructure, significantly impacting the real estate market size in India and driving the trend towards smart, sustainable projects. The competitive landscape remains dynamic, with continuous innovation aimed at meeting evolving market needs.

One of the industries with the greatest international recognition is real estate. Housing, retail, hospitality, and commercial are its four subsectors. The expansion of the business environment, the need for office space, and the desire for urban and semi- urban housing all contribute to the rise of this industry. In terms of direct, indirect, and induced effects on all economic sectors, the construction industry comes in third place out of the 14 key industries. This resurgence in the post- COVID era signifies more than just an industry rebound; it reflects a determination to overcome challenges, seize opportunities, and forge a prosperous path ahead. Areas like Rajarhat, New Town, and EM Bypass are experiencing significant growth, driven by infrastructural improvements and the citys growing economy. In 2024, the Indian real estate market in Kolkata, while facing some challenges, demonstrated a mixed performance.

In 2024, Indias housing market is witnessing robust growth, spearheaded by the premium and luxury segments. Demand for high- end properties is being fueled by rapid urbanization, rising disposable incomes, and shifting buyer preferences. Major metropolitan hubs, including Mumbai, Pune, Bengaluru, and Hyderabad, are witnessing a notable uptick in both luxury housing launches and sales. In the first quarter of 2024, the Indian real estate sector experienced a remarkable 15% 15% growth in investments, exhibiting resilience amid global uncertainties. Foreign investors dominated the investment landscape with 55% 55% of the total inflows, indicating their growing confidence in the Indian real estate market and its potential to deliver substantial returns. This surge in investments has translated into tangible growth for office spaces and luxury housing, as these sectors exhibit strong performance indicators. Office spaces in key markets, data centres, warehouses, and other commercial properties are witnessing increased demand. The rise in technology- driven industries is driving the need for office spaces and data centres, making them attractive investment targets. Government initiatives supporting the sector, coupled with a favourable regulatory environment, further enhance investment potential. Concurrently, the gross office leasing activity expanded significantly, achieving 15.16 million square feet in the first quarter of 2024, a notable 13.8% 13.8% increase from the previous year. Indias spending in these sectors has been both productive and efficient, driving economic growth and laying the groundwork for sustained development.

Indias physical retail landscape is poised for a substantial boost, with nearly 41 million sq. ft of retail developments set to be operational between 2024 and 2028 across the top 7 cities, encompassing projects in various stages from construction to planning. For the first time, gross leasing in Indias top 7 markets surpassed the 60 million sq ft mark, reaching an impressive total of 62.98 million sq ft, marking a substantial 26.4% 26.4% increase compared to the previous year. Notably, the December quarter emerged as the busiest quarter on record, with gross leasing hitting 20.94 million sq ft. Construction is one of the largest sectors in terms of FDI inflow. FDI in the sector (including construction development & activities) stood at Rs. 3,83,229.78 crore (US$ 44.46 billion) from April 2000- September2024.

In 2024, Indias real estate market has showcased robust momentum, witnessing significant growth across its residential, commercial, and premium sectors. According to a report by an real estate brokerage firm, residential real estate sales surged by 17% 17% year- on- year in the first three quarters of 2024. This growth is attributed to heightened buyer confidence and a rising demand for premium housing, especially in major cities such as Mumbai, Bengaluru, and Pune. Bengalurus residential property prices climbed by 9% 9% , while Mumbai, NCR, and Pune experienced a 4-5% 4 - 5% uptick, underscoring the remarkable growth in both luxury and premium segments.

Looking ahead, the future holds immense promise for the Indian real estate arena. With the urban population projected to hit 600 million by 2030, substantial housing demand is on the horizon. Complementing this demand is the governments steadfast focus on infrastructure development, which is fuelling housing

requirements across diverse regions of the country. By 2047, an estimated 50% 50% of Indias population will call urban centers home. This shift will ignite a surge in demand for residential, office, and retail spaces. Additionally, emerging segments such as senior living, co- living, and data centers are poised for exponential growth.

FUTURE OUTLOOK OF OUR COMPANY

The Company continues to explore opportunities in the infrastructure and real estate sectors with a focus on long- term value creation. The Governments continued emphasis on affordable housing, urban infrastructure, smart city development and public infrastructure projects is expected to create new business opportunities.

Your Company intends to capitalize on these opportunities by identifying suitable projects and strengthening its presence in the construction and real estate sectors. The Company shall continue to evaluate feasible development opportunities, particularly in affordable housing and other real estate projects, based on market conditions and commercial viability.

Management remains optimistic that the long- term growth prospects of the infrastructure and real estate sectors, supported by Government initiatives and improving economic activity, will provide opportunities for sustainable business growth.

SEGMENT PERFORMANCE

The Company is presently engaged in Civil Construction Contracts, Tender Works and Rental Activities.

During the financial year under review, the Company continued its rental operations while evaluating suitable opportunities in the construction and real estate business. Although construction activity remained limited during the year, the Management continues to pursue potential projects and expects business opportunities to improve in the coming years.

STRATEGY

The Companys strategy is focused on strengthening its core business by identifying commercially viable projects, improving operational efficiency and maintaining financial prudence.

The Management continues to evaluate suitable land parcels and development opportunities which can generate sustainable returns. Simultaneously, the Company intends to explore strategic collaborations and business partnerships wherever commercially feasible.

OPPORTUNITIES AND THREATS

We see great opportunity and promise emerging. There is much to be excited about. Governments continue to demonstrate a strong desire and ambition to invest in infrastructure, both as a path to economic growth and as a way to hold back the rising tide of populism. New technologies and rapid innovation are creating new approaches, models and tools for infrastructure development and helping to bring down costs. The quest to identify new pricing and funding models offers the potential to unblock pipelines and unleash a new era of rapid development. And new perspectives on key issues such as sustainability, governance and investment are driving greater sophistication in many markets.

We hope that this years report inspires infrastructure participants to think progressively about the opportunities we face today and cautiously about the risks of tomorrow. We believe there is huge potential for great good to be unlocked. But, if we do not respond with vision and purpose, we may also be sowing the seeds of discord and division for future generations. The choice is ours.

2025- 26

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an internal control system commensurate with the size and nature of its business operations. The internal control framework is designed to ensure orderly and efficient conduct of business, safeguarding of assets, accuracy and reliability of financial reporting and compliance with applicable laws and regulations.

The Company has a satisfactory system of internal control corresponding with its size and the nature of its operations. These have been designed to provide reasonable assurance & accuracy with regard to recording & reporting and providing reliable financial and operational, information, complying with applicable statutes, safeguarding assets from unauthorized use or losses, executing transactions with proper authorization and ensuring compliance of corporate policies.

The Company has an Audit Committee and The Audit Committee reviews Audit Reports submitted by the Internal Auditors. Suggestions for improvement are considered and the Audit Committee follows up the implementation of the corrective steps. The Committee also meets the Companys Statutory Auditors to ascertain, inter alia, their views on the adequacy of internal control systems in the Company and keeps the Board of Directors informed of its major observations from time to time.

FINANCIAL PERFORMANCE WITH REFERENCE TO OPERATIONAL PERFORMANCE

During the Financial Year under review, total revenue decreased from Rs. 256.46 Lakhs to Rs. 235.93 Lakhs The Company has incurred loss of Rs. 4.55 Lakhs during the Financial Year 2025- 26 compared to the profit of Rs. 23.18 Lakhs incurred during the Financial Year 2024- 2025 due to sustaining business in the most economical and budget friendly manner.

Shelter Infra Projects Limited is confident that apart from the infrastructure job, real estate business particularly the residential projects will be a regular source for the company of cash inflow and profit. The company has also decided to hire different professional agencies having sufficient expertise in their respective field for making and marketing those real estate projects as proposed.

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

The Industrial Relations scenario continued to be cordial. The Company regards its employees as a great asset and accords high priority to training and development of employees.

NUMBER OF EMPLOYEES AS ON MARCH 31, 2026 WAS 12.

The information required pursuant to Section 197 of the Companies Act, 2013 (the Act) read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company has been disclosed.

RISKS AND CONCERNS

The company is involved in the construction of infrastructure projects. The company may face significant competition and margin pressures from its competitors depending on size, nature and complexity of the project and on the geographical region in which the project is to be executed. The failure to bid competitively may adversely affect its operations. Bidding high will mean it does not win contracts and bidding too low will mean incurring a loss, or operating at very thin margins.

ANNUAL REPORT 2025-26

SHELTER INFRA PROJECTS LIMITEDCIN: L45203WB1972PLC028349Reg off: ETERNITY BUILDING DN-1,SECTOR-V,SALT LAKE,KOLKATA,WEST BENGAL, INDIA, 700091

HUMAN RESOURCES

Human Resources continued to be one of the biggest assets of the Company. The management has been paying special attention to various aspects like training, welfare and safety and thereby further strengthening the human resources. Relations with the employees remained cordial throughout the year.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREOF

These are the significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof are as follows:

(i) Debtors Turnover (times) - No such significant changes in the ratio.(ii) Inventory Turnover (times) - No such significant changes in the ratio.(iii) Interest Coverage Ratio (times) - Significant changes in the ratio amounts to -66.10%(iv) Current Ratio (times) - No such significant changes in the ratio(v) Debt Equity Ratio (times) - No such significant changes in the ratio(vi) Operating Profit Margin (%) - No such significant changes in the ratio.(vii) Net Profit Margin (%) - Significant changes in the ratio amounts to -125.87%(viii) Return on Equity Ratio (%) - Significant changes in the ratio amounts to -123.13%(ix) Net Capital Turnover Ratio (times) - No such significant changes in the ratio.(x) Return on Capital Employed - Significant changes in the ratio amounts to -98.85%

CAUTIONARY STATEMENT

Statements in the Management Discussions and Analysis Report in regard to projections, estimates and expectation have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. Market data and product information contained in this Report have been based on information gathered from various published and unpublished reports, and their accuracy, reliability and completeness cannot be assured.

On behalf of the Board of DirectorsFor Shelter Infra Projects Limited

[Signature Image: Kamal Kishore Chowdhury]KAMAL KISHORE CHOWDHURY(WHOLE TIME DIRECTOR)DIN- 06742937

[Signature Image: Sankalan Datta]SANKALAN DATTA(DIRECTOR)DIN - 02478232

Date: 31.08.2026Place: KOLKATA