Dear Shareholders,
 
 At Lok Housing, we believe that success is all about energy,
 determination, perseverance and team work, which has not only helped us
 in our efforts towards mitigating the difficult time, but also prepared
 us for taking your company into the next level. I sincerely express my
 gratitude to all stakeholders for reposing their trust and confidence
 in me and also for extending essential support. This has given me
 enough confidence to move forward pursuing the vision, mission and
 principles laid down by the founder Chairman, Late Shri Lalit Gandhi
 for the company and consolidating our activities.
 
 The overall economic scenario in the last year was not very
 encouraging. As far as the real estate industry is concerned, after a
 steady market conditions for couple of years, the last year has once
 again seen some sluggishness. Also, the process initiated by the
 Government of Maharashtra for amending the Development Control
 Regulations has resulted into tremendous delay in granting approvals
 for various real estate projects in Mumbai and this has also affected
 your company. I would like to mention that the recent amendments in the
 Development Control Regulations have brought transparency in the
 utilisation of Floor Space Index (FSI) in the city of Mumbai. Further,
 the recent proposal by the State Government to set-up an Housing
 Regulatory Body is a welcome move and hopefully would bring in greater
 transparency and accountability in real estate business.
 
 Update on operations
 
 We, at Lok Housing, will continue to focus our efforts to serve the
 people, meetings their housing aspirations - across all segments,
 especially the mass and affordable housing segment where the demand for
 quality homes is most pressing and urgent. Despite the slow down in the
 market conditions, affordable housing segment still continues to
 receive encouraging response for booking of flats.
 
 Despite various hurdles, your company has sustained its operations and
 performance during the last year. I had, in my earlier address to you,
 mentioned that your company has worked out some joint venture
 arrangement for the development of Phase-II of Lok Nirman project at
 Khar and the last phase of Lok Everest project at Mulund. I wish to
 inform you that we have already obtained necessary permissions for
 Phase-II of Lok Nirman and have recently launched the same in Joint
 venture with Rustomjee Group.  In the meanwhile, the company has also
 launched Phase-III of its popular housing project Lok Nagari at
 Ambernath in Joint Venture with Sankalp Realty Pvt Ltd and received
 very encouraging response for booking of flats. The last phase of Lok
 Everest project is also expected to be launched at the earliest.
 Launching of these projects has given ecessary impetus for accelerating
 the momentum in our activities, The company is also putting vigorous
 efforts not only in preserving its existing land bank but also creating
 value addition to it, which I am sure will result into ensuring
 sustainability and growth opportunities for the company in the years to
 come. I am also happy to inform you that the company had earlier
 settled and paid the entire dues of 20 banks and financial institutions
 and settlement process with only one remaining bank is expected to be
 achieved very shortly.
 
 Remaking of Mumbai
 
 The company is making vigorous efforts to promote the socio- economic
 cause of redevelopment of dilapidated buildings in the Island City of
 Mumbai and hopeful that the project will take some shape in the current
 year. Your company has substantial stake in the share holding of
 Remaking of Mumbai Development Ltd, which is the holding company for
 Remaking of Mumbai Housing Infrastructure & Finance Ltd (ROMHIF) which
 is involved in the implementation of redevelopment of dilapidated
 buildings in the Kalbadevi-Chira Bazar area. Though the commencement of
 this project may take some more time, but in the long-run, the company
 may reap immense benefits out of this project.
 
 On a concluding note
 
 Before I conclude, I take this opportunity to thank all our business
 associates, bankers, creditors, Government of Maharashtra, local
 governing bodies, and our valued customers for their continued support
 and co-operation. I would also extent my sincere thanks to the staff
 members for their support. Dear Shareholders, While expressing my
 gratitude to you all for your ungrudging support,
 
 I assure you that all efforts will be put in to bring back the glory
 that your company had enjoyed. I am confident that our road map for the
 future will be bright and a rewarding journey for all of us.
 
 Thank you.
 
 Darshan L. Gandhi