30/05/2012

: CRISIL Ratings :

October 28, 2010 Mumbai

NEGOLICE INDIA LIMITED

Rs.314.0 Million Term Loan B+/Stable (Reaffirmed)

C RISILs rating on the bank facilities of Negolice India Ltd (NGIL) continues to reflect NGILs significant dependence on customer advances for completion of its ongoing project on time; the project involves constructing a group housing society (Victoria Gardens). The company is also exposed to demand- and revenue-related risks because of slow recovery in the realty market. These weaknesses are mitigated by the established track record of NGILs promoters in the construction industry. Outlook: Stable C RISIL believes that the progress of NGILs ongoing project will continue to depend on timeliness in inflow of customer advances; NGILs cash accruals will also remain exposed to risks related to sale of property. The outlook may be revised to Positive if NGIL generates more-than-expected sales from the project, improving its cash accruals. C onversely, the outlook may be revised to Negative if NGILs cash accruals are adversely affected because of delays in advances from customers leading to time overrun in the project. Update In 2009-10 (refers to financial year, April 1 to March 31), NGIL got approval for increasing its projects floor area ratio (FAR) to 3.45 from 2.50. This led the company into constructing additional 100 dwelling units. Because of the increase in scale of the project, its completion is expected by the first quarter of 2011-12, against October 2010 estimated earlier. In 2009-10, construction moved in tandem with the pace of customer advances. Till March 2010 NGIL had spent around Rs.1.4 billion on construction and land development. Out of the 400 dwelling units planned, around 250 have been booked so far. The company had received customer advances of around Rs.1.4 billion till March 2010. About the Company NGIL is the flagship company of the M2K group. The company, formerly known as Prasidh Leasing Ltd, was incorporated in September 1983; its name was changed to the current one in June 1999. NGIL is constructing a group housing society, Victoria Gardens, on a 4.54-acre land plot. The project was launched in 2005. Victoria Gardens, having around 400 dwelling units, is strategically located in North Delhi, opposite the Azadpur metro station, on the ring road adjoining Model Town, Delhi. Media Contacts Mitu Samar Head, Market Development & C ommunications C RISIL Limited Tel: +91-22- 3342 1838 Email: msamar@crisil.com Tanuja Abhinandan Market Development & C ommunications C RISIL Limited Tel: +91-22-3342 1818 Email: tabhinandan@crisil.com Analytical Contacts Gurpreet S Chhatwal Director - C RISIL Ratings Tel: +91-11-4250 5100 Email: gchhatwal@crisil.com Manish Kumar Gupta Head - C RISIL Ratings Tel: +91-11-4250 5100 Email: mkgupta@crisil.com CRISIL Rating Desk Tel: +91-22-3342 3047 / 3342 3064 Email: CRISILratingdesk@crisil.com

Note: This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to C RISIL. However, C RISIL alone has the sole right of distribution of its rationales for consideration or otherwise through any media including websites, portals etc. CRISIL Complexity Levels are assigned to various types of financial instruments. The CRISIL Complexity Levels are available on www.crisil.com/complexity-levels. Investors are advised to refer to the CRISIL Complexity Levels for instruments that they propose to invest in. Investors can also call the CRISIL Helpline at +91 22 3342 3047 / + 91 22 3342 3064 with queries on specific instruments.

CRISIL is India's leading Ratings, Research, Risk and Policy Advisory company. CRISIL leverages its core strengths of credibility and analytical rigour to deliver opinions and solutions, that help clients mitigate and manage their business and financial risks, make markets function better, and help shape public policy. For more information, visit www.crisil.com. Disclaimer: A CRISIL rating reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL. CRISIL ratings are based on information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. All CRISIL ratings are under surveillance. Ratings are revised as and when circumstances so warrant. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this product. CRISIL Ratings rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. For the latest rating information on any instrument of any company rated by CRISIL, please contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (+91 22) 3342 3000.

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30/05/2012
October 28, 2010

: CRISIL Ratings :
contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (+91 22) 3342 3000. http://www.crisil.com

C RI SI L has revis ed its rating s ymbols and definitions with effec t from J uly 1 1 , 2 0 1 1 , to c omply with the SE BI c irc ular, S tandardis ation of Rating S ymbols and D efinitions . T he revis ed rating s ymbols c arry the prefix, C RI SI L . T he rating s ymbols for s hort-term ins truments have been revis ed to C RI SI L A 1 , C RI S I L A 2 , C RI SI L A 3 , C RI SI L A 4 , and C RI SI L D from the earlier P 1 , P 2 , P 3 , P 4 , and P 5 , res pec tively. T he revis ion in the rating s ymbols and definitions is not to be c ons trued as a c hange in the ratings . For details on revis ed rating s ymbols and definitions , pleas e refer to the doc ument, Revis ion of Rating S ymbols and D efinitions , at the link, http://www.crisil.com/ratings/credit-rating-scale.html

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