Crisil has said that the dependence of plantation companies on further inflow of deposits is going to continue to increase progressively in order to provide assured returns to investors in a timely manner.

Subsequent to announcing its criteria and methodology for rating of the schemes of plantation companies, Crisil has assigned ratings for more than 25 such companies. All the ratings assigned by Crisil so far have been Grade-V, which is the lowest on the rating agency's scale. The rating indicates high uncertainty that the collective investment scheme will provide the assured returns. The risk factors for such schemes are extremely high leading to a high expectation of default on obligations.