According to Crisil, the Grade V rating reflects very high overall risk profile characterised by negligible inflows from operations, extremely high leverage due to dependence on retail deposits, high costs of raising deposits, ambitious real estate development projects, high capital outlay of various projects and absence of any demonstrated track record of the management in implementing projects.

Raising the issue of safety of investors funds, Crisil said the financial structure of the company is characterised by near total absence of equity and large investor deposits. The company has an elaborate fund mobilisation set-up with an extensive chain marketing system of about 6 lakh members.