The revision in ratings reflects asset quality pressures on account of economic slowdown and difficult business conditions faced by Tata Finance in line with other NBFCs which has resulted in an increase in delinquencies in the various businesses of TFL, Crisil said.

In a statement, Crisil said that the VPIL rating reflects an adverse business risk profile on account of nascent stage of operations, low agricultural base as compared to funds deployed in operations, low operational cash inflows and large proportion of short term leasehold land out of its land holdings. The ratings also factor in the high financial risk associated with low capitalisation level, high cost of raising investors funds and significant quantum of short term funds which is likely to result in high dependence on fresh investors funds to meet itoperational expenses and repayment obligations in the short to medium term.

The UPFPL a high dependence on investor funds to meet its operational expenses, nascent stage of plantations, high financial risk characterised by low capitalisation level, high cost of raising investors funds and low operational cash inflows. ``The rating also factors in the uncertainties associated with the quality of teak wood promised through its plantations schemes due to long tenure of maturity of these schemes and the inherent vulnerability of these plantations to climatic conditions and vagaries of nature. These factors are only marginally offset by low repayment liability of the company in the short to medium term,'' Crisil said.

Surakshaya Green Gold rating indicates high degree of uncertainty that the collective investment scheme will provide the assured return in the form of produce and or cash. The rating reflects the high degree of uncertainty associated with the returns in the agricultural business, the company'searly stages of operations, low capitalisation levels and its dependence on incremental investor funds to meet repayment obligations.