Press Release

Press Release

July 07, 2025

POWER2SME PRIVATE LIMITED
Rating Downgraded,Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	20.52	ACUITE B+ \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	96.68	-	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
Total Outstanding	117.20	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

Acuité has downgraded the long-term rating from "ACUITE BB-" (read as ACUITE double B minus) to ‘ACUITE B+’ (read as ACUITE B plus) on the Rs. 20.52 Cr. bank facilities of Power2SME Private Limited (P2S).

Acuité has reaffirmed the short-term rating of 'ACUITE A4’ (read as ACUITE A four) on the Rs. 96.68 Cr. bank facilities of Power2SME Private Limited (P2S).

The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information. The rating has been downgraded on account of information risk and the company has not provided latest No Default Statement (NDS) for last 3 months consecutively.

About the Company

Power2SME Private Limited (Power2SME) is a private limited company incorporated in 2012. The company is engaged in the business of trading of Metals (majorly Steel & TMT), Polymers, Yarn, Chemicals etc and sells its product in domestic market. Headquartered in Gurugram, Power2SME has 5 offices spread across Mumbai, Chennai, Kolkata, Ahmedabad and Pune. The company is led and promoted by Mr. R. Narayan (Founder & CEO) with the support of marquee investors.

About the Group

Power2SME provides its B2B services through its digital ecosystem which delivers raw material procurement at competitive prices, MRO procurement, and access to finance to smaller SME’s with an objective to provide them with higher efficiencies and profitability. Power2SME functions as a 'buying club' and helps SMEs benefit from economies of scale as a result of volume purchase and buying power across a large network of manufacturers. The company has 2 wholly owned subsidiary companies named Jijo India Private Limited & Auriolus Finvest Private Limited. Jijo India Private Limited was incorporated in October 2012 and engaged in the business of trading of various products. Auriolus Finvest Private Limited was incorporated in October 2018 and engaged in lending to SME sector by extending working capital loans to them. Power2SME Private Limited (Power2SME) is a private limited company incorporated in 2012. The company is engaged in the business of trading of Metals (majorly Steel & TMT), Polymers, Yarn, Chemicals etc and sells its product in domestic market. Headquartered in Gurugram, Power2SME has 5 offices spread across Mumbai, Chennai, Kolkata, Ahmedabad and Pune. The company is led and promoted by Mr. R. Narayan (Founder & CEO) with the support of marquee investors.

Unsupported Rating

Not applicable

Non-cooperation by the issuer/borrower

Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

Limitation regarding information availability

This rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower) . Acuite endeavoured to gather information about the entity/industry from the public domain. Any rating with the suffix 'Issuer not cooperating' is assigned without any management interaction with the issuer entity or any data / information from the entity. Sometimes this non co-operation by a rated entity may be due to a result of deterioration in the credit risk profile of the entity. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

No information provided by the issuer / available for Acuite to comment upon.

Rating Sensitivities

No information provided by the issuer / available for Acuite to comment upon.

Liquidity Position

No information provided by the issuer / available for Acuite to comment upon.

Outlook: Not applicable

Other Factors affecting Rating

None

Key Financials:

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	677.68	1056.68
PAT	Rs. Cr.	-34.87	-28.52
PAT Margin	(%)	-5.14	-2.7
Total Debt/Tangible Net Worth	Times	1.61	2.05
PBDIT/Interest	Times	-1.22	-0.25

Status of non-cooperation with previous CRA

Not applicable

Any other information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm
• Trading Entitie: https://www.acuite.in/view-rating-criteria-61.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
31 Oct 2024	Bills Discounting	Short Term	80.39	ACUITE A4 (Downgraded from ACUITE A4+)
	Bills Discounting	Short Term	0.53	ACUITE A4 (Downgraded from ACUITE A4+)
	Bills Discounting	Short Term	0.45	ACUITE A4 (Downgraded from ACUITE A4+)
	Bills Discounting	Short Term	2.24	ACUITE A4 (Downgraded from ACUITE A4+)
	Bills Discounting	Short Term	3.22	ACUITE A4 (Downgraded from ACUITE A4+)
	Bills Discounting	Short Term	9.85	ACUITE A4 (Downgraded from ACUITE A4+)
	Cash Credit	Long Term	0.52	ACUITE BB- \| Stable (Downgraded from ACUITE BB+ \| Stable)
	Term Loan	Long Term	20.00	ACUITE BB- \| Stable (Downgraded from ACUITE BB+ \| Stable)
	Working Capital Demand Loan (WCDL)	Long Term	15.00	ACUITE Not Applicable (Withdrawn)
	Proposed Long Term Bank Facility	Long Term	2.86	ACUITE Not Applicable (Withdrawn)
	Working Capital Demand Loan (WCDL)	Long Term	5.00	ACUITE Not Applicable (Withdrawn)
03 Nov 2023	Bills Discounting	Short Term	3.73	ACUITE A4+ (Downgraded from ACUITE A3+)
	Bills Discounting	Short Term	22.51	ACUITE A4+ (Downgraded from ACUITE A3+)
	Bills Discounting	Short Term	9.26	ACUITE A4+ (Downgraded from ACUITE A3+)
	Bills Discounting	Short Term	11.50	ACUITE A4+ (Downgraded from ACUITE A3+)
	Bills Discounting	Short Term	4.77	ACUITE A4+ (Downgraded from ACUITE A3+)
	Cash Credit	Long Term	6.72	ACUITE BB+ \| Stable (Downgraded (Negative to Stable) from ACUITE BBB- \| Negative)
	Proposed Long Term Bank Facility	Long Term	61.57	ACUITE BB+ \| Stable (Downgraded (Negative to Stable) from ACUITE BBB- \| Negative)
	Working Capital Demand Loan (WCDL)	Long Term	5.00	ACUITE BB+ \| Stable (Downgraded (Negative to Stable) from ACUITE BBB- \| Negative)
	Working Capital Demand Loan (WCDL)	Long Term	15.00	ACUITE BB+ \| Stable (Downgraded (Negative to Stable) from ACUITE BBB- \| Negative)
04 Nov 2022	Bills Discounting	Short Term	25.00	ACUITE A3+ (Reaffirmed)
	Bills Discounting	Short Term	8.00	ACUITE A3+ (Reaffirmed)
	Bills Discounting	Short Term	30.00	ACUITE A3+ (Reaffirmed)
	Bills Discounting	Short Term	15.00	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	7.50	ACUITE BBB- \| Negative (Reaffirmed (Stable to Negative))
	Working Capital Demand Loan (WCDL)	Long Term	4.56	ACUITE BBB- \| Negative (Reaffirmed (Stable to Negative))
	Working Capital Demand Loan (WCDL)	Long Term	15.00	ACUITE BBB- \| Negative (Reaffirmed (Stable to Negative))
	Proposed Long Term Bank Facility	Long Term	35.00	ACUITE BBB- \| Negative (Reaffirmed (Stable to Negative))
24 Mar 2022	Bills Discounting	Short Term	25.00	ACUITE A3+ (Assigned)
	Bills Discounting	Short Term	8.00	ACUITE A3+ (Assigned)
	Bills Discounting	Short Term	15.00	ACUITE A3+ (Assigned)
	Bills Discounting	Short Term	30.00	ACUITE A3+ (Assigned)
	Cash Credit	Long Term	7.50	ACUITE BBB- \| Stable (Assigned)
	Working Capital Demand Loan (WCDL)	Long Term	4.56	ACUITE BBB- \| Stable (Assigned)
	Working Capital Demand Loan (WCDL)	Long Term	15.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	35.00	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Aditya Birla Finance Limited	Not avl. / Not appl.	Bills Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.45	Simple	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
SMC Moneywise Financial Services Pvt Ltd.	Not avl. / Not appl.	Bills Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.24	Simple	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
Credable Equentia Financial Services Pvt Ltd	Not avl. / Not appl.	Bills Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	9.85	Simple	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
Jiraaf: Alternative Fixed Income Investments	Not avl. / Not appl.	Bills Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	80.39	Simple	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
MAS Financial Service Ltd.	Not avl. / Not appl.	Bills Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.22	Simple	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
CSB Bank Limited	Not avl. / Not appl.	Bills Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.53	Simple	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
Axis Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.52	Simple	ACUITE B+ \| Downgraded \| Issuer not co-operating* ( from ACUITE BB- )
Jiraaf: Alternative Fixed Income Investments	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Apr 2027	20.00	Simple	ACUITE B+ \| Downgraded \| Issuer not co-operating* ( from ACUITE BB- )

* The issuer did not co-operate; based on best available information.

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr.No.	Company Name
1	Power2SME Private Limited
2	Auriolus Finvest Private Limited

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Nivedita Gokul
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

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