3decades

MIRA INFORM REPORT

Report No. :	493808
Report Date :	24.02.2018

IDENTIFICATION DETAILS

Name :	G & W (SHANGHAI) ELECTRIC LTD.

Registered Office :	Building 1, 4, Factory No. 08 Lane 1505 Zuchongzhi Road, Zhangjiang High-Tech Park, Shanghai, China (Shanghai) Free Trade Test Area 201301 Pr

Country :	China

Financials (as on) :	31.12.2016

Date of Incorporation :	03.07.2006

Unified Social Credit Code :	913101157895640726

Legal Form :	Wholly Foreign-Owned Enterprise

Line of Business :	Subject registered business scope includes manufacturing cable terminations, the middle connector, current limiting protection and control systems, power distribution switches and related accessories, selling its owned products, providing related technical advice and services.

No. of Employees :	78

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate risk of default

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

China

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

CHINA - ECONOMIC OVERVIEW

Since the late 1970s, China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, growth of the private sector, development of stock markets and a modern banking system, and opening to foreign trade and investment. China continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.

After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.

The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.

The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. In recent years, China has renewed its support for state-owned enterprises in sectors considered important to "economic security," explicitly looking to foster globally competitive industries. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.

Source : CIA

Company name & address

COMPANY NAME	G & W (SHANGHAI) ELECTRIC LTD.
CURRENT ADDRESS/ REGISTERED ADDRESS	BUILDING 1, 4, FACTORY NO. 08 LANE 1505 ZUCHONGZHI ROAD, ZHANGJIANG HIGH-TECH PARK, SHANGHAI, CHINA (SHANGHAI) FREE TRADE TEST AREA 201301 PR CHINA
TEL. NO.	86 (0) 21-58958648-8027
FAX NO.	86 (0) 21-58958648-8027

EXECUTIVE SUMMARY

Date of Registration : July 3, 2006

UNIFIED SOCIAL CREDIT CODE : 913101157895640726

LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : David Allen Gizewicz (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : usd 5,800,000

staff : 78

BUSINESS CATEGORY : MANUFACTURING & TRADING

Revenue : CNY 102,950,000 (AS OF DEC. 31, 2016)

EQUITIES : CNY 62,060,000 (AS OF DEC. 31, 2016)

WEBSITE : www.gwelec.com.cn

E-MAIL : gwsales@gwelec.com.cn & skoul@gwelec.com

PAYMENT : regular

MARKET CONDITION : average

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under Unified Social Credit Code: 913101157895640726.

SC’s registered capital: usd 5,800,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2015-6-15	Registered Capital	usd 1,300,000	usd 5,800,000
--	Registration No./ Unified Social Credit Code	310115400199846	913101157895640726
2016-10-13	Legal Representative	James F. Solari	David Allen Gizewicz

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)

% of Shareholding

G & W Electric Inc. (U.S.A.)

100

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	David Allen Gizewicz
Director	John Joseph Saksa
Director	John Hane Mueller

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

G & W Electric Inc. (U.S.A.) 100

----------------------------------

Web: www.gw-electricinc.com

E-mail: webmail@gwelec.com

Since 1905, G&W Electric has helped power the world with innovative power systems solutions and products. With the introduction of the first disconnectable cable terminating device in the early 1900s, G&W began to build a reputation for engineering creative solutions to meet the needs of systems designers. Solutions which today have extended far beyond cable accessory products and into the latest in solid dielectric and SF6 insulated switchgear, solid dielectric insulated reclosers, system protection equipment, distribution automation solutions, and distribution and transmission cable accessories.

MANAGEMENT

David Allen Gizewicz, Legal Representative and Chairman

-----------------------------------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

At present, working in SC as legal representative and chairman

Director

---------

John Joseph Saksa

John Hane Mueller

BUSINESS OPERATION

SC’s registered business scope includes manufacturing cable terminations, the middle connector, current limiting protection and control systems, power distribution switches and related accessories, selling its owned products, providing related technical advice and services.

SC is mainly engaged in manufacturing and selling electrical equipment.

Brand: G&W

SC’s products mainly include: underground distribution switches, overhead distribution switches, current limiting system protection, distribution & transmission cable accessories, junction bars, etc.

SC sources its materials 100% from domestic market, mainly Shanghai. SC sells 65% of its products in domestic market, and 35% to overseas market, mainly U.S.A., Europe, Mid East, Southeast Asia, etc.

The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.

*Major Customers*

----------------------

Werner Co.

Light & Power Co.

Staff & Office:

--------------------------

SC is known to have approx. 78 staff at present.

SC rents an area as its operating office and factory, but the detailed information is unknown.

RELATED COMPANY

G & W Canada Corporation

7965 Heritage Road

Brampton, Ontario L6Y 5X5 Canada

Manufacturer's Brass & Aluminum Foundry, Inc.

Web: http://www.mbaf.us/

Telephone: 708.388.6363

Fax: 708.388.9926

Survalent Technology

Corporate Headquarters

7965 Heritage Road

Brampton, Ontario L6Y 5X5

Canada

Telephone: 905-826-5000

Fax: 905-826-7144

Web: http://www.survalent.com

Etc.

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment and our debt collection record concerning SC.

Trade payment experience: SC did not provide any name of trade/service suppliers and we have no other sources to conduct the enquiry at present.

Delinquent payment record: None in our database.

Debt collection record: No overdue amount owed by SC was placed to us for collection within the last 6 years.

BANKING

The bank information of SC is not filed in SAIC.

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2016
Cash	30,150
Notes receivable	1,500
Accounts receivable	33,730
Advances to suppliers	80
Other receivable	880
Inventory	5,660
Non-current assets within one year	0
Other current assets	430
	------------------
Current assets	72,430
Fixed assets	3,500
Construction in progress	0
Intangible assets	170
Long-term investment	0
Long term deferred expenses	1,310
Deferred income tax assets	0
Other non-current assets	0
	------------------
Total assets	77,410
	=============
Short-term loans	0
Notes payable	0
Accounts payable	5,820
Payroll payable	370
Taxes payable	-600
Advances from clients	290
Other payable	1,100
Other current liabilities	8,370
	------------------
Current liabilities	15,350
Non-current liabilities	0
	------------------
Total liabilities	15,350
Equities	62,060
	------------------
Total liabilities & equities	77,410
	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2016
Revenue	102,950
Cost of sales	71,770
Sales expense	8,790
Management expense	13,940
Finance expense	-2,530
Non-operating income	440
Non-operating expense	770
Profit before tax	10,580
Less: profit tax	1,410
Profits	9,170

Important Ratios

=============

	As of Dec. 31, 2016
*Current ratio	4.72
*Quick ratio	4.35
*Liabilities to assets	0.20
*Net profit margin (%)	8.91
*Return on total assets (%)	11.85
*Inventory / Revenue ×365	21 days
*Accounts receivable / Revenue ×365	120 days
*Revenue / Total assets	1.33
*Cost of sales / Revenue	0.70

FINANCIAL COMMENTS

PROFITABILITY: FAIRLY GOOD

The revenue of SC appears fairly good in its line.

SC’s net profit margin is fairly good.

SC’s return on total assets is fairly good.

SC’s cost of sales is average, comparing with its revenue.

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a fairly good level.

SC’s quick ratio is maintained in a fairly good level.

The inventory of SC appears average.

The accounts receivable of SC appears large.

SC has no short-term loans.

SC’s revenue is in an average level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

The debt ratio of SC is low.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

SC is considered medium-sized in its line with fairly stable financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.82
UK Pound	1	INR 90.40
Euro	1	INR 79.76
CNY	1	INR 10.24

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRA

Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.