MIRA INFORM REPORT

 

 

Report Date :

22.07.2013

 

IDENTIFICATION DETAILS

 

Name :

LUCKY RECYCLING LIMITED

 

 

Registered Office :

Plot No. 050R 04 Street No. 712 Jebel Ali Free Zone PO Box 16850 Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

12.11.1988

 

 

Legal Form :

Branch of a Foreign Registered Corporation

 

 

Line of Business :

Manufacture of secondary aluminium and brass ingots, as well as undertaking mechanical scrap processing.

 

 

No. of Employees :

103

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Branch of a Foreign Registered Corporation

Payment Behaviour :

No Complaints

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

UAE

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

UAE - ECONOMIC OVERVIEW

 

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the country has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US; however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.

Source : CIA


 

 

SUMMARY

 

Company Name                                     : LUCKY RECYCLING LIMITED

Country of Origin                                    : British Virgin Islands

Legal Form                                            : Branch of a Foreign Registered Corporation

Registration Date                                   : 12th November 1988

Trade Licence Number                            : 447

Issued Capital                                        : UAE Dh 3,000,000

Paid up Capital                                      : UAE Dh 3,000,000

Total Workforce                                     : 103

Activities                                               : Manufacture of secondary aluminium and brass ingots, as well as

                                                              undertaking mechanical scrap processing.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Sabir Ali, Financial Controller

 

 

 


COMPANY NAME

 

LUCKY RECYCLING LIMITED

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Plot No. 050R 04

Street               : Street No. 712

Area                 : Jebel Ali Free Zone

 

PO Box             : 16850

 

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 8835250 / 8835454 / 2637000

Facsimile          : (971-4) 8835566 / 2611860 / 8835959

Email                : lucky@emirates.net.ae / info@luckygroup.com / adminga@luckygroup.com /

  marketing@luckgroup.com

 

Premises

 

Subject operates from a suite of offices, a warehouse and a factory covering an area of 2,500 square metres that are leased and located in the Jebel Ali Free Zone.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Sharjah                                                                                            Office & warehouse premises

United Arab Emirates

 

·       Muscat                                                                                             Office & warehouse premises

Oman

 

·       Al Mozana Building                                                                           Office & warehouse premises

Al Nahda Road

Dubai

Tel: (971-4) 2637000

Fax: (971-4) 2637000

 

 


KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Dilawar Hussein Ali Shabban                          Pakistani                      Chairman

 

·       Mohamed Iqbal Ali Shabban                           Pakistani                      Managing Director

 

·       Salim Razza Ali Shabban                              Pakistani                      Director

 

·       Mohamed Rafiq Hussein Shabban                  Pakistani                      Director

 

·       Razzan Shabban                                           Pakistani                      Director

 

·       Komir Reza                                                         -                            Sales Manager

 

·       Sabir Ali                                                              -                            Financial Controller

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 12th November 1988

 

Legal Form                  : Subject is the United Arab Emirates registered branch of Lucky Recycling Limited, a Limited

  Liability Company incorporated in the British Virgin Islands.

 

  Lucky Recycling Limited in the United Arab Emirates, operates as a Branch of a Foreign

  Registered Corporation. 

 

  A Branch of a Foreign Registered Corporation is not a legal entity in its own

  right. Responsibility for payments lays in the hands of the company where it is

  originally registered.

 

  Under these circumstances, we strongly advise that any international trade

  credit should only be written under the name of the main company where the

  subject holds its registered office, in this case the British Virgin Islands.

 

Trade Licence No.       : 447

 

Issued Capital              : UAE Dh 3,000,000

 

Paid up Capital            : UAE Dh 3,000,000

 

 


AFFILIATED COMPANIES

 

·       Lucky Metals International LLC

PO Box: 5328

Dubai

Tel: (971-4) 2216759

 

·       Luck Metal FZE

Dubai

 

·       Lucky Alloys Ltd

Dubai

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of secondary aluminium ingots (50%) and secondary brass ingots (5%).

 

Subject also undertakes mechanical scrap processing, grading, sorting and packaging of non-ferrous metal scraps (50%)

 

The scrap originates from Saudi Arabia, UAE, Kuwait, Qatar and Oman. Ingots come from Russia and the Far East.

 

Subject is a member of the “British Safety Council” and the “Bureau International de la Recuperation (BIR)”, a worldwide association of metal traders, manufacturers and processors, based in Belgium.

 

Production Capacity: The company operates a secondary aluminium smelter and a central scrap processing unit.

 

The furnace has an initial capacity of 500 metric tonnes per month, however this has now been upgraded to a capacity of 1,000 metric tonnes.

 

Import Countries: The Netherlands, the United Kingdom, Sweden, Germany and Belgium.

 

International Suppliers :

 

·       Count Metal Recycling                       Netherlands

·       Hunter Douglas Europe BV                Netherlands

·       Voss International Ltd                        United Kingdom

·       Stena Metal AB                                Sweden

·       W & O Bergemann                            Germany

·       Metalla Chimique                              Belgium

 

Operating Trend : Steady

 

Subject has a workforce of 103 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/11:                Year Ending 31/12/12:

 

Total Sales                                UAE Dh 290,000,000                  UAE Dh 376,948,823

 

Local sources consider subject’s financial condition to be Good.

 

The above figures were provided by Mr Sabir Ali, Financial Controller

 

 

BANKERS

 

·       Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

Tel: (971-4) 2229131 / 2221134

Fax: (971-4) 2233784

 

·       Habib Bank Ltd

Murshid Bazaar

PO Box: 888

Dubai

Tel: (971-4) 2221281

Fax: (971-4) 2284631

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.79

UK Pound

1

Rs.91.03

Euro

1

Rs.78.52

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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 and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

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.