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Report Date : |
22.07.2013 |
IDENTIFICATION DETAILS
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Name : |
LUCKY RECYCLING LIMITED |
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Registered Office : |
Plot No. 050R 04 Street No. 712 Jebel Ali Free Zone PO Box 16850 Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.11.1988 |
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Legal Form : |
Branch of a Foreign Registered Corporation |
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Line of Business : |
Manufacture of secondary aluminium and brass ingots, as well as undertaking mechanical scrap processing. |
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No. of Employees : |
103 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Branch of a Foreign Registered Corporation |
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Payment Behaviour : |
No Complaints |
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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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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
LUCKY RECYCLING LIMITED
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
/
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
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
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
· Lucky Metals
International LLC
PO Box: 5328
Dubai
Tel: (971-4)
2216759
· Luck Metal FZE
Dubai
· Lucky Alloys Ltd
Dubai
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 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
·
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
No complaints regarding subject’s payments have been reported.
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 |
|
|
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 |
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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 |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.