MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	LUCKY RECYCLING LIMITED
Registered Office :	Plot No. 050R 04, Street No. 712, Jebel Ali Free Zone, P O Box 16850, Dubai
Country :	United Arab Emirates
Financials (as on) :	31.12.2013
Date of Incorporation :	12.11.1988
Legal Form :	Branch of a Foreign Registered Corporation
Line of Business :	· Engaged in the manufacture of secondary aluminium ingots and secondary brass ingots. Subject also undertakes mechanical scrap processing, grading, sorting and packaging of non-ferrous metal scraps
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
United Arab Emirates	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

United Arab Emirates 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 : 12^th 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

company 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@luckygroup.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 : 12^th 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 (Expires 16/06/2015)

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

· Lucky Star Alloys

PO Box: 40543
Doha
Qatar

Tel: (974) 44115311
Fax: (974) 44115332

· Fortune Metals (Associate Company)

Suite 201, 330 Hwy 7, East
Richmond Hill, Ontario
Canada L4B 3P8

Tel: (1-905) 7070786
Fax: (1-905) 7072390

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

· Dubai Aluminium (Dubal) Dubai

· Crown Emirates Dubai

Clients:

· Jindal Aluminium India

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 31/12/12: Year Ending 31/12/13:

Total Revenue UAE Dh 376,948,823 UAE Dh 378,500,000

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 AG Zurich

PO Box: 17786

Jebel Ali Free Zone

Dubai

Tel: (971-4) 8812828

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.62.21
UK Pound	1	Rs.97.80
Euro	1	Rs.77.48

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	MNL

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%)

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