MIRA INFORM REPORT

 

 

Report No. :

353698

Report Date :

12.12.2015

 

IDENTIFICATION DETAILS

 

Name :

LUCKY RECYCLING LIMITED

 

 

Registered Office :

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

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

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 Employee :

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 :

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. The country's free trade zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis of 2008, 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 and ultimately a $20 billion bailout from the UAE Central Bank and Abu Dhabi-emirate government that was refinanced in March 2014. 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 economic diversification and creating more job opportunities for nationals through improved education and increased private sector employment.

 

Source : CIA

 

 

IDENTIFICATION & CONTACT DETAILS

 

1) Name (s):

Organization Official Name

:

LUCKY RECYCLING LIMITED

 

2) Registered Address:

Address

:

Plot No. 050R 04Street No. 712Jebel Ali Free Zone

Town

:

Dubai

Country

:

United Arab Emirates

PO Box

:

16850

Phone (s)

:

(971-4) 8835250

 

 

(971-4) 8835454

 

 

(971-4) 2637000

Facsimile

:

(971-4) 8835566

 

 

(971-4) 2611860

 

 

(971-4) 8835959

Email

:

lucky@emirates.net.ae

 

 

info@luckygroup.com

 

 

adminga@luckygroup.com

 

 

marketing@luckygroup.com

 

3) Operational Address & Contact Details:

Address

:

Plot No. 050R 04Street No. 712Jebel Ali Free Zone

Town

:

Dubai

Country

:

United Arab Emirates

PO Box

:

16850

Phone (s)

:

(971-4) 8835250

 

 

(971-4) 8835454

 

 

(971-4) 2637000

Facsimile

:

(971-4) 8835566

 

 

(971-4) 2611860

 

 

(971-4) 8835959

Email

:

lucky@emirates.net.ae

 

 

info@luckygroup.com

 

 

adminga@luckygroup.com

 

 

marketing@luckygroup.com

Note:

Please note that subject’s PO Box number is 16850 and not 16858.

 

 

LEGAL FORM & INCORPORATION (REGISTRATION) DETAILS

 

Legal Form - Category

:

Branch of a Foreign Registered Corporation

Date of Registration

:

12th November 1988

Trade License Number

:

447

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.

Note:

  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. 
  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.

 

KEY FACTS

 

Operational Status

:

Steady

Financial Condition

:

Good

Primary Business Activity

:

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

Number of Employees

:

103

Capital

:

UAE Dh 3,000,000

Note:

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.

 

CAPITAL DETAILS

 

Issued Capital:

No of Shares

No of Shares

Amount

N/A

N/A

UAE Dh 3,000,000

 

Paid Up Capital:

No of Shares

No of Shares

Amount

N/A

N/A

UAE Dh 3,000,000

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

Currency: United Arab Emirates Dirham (UAE Dh)

 

Year Ending 31/12/13

Year Ending 31/12/14

Total Sales

UAE Dh 378,500,000

UAE Dh 380,240,000

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

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

 

BANKERS

 

1

Name

Mashreq Bank Plc

 

Address

Deira Branch

 

Po Box

1250 Dubai

 

 

 

Tel

(971-4) 2229131

 

 

(971-4) 2221134

 

Fax

(971-4) 2233784

 

2

Name

Habib Bank AG Zurich

 

Po Box

17786 Jebel Ali Free Zone Dubai

 

Tel

(971-4) 8812828

 

BRANCH OFFICES

 

1

Name

Al Mozana Building

 

Address

Al Nahda Road Dubai

 

Tel

(971-4) 2637000

 

Fax

(971-4) 2637000

 

Description

Office & warehouse premises

 

2

Name

Sharjah

 

Address

United Arab Emirates

 

Description

Office & warehouse premises

 

3

Name

Muscat

 

Address

Oman

 

Description

Office & warehouse premises

 

SENIOR MANAGEMENT

 

Sr.No

Name

Nationality

Dsignation

1

Dilawar Hussein Ali Shabban

 Pakistani

Chairman

2

Mohamed Iqbal Ali Shabban

 Pakistani

Managing Director

3

Salim Razza Ali Shabban

 Pakistani

Director

4

Mohamed Rafiq Hussein Shabban

 Pakistani

Director

5

Razzan Shabban

 Pakistani

Director

6

Komir Reza

n/a

Sales Manager

7

Sabir Ali

n/a

Financial Controller

 

AFFILIATED COMPANIES

 

1

Name

Lucky Metals International LLC

 

PO Box

5328 Dubai

 

Tel

(971-4) 2216759

 

2

Name

Luck Metal FZE

 

City/Country

Dubai

 

3

Name

Lucky Alloys Ltd

 

City/Country

Dubai

 

4

Name

Lucky Star Alloys

 

City/Country

40543 Doha Qatar

 

Tel

(974) 44115311

 

Fax

(974) 44115332

 

5

Name

Fortune Metals (Associate Company)

 

City/Country

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

 

Tel

(1-905) 7070786

 

Fax

(1-905) 7072390

 

INTERNATIONAL TRADE ACTIVITY MARKETS

 

Sr.No

Country

Activity

1

The Netherlands

Import

2

United Kingdom

Import

3

Sweden

Import

4

Germany

Import

5

Belgium

Import

 

International Suppiers

Sr.No

Name

Country

1

Count Metal Recycling

Netherlands

2

Hunter Douglas Europe BV

Netherlands

3

Voss International Ltd

United Kingdom

4

Stena Metal AB

Sweden

5

W & O Bergemann

Germany

6

Metalla Chimique

Belgium

7

Dubai Aluminium (Dubal)

 

Dubai

 

8

Crown Emirates

Dubai

 

Clients:

Sr.No

Name

Country

1

Jindal Aluminium

India

 

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.

 

PAYMENT

 

Regular

 

ADVERSE DATA

 

Performance Defaults

:

No record found

Payment Defaults

:

No record found

Adverse Press Coverage

:

No record found

Litigations

:

No record found

Former Business Relationships

:

No record found

 

INVESTIGATOR'S COMMENTS

 

Person Interviewed   : Sabir Ali, Financial Controller

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.66.79

UK Pound

1

Rs.101.10

Euro

1

Rs.73.10

DH

1

Rs.18.28

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TRU

 

 

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.