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MIRA INFORM REPORT
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Report No. : |
497353 |
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Report Date : |
10.03.2018 |
IDENTIFICATION DETAILS
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Name : |
LUCKY RECYCLING
LIMITED |
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Branch Office : |
Plot No. 050R 04,
Street No. 712, Jebel Ali Free Zone, P O Box: 16850, Dubai |
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Country : |
United Arab
Emirates |
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Financials (as on) : |
31.12.2016 |
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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 : |
· Subject is 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%) |
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No. of Employees : |
103 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Branch of a
Foreign Registered Corporation |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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United Arab Emirates |
A2 |
A2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 from the oil and gas sector to 30%.
Since the discovery of oil in the UAE nearly 60 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 2008-09, 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 Government that was refinanced in March 2014.
The UAE’s dependence on oil is a significant long-term challenge. Low oil prices have prompted the UAE to cut expenditures, including on some social programs, but the UAE has sufficient assets in its sovereign investment funds to cover its deficits. The government reduced fuel subsidies in August 2015, and has announced plans to introduce excise and value-added taxes by January 1, 2018. The UAE's strategic plan for the next few years focuses on economic diversification, promoting the UAE as a global trade and tourism hub, developing industry, and creating more job opportunities for nationals through improved education and increased private sector employment.
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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 : Regular
Operating Trend : Steady
Person Interviewed : Sabir
Ali, Financial Controller
COMPANY
NAME
LUCKY RECYCLING
LIMITED
ADDRESS
Branch Office 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 / 8835258 / 8835454 /
2637000
Facsimile : (971-4) 8835566 / 2611860 / 8835959
Email : lucky@emirates.net.ae / info@luckygroup.com / adminga@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
·
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.
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
· 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 31/12/15: Year Ending
31/12/16:
Total Sales UAE Dh
381,865,000 UAE Dh
382,450,000
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
Subject’s payments
have been reported to be regular
GENERAL
COMMENTS
The subject and its
shareholders/owners have been searched in the following databases; Office of
Foreign Assets Control (OFAC), United Nations Security Council Sanctions,
Australian Sanctions List, US Consolidated Sanctions List, EU Financial
Sanctions List and UK Financial Sanctions List and nothing adverse could be
found on the exact names listed within the report.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.08 |
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1 |
INR 89.85 |
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Euro |
1 |
INR 80.16 |
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UAE DH |
1 |
INR 17.70 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.