MIRA INFORM REPORT

Report Date :

26.07.2013

IDENTIFICATION DETAILS

Name :	SWISS INTERNATIONAL AIR LINES LIMITED
Address of the principal place in India:	Urmi Estate, 10^th Floor, 95, Ganpatrao Kadam Marg, Lower Parel (West), Mumbai – 400013, Maharastra
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	21.03.2002
Shareholders Fund :	Rs. 43735.110 Millions
FCRN :	F02002
Legal Form :	Foreign Registry Company
Line of Business :	Subject is engaged in multiple services like Air Line Ticket Reservation Services, Tours, Travels, Aviation and Cargo Services.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 199900000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is foreign registered company having a moderate track record. The latest financials [2011 and 2012] are not available. As per old [2010], the financial position appeared satisfactory. As per indirect source the operating income of the company has increased during 2012 but the profits have fell drastically due to unfourable market conditions. However, trade relations are reported as fair. Business is active. Payment terms are unknown. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-67137200)

LOCATIONS

Registered Office :	P.O. Box , 8058 Zurich Airport, Switzerland
Tel. No. :	+41 848 773773
Fax No. :	+41 44 5642127
E-mail :	media@swiss.com
Website :	http://www.swiss.com
Address of the principal place in India:	Urmi Estate, 10^th Floor, 95, Ganpatrao Kadam Marg, Lower Parel (West), Mumbai – 400013, Maharastra, India
Tel. No. :	91-22-67137200 / 67137240 / 67137221 / 67137225
Fax No. :	91-22-67439230
Branch :	Located at · Austria Belgium Bulgaria Canada China Czech Republic Denmark Finland France Germany Greece Hong Kong Hungary Ireland Israel Italy Luxembourg Mexico Netherlands Norway Poland Portugal Romania Russia Serbia Singapore South Africa Spain Sweden Thailand Turkey United Kingdom USA

MANAGEMENT

Name :	Bruno Gehrig
Designation :	President
Date of Birth/Age :	67 Years
Name :	Stefan Lauer
Designation :	Vice President
Name :	Christoph Franz
Designation :	Member
Date of Birth/Age :	53 Years
Name :	Monika Ribar
Designation :	Member
Name :	Jacques Aigrain
Designation :	Member
Date of Birth/Age :	58 Years
Name :	Riccardo Gullotti
Designation :	Member
Name :	Martin Massüger
Designation :	Member

KEY EXECUTIVES

Name :	Harry Hohmeister
Designation :	Chief Executive Officer and Member of Management Board
Name :	Marcel Klaus
Designation :	Chief Financial Officer and Member of the Management Board
Name :	Rainer Hiltebrand
Designation :	Chief Operating Officer and Member of Management Board
Date of Birth/Age :	59 Years
Name :	Christoph Franz
Designation :	Director, Deputy Chairman of Deutsche Lufthansa and Chief Executive Officer of Deutsche Lufthansa
Date of Birth/Age :	53 Years
Name :	Alexander Arafa
Designation :	Head of Cabin Crew

BUSINESS DETAILS

Line of Business :

Subject is engaged in multiple services like Air Line Ticket Reservation Services, Tours, Travels, Aviation and Cargo Services.

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	R. P. Puri and Company Chartered Accountants
Address :	B-128, Lajpat Nagar-1, New Delhi – 110024, India
Tel. No. :	91-11-29816481 / 29813451
Mobile No. :	91-9810150867
Fax No. :	91-11-46575151
E-Mail :	rajiv@ruppuri.co.in
Related Parties :	· Swiss International Air Lines AG, Basel Swiss European Air Lines AG, Basel Swiss Aviation Training AG Swiss Aviation Software AG, Basel Crossair AG, Basel Cross Travel Club AG, Bases Ailines Marketing Services (A.M.S) Private Limited, Mumbai Swiss World Cargo India Limited, Mumbai Swiss Private Aviation AG, Zurich Global Brand Management AG, Basel

CAPITAL STRUCTURE

Shareholders Fund :

Rs. 43735.110 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

PARTICULARS	31.12.2010	31.12.2009	31.12.2008
SOURCES OF FUNDS
Shareholders funds	43735.110	43735.000	44331.000
Reseves and Surplus
Reserves & Surplus	49969.980	39002.000	52773.000
Loan Funds
Interest bearing liabilities	25667.640	31311.000	22419.000
TOTAL SOURCES OF FUNDS	119372.730	114048.000	119523.000
APPLICATION OF FUNDS
Fixed Assets
Aircrafts Fleet	112455.210	101396.000	76899.000
Property, plant and equipment	3822.840	4005.000	4244.000
Intangible assets	27852.120	28080.000	24726.000
	144130.170	133480.830	105869.000
Current assets, loans and advances
Fixed term Deposits	182.040	137.000	11348.000
Cash and cash equivalents	18204.000	18659.000	51758.000
Derivative assets	1592.850	1638.000	1937.000
Trade receivables	9784.650	10467.000	12409.000
Other receivables	17202.780	19069.000	4013.000
Inventories	5597.730	2139.000	923.000
Prepaid expenses and accrued incomes	2184.480	2685.000	2491.000
Deferred Tax Assets	45.510	46.000	46.000
Loans and other investments	3640.800	4187.000	4844.000
	58434.840	59026.000	89769.000
Less: Current liabilities and provisions
I. Current liabilities
Trade Payables	7736.700	7464.000	8165.000
Derivative liabilities	5279.160	2731.000	2445.000
Other payables	4778.550	3732.000	5905.000
Unearned transportation revenue	25576.620	24439.000	24311.000
Accrued expenses and prepaid income	25258.050	23847.000	21589.000
Employee benefit obligations	546.120	819.000	1384.000
Deferred Tax Liability	1456.320	637.000	738.000
ll. Provisions
Provisions	12560.760	14791.000	11579.000
	83192.280	78459.000	76115.000
Net Current assets	(24757.440)	(19433.000)	13654.000
TOTAL APPLICATION OF FUNDS	119372.730	114048.000	119523.000

PROFIT & LOSS ACCOUNT

PARTICULARS	31.12.2010	31.12.2009	31.12.2008
INCOME
Revenue from scheduled services	184816.110	164428.000	200758.000
Revenue from cargo services	23210.100	18978.000	27309.000
Revenue from charter services	91.020	4096.000	4659.000
Revenue from other operations	1638.360	1684.000	3644.000
Other Operating Income	7509.150	9375.000	6550.000
Gain on disposal of fixed and tangible assets	227.550	0.000	46.000
Financial Income	364.080	319.000	1107.000
Other Income	273.060	1001.000	0.000
	218129.430	199880.000	244074.000
EXPENDITURE
Cost of materials	75819.660	67264.000	90092.000
Cost of services	58480.350	58617.000	61261.000
Personnel Expenses	33677.400	32312.000	33767.000
Depreciation and amortisation	15154.830	12106.000	10102.000
Other operating expenses	17384.820	21617.000	24357.000
Financial Expenses	1001.220	774.000	969.000
Loss on Foreign Currency	637.140	228.000	415.000
	202155.420	192917.000	220963.000
Earnings before Income tax	15974.010	6963.000	23111.000
Income Tax	910.200	1047.000	2076.000
Profit / Loss for the year after tax	15063.810	5916.000	21035.000
Profit/loss attributable to minority interests	--	--	--
Balance Distributable Profits	15063.810	5916.000	21035.000

LOCAL AGENCY FURTHER INFORMATION

INDEX OF CHARGES : NO CHARGES EXIST FOR COMPANY

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	No
24]	Banking facility details	No
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

PRESS RELEASE

SWISS SEES OPERATING PROFIT FALL TO CHF 212 MILLION; AIRBUS A340S TO BE REPLACED WITH BOEING B777-300ERS

Zurich Airport, 14 March 2013

Swiss International Air Lines generated total income from operating activities of CHF 5,033 million in 2012, a 2% increase on the previous year (2011: CHF 4,927 million). But with the market environment still difficult, operating profit for the year fell 31% to CHF 212 million (2011: CHF 306 million). The CHF 27 million operating profit for the fourth quarter of 2012 was, however, an improvement on the CHF 18 million of the prior-year period. SWISS has also announced that its Airbus A340 fleet will be phased out from 2016 onwards. To this end, orders have been placed with Boeing for six Boeing B777-300ER aircraft.

Swiss International Air Lines generated total income from operating activities of CHF 5,033 million for 2012, a 2% increase on the CHF 4,927 million of the previous year. Annual operating profit declined 31%, however, to CHF 212 million. SWISS achieved an operating profit of CHF 27 million for the 2012 fourth-quarter period, a CHF 9 million improvement on the CHF 18 million of October-to-December 2011. “We continue to face strong business headwinds,” said CEO Harry Hohmeister commenting on the results. “But we did take a number of actions in the course of last year to improve our earnings performance.”

In response to the trends, SWISS has defined various future-oriented initiatives (SCORE) companywide to effect long-term structural improvements to its earnings capability. Some 64 of more than 120 actions defined so far made a significant contribution to SWISS’s earnings in 2012, and further such improvements are expected to have an impact of similar dimensions on 2013 earnings results. “Given the recent changes we have seen in our business and operating parameters, we must make these additional efforts if we are to retain our ability to fund our future investments,” Hohmeister emphasizes.

Airbus A340 fleet to be replaced with six Boeing B777-300ERs

SWISS will begin replacing its present long-haul aircraft fleet from 2016 onwards. To this end, orders have been placed for six Boeing B777-300ER aircraft. The decision to opt for Boeing’s successful 777 was taken after extensive evaluations. The six firm orders represent a total investment of more than CHF 1.5 billion.

The new Boeing twinjets will be deployed on SWISS’s ultra-long-range routes to destinations such as San Francisco, Los Angeles, São Paulo, Bangkok, Hong Kong, Shanghai, Beijing, Johannesburg and Singapore.

The Boeing B777-300ER incorporates proven sophisticated technology. The aircraft is extremely reliable, offers high cabin comfort levels and seats over 330. It also boasts per-seat fuel and CO2 savings of 23% over the A340.

“The Boeing B777-300ER has the ideal size and range to meet our Swiss market needs,” says CEO Harry Hohmeister. “And with many of our competitors already operating aircraft with over 300 seats on the routes concerned, this further investment in an advanced aircraft fleet is a landmark decision that is crucial to retaining our competitive edge.” The 777 is already in service elsewhere within the Lufthansa Group, too – at Austrian Airlines and, as of autumn 2013, it will be in use at Lufthansa Cargo.

Higher fourth-quarter earnings

SWISS’s total income from operating activities for the fourth quarter of 2012 amounted to CHF 1,219 million – virtually unchanged from the CHF 1,220 million of the prior-year period. Operating profit for the period rose 50%, from the CHF 18 million of the previous year to CHF 27 million. The fourth quarter of 2011 was, however, SWISS’s weakest in financial performance terms since its corporate restructuring of 2006.

Overall fourth-quarter capacity was 4% up on the prior-year period (down 0.4% in Europe and up 6.3% on the intercontinental network). SWISS operated a total of 36,757 flights, 1.2% fewer than a year before. Despite this, passenger numbers rose 0.2%, from 3.75 million to 3.76 million. Systemwide seat load factor amounted to 81.2%, an improvement of 0.3 percentage points. Seat load factor was unchanged for Europe at 72.5% and saw a slight 0.2-point increase to 85.4% for intercontinental routes. Capacity at Swiss WorldCargo was raised by a full 18.5% for the quarter. Cargo load factor (by volume) stood at 80.9%, an improvement of 1.6 percentage points.

Further in passenger volumes and seat load factor

Once again, SWISS set a new Swiss aviation record in 2012 for the annual number of passengers carried. Some 15,816,469 customers travelled with the airline, 3.3% more than the previous year (2011: 15,317,275 passengers). Annual capacity was increased 4.7% in available-seat-kilometre (ASK) terms, while total traffic volume in revenue

passenger-kilometres (RPK) was raised 6.1%. Seat load factor rose accordingly by 1.1 percentage points to 82.9%, another record value. A total of 150,860 flights were operated systemwide, a slight 0.5% increase on the previous year (2011: 150,131 flights).

On the intercontinental network ASK capacity was increased 5.8%, while RPK traffic volume rose 7.5%. The seat load factor of 87.1% was a 1.4-percentage-point improvement on the previous year. ASK capacity on SWISS’s European network was raised 2.4% for the year, while RPK traffic volume increased by 3%. Seat load factor rose 0.4 percentage points to 74.7%.

On the airfreight front, Swiss WorldCargo raised its total cargo tonne-kilometres for the year by 3%. Cargo load factor (by volume) stood at 79.3%, a 0.8-percentage-point improvement on 2011.

Key figures from the income statement

	Full year			4th quarter
in CHF million	2012	2011		2012	2011
Total income from operating activities	5,033	4,927	+ 2%	1,220	1,219	- 0.1%
Operating profit	212	306	- 31%	27	18	+ 50%

Traffic figures

	Full year			4th quarter
	2012	2011		2012	2011
Seat load factor for European services	74.7%	74.3%	+ 0.4 points	72.5%	72.5%	-
Seat load factor for intercontinental services	87.1%	85.7%	+ 1.4 points	85.4%	85.2%	+ 0.2 points
Seat load factor systemwide	82.9%	81.8%	+ 1.1 points	81.2%	80.9%	+ 0.3 points

Product and service enhancements

As a quality airline, SWISS is constantly reappraising and further expanding its range of products and services. Activities here in 2012 included the introduction of a new baggage collection service under which – for a fee – departing travellers can have their bags picked up from their home. In response to the growing popularity of booking online, SWISS also expanded the range of functions and facilities on its swiss.com website in the

course of the year. As a result, online customers can now reserve their flight at a guaranteed fare for up to 72 hours. A new seat selection option is now also available to customers booking online. And in addition to the “classic” out-and-back journey, customers can now use swiss.com to book “open-jaw” flights or itineraries with stopovers en route.

More jobs created in 2012 and new Singapore service for 2013

A total of 8,067 persons were employed by SWISS at the end of 2012 (2011: 7,644), or 6,790 in full-time-equivalent terms (2011: 6,326 FTEs). SWISS thus created around 460 new full-time positions in the course of the year. The company will continue to make securing jobs one of its prime priorities. The opening of the new Zurich-Singapore route alone in May 2013 will add some 150 positions to SWISS’s cockpit and cabin crew corps, along with further ground personnel. The new route will be operated daily from 12 May with an Airbus A340-300 seating 219 passengers in a three-class cabin configuration. The new non-stop service offers sizeable potential for both business and leisure travel and for cargo business, too. Advance bookings have been encouraging to date and in line with expectations. In adding its eighth destination in Asia, SWISS is continuing its long-term investment in the region.

Outlook

SWISS expects to see further high passenger volumes in 2013, and for the first two months these have been above expectations. The competitive environment remains tough, however; and, given the current global economic uncertainties, the company’s management anticipates another challenging business year. In view of the above, the company will continue to systematically devise actions companywide to generate additional revenues and further optimize costs. If business parameters remain constant the operating result for 2013 is likely to be similar to that of the previous year.

Swiss International Air Lines (SWISS) is Switzerland’s national airline, serving 69 destinations in 37 countries from Zurich, Basel and Geneva and carrying some 15 million passengers a year with its 91-aircraft fleet. The company’s Swiss WorldCargo division provides a comprehensive range of airport-to-airport airfreight services for high-value and intensive-care consignments to more than 150 destinations in over 80 countries. As the airline of Switzerland, SWISS embodies the country’s traditional values, and is committed to delivering the highest product and service quality. With its workforce of just over 8,060 personnel, SWISS generated total operating income of CHF 5.0 billion in 2012. SWISS is part of the Lufthansa Group, and is also a member of Star Alliance, the world’s biggest airline grouping.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.58.94
UK Pound	1	Rs.90.48
Euro	1	Rs.77.87

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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%)

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

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.