Spicejet Ltd has informed BSE that in the limited review report of the Company for the quarter ended September 30, 2007, the Auditors of the Company have made the following observations:

“The Auditors audit report dated May 24, 2007 on the Company financial statements for the period ended March 31, 2007 was qualified in respect of certain disputed and therefore, doubtful receivables and non-accrual of interest on certain liabilities aggregating to 624.15 million. These matters are detailed in the Company in Note 6 of the accompanying unaudited financial results and detailed in paragraph 5 of the said audit report. Considering the reduction in doubtful receivables and addition to the un-accrued interest, as explained in Note 6 of the accompanying unaudited financial results, the impact of these qualifications as at September 30, 2007 stands at Rs 298.15 million. Had these adjustments been recorded in the quarter ended September 30, 2007, the loss after tax would have been higher by Rs 298.15 million.”