Spicejet Ltd has informed BSE that in the limited review report of the Company for the quarter ended December 31, 2007, the Auditors of the Company have made the following observations:

“The Auditor’s audit report dated May 24, 2007 on the Company’s 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 transactions originated in the years prior to 1996 and the Company has instituted legal proceedings to recover these amounts and / or extinguish these liabilities. Since the last audited financial statement, the amount of doubtful receivables has reduced by Rs 333 million. Considering the reduction in doubtful receivables and addition to the un-accrued interest, as explained in Note 6 of the unaudited financial results, the impact of these qualifications as at December 31, 2007 stands at Rs 306.43 million. Had these adjustments been recorded in the quarter ended December 31, 2007, the reported profit after tax of Rs 93.38 million would hove been negatively impacted by Rs 306.43 million.”