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We wish to draw your attention towards news item published by DNA on January 14, 2015
titled “SpiceJet diverts Rs.875 Crore to sister companies”.
The story referred to above is defamatory and highly prejudicial to SpiceJet’s standing
as a professionally run airline.
The article in question defames SpiceJet and lower its reputation in the eyes of its
customers, staff, investors and the public at large. The imputations made in the
article are distorted and highly damaging to our standing as an ethical corporate
citizen, it also reveals level of ignorance on the reporter's part and the abysmal
quality of the editorial oversight, which we will separately take up with the
publishers.
In the interest of the all stakeholders SpiceJet clarifies and places on record as
under:
- The Company has entered into agreements with
group-company only to extent required for its joint marketing and media purchasing
activities. These have been done after obtaining requisite approval of statutory
authorities and in full compliance of the law of the land.
- Presumably, the opinion formed in the media report is
based upon various filing made by the Company in the past to the Registrar of
Companies in pursuance of the requirements under the then Section 297 of the
Companies Act. However, there is nothing materially significant at this stage or
have been in the past. By the correspondent’s own admission in the report, the
agreement document cited are draft agreements which is a basis for seeking any
regulatory approval and nothing significant to the tune of Rs.875 crore mentioned
in the report have been auctioned by the Company.
- It is pertinent to note that for all the related party
transaction entered into by the Company under such arrangement, the aggregate value
of transaction for all the Financial Year 2011-12, 2012-13 and 2013-14 taken
together is merely Rs.36.63 Crore and is completely insignificant to the amount
reported in the media report. This information is easily verifiable. The Sun Group
has a commanding presence in television, print and radio broadcasting and is a
dominant player in most of its chosen market segments. It is by natural progression
that SpiceJet would use the reach of Sun Group's reach to communicate to our
customers about our products and services.
- The Company operates independently and on its own in a
very professional manner and any possibility of extending or receiving any special
treatment in terms of commercial terms for any of the group companies is completely
misconceived. Execution/extension of any arrangement is a commercial decision based
on arm’s length and has no other bearing to the same.
- While the media report is basing the conjecture basis
draft agreements, the report has completely ignored the basic understanding of the
companies act and filings made there-under and also the publicly available
information under annual reports of the Company, which should be the starting base
for any such information reporting
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