SpiceJet deposits TDS of Rs 100 cr for the last fiscal year

MUMBAI:

Airline SpiceJet, which recently received a Rs 900 crore infusion, has deposited the Tax Deducted at Source of about Rs 100 crore for all employees for the last fiscal year, according to an internal communication by CMD Ajay Singh.

The internal communication to employees also stated that form 16 will soon be available on the employee portal and salaries for the previous month have also been credited to all.

This month,SpiceJet had also secured Rs 160 crore through the Emergency Credit Line Guarantee Scheme (ECLGS), leaving it now with a substantial bank balance of Rs 900 crore.

Last week, SpiceJet had allotted shares and warrants amounting to a total of Rs 744 crore in the first tranche of its preferential issue. The decision was taken by the company's Board of Directors on January 25, marking a significant step in bolstering SpiceJet's financial position.

A source further said that the CMD will personally oversee all major expenditures.

"Every rupee will be meticulously scrutinised, with no expenditure permitted without prior approvals. Singh has issued a stern directive of 'perform or perish', making it clear that underperformers will face significant challenges in the revitalised SpiceJet," said the source.

An airline official said that with fund infusion, the company will prioritise fleet upgrades, enhance on-time performance, and a customer-centric approach.

"Additionally, a series of cost-cutting measures will be implemented to streamline operations and enhance efficiency. Company expects to raise substantial further capital in follow on rounds of financing," said the official.

SpiceJet is due to complete another tranche of equity/warrants raise from remaining subscribers and has requested additional time from the competent authority to complete the process under the ongoing preferential issue, as approved by the shareholders of the Company on January 10, 2024.

The extension is necessitated on account of limited banking days arising from long weekends during the intervening period.


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