Without doing too much, Hindustan Motors posts another loss

Hindustan Motors, India's oldest carmaker, has posted a net loss of Rs. 11.25 crore for the period April-September 2015.

In May 2014, Hindustan Motors suspended production of the Ambassador car at its Uttarpara plant. The company had declared itself a sick unit to the Board for Industrial and Financial Reconstruction (BIFR).

The company cited worsening conditions at the plant including very low productivity, growing indiscipline, critical shortage of funds, lack of demand for the Ambassador and large accumulation of liabilities for stoppage of production.

For the year 2014-15, the company recorded a loss of Rs. 41.90 crore. While it had accumulated losses of Rs. 201.01 crore till March 31, 2015, it had a share capital of Rs. 104.41 crore. The company’s current liabilities exceeded the current assets by Rs. 73.66 crore.

Hindustan Motors also went on to declare lay-offs at its Pithampur plant later in the year.

In a note to the accounts, Hindustan Motors has said "These condition indicate the existence of material uncertainty about the company's ability to continue as a going concern."

Source: Business Line