The accumulated loss of beleaguered C K Birla group company Hindustan Motors stood at Rs.201 crore against a share capital of Rs.104.4 crore with the company saying that the prevailing conditions indicate “the existence of material uncertainty about HM’s ability to continue as a going concern.”
Stating this while taking on record the annual results, the company said with two of its units under work suspension (Uttarpara since May 24 and Pithampur since December 2014) the company’s future was now dependent of its ability to establishing profitable operations and sustainable cash flows. It said that the management was in the process of recasting operations.HM’s 2014-15 losses stood at Rs.41.9 crore while the quarterly loss was Rs.8.6 crore. The makers of the iconic Ambassador car has already made a reference to the BIFR. Income from operations stood at Rs.15.1 crore for the year. It shut operations at its mother unit at Uttarapara here due to low productivity and lack of demand exactly a year ago while it declared a lay off at its Pithampur plant due to lack of orders on December 4, 2014.
