Hindustan Motors reports net loss at Rs 15.51 cr for Dec qtr

C K Birla Group company Hindustan Motors has reported net loss at Rs 15.51 crore for the quarter ended December 31.
The company known for its popular Ambassador range of cars, had reported net profit of Rs 20.36 crore during the same period of previous year, Hindustan Motors Ltd said in a BSE filing.
The company said that the financial year 2013-14 will be for six month period from October 1, 2013 to March 31, 2014.
Total income from operations for the quarter ended December 31, 2013 slipped to Rs 88.14 crore from Rs 114.19 crore registered during the same period of previous year.

During the quarter ending December 31, 2013 the company said its Board in their meeting approved the withdrawal of the scheme of arrangement for demerger of Chennai car plant and decided to divest it as a "going concern" subject to necessary approvals.
The results include profit/loss from discontinuing of the Chennai car plant of the company which is to be divested, it said.

The operating results have been adversely affected due to the adverse market conditions and the accumulated losses of the company as of September 30, 2013 (being the date of last audited financial statements) exceeded its net worth of Rs 39.16 crore.

Also, the current liabilities as at September 30, 2013 exceeded current assets by Rs 155.34 crore.
"These conditions indicate existence of an uncertainty that may cast doubt about the company's ability to continue as a going concern unless the company establishes positive cash flows or profitable operations", it said.
"The management is in the process of taking necessary measures to augment the networth and to improve the operating results including but not limited to sale of certain manufacturing facilities including Chennai Car Plant", it said.