Hindustan Motors Approaches BIFR

NEW DELHI, INDIA (GaeaTimes.com)- One of the oldest car manufacturers of India Hindustan Motors is proving out to be a Timex watch in a digital age. Reportedly, Hindustan Motors net sales have witnessed a steady downfall by 50% which is a terrible blow to the Ambassador maker. As an obvious consequence, Hindustan Motors has approached BIFR (Board for Industrial and Financial Reconstruction) to fill up the dents in their financial structure and help them recover from their financial wreckage. The Chief General Manager for Hindustan MotorsSales And Marketing, Rattan Singh told the media that inspite of such a depressing situation of the company the ambassador sales have maintained a decent 55% sales rate with Hindustan Motors selling out 9000 units of the car.

Hindustan Motors stands at a net worth amounting Rs 164 crore which in accordance to the accumulated net loss which is said to be Rs 132 crore. In this regard Moloy Chowdhury who happens to the Vice President of Hindustan Motors told the media that Hindustan Motors as a car maker always strives to deliver quality products like no one else. He admits that it’s a hard time for Hindustan Motors but he is quite confident that they shall come out of the situation in no time with the interference of BIFR.

Hindustan Motors and its approach towards BIFR finds ground with the Sick Industrial Companies Act of 1985 Section 23 which urges companies facing financial wreckage to report the same to the board of BIFR. In the last year, the fiscal year audit results for Hindustan Motors witnessed the company hovering with a loss of 42.8 crores slotted against Rs 37.7 crore which is undoubtedly an alarming situation for the company which is planning out a strong financial policy to overcome the loss.