New Delhi: Hindustan Motors, maker of the iconic Ambassador car, Wednesday said its board has approved plans to sell the forge and foundry shops at its Uttarpara plant in West Bengal.
The Board of Directors at its meeting held on October 30, 2013, approved divestment of the whole or part of the business /interests of the company in the forge shop and foundry shop at Uttarpara, West Bengal, Hindustan Motors said in a filing to the BSE.
The divestment will be subject to approvals of lenders and other approvals as may be required and on such terms and conditions as may be deemed fit by the Managing Director of the company, it added.
The Uttarpara plant rolls out the Ambassador car and Winner light commercial vehicles along with spare parts, forgings, stamping and castings.
The company further said its period of financial year 2013-14 will be for six months from October 1, 2013 to March 31, 2014.
Hit by declining sales, Hindustan Motors has been struggling financially. Its auditors, SR Batliboi & Co, had in the limited review report noted that "the entire net worth of the company stands eroded".
In the quarter ended June 30, 2013 the company had posted posted a net loss of Rs 26.26 crore, while its net sales were at Rs 92.41 crore.
Earlier this year, the company's board had also approved the demerger of its Chennai car plant that manufactures Cedia, Pajero, Pajero sport, Montero and Outlander brands from its Japanese partner Mitsubishi Motors Corporation, to a wholly-owned subsidiary, Hindustan Motor Finance Corporation.
