C K Birla quits as Hind Motors chairman
30 Dec 2013 3:42 AM IST
While Birla did not reply to reporters' queries after the company's annual general meeting (AGM), Managing Director and Chief Executive Officer Uttam Bose said that it was becoming very difficult for the company to manage daily operations due to poor cash flow. Saturday’s decision reflected Birla's thinking that his stepping down would pave the way for the entry of strategic investors and allow for greater flexibility during discussions, the company said in a statement.
Bose said the company needed to restructure the business by demerging the Chennai and Uttarpara operations for which Hindustan Motors was seeking strategic investors for both the units.
During the 18-month period under review beginning April, 2012 and ending September 2013, Hindustan Motors incurred a loss of Rs 71.20 crore compared to Rs 29.96 crore in financial year 2011-12.
The firm’s accumulated losses have exceeded its net worth at the completion of the extended financial year. Birla was appointed chairman of Hindustan Motors in November 1997. He has also relinquished the post of directorship in the company.
Bose said the company needed to restructure the business by demerging the Chennai and Uttarpara operations for which Hindustan Motors was seeking strategic investors for both the units.
During the 18-month period under review beginning April, 2012 and ending September 2013, Hindustan Motors incurred a loss of Rs 71.20 crore compared to Rs 29.96 crore in financial year 2011-12.
The firm’s accumulated losses have exceeded its net worth at the completion of the extended financial year. Birla was appointed chairman of Hindustan Motors in November 1997. He has also relinquished the post of directorship in the company.
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