Hindustan Motors Ltd said that it would report itself to the Board for Industrial and Financial Reconstruction as its net worth had eroded by more than 50% during the past four financial years. This is likely to happen around the middle of this calendar year.

Hindustan Motors in a notification to the National Stock Exchange said that “The company will report to the Board for Industrial and Financial Reconstruction about such erosion of net worth as envisaged under Section 23 of the Sick Industrial Companies (Special Provisions) Act, 1985, forthwith upon finalization of audited accounts of the company at its annual general meeting.”

A company official said that “Unlike a situation where a company's net worth is fully eroded and it approaches BIFR for re structuring, in our case we only have to report to BIFR, as the net worth has eroded more than 50%. We will take the necessary steps and are working on a detailed package.”

(Sourced from BS)