Hindustan Motors Limited’s Chief Executive Officer and Chief Financial Officer have issued a formal certificate certifying the unaudited financial results for the quarter ended June 30, 2026. This procedural step confirms that the reported net profit of ₹22 lakh and other financial metrics are free from material misstatements, omissions, or misleading information, providing assurance to investors and regulators regarding the accuracy of the disclosure.

The certificate, dated August 06, 2026, was signed by Prakash Sahu, Chief Executive Officer, and Mahesh Kumar Kejriwal, Chief Financial Officer. In their statement to the Board of Directors, the executives affirmed that the financial results present a true and fair view of the company’s affairs and are in compliance with existing accounting standards, applicable laws, and regulations. They further confirmed that no transactions entered into during the quarter were fraudulent, illegal, or violative of the company’s Code of Business Conduct and Ethics.

Certification Details

The CEO and CFO accepted responsibility for establishing and maintaining internal controls for financial reporting. They disclosed to the statutory auditors and the Audit Committee any deficiencies in the design or operation of these internal controls, along with steps taken or proposed to rectify them. The certification highlighted that there were no significant changes in internal control over financial reporting during the quarter.

Financial Context

This certification accompanies the company’s Q1FY27 results, which showed a net profit of ₹22 lakh, reversing a net loss of ₹429 lakh in the previous quarter. Total income stood at ₹94 lakh, driven primarily by other income, while total expenses were contained at ₹67 lakh. The Board of Directors approved these results pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, KAMG & Associates.

Operational and Legal Landscape

Despite the positive quarterly result, the statutory auditors issued a qualified opinion highlighting material uncertainty about the company’s ability to continue as a going concern, citing the lack of operations for an extended period. The Government of West Bengal resumed possession of the Uttarpara factory land in November 2022. Although the Supreme Court rejected the company’s petition against this resumption on July 16, 2025, Hindustan Motors plans to file a review petition seeking retention of a portion of the land under Section 6(1)(c) of the West Bengal Estates Acquisition Act, 1953. The company continues to explore new business avenues to capitalize on its remaining assets outside West Bengal.

Hindustan Motors Limited reported a net worth of ₹3,205.37 lakh for the financial year ended March 31, 2026, as accumulated losses reduced significantly from ₹25,218.07 lakh in March 2017. The company filed statements on the impact of audit qualifications with BSE Limited on June 11, 2026, confirming that the adjusted financial figures remained unchanged from the audited figures reported earlier. The statutory auditor, KAMG & Associates, issued a qualified opinion regarding the company's ability to continue as a going concern, citing the resumption of land by the Government of West Bengal and a lack of operations.

The company’s total income for FY26 stood at ₹1,226 lakh, while total expenditure was ₹395.87 lakh, resulting in a net profit of ₹14.98 lakh. The balance sheet shows total assets of ₹5,524.54 lakh and total liabilities of ₹2,319.17 lakh. Management attributed the reduction in losses to cost rationalisation following the suspension of work at the Uttarpara plant and the absence of external borrowings. The company stated it is debt-free regarding financial debt and has sufficient liquidity to meet its liabilities.

Financial Performance

The financial results for the year ended March 31, 2026, reflect a turnaround compared to the previous year. The company reported a basic and diluted earnings per share of ₹0.00. The exceptional items for the year included a write-off of ₹835 lakh related to the property, plant, and equipment resumed by the West Bengal government.

Audit Qualifications and Going Concern

KAMG & Associates, the statutory auditor, highlighted a material uncertainty regarding the company's status as a going concern. The qualification arose because the Government of West Bengal resumed possession of the Uttarpara factory land during the year, leading the company to write off the property. The auditor noted that the company has incurred losses and lacks long-term operations.

However, the management maintains the going concern basis based on several factors. These include plans to file a review petition to grant a portion of land under Section 6(1)(c) of the West Bengal Estates Acquisition Act, 1953, and the exploration of new business avenues. Additionally, the company emphasized that its net worth improved from a negative ₹1,632.50 lakh in March 2023 to a positive ₹3,205.37 lakh in March 2026.

Regulatory Disclosures

The Board of Directors approved the audited financial results on May 28, 2026. The company confirmed that it has no subsidiaries, associates, or joint ventures. The auditor also reported that the company has an adequate internal financial controls system over financial reporting that was operating effectively as of March 31, 2026. The filing was made in compliance with Regulation 33 of the SEBI (LODR) Regulations, 2015.