Amtek Introduction

Amtek Auto Ltd., an Indian auto-parts maker , incorporated

in the year 1988 having a market cap of Rs 1023.76Cr and
is one of the largest integrated automotive component
manufacturers in India with a strong global presence.

Amtek Auto (NSE: AMTEKAUTO, BSE: 520077) is

headquartered in New Delhi The Company has world class
facilities in India, Europe and North America.

The Company also manufactures components for non-auto

sectors such as the railways, specialty vehicles, aerospace,
agricultural and heavy earth moving equipment.

For the quarter ended 30-Jun-2015, the company has

reported a Standalone sales of Rs. 854.22 Cr., down by
-5.93% from last quarter Sales and down-12.73% from last
year same quarter Sales of Rs. 978.80 Cr.

Company has reported net profit after tax of Rs. -660.84 Cr

JP Morgan Chase

In 2002, JPMorgan Chase established its Global Service

Center in Mumbai, providing 24x7 middle- and back-office
support for every line of business at JP Morgan Chase.

In recent years, J.P.Morgan launched commercial banking in

India in 2007; in the same year, J.P. Morgan Asset
Management in India received a license to sell to retail
investors in the country and launched its first mutual fund,
the J.P.Morgan India Equity Fund.

Since 2008, through the financial crisis, J.P.Morgan has

helped raise more than US$20bn for Indian corporates
through domestic and international offerings.

Amtek Auto & JP Morgan

JP Morgan bought Amtek Auto papers forming two debt schemes

JP Morgan India Treasury Fund
JP Morgan Short term Income Fund
Data collated from the websites of the fund house, AMFI, showed
JP Morgan total exposure to Amtek is 200 crores
As of June 2015, JP Morgan MF had average assets under
management of Rs 14,684 crore. When this paper was issued
earlier this year, it was rated (AA-) by the ratings agency CARE

 Mid-August,
Amtek
reported temporary cash
flows mismatch, 39% share
price drop on a single day.
The
auto
components
company's stock lost 67%
in 3 weeks.
Credibility rating of the
Amtek bonds was slashed
was slashed from BRW
A+ to BRW C by
Brickwork Ratings.
The reference price of the
bond held by the two
JPMorgan
schemes
was
reduced
75% by
the
JP
Morgan to
restricted
redemption
of its two Amtek Auto debt
valuation agencies CRISIL &
schemes.
ICRA.
Withdrawals
have been limited to a percentage limit not
exceeding one per cent of the total number of units
outstanding on any business day

Amtek Auto Default

Amtek Auto defaulted payment in September 2015 on the 2

bonds held by JP Morgan.
Amtek defaulted on a total bond payments of 800cr.
Credibility rating of the Amtek Bonds was further slashed.
Amtek may stand out among the biggest corporate bond
defaults in years as its acquisition binge squeezed its cash
flows.
Amtek to initiate sale of it assets to create cash flow, and also
talks are being held with many banks to arrange repayments
outstanding matured bonds and soon-to-be matured bonds.
On a relative front, one of Amtek Auto subsidiary Castex
Technologies is under investigation for possible manipulation
of its share prices.

TRENDS

AUM growth in Indian Mutual Fund

industry
AUM
16
14
12
10

AUM

8
6
4
2
0

40513

40878

Source-AMFI

41244
41609
41974
AUM for Mutual Fund industry in India
saw a year-on-year growth of 21.04% in
the year ending March, 2015 [2]

 Mutual Fund industry saw net inflows

of Rs. 2.62 lakh crores in 11 months
starting from January, 2015 to
November, 2015
20

Net In
Net In

10
0

JAN' Feb Mar Apr May Jun Jul Aug Sep Oct Nov

ISSUES

ISSUES

Under-penetrated population
Inaccessibility in smaller towns and cities due to lack of an
efficient distribution network
Heavy reliance on institutional sales
Low financial literacy levels and
Cost pressures emanating as a result of inefficiencies in
systems and processes
Changing demographic trends
Regulatory issuesare a constant in our industry.
To explore new andinnovative channel strategiesin
their quest to grow.

SOME NEWS ARTICLES

MF Industry News

Mutual fund assets hit record Rs 16.11 trillion in September

quarter-4 oct 2016
Working to expand Mutual Fund distribution channels: Sebi
tells Amfi-27 sep2016
Report-7 per cent MF:GDP ratio as of 2015 compares to 114
per cent in Australia, 91 per cent in the US and 51 per cent
in the UK, it said offering a vast untapped opportunity for
MF houses, which can leverage technology to enhance
reach.
Motilal Oswal AMC has launched Motilal Oswal India Fund to
expand its footprints into international markets
Mutual Fund Distributors Allowed Subscription Of Sovereign
Gold Bonds
Yes Bank Gets Sebi Nod For Mutual Fund, AMC BusinessPrivate sector lender Yes Bank received an in-principle
approval from SEBI to sponsor a mutual fund and to set up

Contd.
Sebi Tightens Investment Norms For Debt
Funds The Securities and Exchange Board of
India (Sebi) has lowered the investment limit for
mutual funds in debt papers of a single company.
Under the new norms, debt funds can now invest
up to 10 per cent of their assets in debt papers of
a single issuer compared to earlier limit of 15 per
cent. It can be extended to 12 per cent on
approval of the trustees of the mutual fund. On
the sector level also, the limit has been lowered
to 25 per cent of the assets from 30 per cent
RBI Relaxes Norms for Distribution of
Mutual Fund Products by NBFCs