Amtek Auto Corporation Strategy

The Group is a leading supplier of engines, transmissions and suspension parts, parts and systems operating in India, Germany, UK and USA. This group is one of the world's largest manufacturers of flywheel ring gears and one of the leading manufacturers of piston connecting rod modules and transmission forks in India. The group is also one of the largest manufacturers of small and medium forgings in China and is the second largest manufacturer of forgings in India. ■ Amtek Auto is the main company of the group ■ Amtek India Ltd is engaged in the manufacture of gear transmission forks and yokes Amtek Siccardi is a group joint venture.

In the past, the JP Morgan Chase India Short-term Income Fund and the JP Morgan Chase India Finance Fund were the first to bear the first part of Amtek Auto's bond holdings. The safety of Amtek Auto was evaluated as crap, and the fund was decided to be emphasized by the market value. Due to the shortage of buyers, the Fund could not sell the shares. At the same time it is important to note that there is no risk of time deposits. Investment in well-known banks may be relatively safe, but you should avoid entrusting hard-earned money to a partner bank that is weak and weak. Many cooperative banks in India are going bankrupt in the past, so it is best to stop it.

Amtek Auto Episode has opened the eyes of many people. Only the fund company JP Morgan Chase can answer the value I saw when financing Amtek Auto. Interestingly, the fund company recently sold its business to Edelweiss Mutual Fund. JP Morgan Chase acquired Amstock Auto's secondary market bonds from Axis Bank. So, it moves these bonds from one plan to another, why? Only existing fund companies can answer. Mutual fund investors may wonder if the mutual fund company is a member of "contract"? Companies with problems may offer higher yields of 300 basis points to 400 basis points (3-4 percentage points) than the rate of comparable time deposits offered by banks to depositors, but that much Is there value? Given the concentration of risks that mutual funds bring to individual companies and industries, it is always a risky business. Furthermore, lending between groups (loans from investment trusts to companies of the same sponsor group) are not uncommon.

Last year, we had two major problems in the bond mutual fund market, due to default of debt of the bonds. The first problem occurred when Amtek Auto defaulted the bond and JP Morgan Chase AMC, which holds a large number of these bonds, temporarily ceased redemption of funds. Recently, Jindal Steel and Power Co., Ltd. (JSPL) was downgraded to garbage as it is anticipated that debt issuance of 3,700 rupees will be defaulted. Franklin Templeton and ICICI Prudential Group make up the bulk of this bond