Special audit report on Amtek Auto likely by next week:Bankers

Lenders to the crisis-ridden Amtek Auto will soon decide on a corrective action plan (CAP) based on a special audit report likely to be submitted in the coming week.
After the company landed in a financial soup, bankers had entrusted the mandate of conducting a special audit to TR Chadha and Co., a city-based auditing and accounting firm.
The New Delhi-based auto component maker had defaulted on repayment of Foreign Currency Bonds (FCCBs) worth Rs 800 crore last month, signalling a crisis.
There are over 80 investors in the now-defaulted bonds.
The domestic subscribers to the bonds include Axis Bank, Karur Vysya Bank, Syndicate Bank, and Corporation Bank among others.

"The final special audit report on Amtek Auto will come out by end-October," a senior official from a public sector bank told PTI.

Bankers said once the special audit is out, they will be in a position to decide on the quantum of fresh loans they would extend to the auto component manufacturer.
"The corrective action plan is being worked out but it is taking some time. Once the audit report is out we will decide on how much money we will be giving to the company," said another state-run bank official.
Lenders had agreed to give additional funds to the debt-laden company but asked the promoters to bring in some equity first.

"We have made it clear to the promoters led by Arvind Dhamm, that they need to bring in some equity first and accordingly we will give them funds," a public-sector banker had earlier told PTI.
Amtek Group owes over Rs 26,000 crore to 32 banks including State Bank of India, ICICI Bank, Axis Bank, Bank of Baroda, Bank of India, IDBI Bank, Bank of Maharashtra and UCO Bank, among others.
Banks have an exposure of around Rs 8,000 crore to Amtek Auto, which is the flagship of the Amtek Group.
Against this, its FY 2014-15 revenue stood Rs 20,000 crore.

The company, which has global presence, is in urgent need of a liquidity infusion of Rs 800 crore to redeem foreign bonds.