Amtek Auto Ltd.: From Acquisitions to a Financial Crisis Case

1- Analyze the structure of the automotive ancillary industry in India by identifying the challenges and opportunities facing the industry.

2- How did Amtek position itself in the industry? What was its operating strategy for growth? Provide a critical assessment.

3- How did Amtek finance its growth? Evaluate its financing decisions.

4- Analyze the cost and benefit of debt for Amtek.

5- Were the financing decisions compatible with Amteks operating strategy? What were the implications of these decisions on its financial health?

6- Evaluate the quality of management at Amtek on the basis of recent developments. How could management have avoided the deterioration of Amteks financial health?

7- What could be done in both the long and short term to alleviate the companys financial distress?

8- Using Amtek as an example, draw some general conclusions about the links between a firms investment, capital structure, and dividend decisions.

You need to hand in an Excel file with your answers and showing your work.