BestBrain Consultancy

18/03/2024

Insolvency Proceedings Initiated Against Former Directors of Alok Industries

In a dramatic turn, insolvency proceedings have been initiated against the erstwhile directors of Alok Industries, marking a significant escalation in the company's financial woes.

The Small Industries Development Bank of India (SIDBI) has taken assertive legal action against these guarantors, with Dr. Ajay Kummar Pandey, a distinguished advocate of the Supreme Court of India, spearheading the effort by filing an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) on behalf of SIDBI in the National Company Law Tribunal (NCLT) in Ahmedabad.
Dr. Pandey, renowned for his expertise in handling complex and high-profile financial matters, brings his formidable legal acumen to bear on the case. With a track record of navigating intricate legal landscapes, Dr. Pandey is known for his tenacity and diligence in pursuing justice for his clients in the highest echelons of the Indian judiciary.
His application on behalf of SIDBI seeks to address the daunting debt exceeding Rs. 35 crore owed by Alok Industries, which had solicited financial aid from various institutions, with the directors providing guarantees for these loans.

The biggest challenge in filling this application was finding a way to deal with the issue of limitation under the law. The biggest lenders were of the opinion that the petition can't be filled on account of exceeding the limiation for the same. But, we insisted and found a way to deal with it, said, Dr. Pandey.

Alok Industries, once a formidable player in the textile sector, has been mired in financial quagmire for a considerable period. The company's struggle to meet financial obligations has led to defaults on loans guaranteed by its directors. This latest move to initiate personal insolvency proceedings underscores the severity of the situation facing Alok Industries, even after it was taken over by Reliance Industries (RIL) and JM Financial Asset Reconstruction (JM Financial ARC) in 2020 through the bankruptcy law auction.

The NCLT's forthcoming decision regarding the insolvency application will be closely monitored by stakeholders, including creditors, investors, and industry observers. The fallout from these proceedings is expected to resonate widely, affecting the company, its stakeholders, and the broader financial landscape.
As the legal proceedings unfold, attention will also be drawn to the erstwhile directors' alleged involvement in offshore scandals and bribery accusations. Named in the Pandora Papers, the erstwhile directors of Alok Industries have faced scrutiny for their purported roles in establishing offshore entities while defaulting on substantial bank loans in India.

Records show that between 2010 and 2014, brothers Ashok Jiwrajka, Dilip Jiwrajka, and Surender Jiwrajka set up four firms in the British Virgin Islands: Triumphant Victory Holdings Limited; Alok Worldwide Ltd; Alok International Ltd; and Alok Overseas Limited.

Moreover, recent arrests by the Central Bureau of Investigation (CBI), implicating government officials and an associate of Alok Industries in a bribery case related to matters pending at the Ministry of Corporate Affairs, further tarnish the company's reputation and add layers of complexity to its legal challenges.

This multifaceted ordeal underscores the critical need for effective debt resolution mechanisms and highlights the far-reaching implications of corporate malfeasance. As the saga unfolds, stakeholders brace for the outcome, mindful of the broader lessons and implications for the integrity of the financial system.

Alok Industries Limited, is an Indian Textile manufacturing company based in Mumbai. It Is Owned By Reliance Industries . Alok Industries Limited is one of India’s largest vertically integrated textile company offering end-to-end solutions through its five core divisions: Home Textiles, Cotton Yarn, Apparel Fabric, Garments, Technical Textiles, Textile Accessories and Polyester Yarn. Its main business involves weaving, knitting, processing, home textiles, ready made garments and polyester yarns. It exports 26% of its products to over 90 countries in the US, Europe, South America, Asia and Africa. It's customer base includes multiple renowned brands like Levi's , Walmart , Zara , Calvin Klein , H&M, Tommy Hilfiger , PVH , Tesco , Costco Wholesale , Bestseller , Bershka , Kohl's , NEXT , Pull&Bear , Reliance Retail And Many More. Alok Industries Also Have A Majority stake in a Czech republic incorporated textile company Mileta which supply its product across the europe region. The export represents 90% of the entire production. Alok Industries have Global Organic Textiles (GOTS), OEKOTEX, Made In Green, Fairtrade, Egyptian Cotton certified, amongst others. including (ISO 9001), Environment Management System (ISO 18001), Occupational Health and Safety System (OHSAS 45001), MADE IN GREEN - STeP certification, and OKEOTEX 100.
History[edit]
Founded in 1986 as a private limited company. In 1989, the inauguration of Their first polyester texturizing plant marked a significant milestone, By 1993, They had transitioned into a public limited company.
Over the decades, They have diversified into weaving, knitting, processing, home textiles, and garments.
Alok Industries has shutdown all its direct retail stores(Store 21, H&A). However, they have started selling Some Of their products On Their parent Reliance backed Ajio And Amazon. They Also Supply Their Products To Reliance Retail.
Financials[edit] As per the latest Annual Report (2022), total sales of the Company increased by 91.44% to Rs. 7,150.91 crore from Rs. 3,735.31 crore in the previous year. Domestic sales increased by 96.22% to Rs. 5,451.37 crore from Rs. 2,778.11 crore in the previous year. Export sales increased by 77.55% to Rs. 1,699.54 crore from Rs. 957.20 crore in previous year. Operating EBITDA (before exceptional items) was positive at Rs. 611.61 crore as compared to negative EBITDA (before exceptional items) of Rs. 432.63 crore in the previous year. Operating Profit Before Tax (PBT) (before exceptional items) was negative at Rs. 184.18 crore as compared to negative PBT (before exceptional items) of Rs. 1,190.78 crore in the previous year.
Alok’s export business has increased to Rs. 1699.54 crore in the current year as against Rs. 957.20 crore in the previous period representing growth of 77.55%.
Share Holding
Reliance Industries Hold 40.01% Stake While JM Financial (Acting As PAC with RIL) Through Its Subsidiary Holds 35% Stake In It. Reliance Industries also have 9% optionally convertible preference shares and Non Convertible redeemable preference shares worth 3300 crores. making it a subsidiary of Reliance.
The paid-up Share Capital of the Company as on 31 March 2022 was 496.52 crore shares of Rs. 1/- each.

Alok Industries erstwhile Directors Face Insolvency: Dr. Pandey files personal insolvency application for SIDBI
Insolvency Proceedings Initiated Against Former Directors of Alok Industries
In a significant development, insolvency proceedings have been launched against the previous directors of Alok Industries, intensifying the company's financial challenges.
Legal Action by SIDBI
The Small Industries Development Bank of India (SIDBI) has taken decisive legal steps against these guarantors. Dr. Ajay Kummar Pandey, a distinguished advocate at the Supreme Court of India, is leading the charge. He filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) on behalf of SIDBI at the National Company Law Tribunal (NCLT) in Ahmedabad.
Dr. Pandey's Role
Dr. Pandey, known for his expertise in complex financial matters, brings his considerable legal acumen to bear on the case. With a reputation for navigating intricate legal landscapes, he is recognized for his determination and diligence in pursuing justice.
Addressing Daunting Debt
SIDBI's application aims to tackle the substantial debt exceeding Rs. 35 crore owed by Alok Industries. The company had sought financial assistance from various institutions, with the directors providing guarantees for these loans.
Overcoming Challenges
Dr. Pandey highlighted overcoming significant legal challenges, particularly regarding the issue of limitation under the law. Despite concerns raised by major lenders, the application was pursued, demonstrating determination in finding legal remedies.
Alok Industries' Financial Struggles
Once a dominant player in the textile sector, Alok Industries has grappled with financial difficulties for an extended period. Despite being acquired by Reliance Industries (RIL) and JM Financial Asset Reconstruction (JM Financial ARC) in 2020 through bankruptcy proceedings, the company continues to face challenges.
Implications for Stakeholders
The impending decision by the NCLT on the insolvency application will be closely watched by stakeholders, including creditors, investors, and industry observers. The outcome is expected to have widespread repercussions, affecting the company, its stakeholders, and the broader financial landscape.
Allegations of Misconduct
Attention is also drawn to the alleged involvement of former directors in offshore scandals and bribery accusations, as revealed in the Pandora Papers. These allegations, coupled with recent arrests by the Central Bureau of Investigation (CBI), further tarnish the company's reputation and add complexity to its legal battles.
Importance of Effective Debt Resolution Mechanisms
This multifaceted situation underscores the necessity for robust debt resolution mechanisms and emphasizes the broader implications of corporate misconduct. As the legal proceedings unfold, stakeholders brace for the outcome, mindful of the lessons learned and the integrity of the financial system.
Alok Industries offering end-to-end solutions
A brief overview of Alok Industries, an Indian textile manufacturing company headquartered in Mumbai, owned by Reliance Industries. The company operates across various divisions, offering end-to-end textile solutions and exporting products to numerous countries worldwide.
37 years of chequered operation
Established in 1986, Alok Industries began as a private limited company and transitioned into a public limited company by 1993. Over the years, it has expanded its operations into weaving, knitting, processing, home textiles, and garments.
Making significant strieds
Despite facing challenges, Alok Industries has maintained its presence in the market, supplying products through online platforms and Reliance Retail. The latest annual report highlights significant increases in sales and export business.
Shareholding Structure
Alok Industries' ownership structure includes Reliance Industries holding a 40.01% stake and JM Financial, acting as a PAC with RIL, holding a 35% stake. Reliance also holds 9% optionally convertible preference shares and non-convertible redeemable preference shares, making Alok Industries a subsidiary of Reliance.
Financial Snapshot
As per the latest available annual report, Alok Industries has witnessed substantial growth in total sales, domestic sales, and export sales. Operating EBITDA and operating profit before tax have also shown positive trends, reflecting operational improvements.
Accountability in Corporate
The ongoing legal proceedings against the former directors of Alok Industries signify a critical juncture in the company's journey. As stakeholders await the outcome, the case underscores the importance of effective governance, transparency, and accountability in corporate operations.

18/04/2022

US returned boy
A young boy from small town, who was raised under extreme pressure to follow the footprints of his elder brother, finally lands up in an engineering college in Manipal.

After reaching there, he realized, he has no money to pay his fees. Somehow, he managed to complete his studies and finds some job here and there and finally reaches US.

It was like dream come true, salary was pretty decent and he started working on US first loan mortgage software. He did it and hit the jackpot.

Company offered him shareholding and directorship. But some how the new arrangement didn't not work and owing to family pressure, he decided to quit.

Sold his share in the US Company and returned to India with bag full of money.
Settled in Pune and starts a software company and soon was busy in counting cash.

But castrophe was awaiting and one wrong investment in real estate in Mumbai, single night every thing was gone except huge playable.

Partners, run away, the boy single handedly decided to hold turf and sold all his belongings to pay off debts.

Life was back to normal. Joined some company and rented a modest flat on rent and restarted the journey.

But the entrepreneurial bug was not allowing to settle down. So once again he was on his entrepreneurial journey with four new partners.

He approached me for funding as start up. Being busy with other projects I couldn't sign the new assignment.

Yesterday, I called him to inform that now I can take it up.To my pleasant surprise I was told that the company has done so well in past six months that no more funds are required and are now not ready to dilute their stakes, debt free profit making company.

They, informed that they have not only refused a takeover offer but are in advance stage of talk to sell one of their product, worth for over 500 Crores, which was developed for the client.

I said great and before hanging up the phone just reminded him to take the company to Sillicon Valley, from where he was made to quit. Kudos.

Dr. Ajay Kummar Pandey
Advocate and Consultant
BestBrain & 4C Supreme

17/04/2022

https://www.linkedin.com/posts/ajaykumarpandey1_wharton-iim-mba-activity-6921297837880221696-oanw?utm_source=linkedin_share&utm_medium=android_app

What's not taught at or ? from of Road. not from . Businessman to Driver. Its was just after Corona,...

31/12/2021

19/09/2021

Required
1) Printing and preparation of greeting card.
2) sale of used vehicles.
3) comprehensive maintenance, mechanized cleaning and Conservency services at Delhi.
4) Admission abroad in Engineering Course.
5) CA firm to take internal audit of GOI PSU, at Delhi.
If intrested PM me.
Dr Ajay

15/09/2021

Top 10 Business Ideas for Bihar

Bihar is a developing state, and people are looking to establish their business in Bihar. The state is known for its agricultural base and livestock farming. Bihar manufactures pulses, shoes, Masur, electrical goods and cotton yarn.

Besides these projects, the state exports vegetables and milk. Patna imports cotton, food grain, iron, rice, wheat and Dalian.

Bihar also has one of India's best fishing grounds and is also very rich in cattle population. The state also consists of more than 90,000 weavers. Bhagalpur is famous for its silk. Gaya is another weavers' zone of around 8000. There is also a cluster of traditional handlooms in several districts of Bihar— Bhagalpur, Gaya, Nalanda, Darbhanga, Siwan, Patna.

If you are willing to take the risk and start a business venture, here are the ten best business ideas in Bihar:

1. Salon
Starting a salon is a highly profitable business plan in Bihar. Bihar is an emerging market for beauty salons nowadays. There are few issues to note for the success in the beauty salon business in Bihar. The starting investment is not much but location, skills, expertise and retail operations are the main points. The demand for fancy salons is high in Patna, Muzaffarpur, Gaya etc.

Investment cost:

Location 200-300 sq ft area - 10000 INR monthly
Salon establishment - 50,000-70,000 INR
Grooming items - 50,000 INR monthly
Expert Stylist - 15000 INR monthly

2. Computer Training Institute
You can open up a small institute that will train students with computer courses. From children to adults, computer institutes are in high demand in Bihar. Here, you can teach new programming languages and projects. If you have money, you can hire instructors for advanced computer courses too. Additionally, you can tie your institute up with some schools or colleges for better results.

Investment cost:

300-400 square feet place - 15000 INR rent monthly
10-15 laptops - 20,000*10= 200000 INR, you can ask adults to bring their laptops for better study
Desk and setup - approx 25,000 INR

3. Wheat Processing
Wheat processing, or known as chakki, is another good business idea in Bihar. To start a wheat processing shop, you majorly need a place and a grain processing machine. The grain processing machine is affordable and easy to install. Some people might think it is not valuable, but this business idea is profitable and easy to manage. The investment and failure chances both are low.

Investments cost:

Grain processing unit - 50,000-85,000 INR
Monthly electricity, rent and maintenance - 10,000 INR
200 kg grains per day - 1000 INR (5 rupee per kg) = 1000*3= 30,000 INR monthly
Profit per month - 30,000-10,000 = approx 20,000 INR

4. Fish Farming
With over 9 lakh acre wetland, the fish farming business is a familiar one in Bihar. Fish farming is a rapidly growing sector in Bihar. The state has numerous aquatic resources in the form of ponds and tanks. Quality fish seeds are needed to produce good quality fish. The Bihar government encourages new entrepreneurs to develop fish seed hatcheries in the state.

5. Restaurants
Starting up with a small and cosy restaurant in Bihar is a great opportunity. The restaurants take a lot of investments to build up but return a good profit after a while. It will take around 7-10 lakhs to start up a restaurant in Bihar. You also need enough money to handle the restaurant without expecting profit for at least a year.

Investment cost:

Rent deposit - 1 lakh
Furniture and interior - 2 lakhs
Kitchen equipment and accessories - 2 lakhs
Raw Materials - 50,000 – 70,000
Labour and light bill - 50,000/ monthly

6. Renting Agency
Renting a business is the easiest; make money by just giving stuff on rent. The starting is easy, which facilitates more growth opportunities. People often prefer rented things for a day, week or months as buying something for temporary use is a wastage of money. You can rent out anything— party items, furniture, clothes, toys, books, bikes, cars etc.

Investment cost:

Generally, it depends on the renting business type you want to start. If, for example, you have bikes, it is much easier for you. Otherwise, you can purchase 2 Bikes - 50000 INR*2 = 100000 INR.

7. Transport Business
It is another good business option for youngsters in Bihar. Starting a small transport company is not expensive, and you can begin it with one or two vehicles. You can transport food, vegetables or milk. Or you can provide vehicles as a cab or bus to locals.

Investment cost:

The investment cost depends on the vehicles you are using. For load transportation, you need a truck. For the cab, you need a car or minivan.

Small Tata Truck - Around 4-5 lakhs
Cab - 2-3 lakhs (depends on model)
8. Xerox and Printing Shop
Xerox and printing business is a small but profitable business idea. By purchasing xerox and printing machines, you can make a lot of money. This business is promising, but location matters here. Open up a printing shop near the school, college or government offices for better growth.

Investment cost:

Shop rent, Deposit - 50000 INR
Xerox machine cost - 150000-300000 INR
Printing machine - 12000 INR
A computer system - 20000 INR

9. Tailoring Shop
For this, you can start up only with a sewing machine. If you know how to stitch garments, it is the best, or you can hire people for it, which will cost you a little more. You can start with simple sewing and stitching. Later you can add the designing clothes and mould them into a boutique shop. You will need a good designer who is an expert with all clothing and designs. If you do not have the money, you can start the business with your home and later build it up.

Investment cost:

Sewing machine - 6000-8000 INR
Shop rent - 50,000 INR
10. Franchises
If you don't want to take the risk, you can take up any franchise. The key issue is cost. It is not cheap but highly profitable. There are many franchises available in India from which you can choose wisely. Every franchise has different charges.

Other Small Businesses in Bihar
Here are some other local business ideas available for Bihar:

Fruit juice corner
Pani puri stall
Beekeeping
Livestock feed production
Papad making
Tea bag making
Hobby classes
Tyre store
Food catering
Bakery
Bottled water supply
Coaching institute
These are a few more business ideas for one to follow in Bihar. They are small business ideas for people looking to start a side hustle or starting a business on a small scale.

Key Points to Keep in Mind Before Starting a Business in Bihar
Make a thorough and executable rough plan.
If you are not financially strong, get a loan or funding before starting any business.
If there is no space to open a shop, lease a commercial place.

Get all the Permits and Licenses.
Design your shop so it will attract customers.
Follow all the marketing strategies.
Use social media as marketing to reach customers.
Try a grand opening so that people will know the brand.
Maintain the quality of your products.

Conclusion
Bihar is a growing state and will prosper in the coming years, and starting a business there would be great. This article contains all the small, medium and big business ideas for Bihar. You can choose yours according to your interests, financial capability and resources.

If you plan to start a small business in Bihar, you need a well-managed account and Digital Bahi Khata is now available.

Also Read:
1) Top-10 Business Ideas for Hyderabad
2) Top 10 Business Ideas in Bhopal
3) Top 10 Business Ideas for Indore
4) Top 20 Small Business Ideas In 2021

FAQs
Q. What are the best business ideas for Muzaffarpur, Bihar?
Ans. Some of the best business opportunities for Muzaffarpur are-

Catering Business
Event Management Business
Tuition Centre
Flour Mill
Retail Shop

Q. What are the best businesses for sale in Bihar?
Ans. The best businesses for sale in Bihar are-

Design and print garments
Write and launch your book
Create your digital services
Sell handicraft products

Q. Which is the richest district in Bihar?
Ans. Patna, the capital of Bihar and is situated near the Banks of Yamuna. It is the richest district of Bihar.

Q. Which business is the most profitable in Bihar?
Ans. Bihar is popular for its high-quality silk, sugar and jute industry etc. The state is rapidly growing in business. Restaurants, malls, hotels, coaching institutes are the most profitable businesses in Bihar.

Besides, the above-mentioned list is full of small and big business ideas for Bihar.

15/09/2021

https://4csupremelawint.com/legal-update-Mutation-Entry-Does-Not-Confer-Any-Right-Title-Or-Interest-In-Favour-Of-Any-Person-Supreme-Court

The Supreme Court observed that mutation entry in the revenue record is only for fiscal purposes and does not confer any right, title or interest in favour of a person.

31/05/2021

*Do you want to earn huge money?*

*Covid has produced 100 of new Billionaires*

*Govt is extending all kinds of help in form of subsidy to loan restructuring and new loans for Covid treatment to setting up new business in the range of Rs. 5 lakh to 200 Crores.*

*Now, it's upto you, you want to be Billionaire, Millionaire or a Covid Pappuer.*

*Act today*

*Change your thoughts to change your results*

*Move out of comfort zone and challenge yourself.*

*Get Covishield for your business today*

*Get Covaxin for your assets & Wealth today*

*बिहार में बिजनेस के लिए बिना ब्‍याज 10 लाख रुपए का लोन, लौटाना होगा केवल पांच लाख; एक जून से करें आवेदन*

*Dr. Ajay Kummar Pandey*
(MBA, UK, LLM, PhD AIMA)
*Advocate & Consultant*
*BestBrain Consultancy Grp.*
*Delhi, Mumbai & Dubai*

11/05/2021

https://4csupremelawint.com/legal-update-Corona-YOU

Corona & YOU.

08/05/2021

Corona Crime are you safe ?
This challenging time hope you or near and dear ones are not cheated or duped by ever rising gang of new bread of Corona Criminals.

They cheat you in the name of Oxygen, beds, remedivisr injection etc.

Hope no cyber attack or bullying ?

Hope no illegal withdrawal of money?

*If you are victim of any such crime contact us today.*

*How about increasing the immunity of your business by taking Corona revival packages?*

*Are you sure that property can be sold, money could be withdrawn from your bank in dire need for your treatment when you are fighting for your last breath?*

*Check Today*

*Have you denied insurance claim or cash less treatment?*

*Is your business ready for Corona fund or IPO listing or exit route ?*

*Dr Ajay Kummar Pandey*
*Advocate and Consultant*
4C Supreme Law International,
*Delhi Mumbai & Dubai*

Full service law firm offering legal & consultancy services, in wide areas of law, civil, criminal, company & constitutional, in courts all over India & abroad. Consultancy in the area of PR & Immigration, Education & Real Estate abroad, NRIs, IPO

07/05/2021

* Do you know you can ask govt to pay salary to your staff in this Corona time ?

रास्ते तो बहुत हैं दोस्तों,
मगर एक शर्त है
कोई वकील दोस्त हो।
कौन कहता है आकाश में
सुराख हो नहीं सकता
जरा एक पत्थर तो,
तबीयत से उछालो यारों।

Let's fight Corona and it's economic downturn.
Dr Ajay Kummar Pandey
Advocate and Consultant
4C Supreme Law International

Ajay Kummar Online is a Leading Law Firm offering the best advocate in delhi in all areas of law across the India.