Kiri Industries Limited (KIRIINDUS) Q3 FY23 Earnings Concall Transcript

Kiri Industries Limited (NSE:KIRIINDUS) Q3 FY23 Earnings Concall dated Feb. 13, 2023.

Corporate Participants:

Manish P. Kiri — Managing Director

Analysts:

B. Suresh — Braham Financials — Analyst

Manan Shah — Moneybee Investment — Analyst

Unidentified Participant — — Analyst

V.P. Rajesh — Banyan Capital Advisors — Analyst

Ashit Koti — Individual Investor — Analyst

Kashyap — Kiri Industries — Analyst

Soumya Kumar — Ambit Capital — Analyst

Amarchand Goel — Individual Investor — Analyst

Namit Mehta — KC Capital — Analyst

Harsh Gupta — Individual Investor — Analyst

Virendra Pai — GunanSing and Company — Analyst

Ashwini Agarwal — Individual Investor — Analyst

Manoj Guda — Abhinand Financial Services — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the Q3 FY ’23 Earnings Conference Call of Kiri Industries Limited. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Anuj Sonpal from Valorem Advisors. Thank you, and over to you, sir. Thank you. Good afternoon, everyone, and a very warm welcome to you all. My name is Anuj Sonpal from Valorem Advisors. We represent the Investor Relations of Kiri Industries Limited. On behalf of the Company, I would like to thank you all for participating in the Company’s earnings call for the third quarter and nine months ended of financial year 2023. Before we begin, let me mention a short cautionary statement as always. Some of the statements made in today’s earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today’s earnings call is purely to educate and bring awareness about the Company’s fundamental business and financial quarter under review. Let me now introduce you to the management participating with us in today’s earnings call and hand it over to them for opening remarks. We have with us Mr. Manish Kiri, Chairman and Managing Director; Mr. Jayesh Hirani, Senior Manager of Accounts and Finance; and Mr. Suresh Gondalia, Company Secretary. Without any further delay, I request Mr. Manish Kiri to start with his opening remarks. Thank you, and over to you, sir.

Manish P. Kiri — Managing Director

Good afternoon, everybody, and welcome to the earnings conference call for the third quarter and nine months ended financial year 2023. I hope you are all keeping safe and well.

During quarter three FY ’23, recessionary trends for dyes and dyes intermediates industries continued with product takeoff remaining subdued. Since the outbreak of COVID-19 pandemic with an exception of a few quarters, the industry has experienced very sluggish demand, not allowing industry players to pass on the increase in cost to its customers. Governments and central banks globally have been implementing countermeasures against inflation. But the impact thereon has been gradual.

Basic raw materials for dyes intermediates benzene, toluene, xylene, naphthalene, et cetera, which are crude-based materials, which have remained volatile with an upward trend. Due to volatile crude oil prices, this has impacted the margins in dyes intermediate industries negatively. During quarter three FY ’23, Kiri Industries Limited attained consolidated sales revenue of INR204 crores, which was lower by 16% on a quarter-on-quarter basis and lower by 53% year-on-year basis.

In current quarter, EBITDA was INR17 crores. Net loss was INR34 crores. The negative EBITDA on a consolidated basis was due to higher legal cost and on account of low demand, conversion costs not getting fully absorbed and being able to pass on to the customers. Except the higher litigation cost of Singapore cases accounted in quarter three FY ’23, operational expenses have remained under control during quarter three FY ’23 and have remained in line with operational expenses of previous two quarters.

The share of profits of associates includes share of profit of DyStar of INR88 crores during the quarter, which does not have any impact on the valuation uptake of Kiri in DyStar. The value of Kiri’s stake in DyStar is $481 million, which was earlier awarded plus the amount of patent license fees for wrongfully using patents of DyStar by Lonsgheng, plus the amount of 19% discount for lack of marketability, which ought to be reversed.

Coming to the nine months numbers, Company attained consolidated sales revenue of INR723 crores, which was lower by 33% year-on-year basis and EBITDA loss of INR33 crores. Net loss for the nine months was INR87 crores after depreciation. Including the quarter, during this quarter, Kiri attained stand-alone sales revenue of INR133 crores, which was lower by 6% on a quarter-on-quarter basis and by 62% on a year-on-year basis.

EBITDA stood at INR30 crores negative. Net loss for the quarter was INR36 crores. On a stand-alone basis, due to sluggish demand and volatile raw material prices, as I explained earlier, the payment cycle has lengthened, inventory churning has decreased. The Co

Mpany anticipates that liquidity will improve in the coming quarters and that the payable cycle will normalize in FY ’24.

Quarter-wise, gross margin saw improvements in quarter three FY ’23 as compared to quarter two FY ’23, but it still surpassed as compared to quarter two suppressed as compared to quarter two FY ’23. With flat outlook for margins in quarter four FY ’23, other income included — includes dividend of INR6.86 crores from Lonsen Kiri Chemicals Industries Limited. For the nine months, Kiri earned stand-alone sales revenue of INR445 crores which was lower by 45% on a year-on-year basis, and EBITDA loss was INR94 crores.

Net loss for the nine months was INR108 crores. In the matter of DyStar, Lonsen Group’s wholly owned subsidiary, Senda International Capital Limited, appeals have been dismissed earlier during quarter two FY ’23 by the Supreme Court of Singapore, vide judgment dated 6 July 2022. Importantly, Kiri has prevailed on the issues in the Supreme Court with regard to 19% discount for lack of marketability and the quantum of notional license fees payable by launching to DyStar for its wrongful exploitation of the patents.

The Supreme Court had earlier remanded the matter of fact to international commercial call to give an effect to the decisions and to determine the quantum of notion license fees based on available evidences submitted by both the parties and reversal of discount for lack of marketability. As for the direction of Supreme Court of Singapore, SICC has announced its judgment on 8 February, 2023. And as per the order, notional license fee now shall be calculated for the period from 31st August 2010 to 23rd March 2019, considering annual production of 53,550 tonnes by Lonsen which was the quantity misused by Lonsen for DyStar’s patent to arrive final valuation of Kiri’s stake in DyStar. As per SICC directions, the parties have to submit the agreed final valuation considering notional license fees and 19% DLOM within 21 days from 8 February, 2023.

Hence, the amount of value of stake of Kiri in DyStar for buyout order execution from Senda has been increased. Senda’s appeal with respect to legal cost judgment of SICC was dismissed by court of appeal, the Supreme Court of Singapore, vide judgment dated 25 November, 2022. Senda failed to make payment of legal costs awarded to Kiri within deadlines, which were extended up to 20th January 2023.

Hence, Kiri had filed writ of seizure and sale of — of Senda’s shares held in DyStar to the extent of recovery of costs awarded by SICC and the Supreme Court of Singapore. Kiri has been monitoring the global dyes market and has been continuously taking steps to mitigate challenging market conditions and reduce cash losses.

Markets anticipate improvement in margins in FY 2024 and beyond after strengthening of demand. The coming quarter, quarter four, ’23, the industry performance and that of the Company would possibly not see much change as compared to previous three quarters. With that, I would like to open the floor for any questions. Thank you.

Questions and Answers:

Operator

[Operator Instructions] We have the first question from the line of B. Suresh [Phonetic] from Birhams Financial. Please go ahead.

B. Suresh — Braham Financials — Analyst

Hello? Hello?

Manish P. Kiri — Managing Director

Yes, Suresh.

Operator

We can hear you. Please go ahead.

B. Suresh — Braham Financials — Analyst

Good afternoon, sir — Manish sir. I’m Suresh from Birhams Financials.

Manish P. Kiri — Managing Director

Yes. Yes, Sureshji.

B. Suresh — Braham Financials — Analyst

Sir, you remember, sir. I lost conference call participation.

Manish P. Kiri — Managing Director

Yes, yes. I think last conference call also, I remember you asking some questions. Yes, please go ahead.

B. Suresh — Braham Financials — Analyst

Sir, actually Kiri last conference call [Indecipherable].

Operator

Sorry to interrupt you, Mr. Suresh. Request you to go off the speakerphone as your audio is not very clear.

B. Suresh — Braham Financials — Analyst

Is it clear, sir?

Operator

Yes, request you to speak much louder a bit.

B. Suresh — Braham Financials — Analyst

Is it clear, sir.

Operator

Yes.

B. Suresh — Braham Financials — Analyst

Hello.

Operator

Yes, Mr. Suresh. Go ahead.

Manish P. Kiri — Managing Director

Yeah. Go ahead. Go ahead, Suresh, please.

Operator

Mr. Suresh, can you hear us? It appears Mr. Suresh us no longer in queue. We’ll move on to the next question from the line of Manan Shah from Moneybee Investment.

Manan Shah — Moneybee Investment — Analyst

Yeah. Hi. Am I audible?

Operator

Yes, you are loud and clear.

Manan Shah — Moneybee Investment — Analyst

Yeah. Hi. Thank you for the opportunity. Sir, you mentioned that Senda has failed to meet the payment of legal cost to — legal costs. So if you can just quantify what is the amount involved? And how much has Kiri spent on the legal proceeding so far?

Manish P. Kiri — Managing Director

Well, the amount which was awarded to Kiri for the legal cost was SGD8.11 million and that is the amount which they failed to honor the court’s settlement. The cost that Kiri had spent so far since 2015 is a much larger number than this, but this is the award which was given to Kiri and which was upheld by the Supreme Court of Singapore. So that was, as I mentioned, by end of November, and Senda didn’t honor that order. So then Kiri taken enforcement actions against Senda on the basis of not paying legal cost.

Manan Shah — Moneybee Investment — Analyst

Right. Sir, if you can just highlight what will be the next process involved in this when you find a [Indecipherable] and sale of the Senda’s shares?

Manish P. Kiri — Managing Director

I think the next process would be the court would give the appropriate directions to the sheriff of the court to attach their shares and then — and sell the assets to pay this cost.

Manan Shah — Moneybee Investment — Analyst

Okay. Understood. Then secondly, on our notification on the 8th of February, where we announced that SITC [Phonetic] has delivered a quarter judgment on the valuation. So is this the final part of the legal proceeding or there are further any proceedings that are involved?

Manish P. Kiri — Managing Director

No, this is the final part of court’s direction in which court had decided the important number on the quantification of the basis to decide patent license fee, which was the number which was awaited and court has already directed to reverse DLOM. And within 21 days, the parties will submit the final numbers to the court. So this would be the final number. And post that, the court will deliver the final judgment on giving the final numbers. So that may happen maybe a week or two weeks from March 1, which is the deadline to submit this final number from both the parties to the court.

Manan Shah — Moneybee Investment — Analyst

Okay. And once this happens, any timeline for the buyout process? And any approximate number that we have calculated what this number would be?

Manish P. Kiri — Managing Director

Number — I mean the — as we all know, based on the basic calculations, it would be north of $600 million. But the exact number, we will come to know when the court announces it. But yes, it would be more than $600 million. And we believe and what we understand is the amount is due to pay to Kiri to execute the buyout the day the order is announced. So we don’t believe that there is any timeline and we suppose that Senda execute the order. That is what we believe as soon as it is out.

Manan Shah — Moneybee Investment — Analyst

Okay. If at all they don’t end up paying or there is further delay, so what is the remedy that is available to us? I mean, is there any other way how we can enforce them on executing?

Manish P. Kiri — Managing Director

Yes. So the — so assuming that Senda is going to default on the buyout, Kiri is going to file all its available enforcement actions at anytime. I — so there are several actions which Kiri will be doing, which is available legally to Kiri to enforce this order. So all those enforcement actions will start.

Manan Shah — Moneybee Investment — Analyst

Okay. If you can just highlight what would these measures be?

Manish P. Kiri — Managing Director

I think it would not be appropriate for me to mention in a public forum because it would be the part of legal strategy. But be rest assured that it would be the strictest enforcement actions that we are going to find.

Manan Shah — Moneybee Investment — Analyst

Right. Because the value of our Company is much, much below than what the sum we’ve been awarded. So I mean it is — I mean is it that investors feel that the recoverability of this amount — I mean they are not very sure how will they be able to recover this amount?

Manish P. Kiri — Managing Director

See, the case has been going on as you know since almost more than 8 years, into 9th year of legal battle. So it’s obvious that the amount is going to come, but there could always be a question mark of when it is going to come, when finally money comes to Kiri’s account, right? That is what counts. And whatever legal processes to be done. See, till now the entire legal process was to prove ourselves, right, to get an award or to get justice, let me put it this way, from the Singapore International Court as well as Singapore Supreme Court on the merits of our [Technical Issues].

The finality of the number would be there next month in the March. And then only enforcement and recovery will start. So the next phase to — for the courts is to recover this award and to enforce this award. So that process is going to start now. I don’t think that process will take too much time like years or so, but it would be sooner rather than later, in fact. So we — and you can see the Singapore records, earlier strike records. The Singapore courts on enforcement side have been very strict in the past. And we have confidence that the courts will take appropriate actions.

Manan Shah — Moneybee Investment — Analyst

No, I completely agree. But my question is because we have failed to make a payment of some of $8 million and year where they are required to pay almost $600 million?

Manish P. Kiri — Managing Director

Right. So we have to go by the assumption that if they haven’t paid, they do not have intent to pay it, why should they pay $600 million, correct? So let us go by the theory that they might not pay $608 million or whatever is the final number. They might not pay it. And then we have to be prepared and ready to file the next steps and take all the necessary actions to enforce so that they can pay.

Manan Shah — Moneybee Investment — Analyst

Understood. Thank you for the opportunity. I will come back in the queue.

Manish P. Kiri — Managing Director

We will have to make them pay. The court will have to make them pay even though they may not intend to or willing to and then we would seek supports from the court the judgment do not remain paper judgments and the justice is actually delivered. So court, I’m very sure will look into this aspect.

Manan Shah — Moneybee Investment — Analyst

Sure. Sure. Thank you for the opportunity. I will come back in the queue.

Manish P. Kiri — Managing Director

Thank you.

Operator

We have the next question from the line of [Indecipherable].

Unidentified Participant — — Analyst

Yeah. I hope I am audible.

Operator

Yes, you are.

Unidentified Participant — — Analyst

Yeah. Thank you. So about this award, I just want to understand, Lonsen Group have any assets in Singapore or they don’t have anything apart from the asset in question? So do they have anything else in Singapore?

Manish P. Kiri — Managing Director

The assets in Singapore is the — is their shares of DyStar, right? So that is the main asset they have in Singapore. When you talk about any physical assets like plant, machinery and things like that, no, it’s not there. And the Singapore entity, which is DyStar Global Holdings Singapore, is the holding entity of all DyStar assets globally, correct? So those assets of DyStar Global Health Holding will have the entire DyStar networks assets. Particularly setup jurisdiction, the asset which they have is Senda shares of DyStar.

Unidentified Participant — — Analyst

Got it. Understand. And secondly, slightly longer-term fundamental question, so on the dyes intermediary market, we have seen in the last 10, 12 years, there is quite a revolution in the sense that a lot of things have shifted from China to India because of pollution control strictness in China. And then somehow post 2017, ’18, that incremental flow has slowly reduced. Still, I mean still that tailwind is still with us.

But do you think going forward, given that the China will be opening up completely sooner rather than later, do you think there is a risk of the competition coming back again in terms of dye intermediaries like HSA and vinyl sulfone, all this kind of things? Do you think that there will be price pressure? No — I’m just not talking from a short-term perspective, obviously, demand is a challenging short term. But I’m talking from longer-term four, five years perspective, do you see the competition from China coming back in a sustainable manner?

Manish P. Kiri — Managing Director

I think very true. Actually, Chinese are also sitting on overcapacity suppliers as we speak. And currently, there is a pressure from China, as we all know, the imports into India of intermediates from China are still coming at lower prices. And in future, it is going to remain so. In the next two to three years, we don’t see that pressure is going to go down. Unless Chinese domestic textile and domestic industry improves to have enough consumption for the dyes which are produced in China, this pressure is going to continue, in fact.

And so one side, you see the pressure from Chinese companies. And one of the main reasons, which you rightfully said, is that there was a lot of strictness in terms of environment compliances earlier. But from how our information indicates that post-2019, post-pandemic, they have adopted relaxed approach. So they are now less stricter in implementation. And that has also fueled the oversupply because they wanted to probably help their industries. And because of their soft approach on them, the cost not only reduced from the environment compliance point of view, but also excessive supply has affected prices negatively.

And for example, like I said, the prices from China are absolutely lower than the cost of manufacturing in India. And that is across the units. It’s the product itself. Similarly, there is other product named meta phenylene diamine 3- sulfonic acid, all Indian plants are closed as of today. Entire production has been to closed and it is coming from China. So there is a pressure.

And also, there is a flow which is coming. Now whether this flow is reduced once Chinese local consumption increases or this flow continue as it is, we’ll come to know. But yes, I think we have to go by the assumption that the things are going to be challenging from China front.

Unidentified Participant — — Analyst

Right. And —

Operator

Mr. [Indecipherable], request you to kindly come back in the queue, follow-up questions.

Unidentified Participant — — Analyst

Sure.

Operator

[Operator Instructions] We have the next question from the line of V.P. Rajesh from Banyan Capital Advisors.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Manishji, thanks for the opportunity.

Manish P. Kiri — Managing Director

Yes, Rajeshji. Please.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Just want to make sure I understand the kind of this DyStar situation better. So you are saying that the legal fees they haven’t paid, they have defaulted on that of, you said, I think, SGD8 million. And then there is a $600 million, which is the value of the shares we own in DyStar. And that is in Singapore dollars or U.S. dollars?

Manish P. Kiri — Managing Director

That is U.S. dollars.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Okay. U.S. dollars. And then there’s a third thing, which is related to the patent and what is that amount?

Manish P. Kiri — Managing Director

So the $600 million, what we are expecting plus should be the total value that would include the patent license fees. Earlier award was $481 million by SICC, which was given in June 2021. So post-appeal proceedings in Supreme Court of Singapore, that $481.6 million is now going to end with increased amount of more than $600 million. I hope I’m able to explain to you. And that $600 million-plus includes the patent license fee number in it.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Which is what if I remember correctly, you had said something around $500 million [Technical Issues].

Operator

Sorry to interrupt you. Mr. Rajesh, your voice is breaking up. Request you to go off the speakerphone.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Okay. Is it better now?

Operator

It’s still very mumbled.

V.P. Rajesh — Banyan Capital Advisors — Analyst

I am now on the handset. Hopefully this is better.

Operator

Yes.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Okay. So earlier in the con call in one of the prior con calls, you had mentioned that Singapore is $500 million. So what I’m hearing is that $500 million, including the patent settlement has now become $600 million plus. Is that right?

Manish P. Kiri — Managing Director

Yes. Yes. Yes. From $481.6 million, like $482 million, it has become now $600 million-plus, correct. You are understanding correctly. So the award has increased.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Right. So my question is that you talked about that these guys are not paying and how much time it takes to recover that small amount of SGD8 million? And to the extent they don’t pay it, what can the courts do in Singapore to expedite the recovery because the small amount in dispute is going to hang around for a long time, then the $600 million could potentially also hang around for a very long time. So that’s question number one.

Number two, relatedly, the DyStar holding is held in Singapore. Have you made sure that they can’t change the ownership of that out of Singapore? And then to the extent the underlying assets, where are they located? Are they located in China or in other jurisdiction where perhaps the Singapore Court orders may not be respected? So those are the two questions.

Manish P. Kiri — Managing Director

So number one question, $8.11 million was confirmed and appealed by Supreme Court on November 25, 2022, so which was — so that was the date on which it was announced. After that, 21 days were given to them, which was coming to end somewhere around December 20, 21. Then 1 month extended, which was around January 20th. And post that, the actions already started. So let us say, over the span of — from 20th of January till now, it is close to 17 days, and the court is already progressing and proceeding on seizure and sale of their shares of Senda. So you can see the actions were not quite delayed, but it is about a couple of months the — and the court is already in action.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Okay. With respect to the underlying —

Manish P. Kiri — Managing Director

[Indecipherable] we also hope that the actions would be taken by the court faster once we also submit the enforcement applications after that nonpayment of sections. So first, the $600 million-plus number has to be announced. After that, we will demand them. They would not pay, then we will go to court and file enforcements.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Understood. And then my other question on the underlying assets of the [Indecipherable], where are the actual assets?

Manish P. Kiri — Managing Director

So the shares of Senda are subsidized, as you know. And shares of Kiri are also subsidized shares right now. And the Senda continue to remain a subsidiary of Lonsen and selling Senda shares in such a situation, what we believe would be the fraudulent and criminal act if that is what going to happen from their side, we don’t know at the moment. But irrespective of that, ultimate remedy would be to sell DyStar, isn’t it, irrespective of who owns it, right?

So if nonpayment from their side would then result into selling their shares, Kiri’s shares for the award, the finality would be selling the DyStar shares and selling the Company through the auction. So that is what the court would probably request it to do from our side.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Right. And where are the underlying assets of DyStar? Are they —

Operator

Mr. Rajesh, I request you to kindly come back in the queue for follow-up questions.

Manish P. Kiri — Managing Director

Let him complete this question. He already asked this question.

V.P. Rajesh — Banyan Capital Advisors — Analyst

I am sorry, I’ve already asked —

Manish P. Kiri — Managing Director

He already asked this question. So underlying assets were about 16 plants in 12 countries and close to, I think, if I remember, 26, 27 subsidiaries in almost 22 countries. So it’s a large network.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Okay. And then is there a possibility for you to sort of seize the shares of their joint venture with you in India? Or that is something you can’t enforce?

Manish P. Kiri — Managing Director

See, the enforcement will have all options and a very, very good question you asked. So wherever their assets lying India, outside India, ultimately, it’s one corporate entity. So if you lift the corporate will, it all boils down to Lonsen, isn’t it, right? These are all the subsidiaries. So when you lift the corporate will and you start enforcement, you would be able to reach out to wherever they are.

V.P. Rajesh — Banyan Capital Advisors — Analyst

Understood. I have more questions but I will come back in the queue.

Manish P. Kiri — Managing Director

Sure. Sure. Sure.

Operator

We have next question from line of Ashit Koti [Phonetic], an individual investor.

Ashit Koti — Individual Investor — Analyst

Good afternoon, sir.

Manish P. Kiri — Managing Director

Good afternoon, please.

Ashit Koti — Individual Investor — Analyst

Manish sir, two questions. One is this 53,000 what we have mentioned, what has been mentioned, 53,000 tonnes, right?

Manish P. Kiri — Managing Director

Yes.

Ashit Koti — Individual Investor — Analyst

Now that patent charges would be for how many years?

Manish P. Kiri — Managing Director

So they are from 2010 to 2019, so almost for 10 years. In the quantum court has given in the judgment is 53,550 tonnes per year. That means that this much quantity of products, which Lonsen produced and sold, misusing DyStar patent, correct?

Ashit Koti — Individual Investor — Analyst

That is 53,550 tonnes every year?

Manish P. Kiri — Managing Director

Every year per year. So considering that quantity every year from 2010 to 2019, there are specific dates to give you — I already, I think, covered this base in my speech, though, which was from 31st August 2010 to actually 23 March 2019. So these are the specific dates. The time period is defined. And for this much quantity, for each tonne, what would be the license fee for each year that is going to computed, calculated and added back for these years. And that would be for DyStar. And 38% of that would be what Kiri would be entitled to and would be added in Kiri’s valuation. Right? So that’s the calculation.

Ashit Koti — Individual Investor — Analyst

But this 53,550 tonnes, what is the — I mean, is it one product or multiple products?

Manish P. Kiri — Managing Director

There are many products, including —

Ashit Koti — Individual Investor — Analyst

So the valuation-wise, what would be the value at what price it has been sold and percentage of that would be as a royalty or a license fee. So —

Manish P. Kiri — Managing Director

Yeah. So based on the royalty or license fee for products, there is a model which was used by both the valuers. So there are data with them. They will use those available data in evidences and then come out with the final number. So there are per tonne per kilo, what should be the license fee per product. All that is already been defined and already been there in the valuation model. So this would be added to it and then the calculation would be final after that.

Ashit Koti — Individual Investor — Analyst

What has been the difference between their figure and our figures?

Manish P. Kiri — Managing Director

Their — see, their figure earlier was like, if I remember correctly —

Ashit Koti — Individual Investor — Analyst

I’m talking about only the license fee, sir?

Manish P. Kiri — Managing Director

Yeah, yeah, that’s what I’m talking about. In our side, we presented 120,000 tonnes per year, correct? Their amount, there was 19,000 — there was less than 3,000 tonnes per year. So the court had two numbers, 3,000 tonnes per year, 120,000 tonnes per year and court used neither numbers. Court actually came out based on the existing evidence, a number of 53,000, which is somewhere in the middle.

Ashit Koti — Individual Investor — Analyst

Right. Right. No, but value, I mean, say —

Manish P. Kiri — Managing Director

Value was ranging from earlier amount of $1 million to for Kiri’s part to $40 million.

Ashit Koti — Individual Investor — Analyst

So on Kiri’s side, it was $240 million?

Manish P. Kiri — Managing Director

$40 million, $40 million.

Ashit Koti — Individual Investor — Analyst

$40 million. Okay.

Manish P. Kiri — Managing Director

So till $1 million to $40 million, it will fall somewhere.

Ashit Koti — Individual Investor — Analyst

Okay. Right, sir. And sir —

Operator

Mr. Koti, we request you to kindly come back in the queue for —

Ashit Koti — Individual Investor — Analyst

I just completed one question.

Manish P. Kiri — Managing Director

Yeah, go ahead.

Ashit Koti — Individual Investor — Analyst

Please. Sir, assuming that Chinese competition is going to increase further on, what is the way out? And assuming that this money will take some more time, so for us to sustain —

Manish P. Kiri — Managing Director

Yeah. We would be able to sustain. If you look at the last quarter, right, our consolidated EBITDA was INR16 crore and our legal fees of last quarter was about INR13 crores, right? So we would be able to sustain. There won’t be any issue on that.

Ashit Koti — Individual Investor — Analyst

Sir, we will not be able to take into consideration a consolidated basis because till the time that DyStar money comes, we can assume that this is our share, but it’s not in our hands. So if I have to look at only my operations, that will be domestic operation.

Manish P. Kiri — Managing Director

Yeah, I’m not talking into DyStar. I’m talking about the domestic only. Consolidated means that is the Kiri, Lonsen Kiri combined together.

Ashit Koti — Individual Investor — Analyst

But are they giving Lonsen Kiri also?

Manish P. Kiri — Managing Director

Sorry?

Ashit Koti — Individual Investor — Analyst

Lonsen Kiri, that is Baroda unit you are talking about?

Manish P. Kiri — Managing Director

Yeah, which is consolidated on India —

Ashit Koti — Individual Investor — Analyst

India operation, they are giving us anything out of that? Or there also, we have an issue?

Manish P. Kiri — Managing Director

No, no, we are getting — we are getting from them. We are getting payments of supplies, dividends and things like that.

Ashit Koti — Individual Investor — Analyst

Okay. I will come in back in a queue, sir. Thank you.

Operator

You have the next question from the line of Kashyap from Kiri Industries. Please go ahead.

Kashyap — Kiri Industries — Analyst

Am I audible?

Operator

Yes, you are.

Kashyap — Kiri Industries — Analyst

Hello.

Manish P. Kiri — Managing Director

Go ahead, please.

Kashyap — Kiri Industries — Analyst

Yeah. You said the corporate way, if we see the FPS or if we look at corporate way of the SPIs, three of the largest shareholders of Kiri Industries are named in the Hindenburg report that they are controlled by a single entity called Montrosa [Phonetic], which is very close to SEBI and Adani Group. Are you aware of this — the large shareholders of Kiri, having similar address and similar holdings and overlapping directors holding large amounts of shares in Adani and Kiri?

Manish P. Kiri — Managing Director

We are aware the shareholders who are there with us. And beyond that, we are not aware. So what we are aware is the shareholders who hold our shares and who participates with us, but we don’t know beyond that.

Kashyap — Kiri Industries — Analyst

Are there any similar overlapping addresses, phone numbers, directors? And have you heard anything from Montrosa group or Adani group during this [Indecipherable]?

Manish P. Kiri — Managing Director

No, we haven’t heard anything. Neither we have seen any overlapping sales.

Kashyap — Kiri Industries — Analyst

And one more question is that they hold 49% in Kiri. This is much, much higher than promoters and they are the largest group. What do you think in the future life if this money comes, will there be like any takeover or anything of Kiri and what like the promoters have as a shield against the 49% of the FPI’s holding, which is suspicious and listed in the Hindenburg report?

Manish P. Kiri — Managing Director

Number one, we don’t — I don’t think anybody holds 49% of Kiri’s assets to begin with. There’s nothing like that.

Kashyap — Kiri Industries — Analyst

One of the FPIs, Creta [Phonetic], Lotus [Phonetic] and MTS Global, they all together — the FPI is listed as 49%, right, shareholding?

Manish P. Kiri — Managing Director

Yeah. That is 48%, 49%, but those are all the FIIs together. Everyone [Indecipherable].

Kashyap — Kiri Industries — Analyst

The Hindenburg report is saying that they are all same entity based out of Mauritius with similar directors, which is Montrosa.

Manish P. Kiri — Managing Director

We don’t — we neither have gone into it, nor we are aware of any such details.

Kashyap — Kiri Industries — Analyst

No, no, in future if they all combine and they come as a hostile takeover, do you have any —

Manish P. Kiri — Managing Director

No, we don’t have any such threat. I don’t see at all.

Kashyap — Kiri Industries — Analyst

Okay. And you don’t believe they are all the same —

Operator

Mr. Kashyap, could I request to kindly come back in the queue for follow-up questions. We have the next question on the line of Saumya Kumar from Ambit Capital. Please go ahead.

Soumya Kumar — Ambit Capital — Analyst

Hi, sir. Good afternoon.

Manish P. Kiri — Managing Director

Good afternoon.

Soumya Kumar — Ambit Capital — Analyst

The first question, sorry if I’m repeating it, and you have already answered it. So on 23rd Jan, you announced that Senda has failed to make payment on [Indecipherable] costs. So if you could disclose what is that amount?

Manish P. Kiri — Managing Director

You mean the amount of legal costs — that’s what award —

Soumya Kumar — Ambit Capital — Analyst

Yeah.

Manish P. Kiri — Managing Director

It was SGD8.11 million.

Soumya Kumar — Ambit Capital — Analyst

Okay. And sir, the announcement also state that Kiri filed a writ of seizure from sale over Senda’s share in DyStar. So what does this process involve? And is there a chance Kiri will not be able to recover this amount?

Manish P. Kiri — Managing Director

I think there are full chances that we would be able to recover this amount. And after our enforcement filing actions are already in progress as we speak.

Soumya Kumar — Ambit Capital — Analyst

Sir, how long will it take kind of expected?

Manish P. Kiri — Managing Director

Well, let us see. Actually, the progress and the court is moving faster than we thought. So we hope that in the next few months, we should have some outcome of it.

Soumya Kumar — Ambit Capital — Analyst

Okay. And sir, how much Kiri has spent on the legal proceeding so far? And are we expecting to recur that as well?

Manish P. Kiri — Managing Director

Well, Kiri had spent much larger than this amount since 2015 till now. But this was the award which was given to Kiri to recover part of what we had spent, correct? So court didn’t award this entire amount that Kiri has spent. But out of that, the amount which we spend was much more than $8.11 million since 2015 till now.

Soumya Kumar — Ambit Capital — Analyst

Okay. Okay. Sir, one more follow-up to this. On 8 February, we announced that SICC has delivered a further judgment on valuation of DyStar. So if this 553,000 tonnes, is this a part of — a final part of the legal proceeding or thereafter, Senda will buy out Kiri’s share? How is it like?

Manish P. Kiri — Managing Director

This is the final — this is the final — this is the final part of the deciding the final number, correct? So this was the only one pending issue which was reverted to SICC from Supreme Court and they have delivered judgment on that. With this decision and the DLOM, which is — which Supreme Court has already announced to be reversed, if you read the last page of the order, these two amounts would be added and the final number would be decided now by the court.

So that will be available somewhere in the beginning or middle of March because 21 days is given for computation of final numbers and submitting to the court. So that is due on March 1. Suppose that the court is going to decide and give the final number. After that, then the Senda will have to pay that amount.

Soumya Kumar — Ambit Capital — Analyst

Okay. The final number is not as of right now?

Manish P. Kiri — Managing Director

Not as of now. So it will be somewhere beginning or middle of March. You will have this number. And as soon as that number is available, we’ll announce, we’ll disclose that number.

Soumya Kumar — Ambit Capital — Analyst

Is that any risk that this may not go through? Or is there any probability that this may not be — this deal may not go through? Is there any such risk?

Manish P. Kiri — Managing Director

See, Senda has not paid legal cost. So when they’ve not paid such a small amount of legal cost, why should we believe that they would pay $600 million of buyout order, right? So there is a doubt we have. There is a suspicion we have. And we do not have evidences because of they don’t — they have already defaulted on legal costs, they may default on this one too. So we will have to file enforcements and we believe that we will have to proceed as soon as possible post final amount is given by the court to take whatever actions we need to take to start enforcement of these awards.

Soumya Kumar — Ambit Capital — Analyst

Okay, sir. Thank you, sir. That was very helpful. Thank you.

Operator

We have the next question from the line of Amarchand Goel [Phonetic], an individual investor. Please go ahead.

Amarchand Goel — Individual Investor — Analyst

Hello, sir.

Manish P. Kiri — Managing Director

Yes, please.

Amarchand Goel — Individual Investor — Analyst

Am I audible? Okay. You mentioned about the enforcement thing. But last time, you also mentioned about like DyStar has about $500 million, $600 million cash on their accounts.

Manish P. Kiri — Managing Director

Yes.

Amarchand Goel — Individual Investor — Analyst

So Senda shouldn’t have any issue paying back without even going to a liquidation of these assets?

Manish P. Kiri — Managing Director

Right. So DyStar is having enough cash. And also DyStar is a debt-free company, financially very strong, very healthy. Balance sheet is extremely strong. And so if there is an intention to pay, there is enough financial strength of DyStar to — even from the accumulated profits to pay Kiri.

Amarchand Goel — Individual Investor — Analyst

Right. And if in case it has to go to the other route where they have to liquidate to the court proceedings, how long does it take for that to happen? Whether — I’m not sure, first of all, is DyStar a publicly limited company? Or is that a private company?

Manish P. Kiri — Managing Director

No. It’s a private company, so it’s a private company. And the order is not against DyStar. The order is against the other shareholder of DyStar, which is Senda, correct? So court will take actions of not honoring the court order against Senda, which is the shareholder — majority shareholder who is directed to buy our shares, right? So actions would be taken against Senda.

Amarchand Goel — Individual Investor — Analyst

Yeah. What I mean is there’s only one asset which is two majority shareholders —

Manish P. Kiri — Managing Director

Correct.

Amarchand Goel — Individual Investor — Analyst

— Kiri Investments and Senda.

Manish P. Kiri — Managing Director

Yes.

Amarchand Goel — Individual Investor — Analyst

So the liquidation has to happen at the DyStar level where the DyStar stake —

Manish P. Kiri — Managing Director

Very true. Very true. Very true. And it may take according to court process, once the court decides to do it, if you look at — we try to look at the cases and the precedences and it may take between six months to a year.

Amarchand Goel — Individual Investor — Analyst

Right. Okay. Okay. And —

Manish P. Kiri — Managing Director

So —

Amarchand Goel — Individual Investor — Analyst

— yeah, sorry, go ahead.

Manish P. Kiri — Managing Director

Yeah. If you look at the — we try to evaluate the earlier cases and the winding of cases in similar cases in the courts where — how long it takes to actually go through the cycle of selling the assets, the selling the company.

Amarchand Goel — Individual Investor — Analyst

Right. And would that be to like you mentioned about auction as one option, but would that be like a strategic partners that might getting as a shareholders.

Manish P. Kiri — Managing Director

I don’t think so. I think it all depends on how court exercises the selling option. And as DyStar is profitable, whether there is somebody wants to buy the whole company or it depends on how the sale process proceeds in fact. And I’m sure court would look into appointing experts to oversee the process, which we believe.

Amarchand Goel — Individual Investor — Analyst

Sure. And then one last final question is I think that the judgment was based from 2018.

Manish P. Kiri — Managing Director

Right.

Amarchand Goel — Individual Investor — Analyst

And I believe we are not getting any profit, although we have that in the account every quarter in consolidated basis.

Manish P. Kiri — Managing Director

Yes.

Amarchand Goel — Individual Investor — Analyst

Remedy of getting those back as well. And the interest amount based on — from 2018 when it was getting to the big at least the valuation as for the plant.

Manish P. Kiri — Managing Director

Yeah, I — we tried to get interest from 3rd July 2018, and that was also one of our points in appeal. Unfortunately court dismissed that point of our appeal and didn’t award us interest from 2018. So from 2000 — so earlier interest has not been awarded to us. So we are not entitled to get that. Only thing what we are entitled to get would be what we believe currently based on the judgment till now would be the buyout amount, the award and whether DyStar’s value today is higher or lesser or whatever it is, I think our liability, what we believe based on legal opinion has been crystallized.

So even if DyStar is sold at $3 billion or $1 billion or whatever amount, we are supposed to get what we have right to get is the court award amount. That’s the amount that we would get. Right.

Amarchand Goel — Individual Investor — Analyst

And what about the profit share since 2018? Would we be able to get that?

Manish P. Kiri — Managing Director

No, nothing more than that. Nothing more than that. So in case if the court awards interest now onwards, knowing that they have defaulted, see, the situation changes when enforcement starts where the other party has defaulted and it is because of their fault, it has been defaulted, maybe going onwards, in case if the interest is awarded, that would be the additional amount in case.

Amarchand Goel — Individual Investor — Analyst

Right. Okay. Because that’s the question every investor has and that’s why as you can see from the share price, it’s not based on consolidated basis based on the stand-alone basis.

Manish P. Kiri — Managing Director

Yes, yes. And I understand, you were right, because the value has not been captured in Kiri’s shares. And because of these ambiguities, because of not knowing what would eventually happen, because of too long, too much — too many years it has taken and that this could be a little bit reasons for that.

Amarchand Goel — Individual Investor — Analyst

But is it not like a delaying tactics from their side? Or are we giving —

Manish P. Kiri — Managing Director

Of course.

Amarchand Goel — Individual Investor — Analyst

— too much attention to like $1 million side cases where it’s just getting delayed by months and months and months rather, we should have just taken — taken the money and get it closed ASAP? It’s been quite a lot of time, and it’s very — it just doesn’t give really a picture about what the Company is doing and the actions being taken so far.

Manish P. Kiri — Managing Director

Right. So see, the court had — this was one of the most complicated cases if you go through all the judgments that Singapore International and Singapore High Court has ever experienced. One of the most landmark cases also. And the entire trial was bifurcated into two parts. First part was to confirm and to upheld the minority operation. And second part was to value the company. So because the entire legal process happened in two tranches, it take — it took so many years.

And now when the enforcement is starting, when the final award amount has come, right, the time frame what we believe could be much, much lower and stricter compared to the time which has taken till now to prove ourselves.

Amarchand Goel — Individual Investor — Analyst

Right. Okay. So at the moment —

Manish P. Kiri — Managing Director

But from their side, there would always be delaying tactics. From their side, it has been consistent performance by them to delay out whatever they can. But ultimately, it is up to the court to tolerate how much delay because of their tactics and not because of the court process.

Amarchand Goel — Individual Investor — Analyst

Right. Okay. Thank you, sir.

Manish P. Kiri — Managing Director

Thank you.

Operator

We have the next question on the line of Namit Mehta from KC Capital. Please go ahead.

Namit Mehta — KC Capital — Analyst

Hi, Manish Bhai. How are you doing?

Manish P. Kiri — Managing Director

Hello, Namit Bahi. How are you? Good to hear from you.

Namit Mehta — KC Capital — Analyst

Just a few questions from my side. So one is I noticed that you haven’t had a dividend from Lonsen Kiri in this quarter. Has anything changed over there? Are these the first dividends that we’re actually receiving from the company? And what do you expect going forward?

Manish P. Kiri — Managing Director

You were talking about from Lonsen Kiri, correct?

Namit Mehta — KC Capital — Analyst

Correct. Yeah.

Manish P. Kiri — Managing Director

Right. I think some senses have prevailed, okay? And I think it has started now. So looking at the DyStar experience, what happened, probably they are trying to be doing differently at Lonsen Kiri now, right? So that’s why, of course, the dividend was requested by Kiri and approved by the Board and then given. So at least there is a beginning there. Yes. You’re right.

Namit Mehta — KC Capital — Analyst

And what was the quantum received this quarter?

Manish P. Kiri — Managing Director

Quantum was INR6.86 crores, a small amount.

Namit Mehta — KC Capital — Analyst

And do we expect the next dividend from them at end of year?

Manish P. Kiri — Managing Director

We hope so. Of course, in next financial year, we believe that the practice will continue.

Namit Mehta — KC Capital — Analyst

Okay. Got it.

Manish P. Kiri — Managing Director

We just hope that the amount should be decent. So we’ll try to propose and see what finally is agreed to. It’s not — it’s peanuts. It’s a small amount compared to the profitability of that company that we have been having since years.

Namit Mehta — KC Capital — Analyst

Understood. Second question on the court process. Since filing the written seizure in the Singapore court, how long do you now expect to get the next court verdict or court direction with regards to that particular filing? I’m just wondering if somebody is in default of the court here, shouldn’t there be a very quick and prompt response from the court in terms of at least withholding the shares or there has to be some direction going forward there, right?

Manish P. Kiri — Managing Director

Absolutely right. And we are seeing the actions from the court very swiftly. And thanks to the court that the moment we filed, they have taken the required actions very timely. So looking at the corresponds with the court, I think we are hoping that by end of the month, we should have something from them.

Namit Mehta — KC Capital — Analyst

Okay. Understood. And then the last piece is on promoter ownership. So obviously the share price today is even lower than it was a few months ago. It just looks like — it looks very strange that this is not — it should not be a good time to increase promoter ownership, right? So we’ve been hearing about potential increases in promoter ownership, but just wanted to get some guidance there as well.

Manish P. Kiri — Managing Director

Right. I mean, I would be very much happy and do it. It’s about promoters having enough funds or intent to do this. And I also discussed this with you earlier and still promoters are working on it. So I’m not denying. We are very keen as promoters to increase and working progress is there from family side as we speak.

Namit Mehta — KC Capital — Analyst

Okay. Great. Thank you.

Operator

We have the next question from the line of Harsh Gupta [Phonetic], an individual investor. Please go ahead.

Harsh Gupta — Individual Investor — Analyst

Hi, Mr. Kiri. Good to talk to you gain.

Manish P. Kiri — Managing Director

Yes, Harshji. Please go ahed.

Harsh Gupta — Individual Investor — Analyst

I just want to understand, obviously, the holding entities in Singapore that is Senda, right, is also DyStar Global. But the actual assets as you were telling earlier are in 12 countries, 40 subsidiaries.

Manish P. Kiri — Managing Director

Right.

Harsh Gupta — Individual Investor — Analyst

So they are clearly of a bad will, let us assume bad intention and the whole point here is minority obstruction. Then is it not at least thinkable that they can make the company hollow from inside that even if the court then decides to auction the holding shares, there is not much market value of it?

Manish P. Kiri — Managing Director

Well, the legal case has been going on for nine years. And to do such kind of activities would be fraudulent and would be damaging on their part. And till end December 2022, nothing that sort has happened. And as you can see the numbers, DyStar has ended up having $166 million of EBITDA by December 2022.

Harsh Gupta — Individual Investor — Analyst

Okay. I mean, I was just wondering because obviously DyStar is not paying any dividend. So ultimately it’s accounting is basically what they are saying. Of course —

Manish P. Kiri — Managing Director

DyStar is not paying dividend because Senda as the majority shareholder is operating Kiri, that’s why. It has the ability to pay. It can pay. It has —

Harsh Gupta — Individual Investor — Analyst

Anything the — but I think the results are real. The results are not problematic or —

Manish P. Kiri — Managing Director

No, no.

Harsh Gupta — Individual Investor — Analyst

For DyStar? Okay. Then also because the Supreme Court has given this final valuation, basically adding that discount, which they had done for the 19% and now whatever amount they pay for the license fee, they’ve given it back to SICC. So SICC will now come up with a number. And then what can they appeal against and which court will it be appealed in it, SICC or Supreme Court?

Manish P. Kiri — Managing Director

Actually, the SICC is exercising the Supreme Court’s decision. So whatever SICC is doing now is to give an effect of Supreme Court division — decision. So that is actually Supreme Court directives they are working on on the appeal. Appeal has already been completed, finished.

Harsh Gupta — Individual Investor — Analyst

So there is no way that the other company, Chinese company can actually now appeal the valuation number?

Manish P. Kiri — Managing Director

No, we don’t think so because this number is coming out of the appeals court decisions.

Harsh Gupta — Individual Investor — Analyst

Okay. Okay. And there was also on the small case, SIC 7 [Phonetic], a very minor case, which has gone against us actually.

Manish P. Kiri — Managing Director

Yes, yes. Yes.

Harsh Gupta — Individual Investor — Analyst

How will that be collated because that might further delay the timeline?

Manish P. Kiri — Managing Director

SIC 7 and this both have nothing to do with each other. They have no interconnectivity or relevance or dependency on each other. SIC 7 also got completed in September and judgment was reserved in September, in Supreme Court in the appeal. And we are waiting for the result judgment to come any time. It may come from the Supreme Court anytime. But that has nothing to do, no relevance with SIC 4.

Harsh Gupta — Individual Investor — Analyst

Okay. And one final question before I pass on, is that you were saying this is a landmark case in Singapore jurisprudence, this kind of buyout for minority operations. And they are relatively strict even though not very fast always, what precedent is there of an auction of a holding entity? And especially, I want to understand because if you hold 37% and that is the valuation is now being valued at $481 million plus $800 million, et cetera, then the — and it is auction, the balance amount still goes back to Lonsen’s holding company Senda?

Manish P. Kiri — Managing Director

Yes. So that’s what it can happen because the Kiri’s award is based on the value of DyStar on 3rd July 2018. So that’s the award. That’s the crystallized liability to pay to Kiri. Now today, DyStar’s value would have been $5 billion or $1 billion, Kiri has nothing to do with it, isn’t it? Kiri would get what it is entitled to get, which is the number given by the court after five years of exercise of confirming minority operations. So this number has come for the — after the valuation exercise of SICC as well as Supreme Court and end of five years, the number has been given by the court. I don’t think that number can change.

Harsh Gupta — Individual Investor — Analyst

Okay. So I was just wondering, why are they taking so much risk because if they get auctioned and you still get the money, they just have the remainder.

Manish P. Kiri — Managing Director

Right, right. So well, I don’t have that answer. Actually, any rational shareholder coming to an end by losing all the appeal points and entirely dismissal of their stand in the court and still dishonor the judgment, I mean, then one can face the consequences. But I myself also not surprised, but find it irrational. And knowing that DyStar is a strong company, was largest dye company, one of the most profitable entity, 0 debt, cash-rich and still one wants to dishonor the court’s judgment is quite damaging for them, I would say.

Harsh Gupta — Individual Investor — Analyst

Okay. Manishji, thank you so much. Best wishes for the coming quarter. Thank you.

Operator

We have the next question from the line of Virendra Pai [Phonetic] from GunanSing and Company. Please go ahead.

Virendra Pai — GunanSing and Company — Analyst

Good afternoon, sir.

Manish P. Kiri — Managing Director

Good afternoon.

Virendra Pai — GunanSing and Company — Analyst

Hello.

Manish P. Kiri — Managing Director

Yes, please.

Virendra Pai — GunanSing and Company — Analyst

Sir, I have two questions. My first question is in 2019, you mentioned in the con call that company will be paying regular dividends, but it stopped after two years. And my second question is, sir, is there any chance of settlement out of the court with the Senda?

Manish P. Kiri — Managing Director

Sorry, let me understand your first question. 2019, the dividend, you’re referring —

Virendra Pai — GunanSing and Company — Analyst

You mentioned in your con call the company will be paying dividends to the investors regularly.

Manish P. Kiri — Managing Director

You mean Kiri would be paying dividend to its shareholders?

Virendra Pai — GunanSing and Company — Analyst

Yes, yes. So I’m talking about the Kiri.

Manish P. Kiri — Managing Director

Yeah, yeah. So if you look at the financials post-COVID, post-2019, 2021 and ’21, ’22, you would see that the ability to pay dividend was not there. And the company started actually losing and for the last one year. So because of the financial inability, it couldn’t pay dividend on a standalone basis, number one. Number two, your second question was about the settlement out of the court. After nine years, I don’t see such things because court process already completed, court final number is already coming.

We have come to an end of the legal journey and number is crystallized and finalized by the court. There is no room now to do anything, any settlement or anything. Whatever the court’s numbers, they’ll have to either give or dishonor, it’s up to them and then the next actions will follow.

Virendra Pai — GunanSing and Company — Analyst

Okay, sir. Thank you. Thank you very much, sir.

Operator

Participants, please note, the management would not take repeat questions. We have the next question from the line of Ashwini Agarwal [Phonetic], from an individual investor.

Ashwini Agarwal — Individual Investor — Analyst

Hello.

Manish P. Kiri — Managing Director

Yes, please.

Ashwini Agarwal — Individual Investor — Analyst

Hello.

Manish P. Kiri — Managing Director

Yes, Ashwiniji.

Ashwini Agarwal — Individual Investor — Analyst

Just wanted to know about the time limit of the latest order, I mean they have asked us to present the agreed calculations in 21 days?

Manish P. Kiri — Managing Director

Correct. Correct.

Ashwini Agarwal — Individual Investor — Analyst

So like the agreement on the calculation has to be between us and Senda? Or how does this work?

Manish P. Kiri — Managing Director

See, the way it was is we will estimate the — and we will calculate the final number, $481 million plus patent license fee, plus 19% DLOM. And whatever number which comes from Kiri’s side, correct, or from the valuer’s side, which will be exchanged with them. And it is pretty simple formula. It was agreed — I mean, it was the financial model which was accepted by the court.

And by changing those numbers, it will come out with a final number. And that would be exchanged between the parties. So Kiri and Senda will exchange and there is — and there is nothing, I mean, different in the arithmetic. There is no — the basis has been given by the court. So hopefully there should not be any differences in the calculation in the arithmetic because arithmetic is going to just a mathematical addition. So hopefully, there won’t be any differences. In case if there is any, then both the parties will submit the respective submissions on — in 21 days and court will decide accordingly.

Ashwini Agarwal — Individual Investor — Analyst

All right. So after submitting both our valuation —

Manish P. Kiri — Managing Director

When $481.6 million number came in June 2021, it was also an agreed number, which was submitted to the court by both the parties.

Ashwini Agarwal — Individual Investor — Analyst

All right. All right.

Manish P. Kiri — Managing Director

Yeah. So that is why court —

Ashwini Agarwal — Individual Investor — Analyst

And the follow-up is —

Manish P. Kiri — Managing Director

— is following the similar process now. That $481 million wasn’t agreed. So this should also be an agreed because it’s just an arithmetic and mathematical calculation.

Ashwini Agarwal — Individual Investor — Analyst

No, my question is in case it is not agreed, then we will both file our different calculations. And then the court will decide which one is correct? Or will then engineering send submittals?

Manish P. Kiri — Managing Director

No, no, no, then the court will decide. No, no, nothing like that. The court will —

Ashwini Agarwal — Individual Investor — Analyst

Yeah. Okay. Okay. Thank you. Thank you.

Manish P. Kiri — Managing Director

Thank you.

Operator

We have the next question from Manoj Guda [Phonetic] from Abhinand Financial Services. Please go ahead.

Manoj Guda — Abhinand Financial Services — Analyst

Manishji good afternoon and thank you for giving the opportunity.

Manish P. Kiri — Managing Director

Good afternoon. Yes, please, please. Thank you.

Manoj Guda — Abhinand Financial Services — Analyst

My question is regarding if auction takes place for DyStar, whether you will be willing to participate in the auction?

Manish P. Kiri — Managing Director

No, no. We will not. We don’t need to. We are the recipient of auction awards. So we will not be.

Manoj Guda — Abhinand Financial Services — Analyst

You can’t be or you won’t be?

Manish P. Kiri — Managing Director

No, we won’t be. We will not be.

Manoj Guda — Abhinand Financial Services — Analyst

We will not be. My next question, in the last conference call, I had asked you question regarding increasing promoter [Technical Issues]. You had categorically stated that you will be increasing your stake.

Manish P. Kiri — Managing Director

Right, right.

Manoj Guda — Abhinand Financial Services — Analyst

What is the right time to increase —

Manish P. Kiri — Managing Director

We strongly — I strongly believe it’s the right time. Because of the lack of funds, we couldn’t do it or we are not able to, but we are working on it as a family, yes.

Manoj Guda — Abhinand Financial Services — Analyst

Because you will be getting in excess of INR5,000 crores which gets converted to INR1,000 per share. And the price of share is INR300.

Manish P. Kiri — Managing Director

Of course. Yeah.

Manoj Guda — Abhinand Financial Services — Analyst

It is a very good business proposition for you. Why don’t you pursue?

Manish P. Kiri — Managing Director

Right. We know that. But as I mentioned, the promoters should have funds, correct? So the funds, how to utilize and promoters are already in the arrangements in progress currently. But yes, we are very keen and we should be increasing our stake. I fully agree with you. We are in line with your thinking.

Manoj Guda — Abhinand Financial Services — Analyst

Yes. Manish ji, there are a number of high net worth individual in the market who are willing to put their money into any shares provided they are certain of the outcome of the proceeding. It means —

Manish P. Kiri — Managing Director

Correct.

Manoj Guda — Abhinand Financial Services — Analyst

— people are uncertain of the outcome of the proceeding.

Manish P. Kiri — Managing Director

And the uncertainty has been there because of the long-going legal battle. It is almost nine years. So naturally [Indecipherable].

Manoj Guda — Abhinand Financial Services — Analyst

No, I agree. Your fares are at the almost three, four, five years low and all shareholders are very worried. The share prices fell from around INR500 to INR250 level in the month of January itself without any apparent losses or references, the reason for there. So you should support your shareholders by buying from the market. You can. You should.

Manish P. Kiri — Managing Director

Understand your point, sir.

Manoj Guda — Abhinand Financial Services — Analyst

Okay, sir. Thank you.

Manish P. Kiri — Managing Director

Thank you.

Operator

That was the last question. I would now like to hand it over to the management for closing comments.

Manish P. Kiri — Managing Director

Thanks to everyone for participating in today’s earnings call and we’ll see you next quarter. Thank you very much. All the best wishes. Thank you.

Operator

[Operator Closing Remarks]