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Corporate - Restructuring


DSQ Soft to ready revamp plan soon

Our Bureau

The restructuring could result in hiving off one or more business divisions, or spinning off by way of transfer to a new entity or sale of non-strategic division.

CHENNAI, May 1

DSQ Software Ltd is set to finalise its restructuring plan in the next month or so, according to Mr Dinesh Dalmia, Vice-Chairman of the company.

The company's board had decided in November last that it would obtain shareholder approval for the restructuring, through a postal ballot. The restructuring could result in hiving off one or more business divisions, or spinning off by way of transfer to a new entity or sale of non-strategic divisions, according to a statement released by the company at the time.

Addressing the media immediately after announcing the March quarter results, Mr Dalmia said, ``We hope to finalise the restructuring plan in the next 30 days or so.'' He added that the approval came through three months ago. ``We roped in individual experts to help us with the restructuring plan, instead of going to big names in the industry,'' he added.

``We are considering the option of an accelerated depreciation and taking the asset write-off in one year. The board is to make a decision on this in the next two months.'' Mr Dalmia said commenting on the company's net loss of Rs 21.78 crore for the quarter ended March 2002.

Depreciation came to Rs 22.48 crore for the quarter ended March 2002 and to Rs 18.95 crore on a net loss of Rs 17.93 crore for the quarter ended December 2001. He added that the company would ``look to grow at around 30 per cent in revenues and between 100 and 150 per cent in operating profits, in the next four quarters, based on the figures for the March 2002 quarter.''

Asked what went wrong with DSQ's proposed acquisition of Fortuna Technologies through equity swap, Mr Dalmia replied, ``At the time of the acquisition, our company secretary was on leave, and hence we did not comply with a few rules. SEBI asked us to cancel the acquisition, we did so.'' It may be recalled that SEBI found the acquisition likely to ``erode investor confidence'' and that, ``DSQ was guilty of non-disclosure of facts of acquisition in a timely and transparent manner to stock exchanges.''

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