DSQ Software managing director Dinesh Dalmia said that both the parties have arrived at a settlement and will be filing a decree in the Madras high court later this week.

"We are happy," Dinesh Dalmia said but refused to elaborate the price at which the settlement was arrived at. But he admitted that promoters of DSQ Software will be getting the full 19 per cent share held by CDC immediately after the court's order on the decree.

It may be recalled that CDC as a co-promoter of DSQ Software had subscribed to 38 lakh shares at Rs 10 each at par at the time of the public issue in April 1991.

The CDC purchase had a lock-in period for three years and a buy-back arrangement as well with the understanding that if the CDC chose to offload its stocks any time it will give the first option to DSQSoftware. The shares were slotted under a jumbo certificate with a condition that they should not be sold or hypothecated or transferred for three years from the allotment date.

CDC was at one stage offered a price of Rs 40 per share as buyback price but after turning this down CDC had sought the shares be split into marketing lots. However, since the price of shares had shot up to Rs 300, DSQ Software feared that CDC may sell the split shares in the open market and so refused to split the jumbo certificate and got a stay order from the Madras high court on sale of its shares by CDC.

According to Dinesh Dalmia, this issue has now been settled and only details of the payment schedules involving a lot of money have to be worked out. CDC had sent a full team for discussions and have agreed to file a joint decree in the court announcing the settlement. Dalmia said only after the court decree further details on the price paid to CDC will be made available.

Meanwhile, he said DSQ Software expects to post a100 per cent growth this year following the 25 per cent growth in sales in the first quarter of 1998-99 to Rs 52.80 crore and a 32 per cent growth in profits to Rs 11.56 crore in comparison to the previous quarter.

DSQ will be investing $ 3 million in its London and Singapore development centres which are wholly-owned subsidiaries. The company has decided to take over DSQ Information Technology Ltd, its Mumbai-based marketing division, to focus on ERP solutions. This outfit earned a revenue of Rs 7 crore and DSQ Software will benefit from amalgamating operations under the parent company.

Dinesh Dalmia outlined that the company will be bringing business focus reengineering in the organisation by stressing industry-centric ERP and Computer aided design solutions through its development centres in Bangalore, Calcutta and Chennai.

DSQ Software has established a 64 kbps link with Boeing in Seattle and is negotiating for another eight to 10 projects with them in specialised areas like engineering consultancy,CD modelling, technical applications etc.

The DSQ Software MD said it has won a $ 1 million order in Sri Lanka from the Hayeleys Group and has signed an MoU with General Electric Hong Kong for providing solutions to Japanese clients which will be done offshore in India.

DSQ Software has a total debt burden of Rs 60 crore but Dinesh Dalmia said it would be three years before it can hope to be at the zero debt level. It has also closed operations of its subsidiary Square D Securities Ltd.