DSQ Software managing director Dinesh Dalmia said that both 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 refusing to reveal the settlement price. But he admitted that promoters of DSQ Software will get CDC's full 19 per cent share immediately after the court's order on the decree.

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 DSQ Software. The shares were slotted under a jumbo certificate with a condition that theyshould 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 down the offer CDC had wanted the shares to be split into market lots. However, since the scrip's price had shot up to Rs 300, DSQ Software feared that CDC may sell the split shares in the open market. Hence DSQ Software 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 Dalmia, this issue has now been settled and only details of the payment schedules 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 a 100 per cent growth this year following the 25 per cent growth in sales in the first quarter of 1998-99to Rs 52.80 crore and a 32 per cent growth in profits to Rs 11.56 crore as compared with to previous quarter.

DSQ will invest $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.

Dalmia said 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 8 to 10 projects with them in specialised areas like engineering consultancy, CD modelling and technical applications.

The DSQ Software managing director 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 forproviding solutions to Japanese clients which will be done offshore in India.

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