DSQ Software Ltd, established in 1992 and headquartered in Chennai formerly Madras, India was a publicly listed IT and Software services consulting company mainly operated overseas using its base in India.[1] DSQ was in the league of IT companies operating from India during the tech-boom of 1990s, that mainly catered demands from western markets for project services and technical manpower and IT skills.[2] Company was known as Square D Software Ltd when it was incepted in 1992 and later on changed its name to DSQ Software in the year 1997.[3]
| Formerly | Square D Software Ltd |
|---|---|
| Company type | Publicly listed traded |
| Industry | IT Services |
| Founded | 1992 in Chennai, Tamil Nadu, India |
| Founder | Dinesh Dalmia |
| Defunct | 2004 |
| Fate | Defunct (Services and operations were privately sold in 2003) |
| Successor | Scandent Solutions, later became Cambridge Solutions, acquired by Xchanging Plc, acquired by CSC now operating as DXC Technology |
| Headquarters | Chennai , India |
Area served | International |
Number of employees | 2000+ (2001) |
The Company offered service offerings in Mainframe and Midrange computing, Telecommunications, CAD, and various other IT service areas.[4] DSQ had clients in US, Europe and Asia Pacific and employed around 2000 people in the year 2000 and reported revenues in the region of $60m for the same year.[5] Hewitt Associates, a leading US based Human Resources consultancy firm valued the human resources capital of DSQ at $1bn[citation needed]. DSQ had an impressive list of international clients and it posted year-on-year increasing revenues till year 2000.[6] From the year 2002, DSQ's market presence diminished when its lucrative operations and client service contract agreements were sold to a privately held company. Year 2003 saw DSQ's collapse and there was very minimal business activities as the promoter was rumored to have disappeared from the scene in order to avoid legal proceedings. DSQ Software is operationally dormant as per the trading information submitted for the year 2005. As per BSE data, the public holding in DSQ Software is over 70% and equity capital of over Rupees 300 million.
Promoter-led issues
editDinesh Dalmia, Company's promoter and Managing director got entangled in a series of share market controversies in relation to various partisan share allotments and transfer of equity made by DSQ from the year 1998 through to 2001.[7] [8]
Dalmia got arrested at Delhi, India in 2006 for various fraud charges.[9] It was later established that Dalmia was in the United States from 2003 to 2006 trying to perpetuate fraud in computer equipment leasing market by setting up businesses using fake names and deals purportedly money laundering.[10] He was constantly seen in the New Brunswick area of New Jersey driving luxury cars and often eating at Udipi Cafe. He has been indicted in 2006 by the FBI in the United States on multiple charges of fraud.[11] However, in the year 2011 he has been released on bail in all cases in India. There are rumors that he has also entered into a settlement in the United States. [12] Some social commentators see lack of corporate governance more as a part of a broader problem relating to India's family-owned corporate environment. DSQ is cited in the list of major corporate scams of India, along with Satyam Scandal.[13]
During Oct 2013, SEBI barred Dinesh Dalmia and DSQ Software for a further period of 7 years.[14] In Jan 2019, SEBI further imposed a Rupee 1 crore fine for failing to comply with its directions passed.[15]
References
edit- ^ "DSQ Software Official Website Ltd". Internet Archive. Archived from the original on 19 May 2000 – via Wayback Machine.
- ^ "DSQ Locations". Internet Archive. Archived from the original on 21 August 2000 – via Wayback Machine.
- ^ "DSQ Historical data". Internet Archive. Archived from the original on 28 October 2010 – via Wayback Machine.
- ^ "DSQ Services data". Internet Archive. Archived from the original on 21 August 2000 – via Wayback Machine.
- ^ "DSQ Financial Data". Internet Archive. Archived from the original on 8 April 2001 – via Wayback Machine.
- ^ "DSQ Brochure data". Internet Archive. Archived from the original on 21 August 2000 – via Wayback Machine.
- ^ "ADJUDICATION ORDER NO. PKK/AO/98/2011" (PDF). www.sebi.gov.in. Retrieved 19 April 2021.
- ^ "SEBI Order Prohibition of Fraudulent and Unfair Trade Practices against DSQ Software Limited and Shri Dinesh Dalmia, Director". www.sebi.gov.in. Retrieved 24 April 2023.
- ^ "CSE scam kingpin Dinesh Dalmia held". Business Standard India. 14 March 2006 – via Business Standard.
- ^ "$19 Million Equipment Lease-Financing Scam" (PDF). www.justice.gov. Retrieved 24 April 2023.
- ^ "Dalmia Indictment" (PDF). www.justice.gov. Retrieved 25 April 2023.
- ^ "DALMIA SCANDAL". www.indianmirror.com.
- ^ "Analysis of Major Corporate scandals in India" (PDF). thelawbrigade.com.
- ^ "SEBI bars DSQ Software, Dalmia from capital markets for 7 yrs". The Hindu. 4 October 2013 – via www.thehindu.com.
- ^ "Sebi slaps Rs 1 cr fine on individual in DSQ Software case". The Times of India. 18 January 2019.