The board of Chennai-based DSQ Software Ltd has decided to restructure the company. As part of the revamp, the company would seek the services of professionals and would be open to sell one or more business divisions of the company.
A company spokesperson said, "The restructuring may call for hiving-off one or more business divisions of the company or spinning off by way of transfer to a new entity or sale of non- strategic divisions or otherwise."
In another division, the board has decided to extend the current financial year up to 15 months ending on March 31, 2002.
As part of the recent changes in the Companies Act effective from June 2001, the company said it would seek the approval of shareholders for the proposed re-structuring through postal ballot.
At present, according to the official, the company was organised under different industry-specific strategic business units (SBUs) such as a separate unit for telecom and networking and embedded systems. Since the company moved to Industry specific SBUs only from April 2001, he said the financial data for each of the division was not available.
DSQ Software during the quarter ended September 2001 reported a net profit of Rs 4.01 crore compared to a net profit of Rs 26.80 crore in the corresponding period last fiscal, a fall of more than 85 per cent. Turnover during the same period declined by 34 per cent to Rs 68.03 crore, from Rs 103.65 crore in July- September 2000.
DSQ Software has reported a sharp decline in profitability during the last two quarters. For the quarter ended June 2001, turnover and net profit fell by 66 per cent and 21 per cent, respectively.
