{{Use dmy dates|date=May 2026}} {{Use Indian English|date=September 2016}} {{Infobox company | name = DSQ Software Ltd | image = DSQ Logo main1.jpg | former_name = Square D Software Ltd | type = Publicly listed traded | traded_as = {{Unbulleted list||{{NSE|SQRDSFWARE}}}} (archive) | industry = IT Services | fate = Defunct (Services and operations were privately sold in 2002<ref>{{Cite news|url=https://www.financialexpress.com/archive/regulators-drag-their-feet/44958/|title=Regulators Drag Their Feet|newspaper=Internet Archive |archive-url=https://web.archive.org/web/20201029074448/https://www.financialexpress.com/archive/regulators-drag-their-feet/44958/ |archive-date=29 October 2020 |via=Wayback Machine}}</ref>) | successor = Scandent Solutions, later became Cambridge Solutions, acquired by Xchanging Plc, acquired by CSC now operating as DXC Technology | founded = 1992 in Chennai, Tamil Nadu, India | founder = Dinesh Dalmia | defunct = 2004 | hq_location_city = Chennai | hq_location_country = India | area_served = International | key_people = | products = | owner = <!-- or: | owners = --> | num_employees = 2000+ | num_employees_year = 2001 | parent = | website = }}
'''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.<ref>{{Cite news|url=http://www.dsqsoft.com/|title=DSQ Software Official Website Ltd.|newspaper=Internet Archive |archive-url=https://web.archive.org/web/20000519221537/http://www.dsqsoft.com/ |archive-date=19 May 2000 |via=Wayback Machine}}</ref> DSQ was in the top league of Indian IT companies that operated abroad during the tech-boom of 1990s, that mainly catered demands from western markets for project services, technical manpower and IT skills.<ref>{{Cite web|url=http://www.dsqsoft.com/ContactUs/ContactUs.htm|title=DSQ Locations|newspaper=Internet Archive |archive-url=https://web.archive.org/web/20000821050316/http://www.dsqsoft.com/ContactUs/ContactUs.htm |archive-date=21 August 2000 |via=Wayback Machine}}</ref> 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.<ref>{{Cite news|url=http://sify.com/finance/stockpricequote/D_S_Q_Software_Ltd-DSQ/history.html|title=DSQ Historical data.|newspaper=Internet Archive |archive-url=https://web.archive.org/web/20101028041120/http://sify.com/finance/stockpricequote/D_S_Q_Software_Ltd-DSQ/history.html |archive-date=28 October 2010 |via=Wayback Machine}}</ref>
The Company offered service offerings in Mainframe and Midrange computing, Telecommunications, CAD, and various other IT service areas.<ref>{{Cite news|url=http://www.dsqsoft.com/Services/Services.htm|title=DSQ Services data.|newspaper=Internet Archive |archive-url=https://web.archive.org/web/20000821045345/http://www.dsqsoft.com/Services/Services.htm |archive-date=21 August 2000 |via=Wayback Machine}}</ref> 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.<ref>{{Cite news|url=http://www.dsqsoft.com/investors/dec2000.htm|title=DSQ Financial Data |newspaper=Internet Archive |archive-url=https://web.archive.org/web/20010408060802/http://www.dsqsoft.com/investors/dec2000.htm |archive-date=8 April 2001 |via=Wayback Machine}}</ref> Hewitt Associates, a leading US based Human Resources consultancy firm valued the human resources capital of DSQ at $1bn{{Citation needed|date=April 2023}}. DSQ had an impressive list of international clients and it posted year-on-year increasing revenues till year 2000.<ref>{{Cite news|url=http://www.dsqsoft.com/AboutDSQ/AboutDSQ.htm|title=DSQ Brochure data.|newspaper=Internet Archive |archive-url=https://web.archive.org/web/20000619090638/http://www.dsqsoft.com/Customers/Customers.htm |archive-date=19 June 2000 |via=Wayback Machine}}</ref><ref>{{Cite news |url=http://www.dsqsoft.com/investors/dec2000.htm |title=DSQ Financial Data |newspaper=Internet Archive |archive-url=https://web.archive.org/web/20011223092302/http://www.dsqsoft.com/investors/year1999.htm |archive-date=23 December 2001 |via=Wayback Machine |access-date=23 April 2023 |url-status=live }}</ref> In year 2000, DSQ was also the first to establish as an Application Service Provider providing Internet based services, operating from India by establishing DSQworld.com.<ref> {{cite news | url=https://www.telegraphindia.com/business/dsqworld-seeks-allies-for-update/cid/892664|title=DSQWORLD SEEKS ALLIES FOR UPDATE| newspaper=The Telegraph India | date=23 July 2000}}</ref>
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. DSQ Shares were suspended in 2001 and its India operations ceased in 2002<ref>{{cite news| url=https://timesofindia.indiatimes.com/business/india-business/bse-suspends-trading-in-dsq-software-from-july-30/articleshow/1668846724.cms|title=BSE suspends trading in DSQ Software|newspaper=Times of India| date=24 July 2001}}</ref>. Year 2003 saw DSQ's collapse with minimal business activities<ref>{{cite news| url=https://archives.digitaltoday.in/businesstoday/20030928/trends3.html|title=DSQ Business Today|newspaper=Business Today| date=28 September 2003}}</ref>. DSQ still carried on trading under various renamed entities HQ'd in the UK between 2001-2004 with reported group revenues of £76m GBP for year ending March 2004. The US entity accounted over 98% of reported group revenue for the 2004 financial year which coincides with promoters physical presence in the US.<ref>{{cite news| url=https://find-and-update.company-information.service.gov.uk/company/02881682/filing-history/MTAwOTc1Mzk1YWRpcXprY3g/document?format=pdf|title=AllServe Systems Plc Results Mar 2004|date=21 July 2004}}</ref><ref>{{cite news| url=https://find-and-update.company-information.service.gov.uk/company/02881682/filing-history/NTk2OTYxMzNhZGlxemtjeA/document?format=pdf&download=0|title=AllServe Systems Administration|date=16 November 2005}}</ref> The company was called AllServe Systems Plc when it entered administration in November 2004 and liquidation was completed in 2010.<ref>{{cite news| url=https://find-and-update.company-information.service.gov.uk/company/02881682/filing-history/MzA1MTE4OTI0MGFkaXF6a2N4/document?format=pdf|title=AllServe Systems Liquidation|date=23 January 2012}}</ref> DSQ Software is operationally dormant as per the trading information submitted for the year 2005 at BSE. The public holding in DSQ Software is over 70% and equity capital of over Rupees 300 million.<ref>{{cite news| url=https://www.bseindia.com/stock-share-price/dsq-software-ltd/dsqsoft/523864/|title=DSQ BSE Trading data as of 2005|date=23 September 2005}}</ref>
== Promoter-led issues == Dinesh Dalmia, Company's founder, 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.<ref>{{cite web |url= http://www.sebi.gov.in/adjorder/dineshdalmia.pdf |title= ADJUDICATION ORDER NO. PKK/AO/98/2011 |website= sebi.gov.in |archive-url= https://web.archive.org/web/20240719193228/http://www.sebi.gov.in/adjorder/dineshdalmia.pdf |access-date= 9 January 2025 |archive-date= 19 July 2024 |url-status= live }}</ref><ref>{{cite web |url=https://www.sebi.gov.in/sebi_data/docfiles/11808_t.html |title=SEBI Order Prohibition of Fraudulent and Unfair Trade Practices against DSQ Software Limited and Shri Dinesh Dalmia, Director |website=sebi.gov.in |archive-url=https://web.archive.org/web/20230430100350/https://www.sebi.gov.in/sebi_data/docfiles/11808_t.html |access-date=24 April 2023 |archive-date=30 April 2023 |url-status=live }}</ref> Dalmia fled India to US sometime in 2003 and got arrested at Delhi, India in 2006 for various fraud charges.<ref>{{Cite news|url=https://www.business-standard.com/article/markets/cse-scam-kingpin-dinesh-dalmia-held-106031401122_1.html|title=CSE scam kingpin Dinesh Dalmia held|newspaper=Business Standard India |date=14 March 2006|via=Business Standard}}</ref> 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.<ref>{{cite web |url=https://www.justice.gov/archive/usao/nj/Press/files/pdffiles/Older/dalm0929rel.pdf|title=$19 Million Equipment Lease-Financing Scam |website=justice.gov|access-date=24 April 2023}}</ref> 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.<ref>{{cite web |url=https://www.justice.gov/archive/usao/nj/Press/files/pdffiles/Older/Dalmiaetalindictment.pdf|title=Dalmia Indictment|website=justice.gov|access-date=25 April 2023}}</ref> 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.<ref>{{Cite web|url=https://www.indianmirror.com/indian-industries/indian-scams/dalmiascandal.html|title=DALMIA SCANDAL|website=indianmirror.com}}</ref> 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.<ref>{{Cite web|url=https://thelawbrigade.com/wp-content/uploads/2021/06/AJMRR_MAYANK-SHRIVASTAVA.pdf|title=Analysis of Major Corporate scandals in India|website=thelawbrigade.com}}</ref>
During Oct 2013, SEBI barred Dinesh Dalmia and DSQ Software for a further period of 7 years.<ref>{{Cite news|url=https://www.thehindu.com/business/markets/sebi-bars-dsq-software-dalmia-from-capital-markets-for-7-yrs/article5201000.ece|title=SEBI bars DSQ Software, Dalmia from capital markets for 7 yrs|newspaper=The Hindu |date=4 October 2013}}</ref> In Jan 2019, SEBI further imposed a Rupee 1 crore fine for failing to comply with its directions passed.<ref>{{cite news | url=https://timesofindia.indiatimes.com/business/india-business/sebi-slaps-rs-1-cr-fine-on-individual-in-dsq-software-case/articleshow/67593191.cms | title=Sebi slaps Rs 1 cr fine on individual in DSQ Software case | newspaper=The Times of India | date=18 January 2019 }}</ref>. In 2024, a corporate fraud investigating source had revealed that Dalmia's name had appeared in another alleged scam purportedly using fake company name to secure and default bank loans in the diary export business. <ref>{{cite news | url= https://www.moneylife.in/article/moneylife-exclusive-serial-fraudster-dinesh-dalmia-strikes-again-dupes-lenders-of-nearly-rs200-crore/74160.html | title= Serial fraudster Dinesh Dalmia Strikes again dupes-lenders of nearly rs200 crore | newspaper=Money Life | date=17 May 2024}}</ref>
==References== {{reflist}}
== External links == * [http://www.suchetadalal.com/?id=8d24f42b-cdf7-37eb-48da2ae56293&base=sub_sections&f&t=DSQ+Software+Saga Sucheta Dalal :DSQ Software Saga]
Category:Software companies of India Category:Companies based in Chennai Category:Software companies established in 1992 Category:Indian companies established in 1992 Category:1992 establishments in Tamil Nadu Category:Companies formerly listed on the National Stock Exchange of India Category:Companies formerly listed on the Bombay Stock Exchange Category:Corporate crime Category:Accounting scandals Category:Fraud in India Category:Accounting in India Category:Corporate governance in India