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DSQ workers to get stock option

Some employees of the Madras-based DSQ Software Ltd may get a stock option plan soon. The board is to scrutinise the proposal at the next annual general meeting in May.

The company plans to offer one million shares at par to "eligible employees''. The 1 million shares constitute about five per cent of the company's increased paid-up equity capital, which will go up to Rs 210 million from the present Rs 200 million. This was done because the present Security and

T O D A Y

• Debt wish • DSQ's stock options • Paging tie-up • NASSCOM's IT plan

Exchanges Board of India guidelines do not allow more than five per cent of the equity shares to be issued under the a stock option plan.

Eligible employees who include those who have been with the company for a minimum of two years and who intend to stay with the company for three more years at least.

The idea apparently is to retain employees who would otherwise leach away to other companies in the high-turnover software industry. This would encourage employees to stay on, a requisite especially in projects where the learning curve is steep and time-consuming. This way, the employees were likely to stay on at least till their stocks mature since, under the plan, they stand to lose if they leave earlier.

Meanwhile, the company, he said, would be adopting a Generally Accepted Accounting Principles type balance sheet format from 1998-99. He said the company expected to achieve 100 per cent growth in revenue with just a 50 per cent increase in manpower. In 1997-98, the revenues grew 72 per cent.

The company, which focusses mainly on installing Enterprisewide Resource Planning solutions, has a ERP centre in Madras and tentative plans for another at Calcutta, besides considering offices in Bangalore and Bombay too. It's clients include Castrol, Whirlpool, Goodyear, Bridgestone, Parke Davis and Ciba-Giegy.

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