The company, at its board meeting on Saturday, has also approved a resolution for issuing 3 million fresh shares of the company as per the price stipulated by Sebi subject to the approval of the members.

For this purpose, the company plans to call for an extra-ordinary general meeting on February 21. These shares will be placed with strategic companies who will add value to the company's sales, said a company statement.

Net sales of the company has registered a 13 per cent hike to touch Rs 72.17 crore (Rs 63.36 crore). Gross profit after interest and before taxation and depreciation was at Rs 22.75 crore (Rs 16.90 crore). Total expenditure stood at Rs 44.91 crore (Rs 44.48 crore).

Interest charges were higher at Rs 4.70 crore (Rs 1.99 crore). Depreciation has beenprovided for Rs 8.12 crore (Rs 3.24 crore). This was owing to the accelerated depreciation policy with respect to useful lives of the assets. The paid-up equity capital of the company was higher at Rs 30.25 crore (Rs 20.25 crore) owing to the allottment of 1,00,00,000 equity shares of Rs 10 each at a premium of Rs 265 per shares to FIIs/NRIs/OCBs on private placement on Decmber 30, 1999. For the previous accounting year spanning a 15-month period, DSQ Software's total income from operations was at Rs 275.47 crore. Net profit was at Rs 25.83 crore while gross profit was at Rs 79.89 crore for 15 months.