Span Divergent Ltd receives adverse arbitration award of INR 24,55,614

Span Divergent Ltd has received an adverse arbitration award of INR 24,55,614 along with simple interest from the Gujarat High Court Arbitration Centre. The award, dated July 02, 2026, was issued in a dispute involving Pareshkumar Prabhudas Patel as the claimant and Span Divergent Ltd, Aranya Agri Biotech LLP, and Viral Pradipkumar Desai as respondents. The matter relates to an employment agreement with the claimant.

The company disclosed this information to the Bombay Stock Exchange on July 06, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was delayed inadvertently during an internal compliance review. Span Divergent Ltd confirmed there was no intention to withhold material information and stated it has strengthened its internal compliance mechanisms.

According to the award, the company is liable to pay the principal amount of INR 24,55,614 plus simple interest at 12% per annum from August 09, 2019, to July 02, 2026. The company noted that based on legal advice, it is considering appropriate legal remedies available under applicable laws.

Legal Recourse and Financial Impact

Span Divergent Ltd stated that the arbitral award is subject to further legal recourse and may not have attained finality. The company proposes to challenge the award before a competent court or forum. Consequently, the ultimate financial impact will depend on the outcome of these legal proceedings.

Particulars	Information
Name of the authority	The Gujarat High Court Arbitration Centre, Sola, Ahmedabad
Date of award	02-07-2026
Amount awarded	INR 24,55,614
Interest rate	12% per annum (simple interest)
Interest period	09 August 2019 to 02 July 2026
Nature of dispute	Employment agreement

The company acknowledged that the award may have an adverse financial impact to the extent of the awarded amount and applicable interest. However, it emphasized that the situation remains contingent upon the final legal outcome.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
0.0%	-7.57%	-3.92%	+16.72%	+72.53%	+184.10%

Span Divergent Limited has dispatched its postal ballot notice to shareholders on January 02, 2026, seeking approval for the regularization of Mr. Dharmesh Vinodbhai Desai as Non-Executive Independent Director. The company's Board of Directors had earlier approved this postal ballot process during their meeting on December 29, 2025.

Postal Ballot Dispatch and E-Voting Schedule

The postal ballot notice, dated December 29, 2025, has been electronically sent to shareholders whose names appear in the Register of Members as on the cut-off date of January 01, 2026. The company has engaged National Securities Depository Limited (NSDL) to provide the remote e-voting facility.

E-Voting Schedule:	Details
Cut-off Date:	January 01, 2026
Dispatch Completion:	January 02, 2026
E-Voting Start:	January 06, 2026 at 9:00 AM (IST)
E-Voting End:	February 04, 2026 at 5:00 PM (IST)
Results Declaration:	February 06, 2026
Resolution Deemed Passed:	February 04, 2026

Director Regularization Details

The postal ballot seeks shareholder approval through a Special Resolution for regularizing Mr. Dharmesh Vinodbhai Desai's appointment as Non-Executive Independent Director. Mr. Desai was initially appointed as Additional Non-Executive Independent Director on November 10, 2025, subject to shareholder approval.

Director Information:	Details
Name:	Dharmesh Vinodbhai Desai
DIN:	00292502
Position:	Non-Executive Independent Director
Term Duration:	5 years (November 10, 2025 to November 09, 2030)
Initial Appointment:	November 10, 2025
Resolution Type:	Special Resolution

Professional Background and Qualifications

Mr. Desai brings over two decades of business and industry experience to Span Divergent Limited. He currently serves as the Promoter and Chairman & Managing Director of Meera Industries Limited. His educational credentials include a Bachelor of Engineering (Mechanical) from NIT Surat, South Gujarat University.

His career trajectory includes significant roles across the textile and manufacturing sectors:

Garden Silk Mills Limited as Design Engineer
Premier Looms Manufacturers Private Limited as Product Head (TFO division)
Current role at Meera Industries Limited overseeing business affairs, marketing strategies, capacity expansion, and business development

Board Committee Positions

Following Mr. Desai's appointment, the company has reconstituted its board committees to leverage his expertise:

Committee:	Position
Audit Committee:	Member
Stakeholders Relationship Committee:	Member
Nomination and Remuneration Committee:	Chairman

Scrutinizer and Compliance

Mr. Mitesh Rana of M/s. Mitesh Rana & Co., Practising Company Secretary, has been appointed as the Scrutinizer for the postal ballot process. He holds Certificate of Practice No. 12364 and Peer Review Certificate No. 1430/2021, ensuring the e-voting process is conducted in a fair and transparent manner.

The postal ballot notice has been issued in compliance with Sections 108 and 110 of the Companies Act, 2013, and Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that Mr. Desai meets all independence criteria and is not debarred from holding directorship positions by any regulatory authority.

E-Voting Process

Shareholders can exercise their voting rights electronically through NSDL's e-voting platform. The voting rights will be proportionate to the equity shares held by members in the paid-up equity share capital as on the cut-off date. The postal ballot notice is available on the company's website at www.span.in , NSDL's website at www.evoting.nsdl.com , and BSE's website at www.bseindia.com .