Span Divergent Limited has announced significant changes to its Board of Directors. The company has appointed Mr. Dharmesh Vinodbhai Desai as an Additional Non-Executive Independent Director, while also announcing the resignation of two existing directors.

New Appointment

Mr. Dharmesh Vinodbhai Desai has been appointed as an Additional Non-Executive Independent Director to the Board of Directors. The appointment is for a five-year term, subject to shareholder approval at the upcoming Annual General Meeting.

About Dharmesh Vinodbhai Desai

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

Professional Experience

Prior to his current role, Mr. Desai's career included positions at:

• Garden Silk Mills Limited as a Design Engineer
• Premier Looms Manufacturers Private Limited as Product Head (TFO division)

At Meera Industries Limited, Mr. Desai's responsibilities encompass overall business affairs, including planning marketing strategies, capacity expansion, and business development.

Other Board Positions

Mr. Desai also holds a directorship in Meera Industries Limited, a listed entity.

Board Committee Reconstitution

Following Mr. Desai's appointment, Span Divergent Limited has reconstituted its board committees. Mr. Desai will serve as:

• Member of the Audit Committee
• Member of the Stakeholders Relationship Committee
• Chairman of the Nomination and Remuneration Committee

Director Resignations

Concurrently, Span Divergent Limited announced the resignation of two directors:

1. Dr. Pradipkumar Keshavlal Desai resigned from his position as Non-Executive and Non-Independent Director, citing advancing age as the reason. Dr. Desai is the father of Viral Desai, the company's Managing Director.

2. Mr. Nirav Dineshchandra Jogani resigned from his position as Independent Director due to other professional preoccupations and commitments that prevent him from devoting adequate time to company affairs.

The Board acknowledged both directors' contributions during their tenure with the company.

Independence and Compliance

The company has confirmed that Mr. Dharmesh Desai is not related to any other director on the board of Span Divergent Limited. Additionally, he is not debarred from holding the position of director by any regulatory authority, as per the requirements of SEBI regulations.

These changes in the board composition aim to strengthen Span Divergent Limited's corporate governance and leverage Mr. Desai's extensive industry experience for the company's future initiatives.

Span Divergent Limited, formerly known as Span Diagnostics Limited, has announced its unaudited financial results for the first quarter. The company's performance shows a mixed picture, with improved standalone results but challenges in its consolidated financials.

Standalone Performance

On a standalone basis, Span Divergent reported a significant improvement in its bottom line. The company's profit after tax increased to Rs 41.67 crore, up from Rs 23.08 crore in the same quarter last year. This represents an impressive year-over-year growth of 80.50%. The basic earnings per share (EPS) also saw a substantial rise, reaching Rs 0.76 compared to Rs 0.42 in the previous year's corresponding quarter.

However, the total income for the quarter decreased to Rs 64.93 crore from Rs 73.55 crore in the corresponding period of the previous year, marking a decline of 11.72%.

Consolidated Results

The consolidated financial results paint a different picture. Span Divergent reported a consolidated loss after tax of Rs 17.01 crore, compared to a loss of Rs 8.53 crore in the same quarter of the previous year. This indicates a widening of losses at the group level.

Segment Performance

Span Divergent operates across three main segments:

1. Cashew processing
2. Tissue culture
3. Trading

The segment-wise performance is as follows:

Subsidiary Challenges

Several of Span Divergent's subsidiaries are facing financial difficulties:

• Aranya Agri Biotech LLP has accumulated losses of Rs 15.12 crore. The Board has approved a plan to discontinue its operations, and its assets have been classified as held for sale since September 30, 2023.

• Biospan Contamination Control Solutions Pvt Ltd reported accumulated losses of Rs 6.54 crore. The company's total liabilities exceeded its total assets by Rs 6.35 crore as of March 31.

Despite these challenges, the management remains optimistic about turning around these subsidiaries. They are exploring possibilities to revive Biospan Scientific LLP and are confident that Biospan Contamination Control Solutions Pvt Ltd can establish profitable operations with appropriate product introductions.

Financial Position

Span Divergent maintains a relatively strong financial position with no outstanding loans from banks or financial institutions. The company only has Rs 1.92 crore in unsecured loans from directors.

The Board of Directors approved these unaudited financial results at their meeting held on August 13. As the company navigates through the challenges in its subsidiaries and segments, investors will be watching closely to see if the positive standalone performance can translate into improved consolidated results in the coming quarters.