B Mirror Report: Berger Paints Bangladesh Limited has disclosed the latest audited report on the utilization of funds raised through its rights share issue, showing significant progress in machinery and automation investments while spending on infrastructure development remains comparatively slow.

According to the audit report conducted by MABS & J Partners Chartered Accountants, the company had utilized Tk 180.81 crore as of March 31, 2026, representing 59.71 percent of the total funds raised through the rights issue.

The auditors stated that the fund utilization statement was prepared in accordance with the Rights Offer Document (ROD) and directives of the Bangladesh Securities and Exchange Commission (BSEC), accurately reflecting the actual use of the proceeds.

The report showed that Berger Paints spent Tk 28.58 crore on land and infrastructure development, including land improvement, road construction, factory buildings, a water treatment plant (WTP), and warehouse facilities. However, this represented only 22.42 percent of the allocated budget for the segment.

In contrast, the company achieved substantial progress in its machinery, equipment, and automation projects, spending Tk 145.61 crore, or 97.36 percent of the allocated amount. This category recorded the highest implementation rate among all project components.

Berger Paints also spent Tk 2.06 crore on consultancy services and other project-related expenses, accounting for 9.94 percent of the allocated funds for that category.

Meanwhile, expenses related to the rights issue itself amounted to Tk 4.55 crore, representing 90.50 percent of the approved allocation.

The audit report noted that the company maintains separate bank accounts with BRAC Bank PLC and Mutual Trust Bank PLC for managing the rights issue proceeds.

Under the original rights offer document, the fund utilization deadline was set for March 31, 2026. However, with a substantial portion of the funds still unutilized, Berger Paints sought an extension from the securities regulator.

Following the application, the BSEC approved an extension until March 31, 2027, allowing the company an additional year to utilize the remaining proceeds.

A letter from BSEC’s Corporate Reporting Department confirmed the approval of the extension request, enabling Berger Paints to continue implementing the remaining projects using the unspent funds.

The auditors further confirmed that the proceeds were used for the purposes outlined in the prospectus, in compliance with BSEC approval conditions, and that supporting documents, vouchers, and bank statements had been reviewed to verify the accuracy of the expenditures.