B Mirror Report: Listed food processing company Golden Harvest Agro Industries Limited has spent more than Tk 70.10 crore from funds raised through its rights share issue, according to an audited report on the utilization of proceeds submitted to the Bangladesh Securities and Exchange Commission (BSEC).

The report, audited by K. M. Alam & Co. Chartered Accountants, shows that the company had utilized Tk 70,10,17,889 as of March 31, 2026, for project implementation and business expansion activities. The auditors confirmed that the funds were used in line with the objectives stated in the rights offer document and complied with BSEC approval conditions.

The largest portion of the expenditure, Tk 29.97 crore, was used to repay bank loans, fully utilizing the allocated amount. The company also spent Tk 28.91 crore on machinery and equipment purchases, Tk 8.91 crore on infrastructure development, including factory buildings, warehouses, roads, boiler sheds, LPG sheds, and water treatment facilities, and Tk 82 lakh on installation and utility connections. Rights issue-related expenses amounted to Tk 1.48 crore.

The report highlighted significant progress across several project components. Warehouse-1 construction achieved nearly 78.63% of its allocated expenditure, while investments in a food ingredient manufacturing plant, pasteurization unit, tray production line, and rotary oven reached substantial completion levels, with the rotary oven project fully completed.

Meanwhile, the company has placed a significant portion of the unutilized funds in 44 Fixed Deposit Receipts (FDRs) with Standard Islami Bank. Including accrued interest, the total FDR balance stood at Tk 222.44 crore as of March 31, 2026.

However, Golden Harvest also secured loans against these deposits. The company borrowed approximately Tk 198 crore from Standard Islami Bank’s Panthapath Branch, equivalent to about 90% of the principal amount of the FDRs. The outstanding loan balance was reported at Tk 198.17 crore at the end of the reporting period.

In its audit observations, K. M. Alam & Co. stated that the company maintained proper documentation, vouchers, and bank records supporting the expenditure and that the statement of fund utilization was fairly presented in all material respects.

Golden Harvest also informed BSEC that submission of the report was delayed because two signing directors had been abroad for the previous 10 days. The company expressed regret for the delay and said the report was submitted in compliance with regulatory requirements.