Beacon Impex (Pvt.) Limited (“The Company”) was incorporated in Pakistan as a private limited company on December 2nd, 2005 under the Companies Ordinance 1984 (Repealed with the enactment of the Companies Act, 2017). Beacon Impex (Pvt.) Limited was incorporated in 2005 as an IT service-providing corporation. and has developed itself into a growing vertically integrated unit by setting up conversion and doubling units in 2012 and eventually entered in the garment export business in 2018. The principal business activity of the Company is the manufacturing and sale of garments and yarn, and the trading of textile products. The company's operations are divided into five divisions: Yarn, Elastic, Fabric, Denim, and Apparel. The Company has established a strong presence in the dedicated bodywear industry for approximately one decade, and a production of ~7.4 million garments each month. The registered office of the Company is situated at P-102 Jail Road, Faisalabad. The Company’s energy requirement stands at 9.3MW, which is primarily met through solar capacity, FESCO, and RLNG

The majority of the shareholding is vested with the Company's Chief Executive Officer, Mr. Muhammad Shakeel Faridi, and Director, Mr. Mudassar Zafar, along with other sponsoring shareholders. This concentrated ownership reflects strong sponsor backing and direct involvement of the top management in the strategic and operational direction of the Company. The sponsors have a long-term association with the Company and the textile business. The next generation is also engaged in business (Mr. Muhammad Nazir Ahmed). A formal documented succession plan will augment the ownership framework of the Company. Mr. Muhammad Nazir Ahmed is considered a man of the last mile. He has been associated with the Company for the last eight years where he has played a pivotal role in driving organizational growth and operational excellence. His expertise lies in strategic management, supply chain optimization, and fostering innovation within the textile industry. The financial strength of the Company primarily divests in a single line of business. The Sponsors of the Company are committed to supporting the Company in times of intricacy.

Beacon Impex’s BoD consists of two members, both occupy executive roles – including the CEO, Mr. Muhammad Shakeel Faridi while Mr. Mudassar Zafar is designated as director. Both directors have more than 20 years of relevant experience and have been associated with the company for the last 10 years. The inclusion of independent oversight will further improve the governance framework of the Company.. Mr. Shakeel Faridi- The CEO holds a master's degree in computer science. The board members carry vast knowledge and extensive experiences in the textile industry. Mr. Mudassar Zafar has vast experience of more than 20 years in the textile industry and is associated with the Company since 2013. Three committees: Audit Committee, HR Committee, and Risk Committee, are in place to assist the board in relevant matters and ensure proper oversight. Kreston Hyder Bhimji & Co. who are listed as category “A” on the SBP’s panel of auditors, are external auditors of the Company. They have expressed an unqualified opinion on the financial statements of the Company for the year ended June 30, 2025.

The organizational structure is a well-organized, hierarchical system that ensures strong governance, clear accountability, and efficient operations. The Board of Directors exercises oversight through key committees, while the CEO maintains centralized leadership across strategic, operational, financial, and risk areas. The separation between the CSO, MD, and CFO ensures focused leadership in planning, execution, and financial management. Operational units under the MD are specialized by business areas like garments, knitting, and polyester, while support functions like Compliance, IT, and Supply Chain are integrated under the CSO. Overall, the structure promotes clarity and specialization, though maintaining inter-departmental coordination will be key as the organization grows. The management team is headed by the CEO. He is supported by a team of seasoned professionals, who supplement his expertise. Mr. Khalid Mehmood, the CFO, holds a master’s in business administration and has extensive experience of over 11 years under his belt.
The management meetings are held periodically with the follow-up points to resolve or proactively address operational and administrative issues, if any, eventually ensuring a smooth flow of operations. The management is assisted by four committees: Business Development Committee, Corporate Social Responsibility Committee, Financial Management and Compliance Committee, and Operations Planning and Coordination Committee, ensuring strong effectiveness. The Company has developed an in-house state-of-the-art integrated ERP system, which is designed in Oracle 6i, enabling it to efficiently monitor and control production, inventory, and quality levels. The Company has built an automated and centrally integrated KPIs-based assessment dashboard system to analyze real-time facility performance and address process inefficiencies. The execution of RFID and barcode-based traceback systems has enabled the Company to access final product traceability via a single scan, which escalates the control environment of the Company. The Company has an in-house internal audit department with quarterly reporting frequency, and it is directly reportable to the audit committee. The Company has an in-house internal department.

The textile exports of the country reached USD 17.8bln in FY25, a slight increase from USD 16.7bln in the previous year, reflecting a growth of 6.5% YoY. The highest contribution came from the composite and garments segment at USD 10.1bln, followed by the weaving segment at USD 6.5bln and the spinning segment at USD 1.0bln. In FY25, the transition from the final tax regime to the normal tax regime is set to impact the profitability matrix of export-oriented units, with a 29% tax on profits and a super tax of up to 10%. The consistent decline in policy rates over the last two quarters, along with the anticipation of further reductions, is expected to provide a cushion in the financial metrics of the industry. The Company has established its footprints in the dedicated bodywear industry over a time of ~01 decade. The Company has production capacity of ~7.4 million garments per month. The relative position of the Company is considered strong in the dedicated bodywear segment. During FY25, the Company’s revenue base witnessed sizeable growth and stood at PKR 52.6bln. The Company’s revenue base is dominated by the direct export sales of the bodywear segment, followed by yarn. As of FY25, Puma is Beacon Impex's top client in terms of business contribution, followed by Hugo Boss, Levi’s, and Amazon. The revenue base is mainly dominated by Europe, followed by North America, Asia and others. During FY25, the gross profit margin of the Company declined and stood at 14.5% (FY24: 18.6%) dipping slightly mainly on the back of the elevation in local raw cotton prices. While the operating margin witnessed a decline to stand at 10.5% (FY24: 14.2%). The finance cost of the company marginally inclined to PKR 1,966mln (FY24: PKR 1,951mln). Consequently, the company’s net margin stood at 5.3% in FY25 (FY24: 8.0%). The management of the Company is mindful to keep aligning their performance with the financial projections. The Company has consistently undergone CAPEX from 2019 to 2024 in all textile product value chains. The majority of the CAPEX is executed in the processing segment, followed by garments, spinning, PET polyester, Knitting, & elastic. The Company has also executed CAPEX in renewable energy to counter the elevated energy cost risk prevailing in the industry.

The inventory days stood at 50 days as of FY25 (FY24: 59 days) owing to the procurement of cotton, while finished inventory levels remained high to cater to international orders and local retail demand. The net working capital days stood at 63 days. (FY24: 66days). The Company has efficiently managed its working capital cycle. The Company’s short-term trade leverage stood at 21.2% as of FY24. The working capital requirements were met through short-term borrowings along with internally generated cashflows. During FY25, free cash flow from operations (FCFO) marginally remained the same to PKR 6.1bln (FY24: PKR 6.1ln). During FY25, the interest coverage clocked to 3.6x (FY24: 3.3x) and debt coverage stood to 2.0x (FY24: 2.1x). The company has a leveraged capital structure (FY25: 46.1%, FY24: 44.1%). Out of the total debt, 63.9% (FY24: 54%) of the debt comprises short-term borrowings. The short-term borrowings of the Company stood at PKR 9.9bln and long-term borrowings PKR 4.3bln during FY25. The equity base of the Company recorded good growth to PKR 18.2bln as of FY25 (FY24: PKR 15.5bln)

Beacon Impex has issued Rated, Secured, Privately Placed, Short-Term Sukuk, carrying a markup of 6MK+1.50% with a tenor of 06 months. The purpose of the instrument is to finance the working capital requirements of the Company. The underlying instrument is secured by a ranking charge over the Company’s current assets. The Issuer must maintain a Debt Payment Account (DPA) under the lien of the Investment Agent. Payments will begin 60 days before maturity and continue fortnightly to ensure the full issue amount is available in the DPA five days before maturity. Principal repayment will be made in a bullet payment, and profit will be paid quarterly

The Instrument is secured.

The Issuer shall maintain and efficiently manage the Debt Payment Account ("DPA") under the lien of the Investment Agent whereby the payment equivalent to PKR 250mln shall be made starting from 60 days before the maturity date, and every fortnight thereafter, such that amount equivalent to full issue amount is available in the DPA 05 days before the maturity date.