Multinet Pakistan Pvt. Limited (‘Multinet’ or ‘the Company’) was incorporated in 1996, as a private limited company. The Company was founded by Mr. Adnan Asdar Ali and Mr. Nasser Khan Ghazi in 1996, and began as the branded reseller of internet and data connectivity services. Later in 2006, the 89% majority shareholding was acquired by TM International Limited (now called Axiata) of Telekom Malaysia. In Nov-18, Axiata fully exited from Multinet, transferring all of the shareholding to Mr. Adnan Asdar Ali. Multinet is currently engaged in providing connectivity infrastructure and solutions to Telecos, corporates, SMEs, and financial institutes. Primary business activity of the Company are to provide telecommunication, electronic media, and connectivity infrastructure and solutions, including internet services, design, development, and implementation of networks. Moreover, value-added services include voice services, data center, audio and video conferencing, applications and servers

The ownership of the company is predominantly concentrated, with Mr. Adnan Asdar Ali holding an ~99.9% stake.The remaining shares are modestly distributed among the company’s directors, CEO, and VP of Energy. Ownership of the Company seems stable. The Sponsor has a respectable standing in the technology segment Mr. Adnan Asdar Ali, the Chairman and co-founder of the Company, has more than 37 years of experience inconnectivity-based solutions and network infrastructure. He co-founded the Company in 1996, and is responsiblefor building partnerships and synergies with renowned technology manufacturers. Financial strength of the Sponsor is considered adequate. Moreover, the Sponsor is engaged in software houses,telemedicine, water filtration and mobile application development, through multiple associated companies

The ownership of the company is predominantly concentrated, with Mr. Adnan Asdar Ali holding an ~99.9% stake.The remaining shares are modestly distributed among the company’s directors, CEO, and VP of Energy. Ownership of the Company seems stable. The Sponsor has a respectable standing in the technology segment Mr. Adnan Asdar Ali, the Chairman and co-founder of the Company, has more than 37 years of experience inconnectivity-based solutions and network infrastructure. He co-founded the Company in 1996, and is responsiblefor building partnerships and synergies with renowned technology manufacturers. Financial strength of the Sponsor is considered adequate. Moreover, the Sponsor is engaged in software houses,telemedicine, water filtration and mobile application development, through multiple associated companies

The Company’s organizational structure reflects clear reporting lines and is split between Operations, Administrative, Legal, Human Resource, and Business Development. Each function is monitored by head of department, who reports to the CEO The management comprises experienced and qualified individuals. Mr. Adnan Hayat Zaidi, the Chief Executive Officer, is an IT graduate. He has more than 22 years of experience in the technology industry, and has been a part of the Company since 2002. Mr. Umer Zahoor, the Head of Finance, is a Chartered Accountant and has an overall experience of 15+ years. He is associated with the Company since 2014. The Company has one management committee in place named Steering Committee. It includes all the departmental heads, along with the CEO (Mr. Adnan Hayat Zaidi). Policies, procedures, budgets and key. performance parameters are discussed in the committee meetings regularly to review activity. Whereas, weekly and monthly reports are shared with the CEO regarding the projects’ status. The Company has developed oracle as its Enterprise Resource Planning (ERP) System. EY is the company's internal auditor, conducting quarterly reviews of internal controls and submitting reports to the Board of Directors to maintain strong operational control.

Pakistan’s technology industry is rapidly expanding in FY24 its market size rose 32.8% year-on-year to about PKR 1,753 billion. Total exports from the sector grew strongly: computer-services exports rose from USD 2.1 billion in FY23 to ~2.7 billion in FY24, and overall tech-sector exports reached ~USD 3.2 billion, up ~24.1%. In the first nine months of FY25, exports already reached ~USD 2.8 billion — about 23.7% higher year-on-year. The sector now includes over 30,000 IT and ITeS companies offering software development, BPO and related services. Despite contributing a modest ~1.6% to GDP in FY24, the tech industry is increasingly important for exports, foreign exchange earnings, and as a growth backbone for the economy. The Company has segregated revenue streams according to nature of its clientele. There are four different business units of the Company:  Enterprise Business Units (EBU), Carrier Business Unit Domestic (CBUD), Carrier Business Unit International (CBUI), Long Distance International (LDI) The Company demonstrated robust financial performance in 6MCY25, marked by a significant 10% growth in topline on a quarterly basis, reaching PKR 2,604 million (6MCY25: PKR 2,367 million). Gross profitability witnessed a substantial uplift in 6MCY25, with Gross Profit expanding to PKR 989 million from PKR 775 million in 6MCY24. This PKR 214 million increase underscores improved cost management. Operating profitability also improved, with operating profit increasing to PKR 385 million (6MCY24: PKR 223 million), reflecting stronger operational discipline and effective expense control. The Company's bottom line exhibited strong positive momentum, with net profit rising to PKR 183 million in 6MCY25, a substantial increase from PKR 89 million in 6MCY24. This significant growth underscores the overall strengthening of the Company's financial health and profitability. The Company’s gross profit margin improved to 38% in 6MCY25 from 32% in 6MCY24, reflecting enhanced cost efficiencies in service delivery and indicating a higher proportion of revenue translating into profit before operating expenses. Operating profit margin exhibited substantial improvement, rising to 14% from 9% over the same period, underscoring better operational management and tighter control over operating expenditures relative to revenue. The net profit margin also strengthened, increasing to 7% in 6MCY25 from 3% in 6MCY24, reflecting the combined effect of higher gross and operating margins and a more efficient conversion of revenue into net earnings. This consistent improvement across gross, operating, and net margins highlights a positive trajectory in the Company’s earnings generation capacity, overall financial efficiency, and provides a stronger foundation for sustained profitability and cash flow, which are key considerations in credit and investment assessments.  The Company has started to fiberize towers in Pakistan, which will be imperative for 5G technology and to cater the increasing user base. Currently, 1000 towers have been fiberized. For this purpose, the management has availed an Infrazamin credit guarantee backed long-term loan of PKR 2,100 million from HBL currently loan amount restricted to 1,038 million.

The Company demonstrated notable improvements in working capital management during 6MCY25. Inventory days declined to 14 days from 26 days in 6MCY24, reflecting faster stock turnover and reduced holding costs. Trade receivable days also improved, falling to 57 days from 71 days over the same period, indicative of more efficient collection processes. As a result, the gross working capital cycle shortened to 71 days in 6MCY25 from 97 days in 6MCY24, highlighting enhanced efficiency in converting inventory and receivables into cash. Payable days decreased to 109 days from 144 days, suggesting a quicker payment cycle to suppliers. Collectively, these improvements underscore a more streamlined and efficient working capital cycle, strengthening the Company’s liquidity management and operational effectiveness.  The Company exhibited a marked improvement in funds from continuing operations (FCFO), which increased to PKR 551 million in 6MCY25 from PKR 255 million in 6MCY24, reflecting stronger internal cash-generation capacity. The reduction in finance costs to PKR 141 million in 6MCY25 (6MCY24: PKR 234 million) further strengthened cash flow coverage. As a result, the FCFO-to-finance cost coverage ratio improved significantly to 4.2x in 6MCY25 from 1.2x in 6MCY24, indicating a materially enhanced ability to service interest obligations through core operating cash flows. The total coverage ratio also demonstrated upward momentum, rising to 0.7x in 6MCY25 from 0.3x in 6MCY24, reflecting an improved—albeit still moderate—capacity to meet total debt obligations. Overall, the substantial increase in FCFO, coupled with lower finance costs, translated into meaningfully stronger debt-servicing metrics for the Company. The Company maintains a conservative capital structure, evidenced by a leverage ratio of 18%. This prudent approach to financing is further highlighted by a reduction in overall borrowings, which stood at PKR 1.5 billion in 6MCY25 compared to PKR 1.7 billion in 6MCY24. Notably, the composition of the Company's debt portfolio indicates a low reliance on short-term financing, with only 2% of total borrowings categorized as short-term. This emphasis on longer-term funding sources mitigates potential refinancing risks and supports a stable financial foundation. The combination of a low leverage ratio and a predominantly long-term debt profile suggests a measured and sustainable approach to capital management.

Multinet Pakistan (Pvt.) Limited has issued a privately placed secured instrument of PKR 2,100 million (as per management representation initially the contract was designed to be 2,100 million but was later restricted to 1,038mln due to surge in policy rate) with InfraZamin Pakistan as its guarantor. The proceeds of the facility will be utilized by the Company for funding its expansion plans including addition of 225 Data Centre Racks, Long Haul Capacity Expansion from 12.5 Gbps to 200 Gbps, Fiber Footprint, and Tower Fiberization. The tenor of the instrument is 7 years with 24 quarterly payments. The profit is being paid quarterly in arrears at the rate of 3M Kibor+0.75% p.a calculated on a 365 days basis on the outstanding principal amount. The principal is also being paid in twenty-four equal quarterly installments commenced from Feb-24 after the expiry of the Grace Period. Total markup of PKR 598 million and total principal of PKR 186 million has been paid till date.

The claim of the Instrument holder will rank superior to the claim of ordinary shareholders.

The Facility is secured by the way of i) Pari Passu hypothecation charge over the present and future movable fixed assets of the Company with a minimum 25% margin ii) specific contracts and receivables of the Borrower are assigned and routed through a designated Escrow Account at Habib Bank Limited, with a Lien over and set-off rights on the Escrow Account iii) 100% of the Borrower's shares are pledged iv) Personal Guarantee of the Sponsor and Sponsor Support Agreement v) Debt Payment Account opened for monthly routing of next installment amount for the specific receivables and vi) Debt Service Reserve covering 1.5x of peak quarterly installment.