Beacon Impex (Pvt.) Limited (“Beacon Impex” or “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was incorporated in Pakistan as a private limited company on December 2nd, 2005 under the Companies Ordinance 1984 (Repealed with the enactment of the Companies Act, 2017).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 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 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 and has established a strong presence in the dedicated bodywear industry for approximately one decade, with 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 is primarily vested 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 sciences. The board members carry vast knowledge and extensive experience in the textile industry. Mr. Mudassar Zafar has vast experience of more than 20 years in the textile industry and has been 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 Company maintains a clear, hierarchical management structure that promotes accountability and operational efficiency. The CEO provides strategic direction, supported by separate Chief Strategy, Managing, and Financial Officers, ensuring a distinct focus on planning, execution, and financial control. Functional committees, Business Development, CSR, Financial Management & Compliance, and Operations Planning, reinforce cross-departmental coordination. The management’s control environment is strengthened by a customized ERP system (Oracle 6i), real-time KPI dashboards, and RFID/barcode traceability systems enabling end-to-end production visibility. An independent internal audit department reports quarterly to the Audit Committee, ensuring continuous control evaluation and compliance rigor.

During FY25, Pakistan's textile exports recovered modestly to USD ~17.3bln (FY24: USD ~16.7bln), largely led by value-added segments. However, the sector continued to face challenges arising from elevated energy tariffs and the transition to the Normal Tax Regime (NTR), which compressed margins across export-oriented manufacturers. The easing interest rate environment provided partial relief through lower financing costs, while increasing adoption of renewable energy supported cost competitiveness. Beacon Impex reported revenue of PKR 52.6bln during FY25 (FY24: PKR 36.3bln), reflecting strong export demand and improved realizations. During 1HFY26, revenue stood at PKR 24.7bln (1HFY25: PKR 23.5bln), broadly maintaining the Company's operating scale. Profitability remained satisfactory despite persistent cost pressures, with gross and net margins recorded at 15.6% and 4.8%, respectively, during 1HFY26 (FY25: 14.5% and 5.3%). Working capital requirements increased during the period, resulting in net working capital days rising to approximately 92 days (FY25: 63 days; FY24: 66 days), mainly due to higher inventory and receivable levels associated with business expansion. Gross working capital days also increased to 129 days (FY25: 100 days). Nevertheless, liquidity remained comfortable, with the current ratio improving to 3.8x (FY25: 2.8x), although the business continues to rely on short-term borrowings to support its working capital cycle.

The Company's financial risk profile is characterized by adequate but sensitive coverage metrics, a gradually increasing leverage trajectory, and continued reliance on short-term borrowings to fund working capital requirements. FCFO held stable at PKR 6.1bln in FY25 (FY24: PKR 6.1bln), with interest coverage at 3.6x and debt coverage at 2.0x. During 1HFY26, EBITDA-based coverage improved to approximately 4.4x (FY25: 3.7x), reflecting stronger operating profitability, while FCFO-based coverage remained at approximately 2.0x, indicating that debt servicing capacity, though adequate, continues to be sensitive to finance cost and working capital dynamics. Leverage has trended upward, with gearing rising to approximately 46.1% as of 1HFY26 (FY25: 44.1%; FY24: 42.1%), driven by growth in short-term borrowings consistent with the working capital-intensive nature of operations. Partially offsetting this is a steadily growing equity base, which reached approximately PKR 19.4bln as of December 2025 (FY25: PKR 18.2bln), supported by profit retention. Most notably, the Company's average borrowing cost declined sharply to approximately 12.1% during 1HFY26 (FY25: 17.6%), providing meaningful relief to the overall financing burden and improving the outlook for debt servicing metrics in the near term.

The Company's financial risk profile remains adequate, underpinned by comfortable coverage indicators and a broadly stable capital structure. During 1HFY26, FCFO amounted to PKR 3.3bln (1HFY25: PKR 2.5bln). EBITDA coverage stood at 3.6x (FY25: 4.4x), while FCFO-based debt coverage remained satisfactory at 1.9x (FY25: 2.0x). Total borrowings increased to PKR 17.1bln (FY25: PKR 15.6bln) to support business expansion; however, gearing remained broadly stable at 46.8% (FY25: 46.1%), supported by continued growth in shareholders' equity, which increased to PKR 19.4bln as of December 2025 (FY25: PKR 18.2bln). The Company's average borrowing cost stood at 13.5% during 1HFY26 (FY25: 12.1%), while continued access to concessionary financing under SBP's LTFF and EFS/ERF schemes provides structural support to its funding profile and debt servicing capacity.

The Sukuk ranks as a senior secured obligation of Beacon Impex (Private) Limited, backed by a ranking charge over the current assets of the issuer. There is no stated contractual subordination to any other class of debt, nor any indication of junior or mezzanine tranches within the issuance. The instrument's credit profile is further supported by the mandatory maintenance of a Debt Payment Account (DPA) under the lien of the Investment Agent, through which repayment funds are progressively ring-fenced prior to maturity. No inter-creditor arrangements or subordination agreements are stipulated in the transaction documents.

The principal credit enhancement mechanism is the Debt Payment Account (DPA), which requires the issuer to pre-fund the repayment obligation in a phased manner. Under the agreed structure, PKR 250mln is deposited fifteen (15) days prior to maturity, a further PKR 250mln five (5) days prior to maturity, and the remaining PKR 500mln two (2) days prior to maturity, ensuring that the entire issue amount of PKR 1,000mln is available in the DPA before the maturity date. The DPA is maintained under the lien of the Investment Agent, providing investors with an additional structural safeguard against repayment risk. Further credit support is provided through the ranking charge over the issuer's current assets, offering recourse in the event of default. The transaction does not benefit from any external guarantee, letter of comfort, liquidity facility, or third-party credit support.