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was incorporated in Pakistan as a private limited company on December 2nd, 2005 under the Companies Ordinance 1984 (Repealed with the enactment of the Companies Act, 2017).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 remained challenged by elevated energy tariffs and the transition to the Normal Tax Regime (NTR), which compressed margins across export-oriented firms. The easing of policy rates provided partial relief through lower finance costs, while rising solarization aided cost competitiveness. Beacon Impex retained a strong positioning in the bodywear export niche, expanding revenue to PKR 52.6bln in FY25 (FY24: PKR 36.3bln), driven by higher product pricing and volume growth. During 1HFY26, turnover reached PKR 24.7bln (1HFY25: PKR 23.5bln), maintaining growth momentum. The Company’s client portfolio includes Puma, Hugo Boss, Levi’s, and Amazon, with Europe as the primary export destination. Margins came under pressure from high input and financial costs, with FY25 net margin of ~5.3% (FY24: 8.0%) and gross margin of 18.6%. In 1HFY26, margins further tightened (gross margin ~14.5%, net margin ~5.3%), though operational performance remained stable. Strategic investments in vertical integration, polyester recycling, and renewable energy continue to enhance efficiency and sustainability. Working capital metrics showed some stretch during the period, with net working capital days increasing to ~92 (FY25: 63; FY24: 66) and gross working capital days rising to ~129 (FY25: 100; FY24: 112), reflecting relatively higher inventory and receivables levels. The current ratio, however, improved to ~3.8x (FY25: 2.8x; FY24: 2.2x), indicating a stronger liquidity buffer. Despite this, reliance on bank lines persists due to the working capital–intensive nature of operations.

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 instrument is a short-term, privately placed Sukuk structured on the basis of Musharakah (Shirkat-ul-Aqd), issued under the Sukuk (Privately Placed) Regulations, 2017 notified by the Securities and Exchange Commission of Pakistan (SECP). The total transaction size is PKR 1,000mln, with each certificate carrying a face value of PKR 1,000,000, issued in scrip-less form and eligible for settlement through the Central Depository Company (CDC). The tenor is 180 days from the drawdown date, with profits payable on a quarterly basis and principal redeemed in a single bullet payment at maturity. The instrument has been assigned a preliminary short-term rating of A-1 (single A one) by PACRA. Proceeds are designated exclusively for financing the working capital requirements of the issuer. Integrated Equities Limited serves as the Financial Advisor and Arranger, Pak Brunei Investment Company Limited as the Investment Agent, Al Hilal Shariah Advisors (Pvt) Limited as the Shariah Advisor, and Mohsin Tayebaly & Co. as Legal Counsel.

The Sukuk ranks as a senior obligation of Beacon Impex (Private) Limited, secured by a ranking charge over the current assets of the issuer. There is no stated subordination to other classes of debt, nor any indication of junior or mezzanine tranching within this issuance. The instrument's seniority is further supported by the mandatory maintenance of the Debt Payment Account under the lien of the Investment Agent, ensuring repayment funds are ring-fenced and unavailable for general corporate use in the period leading up to maturity. No intercreditor or subordination agreements are referenced in the term sheet.

The primary credit enhancement mechanism is the Debt Payment Account (DPA), which imposes a structured, time-sequenced pre-funding obligation on the issuer. The issuer is required to deposit PKR 250mln fifteen days before maturity, a further PKR 250mln five days before maturity, and the remaining PKR 500mln two days before maturity, ensuring the full PKR 1,000mln is available and segregated prior to the redemption date. The DPA is maintained under the lien of the Investment Agent, providing investors with a structural safeguard against last-minute liquidity shortfalls. Secondary credit support is provided by the ranking charge over current assets, which offers recourse in the event of issuer default. No external guarantee, letter of comfort, or third-party liquidity facility is referenced in the term sheet.