Golden Packages (Pvt.) Limited

CREDIT RATING REPORT | Aug-25

Logo
Rating History
Dissemination Date Long-Term Rating Short-Term Rating Outlook Action Rating Watch
29-Aug-25 BBB A2 Stable Maintain -
29-Aug-24 BBB A2 Stable Maintain -
29-Aug-23 BBB A2 Stable Maintain -
29-Aug-22 BBB A2 Stable Initial -
About the Entity

Golden Packages (Pvt.) Limited was founded as a private limited Company in 2014 and began its operations in 2016 with the commercial production of CPP films. In 2018, GPL also started commercial production of flexible packaging. GPL’s manufacturing plant is located near Raiwind. The Company is wholly owned by sponsoring a family with major ownership residing with Mr. Munir Khan at 54%, Mr. Rehman Khan owns 38% and Mr. Amir Sultan owns 8% shares respectively. Mr. Rehman Khan is the Chief Executive Officer of the Company. He brings over 12 years of relevant experience, including exposure to senior management roles overseas, and is supported by a team of qualified professionals.

Rating Rationale

Golden Packages (Pvt.) Limited (“GPL” or the “Company”) has established itself as a significant player in the packaging industry, demonstrating consistent growth since inception. Backed by an experienced sponsor family with a longstanding presence in the sector, the Company has leveraged its industry knowledge and entrepreneurial acumen to expand its operations and strengthen its market positioning. Over the years, GPL has diversified into key segments, achieved robust capacity utilization, and maintained a stable financial profile, underpinned by adequate profitability and low leverage. Golden Packages (Pvt.) Limited has emerged as a key participant in both the Cast Poly Propylene (CPP) films and flexible packaging segments. Furthermore, the Company has plans to further diversify its product portfolio in the near future, aiming to strengthen its market presence. The operations of the Company are predominantly concentrated in the Central region, with a notable footprint in the Northern market. As per management, the Company captured a good market share and ranks among the leading players in Punjab’s flexible packaging industry. The demand for the Company’s products primarily originates from the food industry and end consumers. Its well-established and diversified customer base provides stability and support to assigned ratings. During FY25, the Company remained at impressive capacity utilization rate at 91%. However, as the basic raw material requirement is almost entirely met through imports from UAE, the Company remains exposed to exchange rate volatility. This digital platform is expected to strengthen brand visibility, facilitate timely communication with customers, and serve as an effective medium to highlight the Company’s product portfolio and operational capabilities.
During FY25, the Company’s topline grew by 15%, reaching PKR 8,992mln (FY24: PKR 7,841mln), driven by both local sales and exports. Consequently, the profit after tax (PAT) increased to PKR 1,037mln. (FY24: PKR 924mln). The equity base of the Company stood at PKR 5,094mln (FY24: PKR 4,057mln). Moreover, the financial matrix indicates a stable profile through good working capital management, strong coverages, and low leveraging. However, there is room for improvement in the qualitative factors inclusive of the governance framework, segregation of key heads, and financial transparency.

Key Rating Drivers

Prudent management of the working capital, and maintaining sufficient cash flows and coverages are essential for the ratings. Any significant change in margins and coverages will impact the ratings.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

Golden Packages (Pvt.) Limited

rating analysis

Logo
Profile
Legal Structure

Golden Packages (Pvt.) Limited ("GPL" or the "Company") was incorporated as a private limited Company on March 04, 2014.


Background

Golden Packages (Pvt.) Limited commenced operations in 2016 with the commercial production of Cast Polypropylene (CPP) Films. In 2018, the Company further diversified into the flexible packaging segment to enhance its presence and strengthen its position within the packaging industry. This diversification not only broadened its product portfolio but also enabled the Company to enhance its market presence and strengthen its competitive positioning within the packaging industry. The move reflects management’s forward-looking approach and adaptability to evolving industry dynamics.


Operations

The Company enjoys a notable presence across key cities in the central region, including Lahore and Multan, which serve as important commercial hubs. While the Company also caters a customer base in the southern region. Its strategic focus remains on strengthening its leadership position in the domestic packaging industry by expanding market penetration, capitalizing on regional opportunities, and maintaining its competitive edge. The Company's installed production capacity is 20,600 MT, of which 80% is allocated to the CPP plant, while the remaining capacity is dedicated to flexible packaging. During FY25, the Company achieved a utilization level of 18,690 MT, reflecting an impressive capacity utilization rate of 91%.


Ownership
Ownership Structure

Golden Packages (Pvt.) Limited is a family-owned business, with ownership distributed among three brothers. Mr. Munir Khan holds the majority stake, representing 54% of the Company’s equity, followed by Mr. Rehman Khan with 38%, while the remaining 8% is owned by Mr. Amir Sultan.


Stability

The ownership structure remains stable, supported by the owners’ extensive experience in the packaging industry and their strong personal commitment to the business.


Business Acumen

The ownership of Golden Packages (Pvt.) Limited is backed by strong industry knowledge and business acumen, developed through years of family exposure to diverse entrepreneurial ventures. The current generation has inherited not only experience but also a deep understanding of the packaging sector, as their father was a seasoned entrepreneur who successfully established and managed businesses in packaging and other related industries. This legacy has provided the owners with valuable market insights, a strong business network, and the strategic foresight necessary to sustain and grow the Company’s operations in a competitive environment.


Financial Strength

All family members possess substantial financial strength and resources, enabling them to support the Company, if required.


Governance
Board Structure

The Company’s Board structure primarily revolves around its sponsor family. The presence of non-executive and independent directors is encouraged. 


Members’ Profile

The Board comprises experienced businessmen who possess strong managerial and strategic capabilities. Their professional expertise and practical business exposure enable them to guide the Company effectively, ensuring sound governance, informed decision-making, and long-term value creation.


Board Effectiveness

The Board meets at adequate times during the year, with the majority attending to discuss pertinent matters. To ensure effective governance, the Board has formed five committees, namely, (i) Audit Committee (ii) Human Resource and Remuneration Committee (iii) Finance and Development Committee (iv) IT/Digital Transformation Committee (v) Production Committee


Financial Transparency

The Audit Committee is responsible for overseeing the integrity of the Company’s financial reporting and ensuring the effectiveness of its internal control framework. The external auditor of the Company is  M/s Z.U.M.I.R.S & Co. Chartered Accountants which is non QCR rated firm. 


Management
Organizational Structure

Golden Packages (Pvt.) Limited has developed a defined organizational structure keeping in mind the Company’s operational needs. The Company has a lean organizational structure to control personnel costs while efficiently managing its operations.


Management Team

The Company’s Chief Executive Officer, Mr. Rehman Khan has been associated with the Company since its inception. Mr. Rehman Khan has over 12 years of relevant experience and also has experience in senior management abroad. Mr. Amir Sultan, the Managing Director of the Company, has a vast business portfolio, simultaneously managing multiple businesses and enhancing Company’s practices through his own business acumen. Mr. Rao Hidayat Ullah serves as Chief Financial Officer of the Company. 


Effectiveness

The experience of the sponsors along with a professional management team has helped the Company to streamline its operations and cut down on its costs. The production facilities have minimal wastage which is effectively managed through re-cycling and re-using in the process.


MIS

The Company has implemented SAP systems to align its operations with industry best practices and standards.


Control Environment

The Company has installed IT-based security systems and controls during FY25.


Business Risk
Industry Dynamics

Today’s packaging industry is fast paced sector in nature as it mostly drives its demand from the Country’s food sector. The Company’s success depends on understanding customer requirements, anticipating future trends, challenges, and opportunities, and partnering with suppliers and human capital to discover long-term and sustainable solutions for all our stakeholders. Demand for Pakistan’s CPP films is growing as it is a cheaper and more readily available packaging material as compared to the alternatives. In this regard, improvement in the purchasing power of the ultimate consumer has also played a positive role leading to a growth in the food segment. Thus, generating demand for the Country’s packaging industry.


Relative Position

Golden Packages (Pvt.) Limited has established itself as a prominent player in the CPP and flexible packaging segments. The Company holds a strong presence in the Central region, followed by the Northern market, particularly in the KPK province. As per management, the Company retained a good market penetration and is recognized among the top companies in the flexible packaging sector in Punjab.


Revenues

The Company generates revenue from the sale of CPP Films and flexible packaging in the local market as well as through exports. During FY25, the revenue of the Company increased to PKR 8,992mln (FY24: PKR 7,841mln) due to increased customers and sales volume. The local sales (exclusive of tax) of the Company inclined to PKR 9,488mln (FY24: PKR 8,279mln), the exports of the Company increased to PKR 177mln (FY24: PKR 58mln). The Company’s exports are to a single Company, Najeeb Insaf Limited, situated in Afghanistan. During FY25, the gross profit of the Company stood at PKR 1,222mln (FY24: PKR 1,047mln).


Margins

During FY25, the Company demonstrated steady improvement in its profitability profile. The gross profit margin improved slightly to 13.6% (FY24: 13.4%). The net profit margin stood at 11.5% (FY24: 11.8%), reflecting prudent financial management. Consequently, the profit after tax (PAT) increased to PKR 1,037mln from PKR 924mln in FY24. This consistent growth underscores the Company’s ability to sustain healthy margins while strengthening its financial position in a competitive market environment.


Sustainability

Going forward, additional capital expenditure is anticipated to support the planned expansion into BOPP production. Management remains focused on strengthening the Company’s position and consolidating its presence within the industry.


Financial Risk
Working capital

Golden Packages (Pvt.) Limited’s working capital requirements are a function of its inventory, trade receivables, and trade payables, which are financed through short-term borrowings and FCFO. During FY25, the Company’s inventory days increased to 40 days (FY24: 36 days). The trade receivable days decreased to 42 days (FY24: 53 days), and trade payable days contracted to 9 days (FY24: 27 days). Gross working capital days stood at 82 at the end of FY25 (FY24: 89 days) whereas, net working capital days stood at 73 days (FY24: 62 days). The increase in inventory days alongside the contraction in payable days has stretched the Company’s cash conversion cycle, indicating higher reliance on internal liquidity.


Coverages

The Company’s free cash flow from operations (FCFO) improved to PKR 1,244mln in FY25 (FY24: PKR 1,121mln), reflecting stronger internal cash generation capacity. This growth indicates effective working capital management and sustained operating cash inflows, supporting the Company’s liquidity profile. Furthermore, the EBITDA/finance cost ratio significantly strengthened to 54x in FY25 (FY24: 28x), highlighting a notable improvement in debt-servicing ability. This substantial increase demonstrates that the Company has ample earnings cushion relative to its financial obligations, thereby reducing financial risk and enhancing its overall credit profile.


Capitalization

Golden Packages maintains a low-leveraged capital structure, which further strengthened during FY25 as the leverage ratio declined to 4.5% (FY24: 8.7%). The improvement is primarily driven by a substantial increase in the equity base to PKR 5,094mln (FY24: PKR 4,057mln), supported by enhanced profitability. Simultaneously, the Company’s borrowings contracted to PKR 239mln (FY24: PKR 387mln), reducing its reliance on external debt financing. This trajectory reflects strong internal capital generation thereby reinforcing the Company’s financial risk profile.
 
 

Aug-25

www.pacra.com

Golden Packages (Pvt.) Limited

financial summary

(PKR mln)

Logo

Jun-25
12M		 Jun-24
12M		 Jun-23
12M
A. BALANCE SHEET
1. Non-Current Assets 1,655 1,410 1,163
2. Investments 0 0 0
3. Related Party Exposure 0 0 0
4. Current Assets 3,964 3,450 3,494
a. Inventories 1,084 885 673
b. Trade Receivables 1,117 971 1,302
5. Total Assets 5,619 4,860 4,657
6. Current Liabilities 287 415 980
a. Trade Payables 149 294 883
7. Borrowings 239 387 544
8. Related Party Exposure 0 0 0
9. Non-Current Liabilities 0 0 0
10. Net Assets 5,094 4,057 3,133
11. Shareholders' Equity 5,094 4,057 3,133
B. INCOME STATEMENT
1. Sales 8,992 7,841 6,095
a. Cost of Good Sold (7,770) (6,792) (5,175)
2. Gross Profit 1,222 1,048 920
a. Operating Expenses (47) (36) (31)
3. Operating Profit 1,175 1,012 889
a. Non Operating Income or (Expense) 0 54 0
4. Profit or (Loss) before Interest and Tax 1,175 1,066 889
a. Total Finance Cost (26) (44) (49)
b. Taxation (112) (98) (76)
6. Net Income Or (Loss) 1,037 924 764
C. CASH FLOW STATEMENT
a. Free Cash Flows from Operations (FCFO) 1,244 1,121 937
b. Net Cash from Operating Activities before Working Capital Changes 1,219 1,077 888
c. Changes in Working Capital (624) (516) (158)
1. Net Cash provided by Operating Activities 595 560 730
2. Net Cash (Used in) or Available From Investing Activities (423) (400) (527)
3. Net Cash (Used in) or Available From Financing Activities (127) (169) (87)
4. Net Cash generated or (Used) during the period 44 (9) 116
D. RATIO ANALYSIS
1. Performance
a. Sales Growth (for the period) 14.7% 28.6% 41.1%
b. Gross Profit Margin 13.6% 13.4% 15.1%
c. Net Profit Margin 11.5% 11.8% 12.5%
d. Cash Conversion Efficiency (FCFO adjusted for Working Capital/Sales) 6.9% 7.7% 12.8%
e. Return on Equity [ Net Profit Margin * Asset Turnover * (Total Assets/Shareholders' Equity )] 22.7% 25.7% 27.8%
2. Working Capital Management
a. Gross Working Capital (Average Days) 82 89 97
b. Net Working Capital (Average Days) 73 62 60
c. Current Ratio (Current Assets / Current Liabilities) 13.8 8.3 3.6
3. Coverages
a. EBITDA / Finance Cost 53.5 27.8 20.8
b. FCFO / Finance Cost+CMLTB+Excess STB 7.2 5.3 4.6
c. Debt Payback (Total Borrowings+Excess STB) / (FCFO-Finance Cost) 0.2 0.4 0.6
4. Capital Structure
a. Total Borrowings / (Total Borrowings+Shareholders' Equity) 4.5% 8.7% 14.8%
b. Interest or Markup Payable (Days) 0.0 0.0 0.0
c. Entity Average Borrowing Rate 8.2% 11.1% 8.4%

Aug-25

www.pacra.com

Golden Packages (Pvt.) Limited

rating scale

Logo

Aug-25

www.pacra.com

Golden Packages (Pvt.) Limited

regulatory disclosure

Logo
  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
  2. Restrictions
    1. No director, officer, or employee of PACRA communicates the information acquired by him for use for rating purposes to any other person, except where required under law to do so. (Chapter III; 10-(5))
    2. PACRA does not disclose or discuss with outside parties or make improper use of the non-public information which has come to its knowledge during a business relationship with the customer. (Chapter III; 10-7-(d))
    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))
  3. Conduct of Business
    1. PACRA fulfills its obligations in a fair, efficient, transparent, and ethical manner and renders high standards of services in performing its functions and obligations. (Chapter III; 11-A-(a))
    2. PACRA uses due care in the preparation of this Rating Report. Our information has been obtained from sources we consider to be reliable, but its accuracy or completeness is not guaranteed. PACRA does not, in every instance, independently verify or validate information received in the rating process or in preparing this Rating Report. (Clause 11-(A)(p))
    3. PACRA prohibits its employees and analysts from soliciting money, gifts, or favors from anyone with whom PACRA conducts business. (Chapter III; 11-A-(q))
    4. PACRA ensures before the commencement of the rating process that an analyst or employee has not had a recent employment or other significant business or personal relationship with the rated entity that may cause or may be perceived as causing a conflict of interest. (Chapter III; 11-A-(r))
    5. PACRA maintains the principle of integrity in seeking rating business. (Chapter III; 11-A-(u))
    6. PACRA promptly investigates in the event of misconduct or a breach of the policies, procedures, and controls, and takes appropriate steps to rectify any weaknesses to prevent any recurrence, along with suitable punitive action against the responsible employee(s). (Chapter III; 11-B-(m))
  4. Independence & Conflict of Interest
    1. PACRA receives compensation from the entity being rated or any third party for the rating services it offers. The receipt of this compensation has no influence on PACRA’s opinions or other analytical processes. In all instances, PACRA is committed to preserving the objectivity, integrity, and independence of its ratings. Our relationship is governed by two distinct mandates: i) rating mandate - signed with the entity being rated or issuer of the debt instrument, and ii) fee mandate - signed with the payer, which can be different from the entity.
    2. PACRA does not provide consultancy/advisory services or other services to any of its customers or their associated companies and associated undertakings that are being rated or have been rated by it during the preceding three years, unless it has an adequate mechanism in place ensuring that the provision of such services does not lead to a conflict of interest situation with its rating activities. (Chapter III; 12-2-(d))
    3. PACRA discloses that no shareholder directly or indirectly holding 10% or more of the share capital of PACRA also holds directly or indirectly 10% or more of the share capital of the entity which is subject to rating or the entity which issued the instrument subject to rating by PACRA. (Chapter III; 12-2-(f))
    4. PACRA ensures that the rating assigned to an entity or instrument is not affected by the existence of a business relationship between PACRA and the entity or any other party, or the non-existence of such a relationship. (Chapter III; 12-2-(i))
    5. PACRA ensures that the analysts or any of their family members shall not buy, sell, or engage in any transaction in any security which falls in the analyst’s area of primary analytical responsibility. This clause, however, does not apply to investments in securities through collective investment schemes. (Chapter III; 12-2-(l))
    6. PACRA has established policies and procedures governing investments and trading in securities by its employees and for monitoring the same to prevent insider trading, market manipulation, or any other market abuse. (Chapter III; 11-B-(g))
  5. Monitoring and Review
    1. PACRA monitors all the outstanding ratings continuously, and any potential change therein due to any event associated with the issuer, the security arrangement, the industry, etc., is disseminated to the market immediately and in an effective manner after appropriate consultation with the entity/issuer. (Chapter III; 17-(a))
    2. PACRA reviews all the outstanding ratings periodically on an annual basis. Provided that public dissemination of annual review and in an instance of change in rating will be made. (Chapter III; 17-(b))
    3. PACRA initiates an immediate review of the outstanding rating upon becoming aware of any information that may reasonably be expected to result in downgrading of the rating. (Chapter III; 17-(c))
    4. PACRA engages with the issuer and the debt securities trustee to remain updated on all information pertaining to the rating of the entity/instrument. (Chapter III; 17-(d))
  6. Probability of Default
    1. PACRA’s Rating Scale reflects the expectation of credit risk. The highest rating has the lowest relative likelihood of default (i.e., probability). PACRA’s transition studies capture the historical performance behavior of a specific rating notch. Transition behavior of the assigned rating can be obtained from PACRA’s Transition Study available at our website. (www.pacra.com) However, the actual transition of rating may not follow the pattern observed in the past. (Chapter III; 14-3(f)(vii))
  7. Proprietary Information
    1. All information contained herein is considered proprietary by PACRA. Hence, none of the information in this document can be copied or otherwise reproduced, stored, or disseminated in whole or in part in any form or by any means whatsoever by any person without PACRA’s prior written consent.

Aug-25

www.pacra.com