PACRA Maintains the Entity Ratings of Golden Packages (Pvt.) Limited

Golden Packages (Pvt.) Limited (“GPL’’ or “the Company”) is predominately manufacturing Cast Poly Propylene (CPP) Films and flexible packaging. The Company is wholly owned by family members. The sponsor’s family has vast experience in packaging and engaged in this business since 1991. The demand for the product is derived mainly from the food industry and consumers. The strong and intact customer base of the Company bodes well for the assigned rating. The raw material of the finished product is ~100% imported hence, exposed to exchange rate risk. The internal audit department operates under the direct supervision of directors due to which the Company has an effective mechanism for the identification, assessment, and reporting of all types of risk arising out of the business operations. The company has developed and put in place an MIS system powered by SAP during the period. During FY24, the topline of the company increased by 29% to stand at PKR 7,841mln (FY23: PKR 6,095mln). Consequently, the net profit of the company inclined to PKR 924mln (FY23: PKR 764mln). 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. A cumulative improvement in these factions along with sustentation of the financial profile will be considered positive for ratings of the company.
The ratings are dependent upon the management’s ability to improve margins while sustaining its market share. 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.

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 Cast Poly Propylene (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 CEO of the Company. He has over 11 years of relevant experience and also has experience in senior management abroad. He is assisted by a team of qualified individuals.