The Pakistan Credit Rating Agency Limited
Press Release


Madiha Sohail

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PACRA assigns Initial entity rating to Golden Packages Limited

Rating Type Entity
(29-Aug-22 )
Action Initial
Long Term BBB
Short Term A2
Outlook Stable
Rating Watch -

Golden Packages (Pvt.) Limited (“GPL’’ or “the Company”) is predominately manufacturing Cast Poly Propylene (CPP) Films and flexible packaging. The demand of the product is being derived mainly from the food industry The Company is wholly owned by family members. The sponsor’s family has a history of successful business ventures. The raw material of the finished product is 100% imported hence, exposed to exchange rate risk. The Company’s market share in the overall industry is ~30%, whereas, the Company is the major supplier of flexible packaging in KPK region. Almost 70% of the total sales of the Company are made to KPK. Equity injection of ~PKR 210mln in 2021 and low leveraged cost structure depicts a strong financial profile of the Company. With no MIS system in place at GPL, the room for improvement concerning IT systems is massive, including the GPL’s website which is still in the developing phase. The Company is currently working on ~80% capacity and going forward to meet the ongoing demand for the CPP Films, GPL recently imported a new plant, which will enhance the production capacity to 20,000MT/annum. The Company has generated a topline of ~ PKR 1,777mln in 1HYFY22 as compared to ~PKR 3,948mln in FY20. In 1HYFY22, GPL generated a bottom line of ~PKR 183mln (FY21: ~PKR 467mln). After the equity injection, the Company has equity of ~PKR 2,053mln in 1HYFY22 as compared to FY21: ~PKR 1,869mln.
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 has 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. Shah Husain ~54%, Mr. Rehman Khan owns ~38% while Mr. Amir Sultan and Mr. Inam Khan owns ~6% and ~2% shares respectively. Mr. Rehman Khan is the CEO of the Company. He has over 10 years of relevant experience and also has an experience in senior management abroad. He is assisted by a team of qualified individuals.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.