Client Name

Matco Foods Ltd.

Faculty Advisor

Dr. Hassan Mahmood

SBS Thought Leadership Areas

Investment Decision Making

SBS Thought Leadership Area Justification

This ELP initiative addresses the Investment Decision-Making category of thought leadership at IBA SBS by empowering Matco's management to improve capital planning, operational command, and strategic awareness. Our project sought to underpin this vision by creating strategic, data-driven frameworks and insights that would help guide Falak Foods (Matco's subsidiary) to enhance the accuracy of its financial forecasting, operational controls, and risk management systems. We had three linked deliverables:

  • A product-level financial model forecasting growth, profitability, and cash flow for five years.
  • An Internal Control Framework according to COSO 2013 guidelines customized for the structure of the division and its risks.
  • A Risk Control Matrix (RCM) offering a structured means of risk monitoring and control assurance.

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Aligned SDGs

GOAL 8: Decent Work and Economic Growth

Aligned SDGs Justification

our deliverables perfectly align with the United Nations Sustainable Development Goals (SDG), including SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure). The internal control framework supports labor transparency, payroll accuracy, and workforce inclusion as the main pillars of SDG 8 by removing the informal practices, making ethical wages accessible and avoiding the compliance risks. By the same token, the digitization inherent in the financial model (with ERP-based variance tracking) and the RCM (with automation roadmap) makes a positive contribution to SDG 9 by updating the infrastructure of operations and encouraging innovations in enterprise risk governance.

NDA

No

Abstract

This Experiential Learning Project (ELP) was undertaken in partnership with Falak Foods, a consumer business unit of Matco Foods Ltd., Pakistan's top agribusiness and rice exporter. As Falak Foods forays deeper into the FMCG space—making a specialty out of premium products such as Spices & Herbs, Himalayan Pink Salt, Organic Brown Rice, and Flour—it is confronted by both gigantic growth opportunities and operational sophistication. Our project was designed to enable strategic decision-making by producing three significant outputs: an in-depth financial forecast model categorized by product type, a detailed internal control framework based on the COSO model, and departmental Risk Control Matrix (RCM) that outlines key operational, financial, and compliance risks. We started by reviewing Falak Foods' historical financials and building a multi-scenario financial model that projected revenues, cost of goods sold, gross margins, and profitability in its key product lines. Each product was modeled separately based on the size of the market, export history, and internal capacity assumptions, providing detailed insight into the potential performance in base, optimistic, and conservative scenarios. The revenue forecasts were accompanied by a cost driver deep dive, which determined logistics, raw material sourcing, and packaging as the most responsive variables. These projections were then tested against benchmarking of competitors and export trends to provide a forward-looking determination of Falak's market stance. In parallel to the financial considerations, we crafted a COSO-compliant internal control structure that suited the operating conditions of Matco and its Falak Foods business. The structure comprised control environment improvements, risk assessment procedures, automated control activities, information systems based on ERP, and strong monitoring systems. The intent was to institutionalize governance, minimize operational risk, and develop internal resilience as the business expands its presence. Lastly, we created a Risk Control Matrix for five key departments—Finance, Procurement, Payroll, Logistics, and Inventory. The RCM tied identified risks with control measures, types of controls (preventive/detective), levels of automation, and ownership. The matrix is an actionable template for Matco's internal audit and compliance teams to track and address emerging risks. The wider significance of the project is rooted in its alignment against SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation and Infrastructure). By enhancing Matco's internal processes and forecasting, our outputs support sustainable growth, operational clarity, and long-term profitability. This report chronicles the analytical journey, methodological rigor, findings, and recommendations derived from this intense 10-week undertaking.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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