financial modelling
TRANSCRIPT
Financial Modeling
Financial Modeling is a key skill with application in several areas within banking and finance industry as well as
within corporations. In financial modeling you learn to gather historical information on companies and analyze
company / industry performance on various financial parameters. This analysis is then used to build a companies
financial model, which in turn is key to projecting a future financial performance. Based on this model companies /
investors can arrive at a suitable valuation for the companies.
Individuals with these skills can work in the areas of investment banking / equity research/trading, financial KPOs
that are assisting investment bankers / equity research firms, financial advisory firms, project finance and in the area
of performance tracking and MIS for companies themselves.
Career Options in Finance Sector
Financial KPOs:
g
g
4
4
Knowledge Process Outsourcing (KPO) has emerged
as a new fast growing business sector. Lot of finance
companies currently outsource research and financial
analysis functions to KPOs because it is cost effective
for them. When outsourcing of financial research
started a few years back it was considered as low
complexity back room information support for
Investment Analysts from buy side and sell side firms.
This activity has now moved up the value chain
considerably and the world of outsourced research
has evolved significantly for many reasons. Among
them some of the prominent reasons are:
Regulatory changes that are pushing for
transparency.
Investment Banks doing research were not
considered being completely unbiased.
Need for Investment Banks to remain profitable.
Research expertise was earlier used as
marketing and promotional tool by Investment
banks to attract clients. Research was basically
a cost center activity. With most investment
banks under profit pressure, and research no
longer a marketing tool, investment banks have
started strategic initiatives to outsource
research to independent research institutions
who are capable of doing at a fraction of the
cost.
The above trend has led to the growth of the
outsourced research activity; many of these firms are
located in India. Some of the well known firms in this
field who established their presence are: Adventity,
Gridstone Research, AMBA Research, Evalue Serve,
Copal Partners, Irevna, Capital IQ, DE Shaw, Aranca,
Netscribes, ICRA, CMIE, Capital Markets, Dwan A Day
Analytics, Care Ratings, Value Notes, Viteos Capital
Markets. Research work carried out by these firms
includes:
Detailed research to
recommend buy/sell price on companies under
coverage. There are over 90,000 listed stocks on
global exchanges and each one have to be valued
on a regular basis.
Create
Excel based models to get the understanding of
business drivers, incorporate assumptions, risk
factors and possible valuation of company.
In-depth scrutiny and
analysis of Company cash flows and financial
statement to verify the authenticity of disclosures,
to prevent malpractices like Enron, Worldcom and
Satyam.
Analyze the attractiveness of IPO.
Comp le t e macr o
understanding of the sectors to identify investment
Equity Research:
Financial Modeling & Valuation:
Forensic Analysis:
IPO Analysis:
Sector Research:
g
g
g
g
g
2
opportunities. The sectors covered are typically
Financial Services, Retail, Information Technology
& Telecommunication, Business Services, Oil &
Gas, Metals & Mining, Energy, Utilities.
Identifying Target
companies for mergers , acquisitions or sell out.
Analysis to
benchmark performance with peers in the sectors.
Carry out research
on various stock exchanges, commodity
exchanges on the movements and predict future
trends.
Research and Valuation Models to
arrive at transaction valuation for companies
preparing to merge or acquire.
Information gathering from various sources,
organizing the data collected, validating the data
and providing the data to analysts.
Companies need to analyze their own finances, build
financial models for their own projects and hence
often employ analysts within the company. There are
also financial advisory companies who provide these
services to corporations as an outsourced model.
Most fresh graduates in these firms start as research
assistants and assist senior analysts in creating
reports. As a research assistant one has to collect,
and normalize data, build the financial model, make
the report and track the announcements /
developments on the company.
These firms need candidates who have strong
analytical skills and specific domains knowledge in
financial analysis and modeling.
Screening & Profiling:
Competitive Mapping & Analysis:
Market Activity Research:
Mergers & Acquisitions Transaction
Analysis:
Data Collection and Aggregation Services:
g
g
g
g
g
Financial Analysts in Corporations:
Project Finance:
Program Objective
Program Content:
IMS Program
g
g
g
g
g
g
g
In simple words Project Finance is financing of long-
term infrastructure and industrial projects. It involves
assessing the financial viability of a project and
creating a funding plan through debt and equity
components. Apart from people who have in depth
understanding of the specific project and business, it
requires people who can create a financial model and
help build the financial plan for the project.
The objective is to groom the candidates for entry level
jobs in the finance sector which require financial
analysis and modeling skills. The program aims to
impart the necessary skills required to perform the role
of a Financial Research Analyst. The program equips
students with the practical skill sets required to
perform financial analysis, modeling and valuation
through Excel.
Accounting Fundamentals
Economic Analysis
Financial Management
Financial Markets
Excel Proficiency
Financial Modeling & Valuation and
Sector overview
Report Writing
The program comprises the following courses. Each
course includes topics which are relevant providing
conceptual as well as practical knowledge required for
the job.
3
g
g
4
4
Financial Modeling & Valuation andSector Overview
Report Writing
Introduction to Data Gathering and
Financial Modeling
Prepare an Income Statement
Prepare a Balance Sheet
Prepare YTD Cash FlowStatement
Prepare Geographic Revenue Sheet
Prepare Segment Revenue Sheet
Prepare Cost Statement
Prepare Debt Sheet
Analyze Revenue Drivers
Forecast Geographic Revenues
Forecast Segment Revenues
Forecast Cost Statement
Forecast Debt
Proforma Adjustments
Income Statement - Compute Margins
Forecast Income Statement - Part A
Forecast Income Statement - Part B
Balance Sheet -Compute Ratios
Forecast Balance Sheet
Quarterly CFS and schedules
CFS Projection
CFS Projection - Part A
CFS Projection - Part B
Basics Of Valuation
Valuation- Discounted Cash Flow Method (DCF)
Valuation–RelativeValuation
Valuation–Assumptions for Valuation Model
Prepare Valuation Model
Prepare Valuation Model - Part A
Prepare Valuation Model - Part B
Prepare Valuation Model - Part C
Prepare Presentation Sheet(PS)
Prepare Presentation Sheet(PS) -Part A
Prepare Company Overview (CO)
Prepare Company Overview (CO) - Part A
Sector Overview
Report Writing
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
g
g
g
g
g
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
Introduction to Accounting
Basic Accounting Principles
Income Statement
Balance Sheet
Cash FlowStatement
Financial Ratio Analysis
Reading the Annual Report
International Accounting Standards
Introduction - Relevanceof Economics
Microeconomics
Macroeconomics
Time value of money
Long term financing
Cost of capital
Risk and return
Capital Structure
DividendPolicy
Working Capital Requirements
Equity and Industry Analysis
Financial Markets & Intermediaries
Equity Market Structure
Equity Market Analysis
Portfolio Management
Formatting of Excel Sheets
Use of Excel Formulae Function
Advanced Modeling Techniques
Data Filter and Sort
Charts and Graphs
Table formula and Scenario building
Introduction to macros
Accounting Fundamentals
Economic Analysis
Financial Management
Financial Markets
Excel Proficiency
4
IMS Certification Criteria
Requirements for IMS Certification:
Who should do this Program?
Distance Learning Program–Regular
g
g
g
g
g
g
g
Application Details
:
Candidates will be granted the certification only if they
fulfill the following criteria.
Candidate must be at least a
graduate or equivalent with minimum 45% marks.
The candidate should undergo the training
program of IMS Proschool.
The candidate has to pass the
certification exam conducted by IMS Proschool.
The candidates will be evaluated on their
performance in the internal tests, online exercises,
report writing and final examination. Final Exams
are normally conducted on last Saturday of every
Feb, May, Aug, Nov.
The candidate has to complete one
year of work experience either pre or post
Certification exam in case he/she is a graduate.
MBAs/CAs who would like to add hands on /
practical skills that they would need in any of the
jobs in the Financial Sector.
KPO employees who would like to enhance their
skills and move into more analytical jobs with
better compensation potential.
Graduates who are not working in KPO's but
interested in working for KPO
Economics Graduates & Post Graduates who like
to work with data and have good analytical skills
and would like to build a career in finance.
The Program is available throughout the year.
The program is an Online Program.
Education:
Examination:
Experience:
Academic Cycle
Where is the program offered?
Selection Process
Eligibility
How to Apply?
Program Fees
Academic Cycle
Candidates will be admitted on the basis of their
application only.
The candidate should be a graduate from any stream
with minimum of 45% in graduation. Students in their
final year may also apply
Download the Application Form and submit the duly
filled application to The Financial Modeling Co-
ordinator, at the IMS Proschool Centre – Mumbai. OR
Enrol Online from our website.
The Program fee is Rs.12000/-
*(inclusive of one time exam fee).* There is a repeat exam fee of Rs.3000/- for every re-attempt
The Program commences twice in a year in the month
of April and October.
The program is offered in Mumbai, Pune and Kolkata
Candidates will be short listed on the basis of their
application. The short listed candidate will be called for a
Personal Interview. The exact date and time of the
interview will be communicated to the student via email.
The candidate should be a graduate from any stream
with minimum of 45% in graduation. Students in their
final year may also apply.
Download the Application Form and submit the duly
filled application to The Financial Modeling Co-
ordinator, at the IMS Proschool Centre where you
would like to attend the Program.
The Program fee is Rs. 70000/-
In which City is the program offered?
Selection Process
Eligibility
How to Apply?
Program Fees
*(inclusive of one time exam fee).
Classroom Program
5
About Proschool
What are the challenges?
At IMS, our goal for the past 33 years has been simple
- Build a long term successful career for our students.
IMS Proschool is an extension of the same mission
although the route is different.
Economic growth over the past decade has created
new opportunities for students and IMS Proschool is
helping students tap these opportunities. How?-
Growth in almost every sector has created a shortage
of skilled manpower and that we have heard from
almost every CEO by now (read news stories). IMS
Proschool’s goal is to provide these industry relevant
skills to its students in the shortest possible time, get
them quality jobs that give them quality experience and
create a long term career for them. In the process, we
will also help the industry solve its manpower issues.
One, students need “meaningful studies” that give
them skills they can actually use. How often do you
see students who have the required degree or the
necessary qualification for the job but are still not able
to perform at work. This is because there is a huge gap
between what they have learnt and ground reality.
Two, there are several jobs in the market today but few
offer a long term career. Lets take retail as an example;
50,000 new people will be hired this year; over 45,000
will work as customer relationships executive and
most will not get a chance to acquire skills to be
department managers and will be stuck.
Three, a fallout of above is that these young guys are
not able to build their profile and therefore neither do
they get higher jobs nor are they able to get into quality
B-Schools. So profile building is an important issue in
planning a long term career.
At IMS Proschool, firstly, we are selecting career
opportunities carefully. We are targeting only those jobs,
which will give our students quality experience and
therefore help them build their resumes. As highlighted
earlier, this is crucial for either joining good B-Schools
later or for career growth within the company.
Secondly, the curriculum is designed by practitioners
with inputs from academics rather than the other way
round. The programs are very hands on, so you will be
productive on the job from Day 1. The results are
already beginning to come, we are already the largest
trainers for the financial planning industry itself and in
retail most of our graduates are directly joining as
department managers.
How IMS Proschool addresses these
challenges?
http:// proschoolimsindia.com/
PUNEIMS Proschool1229/A, Narhari, 1st Floor,Fergusson College Road,Next to Sagar Arcade, Deccan,Pune - 411004Email ID :Tel. No.: 020-65004735/36
KOLKATAIMS ProschoolEverest House,Flat No # 1 G,46 C Jawahar Lal Nehru Road,Kolkata - 700071.Email ID :Tel. No.: 033-40035449/50
MUMBAIIMS Proschool
67, Jayant Building,Jain Hostel Road,Near Sion circle,
Sion - west, Mumbai - 400022Email ID :
Tel. No.: 022-65285393/[email protected]
NASIKIMS Proschool
3, 4 Anandrupa Apartment,Next to sachi TVS Showroom,
Parijatnagar, Mahatmanagar,Link Road, Nasik
Email ID :Tel. No.: 0253-6576517
6