Financial Modelling

FinancialModeling

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:

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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:

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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:

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Financial Analysts in Corporations:

Project Finance:

Program Objective

Program Content:

IMS Program

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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.

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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

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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

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IMS Certification Criteria

Requirements for IMS Certification:

Who should do this Program?

Distance Learning Program–Regular

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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

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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

[email protected]

KOLKATAIMS ProschoolEverest House,Flat No # 1 G,46 C Jawahar Lal Nehru Road,Kolkata - 700071.Email ID :Tel. No.: 033-40035449/50

[email protected]

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

[email protected]

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