Financial
Modeling
Financial Modeling
F
inancial 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
The above trend has led to the growth of the
outsourced research activity; many of these firms are
Financial KPOs:
located in India. Some of the well known firms in this
field who established their presence are: Adventity,
Knowledge Process Outsourcing (KPO) has emerged
Gridstone Research, AMBA Research, Evalue Serve,
as a new fast growing business sector. Lot of finance
Copal Partners, Irevna, Capital IQ, DE Shaw, Aranca,
companies currently outsource research and financial
analysis functions to KPOs because it is cost effective
Netscribes, ICRA, CMIE, Capital Markets, Dwan A Day
for them. When outsourcing of financial research
Analytics, Care Ratings, Value Notes, Viteos Capital
started a few years back it was considered as low
Markets. Research work carried out by these firms
complexity back room information support for
includes:
Investment Analysts from buy side and sell side firms.
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This activity has now moved up the value chain
coverage. There are over 90,000 listed stocks on
has evolved significantly for many reasons. Among
global exchanges and each one have to be valued
them some of the prominent reasons are:
on a regular basis.
Regulatory changes that are pushing for
transparency.
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Financial Modeling & Valuation: Create
Excel based models to get the understanding of
4Investment Banks doing research were not
business drivers, incorporate assumptions, risk
considered being completely unbiased.
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Detailed research to
recommend buy/sell price on companies under
considerably and the world of outsourced research
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Equity Research:
factors and possible valuation of company.
Need for Investment Banks to remain profitable.
4 Research expertise was earlier used as
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Forensic Analysis: In-depth scrutiny and
marketing and promotional tool by Investment
analysis of Company cash flows and financial
banks to attract clients. Research was basically
statement to verify the authenticity of disclosures,
a cost center activity. With most investment
to prevent malpractices like Enron, Worldcom and
banks under profit pressure, and research no
Satyam.
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
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IPO Analysis: Analyze the attractiveness of IPO.
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Sector Research: Complete macro
understanding of the sectors to identify investment
cost.
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Project Finance:
opportunities. The sectors covered are typically
Financial Services, Retail, Information Technology
In simple words Project Finance is financing of long-
& Telecommunication, Business Services, Oil &
term infrastructure and industrial projects. It involves
Gas, Metals & Mining, Energy, Utilities.
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assessing the financial viability of a project and
Screening & Profiling: Identifying Target
creating a funding plan through debt and equity
companies for mergers , acquisitions or sell out.
components. Apart from people who have in depth
Competitive Mapping & Analysis: Analysis to
understanding of the specific project and business, it
benchmark performance with peers in the sectors.
requires people who can create a financial model and
help build the financial plan for the project.
Market Activity Research: Carry out research
IMS Program
on various stock exchanges, commodity
exchanges on the movements and predict future
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trends.
Program Objective
Mergers & Acquisitions Transaction
The objective is to groom the candidates for entry level
Analysis: Research and Valuation Models to
jobs in the finance sector which require financial
arrive at transaction valuation for companies
analysis and modeling skills. The program aims to
preparing to merge or acquire.
impart the necessary skills required to perform the role
of a Financial Research Analyst. The program equips
Data Collection and Aggregation Services:
students with the practical skill sets required to
Information gathering from various sources,
perform financial analysis, modeling and valuation
organizing the data collected, validating the data
through Excel.
and providing the data to analysts.
Program Content:
Financial Analysts in Corporations:
The program comprises the following courses. Each
Companies need to analyze their own finances, build
course includes topics which are relevant providing
financial models for their own projects and hence
conceptual as well as practical knowledge required for
often employ analysts within the company. There are
the job.
also financial advisory companies who provide these
services to corporations as an outsourced model.
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Accounting Fundamentals
Most fresh graduates in these firms start as research
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Economic Analysis
assistants and assist senior analysts in creating
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Financial Management
reports. As a research assistant one has to collect,
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Financial Markets
and normalize data, build the financial model, make
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Excel Proficiency
the report and track the announcements /
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Financial Modeling & Valuation and
developments on the company.
Sector overview
These firms need candidates who have strong
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analytical skills and specific domains knowledge in
financial analysis and modeling.
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Report Writing
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4 Introduction to Accounting
Financial Modeling & Valuation and
Sector Overview
4 Basic Accounting Principles
4 Introduction to Data Gathering and
Accounting Fundamentals
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Financial Modeling
4 Income Statement
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4 Balance Sheet
4 Prepare an Income Statement
4 Cash Flow Statement
4 Prepare a Balance Sheet
4 Financial Ratio Analysis
4 Prepare YTD Cash Flow Statement
4 Reading the Annual Report
4 Prepare Geographic Revenue Sheet
4 International Accounting Standards
4 Prepare Segment Revenue Sheet
4 Prepare Cost Statement
Economic Analysis
4 Prepare Debt Sheet
4 Introduction - Relevance of Economics
4 Analyze Revenue Drivers
4 Microeconomics
4 Forecast Geographic Revenues
4 Macroeconomics
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4 Forecast Segment Revenues
Financial Management
4 Forecast Cost Statement
4 Time value of money
4 Forecast Debt
4 Long term financing
4 Proforma Adjustments
4 Cost of capital
4 Income Statement - Compute Margins
4 Risk and return
4 Forecast Income Statement - Part A
4 Capital Structure
4 Forecast Income Statement - Part B
4 Dividend Policy
4 Balance Sheet -Compute Ratios
4 Working Capital Requirements
4 Forecast Balance Sheet
4 Equity and Industry Analysis
4 Quarterly CFS and schedules
Financial Markets
4 CFS Projection
4 Financial Markets & Intermediaries
4 CFS Projection - Part A
4 Equity Market Structure
4 CFS Projection - Part B
4 Equity Market Analysis
4 Basics Of Valuation
4 Portfolio Management
4 Valuation- Discounted Cash Flow Method (DCF)
4 Valuation – Relative Valuation
Excel Proficiency
4 Valuation – Assumptions for Valuation Model
4 Formatting of Excel Sheets
4 Prepare Valuation Model
4 Use of Excel Formulae Function
4 Prepare Valuation Model - Part A
4 Advanced Modeling Techniques
4 Prepare Valuation Model - Part B
4 Data Filter and Sort
4 Prepare Valuation Model - Part C
4 Charts and Graphs
4 Prepare Presentation Sheet(PS)
4 Table formula and Scenario building
4 Prepare Presentation Sheet(PS) -Part A
4 Introduction to macros
4 Prepare Company Overview (CO)
4 Prepare Company Overview (CO) - Part A
4 Sector Overview
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Report Writing
4 Report Writing
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IMS Certification Criteria:
Selection Process
Candidates will be granted the certification only if they
Candidates will be admitted on the basis of their
fulfill the following criteria.
application only.
Eligibility
Requirements for IMS Certification:
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The candidate should be a graduate from any stream
Education: Candidate must be at least a
with minimum of 45% in graduation. Students in their
graduate or equivalent with minimum 45% marks.
final year may also apply
The candidate should undergo the training
How to Apply?
program of IMS Proschool.
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Download the Application Form and submit the duly
Examination: The candidate has to pass the
filled application to The Financial Modeling Co-
certification exam conducted by IMS Proschool.
ordinator, at the IMS Proschool Centre – Mumbai. OR
The candidates will be evaluated on their
Enrol Online from our website.
performance in the internal tests, online exercises,
Program Fees
report writing and final examination. Final Exams
The Program fee is Rs.12000/-
are normally conducted on last Saturday of every
*(inclusive of one time exam fee).
* There is a repeat exam fee of Rs.3000/- for every re-attempt
Feb, May, Aug, Nov.
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Experience: The candidate has to complete one
Classroom Program
year of work experience either pre or post
Academic Cycle
Certification exam in case he/she is a graduate.
The Program commences twice in a year in the month
Who should do this Program?
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of April and October.
MBAs/CAs who would like to add hands on /
In which City is the program offered?
practical skills that they would need in any of the
The program is offered in Mumbai, Pune and Kolkata
jobs in the Financial Sector.
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Selection Process
KPO employees who would like to enhance their
Candidates will be short listed on the basis of their
skills and move into more analytical jobs with
application. The short listed candidate will be called for a
better compensation potential.
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Personal Interview. The exact date and time of the
Graduates who are not working in KPO's but
interview will be communicated to the student via email.
interested in working for KPO
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Eligibility
Economics Graduates & Post Graduates who like
The candidate should be a graduate from any stream
to work with data and have good analytical skills
with minimum of 45% in graduation. Students in their
and would like to build a career in finance.
final year may also apply.
Application Details
How to Apply?
Download the Application Form and submit the duly
Distance Learning Program – Regular
filled application to The Financial Modeling Coordinator, at the IMS Proschool Centre where you
Academic Cycle
would like to attend the Program.
The Program is available throughout the year.
Where is the program offered?
Program Fees
The program is an Online Program.
The Program fee is Rs. 70000/-*(inclusive of one time exam fee).
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50,000 new people will be hired this year; over 45,000
About Proschool
will work as customer relationships executive and
At IMS, our goal for the past 33 years has been simple
most will not get a chance to acquire skills to be
- Build a long term successful career for our students.
department managers and will be stuck.
IMS Proschool is an extension of the same mission
Three, a fallout of above is that these young guys are
although the route is different.
not able to build their profile and therefore neither do
Economic growth over the past decade has created
they get higher jobs nor are they able to get into quality
new opportunities for students and IMS Proschool is
B-Schools. So profile building is an important issue in
helping students tap these opportunities. How?-
planning a long term career.
Growth in almost every sector has created a shortage
of skilled manpower and that we have heard from
How IMS Proschool addresses these
almost every CEO by now (read news stories). IMS
challenges?
Proschool’s goal is to provide these industry relevant
At IMS Proschool, firstly, we are selecting career
skills to its students in the shortest possible time, get
opportunities carefully. We are targeting only those jobs,
them quality jobs that give them quality experience and
which will give our students quality experience and
create a long term career for them. In the process, we
therefore help them build their resumes. As highlighted
will also help the industry solve its manpower issues.
earlier, this is crucial for either joining good B-Schools
What are the challenges?
later or for career growth within the company.
One, students need “meaningful studies” that give
Secondly, the curriculum is designed by practitioners
them skills they can actually use. How often do you
with inputs from academics rather than the other way
see students who have the required degree or the
round. The programs are very hands on, so you will be
necessary qualification for the job but are still not able
productive on the job from Day 1. The results are
to perform at work. This is because there is a huge gap
already beginning to come, we are already the largest
between what they have learnt and ground reality.
trainers for the financial planning industry itself and in
Two, there are several jobs in the market today but few
retail most of our graduates are directly joining as
offer a long term career. Lets take retail as an example;
department managers.
http://imsindia.com/proschool
MUMBAI
IMS Proschool
67, Jayant Building,
Jain Hostel Road,
Near Sion circle,
Sion - west, Mumbai - 400022
Email ID : proschoolmumbai@imsindia.com
Tel. No.: 022-65285393/94
PUNE
IMS Proschool
1229/A, Narhari, 1st Floor,
Fergusson College Road,
Next to Sagar Arcade, Deccan,
Pune - 411004
Email ID : proschoolpune@imsindia.com
Tel. No.: 020-65004735/36
NASIK
IMS Proschool
3, 4 Anandrupa Apartment,
Next to sachi TVS Showroom,
Parijatnagar, Mahatmanagar,
Link Road, Nasik
Email ID : proschoolnasik@imsindia.com
Tel. No.: 0253-6576517
KOLKATA
IMS Proschool
Everest House,
Flat No # 1 G,
46 C Jawahar Lal Nehru Road,
Kolkata - 700071.
Email ID : proschoolkolkata@imsindia.com
Tel. No.: 033-40035449/50
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