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
Financial KPOs:
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:
g Regulatory changes that are pushing for
transparency.
4Investment Banks doing research were not
considered being completely unbiased.
g Need for Investment Banks to remain profitable.
4 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:
g Equity Research: 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.
g Financial Modeling & Valuation: Create
Excel based models to get the understanding of
business drivers, incorporate assumptions, risk
factors and possible valuation of company.
g Forensic Analysis: 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.
g IPO Analysis: Analyze the attractiveness of IPO.
g Sector Research: Complete macro
understanding of the sectors to identify investment

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 opportunities. The sectors covered are typically
Financial Services, Retail, Information Technology
& Telecommunication, Business Services, Oil &
Gas, Metals & Mining, Energy, Utilities.
g Screening & Profiling: Identifying Target
companies for mergers , acquisitions or sell out.
g Competitive Mapping & Analysis: Analysis to
benchmark performance with peers in the sectors.
g Market Activity Research: Carry out research
on various stock exchanges, commodity
exchanges on the movements and predict future
trends.
g Mergers & Acquisitions Transaction
Analysis: Research and Valuation Models to
arrive at transaction valuation for companies
preparing to merge or acquire.
g Data Collection and Aggregation Services:
Information gathering from various sources,
organizing the data collected, validating the data
and providing the data to analysts.
Financial Analysts in Corporations:
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.
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Project Finance:
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.
IMS Program
Program Objective
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.
Program Content:
The program comprises the following courses. Each
course includes topics which are relevant providing
conceptual as well as practical knowledge required for
the job.
g Accounting Fundamentals
g Economic Analysis
g Financial Management
g Financial Markets
g Excel Proficiency
g Financial Modeling & Valuation and
Sector overview
g Report Writing
g Accounting Fundamentals g Financial Modeling & Valuation and
4 Introduction to Accounting Sector Overview

4 Basic Accounting Principles 4 Introduction to Data Gathering and

4 Income Statement Financial Modeling

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
g Economic Analysis
4 Prepare Debt Sheet
4 Introduction - Relevance of Economics
4 Analyze Revenue Drivers
4 Microeconomics
4 Forecast Geographic Revenues
4 Macroeconomics
4 Forecast Segment Revenues
g 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

g 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
g 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

g Report Writing
4 Report Writing

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IMS Certification Criteria:
Candidates will be granted the certification only if they
fulfill the following criteria.
Requirements for IMS Certification:
g Education: Candidate must be at least a
graduate or equivalent with minimum 45% marks.
The candidate should undergo the training
program of IMS Proschool.
g Examination: 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.
g Experience: The candidate has to complete one
year of work experience either pre or post
Certification exam in case he/she is a graduate.
Who should do this Program?
g MBAs/CAs who would like to add hands on /
practical skills that they would need in any of the
jobs in the Financial Sector.
g KPO employees who would like to enhance their
skills and move into more analytical jobs with
better compensation potential.
g Graduates who are not working in KPO's but
interested in working for KPO
g Economics Graduates & Post Graduates who like
to work with data and have good analytical skills
and would like to build a career in finance.
Application Details
Distance Learning Program – Regular
Academic Cycle
The Program is available throughout the year.
Where is the program offered?
The program is an Online Program.
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Selection Process
Candidates will be admitted on the basis of their
application only.
Eligibility
The candidate should be a graduate from any stream
with minimum of 45% in graduation. Students in their
final year may also apply
How to 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.
Program Fees
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
Classroom Program
Academic Cycle
The Program commences twice in a year in the month
of April and October.
In which City is the program offered?
The program is offered in Mumbai, Pune and Kolkata
Selection Process
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.
Eligibility
The candidate should be a graduate from any stream
with minimum of 45% in graduation. Students in their
final year may also apply.
How to 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.
Program Fees
The Program fee is Rs. 70000/-*(inclusive of one time exam fee).
About Proschool
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.
What are the challenges?
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;
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
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
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.
How IMS Proschool addresses these
challenges?
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.
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
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