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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.
g Equity Research: Detailed research to
This activity has now moved up the value chain
recommend buy/sell price on companies under
considerably and the world of outsourced research
coverage. There are over 90,000 listed stocks on
has evolved significantly for many reasons. Among
them some of the prominent reasons are: global exchanges and each one have to be valued
on a regular basis.
g Regulatory changes that are pushing for
transparency. g 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.
factors and possible valuation of company.
g Need for Investment Banks to remain profitable.
4 Research expertise was earlier used as g 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
g IPO Analysis: Analyze the attractiveness of IPO.
started strategic initiatives to outsource
research to independent research institutions g Sector Research: Complete macro
who are capable of doing at a fraction of the understanding of the sectors to identify investment
cost.

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opportunities. The sectors covered are typically Project Finance:
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.
assessing the financial viability of a project and
g 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

g 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.
g Market Activity Research: Carry out research
on various stock exchanges, commodity IMS Program
exchanges on the movements and predict future
trends. Program Objective

g 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
g 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. g Accounting Fundamentals

Most fresh graduates in these firms start as research g Economic Analysis

assistants and assist senior analysts in creating g Financial Management

reports. As a research assistant one has to collect, g Financial Markets


and normalize data, build the financial model, make g Excel Proficiency
the report and track the announcements / g Financial Modeling & Valuation and
developments on the company. Sector overview

These firms need candidates who have strong g Report Writing

analytical skills and specific domains knowledge in


financial analysis and modeling.

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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: 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:
The candidate should be a graduate from any stream
g 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.
Download the Application Form and submit the duly
g 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).
Feb, May, Aug, Nov. * There is a repeat exam fee of Rs.3000/- for every re-attempt

g Experience: The candidate has to complete one


Classroom Program
year of work experience either pre or post
Certification exam in case he/she is a graduate. Academic Cycle
The Program commences twice in a year in the month
Who should do this Program?
of April and October.
g 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.
Selection Process
g 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.
Personal Interview. The exact date and time of the
g Graduates who are not working in KPO's but interview will be communicated to the student via email.
interested in working for KPO
Eligibility
g 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 Co-
ordinator, 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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About Proschool 50,000 new people will be hired this year; over 45,000
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
although the route is different. Three, a fallout of above is that these young guys are
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 PUNE
IMS Proschool IMS Proschool
67, Jayant Building, 1229/A, Narhari, 1st Floor,
Jain Hostel Road, Fergusson College Road,
Near Sion circle, Next to Sagar Arcade, Deccan,
Sion - west, Mumbai - 400022 Pune - 411004
Email ID : proschoolmumbai@imsindia.com Email ID : proschoolpune@imsindia.com
Tel. No.: 022-65285393/94 Tel. No.: 020-65004735/36

NASIK KOLKATA
IMS Proschool IMS Proschool
3, 4 Anandrupa Apartment, Everest House,
Next to sachi TVS Showroom, Flat No # 1 G,
Parijatnagar, Mahatmanagar, 46 C Jawahar Lal Nehru Road,
Link Road, Nasik Kolkata - 700071.
Email ID : proschoolnasik@imsindia.com Email ID : proschoolkolkata@imsindia.com
Tel. No.: 0253-6576517 Tel. No.: 033-40035449/50