Agenda

Introduction and Context

Efficiently using excel preparation for modeling
Excel Summarization Using Pivot Tables

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Key Authorization

CFA Institute (2010-11)

Authorized Training provider CFA
Pristine is now the authorized training
provider for CFA Exam trainings . Pristine is
largest training provider for CFA in India
with presence across seven major cities.

FPSB India (2010-11)

Authorized Training provider -CFP
An authorized Education Provider for
Chartered Financial Planner Charter.

Pristine

(Confidential)

GARP (2007-11)
Authorized Training provider -FRM
Largest player in India in the area of risk
management training. Trained 1000+
students in risk management

PRMIA (2009-11)
Authorized Training provider PRM/
APRM
Sole authorized training for PRM Training in
India. Largest player in India in the area of
risk management training. Trained 1000+
students in risk management

Key Authorization

CFA Institute (2010-11)

Authorized Training provider CFA
Pristine is now the authorized training provider for
CFA Exam trainings . Pristine is largest training
provider for CFA in India with presence across
seven major cities.

GARP (2007-10)
Authorized Training provider -FRM
Largest player in India in the area of risk
management training. Trained 1000+ students in
risk management

FPSB India (2010-11)

Authorized Training provider -CFP
An authorized Education Provider for Chartered
Financial Planner Charter.

PRMIA (2009-10)
Authorized Training provider PRM/ APRM
Sole authorized training for PRM Training in India.
Largest player in India in the area of risk
management training. Trained 1000+ students in
risk management

Pristine

(Confidential)

Key Associations*

Ernst & Young (2010)

Real Estate Modeling
Senior Associates were
trained on building
valuation models for real
estate

ING Vyasa (2010)

Infrastructure & Project
Finance
Bankers were trained on
making integrated models
for project finance and
infrastructure.

Pristine

(Confidential)

Bank Of America
Continuum Solutions
(2010)
Finance for Finance
Associates were trained on
valuation and mergers
and acquisitions

Franklin Templeton
CFA (2010)
Students were facing a gap in
the overall understanding of
finance topics like corporate
finance, FSA and valuation.
Provided training for over 100
hours to bridge the gap

J. P. Morgan (2010)
Financial Modeling in Excel
The Real Assets Group were
trained in Excel for
infrastructure and realestate modeling

Credit-Suisse India (2009)

Risk Management and
Quant. Analysis
IT Professionals of CreditSuisse India were trained on
risk management.

Mizuho (2010)
Financial Modeling in Excel
Bankers were using excel
models that they could
not understand.
Conducted financial
modeling in Excel
trainings to bridge the gap

HSBC (2008)
Risk Management and
Quant. Analysis
New joinees in HSBC had a
gap in knowledge of Risk
Management and quantitative
skills. Conducted trainings
(On campus) to bridge the
gap
*Indicative List

Key Associations

NUS Business School (2011)

Financial Modeling in Excel
Second year MBA students were
given a full 2-day workshop on
creating financial models. They
learnt how to create integrated
models of valuation.

IIT Delhi (2009)

Corporate finance
Students get placed in finance
companies (UBS, GS, MS, etc)
with no understanding of the
subject/ Job Profile. Conducted
workshop to bridge the gap

Pristine

(Confidential)

IIM Calcutta (2010-11)

Financial Modeling in Excel
Students about to go for
internships and join jobs found a
gap in their grasp of knowledge
of excel for financial modeling.
Conducted training for 75+
students with an average rating
of 4.5+

FMS Delhi (2010-11)

Financial Modeling in Excel
Final Year MBA students of
Faculty of Management Studies,
Delhi University were trained in
financial modeling so as to
prepare them better for a job in
finance.

BITS Pilani (2009)

Workshops on Basics of
Finance
Most of the students desire a
career in finance. Conducted
training for 350+ students with
an average rating of 4.5+

IEMR Delhi (2010-11)

Financial Modeling in Excel
Final Year MBA students of
IEMR went through extensive
financial modeling workshop to
acquire skills of financial
modeling.

NISM (2008-11)
Derivatives in Hedging (2008)
Financial Modeling (2011)
Corporate in Ludhiana incurred
huge losses because of
derivative trades (for hedging).
Conducted trainings for directors
and CFOs for better
understanding of derivative
products

SIMSREE (2010)
Final Year MBA students of
Sydenham MBA, Mumbai were
trained in financial modeling so
as to prepare them better for a
job in finance.

Excel as the most important tool for modeling

Excel is one of the most widely used tools in financial industry

Easy to use
High reach & access to software across geographies
Flexibility
Robustness
Inbuilt features (Most people would not even be using 95% of the features) & Extendibility
Modular and Object Oriented Architecture

Excel as a data-store
Easy to store and retrieve information
Flexibility to put many data-types in the same sheet

Functions and a range of features

Excel is easily extendible to be used as a Modeling tool

Modeling Context

Understand the industry models being used

Create your own models Rather than just using them
Improve & enhance productivity in work
Extend these models for your use
Debug Problems

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Agenda
Introduction and Context
Efficiently using excel preparation for modeling
Excel Summarization Using Pivot Tables

Pristine

(Confidential)

Key aspects of Modeling & Excel Usage

Building a ROBUST model is a must for other people to use your model

It should generate the correct results

It should have proper area for Inputs/ Outputs
It should be able to handle errors properly
Naming/ Labeling of data items should be done properly
Accidental changing of model parameters should be avoided
The model should be easy to understand on computer and in printout
Reusable components can be made in the excel sheet, which can be made later

SPEED is the key in modeling

A large model might have multiple excel sheets and a lot of formulas and calculations. It is necessary to
navigate through the excel sheet in a speedy manner and understand it
It is a fact that mouse is 5 times slower than using the keyboard to use excel. Due to heavy involvement
of the users, having a strong command over the keyboard shortcuts is a must!
A well designed excel sheet is easy to understand as well

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Lets take a moment to understand components of excel

Toolbar

Formula Bar

Name
Cells

Worksheet

Excel 2007 Interface

Excel
2007
Interface
Excel 2003
and 2007
are being widely used in the industry. Most of features of 2007 are backward compatible.
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 Lets take a moment to understand components of excel

Excel 2003 and 2007 are being widely used in the industry. Most of features of 2007 are backward compatible.
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CTRL + S
CTRL + C
CTRL + V
CTRL + X
CTRL + Z
CTRL + A
CTRL + B
ALT + TAB
ALT + F4
CTRL + TAB

Basic Editing and Saving Excel

Save Workbook
Copy
Paste
Cut
Undo
Select All
Bold
Switch Program
Close Program
Switch workbooks

Some Special Shortcuts

CTRL + ALT + V
Paste Special
CTRL + 9
Hide Row
SHIFT + CTRL + 9 Unhide Row
CTRL + 0
Hide Column
SHIFT + CTRL + 0 Unhide Column
ALT + H + O + I
Fit column width
SHIFT + F11
New worksheet
SHIFT + Spacebar Highlight row
CTRL + Spacebar Highlight column
SHIFT + ALT +
Group rows/columns
SHIFT + ALT
Ungroup rows/columns
CTRL + Minus sign Delete selected cells
F2
Edit cells
Navigating/Editing
Arrow keys
CTRL + Pg
Up/Down
CTRL + Arrow keys
SHIFT + Arrow keys
SHIFT + CTRL +
Arrow
Home
CTRL + Home
SHIFT + ENTER
TAB
SHIFT + TAB
ALT +

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Move to new cells

Switch worksheets
Go to end of continuous range Select a
cell Select range
Select continuous range
Move to beginning of line
Move to cell A1
Move to cell above
Move to cell to the right
Move to cell to the left
Display a drop-down list

(Confidential)

CTRL + 1
ALT + H + 0
ALT + H + 9
SHIFT + CTRL + ~
SHIFT + CTRL + !
SHIFT + CTRL + #
SHIFT + CTRL + $
SHIFT + CTRL + %
CTRL + ;

Formatting
Format Box
Increase decimal
Decrease decimal
General format
Number format
Date format
Currency format
Percentage format
Enter the date

= (equals sign)
ALT + =
CTRL + '
CTRL + ~
F9
SHIFT + CTRL + Enter

Formulas
Start a formula
Insert AutoSum formula
Copy formula from above cell
Show formulas/values
Recalculate all workbooks
Enter array formula

ALT + M + P
ALT + M + D
ALT + M + A + A
CTRL + [
CTRL + ]
F5 + Enter
SHIFT + CTRL + {
SHIFT + CTRL + }
ALT + ENTER
SHIFT + Arrow
SHIFT + CTRL + Arrow
F4
ESC

Auditing Formulas
Trace immediate precedents
Trace immediate dependents
Remove tracing arrows
Go to precedent cells
Go to dependent cells
Go back to original cell
Trace all precedents (indirect)
Trace all dependents (indirect)
Inside the cell Editing
Start new line in same cell
Highlight within cells
Highlight contiguous items
Toggle $
Cancel a cell entry

Change all Inputs to Blue:

Press F5 then Select "Special" then "Constants", "OK then Manually change selection to
blue font color
Change all Formulas to Black: Select "Formulas" instead of "Constants then change
selection to black color

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Moving across toolbars in Excel 2003 and 2007

Press Alt Key to activate

Main toolbar
For Example, Alt F for
file

Use CTRL + TAB to Go

to next toolbar

Use Arrow key to

navigate further

In 2007, Pressing the ALT key automatically shows the options

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Cell Referencing - $
Use $ for Absolute Reference
A1 vs $A1 vs A$1 vs $A$1

What happens when you copy paste cells

Source

Destination

$A$1

$A$1

A$1

C$1

$A1

$A3

A1

C3

Change the referencing of a cell by F2 + F4

Refer Worksheet A

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Simple Exercises in Excel

The financials of a start-up company are given to you. The company would be eligible for funding if
their operating profit margin is greater than 35% and CAGR in revenue growth is greater than 50%.
Create a model to check if the company is eligible for funding. Also visually indicate the eligibility.
Use worksheet B
Hint

Use (P(t)/ P(t-k))^(1/k) -1 to calculate CAGR

Use AND function to calculate eligibility
Use IF function to print it
Use conditional formatting to output the results

Email ids of 100 people are given to you. They all need to be migrated to a new domain of
edupristine.com. Write a function to migrate all email ids to new domain
Use worksheet C
Hint
Use FIND to find the common character
Use LEFT function
Use CONCATENATE function

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14

Arrays in Excel
Array (Can be loosely thought of as a list) is a
group of cells or values that Excel treats as a
unit
No longer treats the cells individually, but list of
cells as an individual entity
Since individual cells are not independent
entities, so they cannot be changed individually
Enables apply a formula to every cell in the
range using just a single operation

For any matrix Operation

Calculate the exact size of the transposed
Matrix

Select the appropriate range

Use the function
Press SHIFT + CTRL + ENTER

Use Worksheet D

To Run Array Functions Remember to use CTRL + SHIFT + ENTER

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Frequently Used Array functions

Function Name

Function

SUMPRODUCT()

To Sumproduct 2 matrices

TRANSPOSE()

To transpose a matrix

MATCH()

Match and Index are used in conjunction as a lookup function

INDEX()

Match and Index are used in conjunction as a lookup function

VLOOKUP()

To lookup for a particular value in array, with the starting column acting as
a lookup reference

COLUMN()

Returns the column number of the cell referenced

ROW()

Returns the row number of the cell referenced

HLOOKUP()

To lookup for a particular value in array, with the top row acting as lookup
reference

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Using the VLookUp Function

VLOOKUP() function
The V in VLOOKUP() stands for vertical
Works by looking in the first column of a table for the
value you specify
It then looks across the appropriate number of columns
(which you specify) and returns whatever value it finds
there
The final option (range_lookup) is a Boolean value that
determines how Excel finds the value. Always use
FALSE- for exact match
Whenever looking for data picked from the net, trim the strings
before comparison

Question (Use WorkSheet E)

The ID of defaulters and their amount and phone number
has been provided by the Credit Bureau in Columns A to
D.
Column F contains the IDs of your clients. Use Vlookup
function to find out the default amount of your clients.

One of the most widely used functions in Excel

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Using the HLookup Function

HLOOKUP() function is
H in HLOOKUP() stands for
horizontal
Similar to VLOOKUP()
It searches for the lookup value in
the first row of a table

Question: Use Worksheet F

Various expenses of Pristine are
given in a table. Write a function to
calculate the total expenses for any
desired month (user should be able
to change this value, and
automatically the expenses should
be updated)

Both Vlookup and Hlookup have a limitation of using

the first Column/ Row as reference
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Index & Match Functions

INDEX() returns the reference or the value of a cell at the
intersection of a row and column inside a reference

MATCH() function
looks through a row or column of cells for a value
If it finds a match, it returns the relative position of the
match in the row or column
Use the usual wildcard characters within the lookup_value
argument (provided that match_type is 0 and lookup_value
is text)
Use the question mark (?) for single characters and the
asterisk (*) for multiple characters
See Worksheet G

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Use Index and Match Any Column & row Lookup

Index and Match can be used in conjunction to perform complex lookup functions
Use Match to generate the row number that you are interested in
Use Index to generate the value that you are looking for
Similar to implementation of a new kind of directory service

Always Use FALSE in

the boolean required
for comparison

Use Worksheet H
Various expenses of Pristine are given in a table. Write a function to calculate the
desired expense head for any desired month (user should be able to change both
the values, and automatically the expenses should be updated)

Easily Extendible approach to get any generalized kind of search

(where both row and column can be variable)
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Agenda
Introduction and Context
Efficiently using excel preparation for modeling
Excel Summarization Using Pivot Tables

Pristine

(Confidential)

21

Pivot Tables An introduction

Easy Summarization & Analysis Tool

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22

Pivot Tables
Summarize data in one field
called a data field

and break it down according to the data in

another field.
The unique values in the second field (called
the row field) become the row headings

Further break down your data by specifying

a third field
called the column field

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Terms used in Excel

Data source: The original data
Range, a table, imported data, or an external data
source.

Field: A category of data, such as Region, Quarter,

or Sales
Most PivotTables are derived from tables or
databases, a PivotTable field is directly analogous to a
table or database field

Row field: A field with a limited set of distinct text,

numeric, or date values to use as row labels in the
PivotTable
Column field: A field with a limited set of distinct text,
numeric, or date values to use as column labels for
the PivotTable
Report filter: A field with a limited set of distinct text,
numeric, or date values that you use to filter the
PivotTable view
PivotTable items: The items from the source list used
as row, column, and page labels

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Summarize Large Data

To start the pivot wizard:
ALT D + P
To complete the process, press finish

Use Example I
Calculate Region Wise, Year wise sales
Give Product wise Data for 2008 Only

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Summarize Large Data

To start the pivot wizard:

ALT D + P
To complete the process, press finish

Use Example I
Calculate Region Wise, Year wise sales
Give Product wise Data for 2008 Only

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Filtering for Particular Rows/ Columns

Use Example I
Calculate Region Wise, Year wise sales
Give Product wise Data for 2008 Only
Get Data only for Delhi

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Other Customization Options

Selecting the entire PivotTable: Choose Options, Select, Entire PivotTable
Selecting PivotTable items: Select the entire PivotTable, then choose Options, Select. In the list,
click the PivotTable element you want to select: Labels and Values, Values, or Labels
Formatting the PivotTable: Choose the Design tab and then click a style in the PivotTable Styles
gallery
Sorting the PivotTable: Click any label in either the row field or the column field, choose the
Options tab, and then click either Sort A to Z or Sort Z to A. (If the field contains dates, click Sort
Oldest to Newest or Sort Newest to Oldest, instead.)
Refreshing PivotTable data: Choose Options and then click the top half of the Refresh button
Filtering the PivotTable: Click-and-drag a field to the Report Filter area, drop down the report
filter list, and then click an item in the list

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Give the average sales in regions

Use Example I
Calculate Region Wise, Year
wise sales
Give Product wise Data for
2008 Only
Get Data only for Delhi
Instead of Total, give the
average sales

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Changing the Pivot Table

Click any cell in the PivotTables
data area
Choose Formulas, Calculated
Field

Excel displays the Insert

Calculated Field dialog box
Use the Name text box to enter a
name for the calculated item
Use the Formula text box to enter
the formula you want to use for
the calculated item

Use Example I

Calculate Region Wise, Year

wise sales
Give Product wise Data for
2008 Only
Get Data only for Delhi
Instead of Total, give the
average sales
Calculate the forecast for sales
in 2009

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Errors in Functions
Error

Meaning

# DIV/ 0!

Divide by Zero Error

Generally seen when trying to divide by empty cell

# NAME?

Function name not found error

Generally seen in misspelling of function

# N/A

Data Not available

Quite often seen Vlookup cannot find data

# REF!

Invalid Cell reference

Typically when a cell is referenced, which has been deleted

# VALUE!

Argument/ Operand of the wrong type

# NUM!

Problem in value
Typically when a +ve number is expected, and ve number is given as argument

Important to understand what kind of error can occur and handle it properly

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Use ISERROR() to Handle Errors

Excel 2003 has ISERROR() to determine, if there are any exceptions in the formulas
Handle exception and exit the error gracefully

Excel 2007 also has an IFERROR() function to handle errors

Use Worksheet E to handle the errors and display Not Defaulted

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