Financial Modeling Training

Financial modeling is a process of creating a financial representation of a business, project, or investment in order to understand its potential financial performance. Financial models are typically used to forecast and analyze the financial implications of different business decisions, such as capital expenditures, investments, and financing scenarios.

However, financial modeling training is designed to help professionals develop the skills and knowledge they need to create and analyze financial models and make informed business decisions.

With the aim of equipping with this Ninja-level power. We have developed a 1-day workshop, which has been conducted at prestigious companies, including PwC, EY, ITC, Coca-Cola, Flipkart, Asian Paints, etc.

Power BI - Visualization | Course Outline:

• A: Essential Model Components
• → Learning Objectives: Understand modeling techniques to incorporate commonly needed scenarios.
• Timing and Event activation Flags (True/False)
• – Logical Functions using IF, AND, OR
• – Operation Start Flag
• – Operation Continued Flag
• – Periodic Flag
• – Operational Year sequence counter
• – Loan Repayment Flag
• Building automated timeline (FY)
• YoY Price/Cost Escalation
• Loan Repayment Counter (Start & Stop)
• Waterfall Structure of funding – Equity drawdown, followed by Debt and Govt Grant
• Scenario Building using INDEX & MATCH – Base, Best, Worst [refer 1b – Pt 2]
• Slabs-based Calculation using VLOOKUP w. TRUE
• Discussion – Pre-Work eLearning
• B: Interlinking Financial Statements
• → Learning Objectives: Understand modeling techniques to interlink the components of Financial Statements.
• Overview of general linkages between Income Statement, Balance Sheet and Cash Flow Statement.
• Basic Exercise based on the above
• Overview of how a Financial Model looks like (Case Study – Hydro Power Plant – Greenfield Project)
• C: Creating a Model based on a Hydro Power Plant
• → Learning Objectives: Work on a Financial Model end-to-end.
• Shortlisting key drivers & setting up an Assumption sheet
• Assumptions build-up (Project Start Date, Gestation Period, Project Commissioning Date etc.)
• – Accommodating project delays
• – Upfront capex in a phased manner
• – Building automated timeline (FY)
• Timing and Event activation Flags (True/False)
• Revenue Buildup (PPA / Merchant Sale) with YoY escalation in prices
• Capex Schedule (The journey from Capex > CWIP > PPE or Gross Fixed Assets) + Expense projection
• Using BASE for accrual-based accounts
• Amortization/Depreciation schedule:
• – Building depreciation calculations that stops after the book balance is fully depreciated
• Interest during Construction (IDC) – to be capitalized [relevant for Project Finance Models only]
• – Hard Capex vs. Soft Capex (IDC)
• – Dividing Interest accrued between IDC and P/L in the year of start of operation
• Waterfall Structure of funding
• Incorporating Revolver Balance & Minimum Cash Balances
• Debt schedules & repayment
• Working Capital schedule & Linkages
• Building iterative calculation for Interest
• – Incorporating circularity switch to build a failsafe mechanism in case iteration leads to irreversible errors
• Overview Formulas – XIRR, XNPV; Developer Tab’s Option Button – if time permits