1. Advanced Financial Modelling.
Dr.S.Vinoth
2016 Batch & IV Semester

2. Internal Mark Distribution
Internal Marks – 40
S.No
Component
Marks
Modus Operandi 1.
CIA- Mid Semester Test 4
Max: 50 marks; Duration: 2 Hours 2.
Model Exam 6
Max: 60 marks; Duration: 3 Hours 3.
Assignments 10
Decided by the faculty in-charge of the course
Project 5
Record
Case Discussions
Total 40

3. Advanced Financial Modeling – Unit I
Introduction to Financial Modeling
Meaning, Definitions, Features, Applications
Recap of Excel
Data Formatting, Data Representation & Data Analysis.
Major parts of a good financial Model
Parts, Do’s & Don’ts
Defining Model Objectives
Process flow for a Model
Identifying inputs and outputs
Stress Testing
Documentation
Case Study: Title (Reference)
Handout Source:
Text Book:

4. Advanced Financial Modeling – Unit II
Financial Modelling for Risk Management
A portfolio with 2 assets & 3 assets
Risk Modeling in a multi asset portfolio
Monte Carlo Simulation
Option Payoff Modeling
Meaning, Terminologies, Types
Cash Future Convergence
Modeling
Case Study: Title (Reference)
Handout Source:
Text Book:

5. Advanced Financial Modeling – Unit III
Financial Modeling for Valuation and FSA
Forecasting Revenues and Costs
Projection of Revenues, Costs and other Income Statement Items
Projection of Balance Sheet items
Select model drivers and assumptions,
Creating a dynamic model for Financial Statements,
Modeling need for financing in future time, Financial Modeling for Mergers and Acquisitions
Case Study: Title (Reference)
Handout Source:
Text Book:

6. Advanced Financial Modeling – Unit IV
Financial Modeling for Debt
Models for Debt Repayment
Modeling Amortizing Loans
EMIs
Financial Modeling for Bonds
Bond Pricing
Clean Price & Dirty Price
Interest rate risk – Duration, Modified Duration
Case Study: Title (Reference)
Handout Source:
Text Book:

7. Advanced Financial Modeling – Unit V
Case Studies
Financial Planning
Tax Calculator
Stock Performance
Statistical Modeling
Z - Table
Case Study: Title (Reference)
Handout Source:
Text Book:

8. Assignment Details Assignment No Topic & Questions Start Date
Submission Date 1
Define Financial Modeling
Define the major features of a Financial Model
Why is documentation in a model necessary?
What are the various ways you can do documentation in a financial model? 2
Modeling for A portfolio with 2 assets & 3 assets
Monte Carlo Simulation
Option Payoff Modeling
Cash Future Convergence Modeling 3
Case Study – Financial Planning
Case Study – Tax Calculator for Financial Year    

9. Course Project Details
Project on Company Financial Modelling
Project Procedure
Select non-financial or banking company form NSE/BSE (Use same company was used in ACF Project)
Select Financial data of the company with assumptions
Create a Financial Model for a Company and Forecast its future financials
Start Date:
Submission Format: Excel Sheet
Submission Date:
Evaluation Procedure: Internal by the subject faculty