1. Advanced Financial Modelling
IV Semester – Finance Paper (Practical – Lab Based)
Course Faculty: S.Vinoth
Teaching Hours : 5 Hours + 2 Hours* (For watching videos)

2. Advanced Financial Modelling
Course Objective:
The course aims to enable students to use and implement Financial Modeling to solve practical problems along the breadth of Financial Industry
Laptop Compulsory for Classes
Unit – I (8 hours)
Introduction to Financial Modeling – What is Financial Modeling?,
Recap of Major Functions in Excel, Accuracy, Flexibility & User-friendliness of Financial models, Defining Model objectives,
Setting up modules,
Identifying inputs and variables,
Defining deliverables and functionality,
Stress testing Models and Model Documentation

3. Advanced Financial Modelling
Unit – II (14 hours)
Financial Modeling for Risk Management
Multi Asset Class Portfolio Performance Reporting,
Regression Analysis,
Monte Carlo Simulation,
Derivatives and Pricing using Excel,
Option Greeks Modeling in Excel.
Financial Modeling for Credit Default Swaps

4. Advanced Financial Modelling
Unit – III (8 hours)
Financial Modeling for Valuation and Statement Analysis
Financial Statement modelling Projection of Revenues,
Costs and other Income Statement and 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.

5. Advanced Financial Modelling
Unit – IV (6 hours)
Financial Modeling for Debt Repayment
Models for Debt repayment,
Modeling Amortizing Loans,
EMIs,
Financial Modeling for Bonds and Bond Pricing

6. Advanced Financial Modelling
Unit – V (12 hours)
Exercises and Tutorials
Exercises on various financial modeling problems
Cases

7. Advanced Financial Modelling
Unit – V (12 hours)
Exercises and Tutorials
Exercises on various financial modeling problems
Cases

8. Advanced Financial Modelling
FinShiksha Videos, Handouts, Worksheets
Text Book:
1. Simon Benninga(2008), Financial Modelling with Excel, 3rd Edition., MIT Press.
Reference Book:
1. Bill Dalton, Financial Products-An Introduction using Mathematics and Excel, Cambridge.
2. Danielle Stein Fairhurst, Using Excel for Business Analysis: A Guide to Financial Modelling Fundamentals, 3. Wiley Alastair Day, Mastering Financial Modelling in Microsoft Excel 3rd Edn: A Practitioner's Guide to Applied Corporate Finance (3rd Edition), FT Press, 2012.

9. Advanced Financial Modelling
Marks Distribution – Total 100 Marks
External Examination (Practical's) – 75 Marks
Internal Marks
CIA - 50 Converted to 4 Marks
Model - 75 Converted to 6 Marks
Video Assignments 3 Marks
Quizzes 2 Marks
Project 5 Marks
Attendance 5 Marks

10. Thank You