Module – 1
Setting up a financial model and building projections
- Overview of best industry practices for financial modeling
- Importance of historical information
- Analysis of company and industry information
- Steps for creating financial models
- Proper presentation of various sheets and setting up the model input dashboard
Module – 2
Preparation of Layout and timing-related information
- Discussion on the model development process and flow
- Discussion on the best industry practices and standards for layouts and structure
- Preparation of the standard model template to ensure consistency between worksheets
- Preparation of quarterly and annual flags
- Other key flags like construction period, operational period, debt period, etc
Module – 3
Preparation, Assumption sheet
- Preparation of the assumption sheet
- Analysis of project assumptions and their rationale for construction timelines, revenues & costs, assets and liabilities’ assumptions – operating cost, capex, leverage, etc
- Shortlisting assumptions and applying adjustments
- Applying various forecasting tools, etc
Module – 4
Importance of Capex and depreciation
- Importance of Capex and depreciation
- Different ways to model the Fixed assets and depreciation
- Schedule of amortization of intangible assets
- Special concessions requirement for fixed assets and depreciation benefits
- Tax and accounting depreciation, if any
Module – 5
Preparation of debt and equity schedule
- Calculation of fund requirements and various sources of funding and source to service the same
- Calculation of Interest During Construction (IDC)
- Waterfall mechanism to calculate the debt requirement and cash flow available for debt service
- Calculation of cost of various types of debt, including arranger fees, interest, annual fees, etc
- Various types of repayment structures like an annuity, sculpted, bullet, etc
- Preparation of DSRA and other cash reserves
- Management of covenants of the banks
- Calculation of the cash flow available to equity shareholders
- Dividend calculation with its limitations, including lender restrictions, etc
Module – 6
Calculation of Net Taxable Income and final tax
- Calculation of net taxable income, including adjustment of tax and concession benefits
- Adjustments for capital allowances, disallowable costs, and loss carry- forwards
Module – 7
Importance of key ca and their application
- Working capital schedule
- Fixed assets and depreciation
- Schedule of amortization of intangible assets
- Preparation of debt and interest
- Taxation
- Equity fundraising
- Equity gap and funding
Module – 8
How to create a working capital schedule
- Components of cash and non-cash working capital
- Forecasting working capital requirements
Module – 9
Integration of income statement, balance sheet, and cash flow statement
- Industry practices on handling exceptions
- Integration of Cash Flows, Income Statement and Balance Sheet as per best industry practices
Module – 10
Establish scenario and sensitivity analysis
- Use of data for sensitivity analysis
- Identifying suitable scenarios and sensitivities and their impact on financial analysis
- Stress testing on a model
- Managing critical pitfalls in the analysis
Module – 11
How to do model review and control
- How to insert various tests and checks in the model
- Identify common model errors and fix them
- Best industry practices
Module – 12
How to do model review and control
- How to insert various tests and checks in the model
- Identify common model errors and fix them
- Best industry practices
Module – 13
How to apply different financial analysis techniques to the model
- Importance of PV, NPV, and IRR and their link with company valuation
- How to analyze various capital budgeting decisions
- Calculation of multiple ratios- Payback period, Equity IRR, Project IRR, DSCR, Debt/Equity, etc
Module – 14
How to manage the circularity and apply macros in the model
- How to handle Circular References in financial modeling
- Effect of circular references on the model
- Various types of circularities
- How to apply macros on the model and break the circularity
