Mastering Financial Modeling (MFM©) is a comprehensive financial modeling workshop which covers the

practical requirement that a finance professional is expected to do in areas related to Financial Modeling. Excel
sheet is a predominant tool used in Modeling and the program shall cover its relevant usage in detail. The
workshop has 32 classroom contact hours spanning four days from 8 am to 6 pm. Objective of this program is
to build fundamental concepts on financial modeling and provide them techniques to build financial model
needed by their organisation.

ABOUT THE PROGRAM

MFM© starts with a 2 day basic program on financial modeling which explains about all the excel based
financial modeling required by finance professional working in any sector. The latter 2 days goes in depth into
the derivative solutions and its analysis and financial engineering models including the concepts of financial
mathematics.

Day 1-2: FINANCIAL MODELING WITH EXCEL (2 Days)

It is a generic program catering to the needs of all corporate professionals working in any sector. This program
will take an individual from basic to an intermediate level.
Pre Requisite: None

Day 3-4: MODELING AND ANALYSING DERIVATIVES USING EXCEL (2 Days)

This is a neash financial modeling program which caters to only those working in derivatives and financial
engineering.
Pre-Requisite: It is expected participants should have an understanding of excel based financial modeling and
working knowledge of derivatives.

Based on the need, you can enroll for entire 4 day program (MFM©) or for any of the two day program –
Day 1-2: FINANCIAL MODELING WITH EXCEL (2 Days) or Day 3-4: MODELING AND ANALYSING
DERIVATIVES USING EXCEL (2 Days)

HOW THE WORKSHOP WAS SHAPED

Some of the research and data points we have used in shaping the agenda include:

1. Talking to Senior business and Finance management group, Financial consultants and analysts in the private
and public sectors and seeking their views and advice on what are the critical issues in Financial Modeling
and where they are investing budget.
2. Seeking the views of thought leaders, industry analysts and leading consultants to mould the agenda.
3. OptiRisk is in a unique position as a major part of our business is also training - which includes large
portfolio of public and closed in-house courses – from this we track which courses are generating most
participation and importantly again, where organisations are investing budget. Training is an excellent
barometer to market trends.

We believe that this is the most focused of any Financial Modeling workshop in India.
 Also Attend:
Modeling & Analysing Derivatives Using Excel
–(From the same faculty)
Mumbai – 6th & 7th October, 2010
Program Fee: INR 13,000/- + ST

PROGRAM OBJECTIVE
MS Excel ® is today unarguably the most commonly used spreadsheet utility globally to do finance. In spite of
this, according to various surveys on Excel usage, a rather miniscule percentage of Excel Users use it to its full
potential. The focus of the course is to help the participants learn the tools and capabilities of this spreadsheet
application to perform from the simplest to the most complicated and elaborate financial analysis.

Modelling for Corporate Finance Transaction

 Case Outline and the process participants will go through in solving the case and structuring an LBO/MBO
transaction

Acquirer input Acquirer Acquirer

historical output: DCF valuation
numbers and Income output
projected statement,
numbers/ balance sheet
assumptions. and cash flow

How the
Sources of
LBO/MBO
Funds:
would be
Financial funded. How
Sponsors much debt
needs to be
Management raised

Different Tiers
of debt

Structuring the Motivations &

Deal Economics of
deal for
Evaluating Debt/Hybrid/E
Different quity Investors
Options
The good thing about an over-engineered software like Excel is that it very well equiped to perform the most
sophisticated and detailed financial analysis. The downside to this is that financial analysis workbooks are
becoming increasingly bulky and unstructured. Many a times, they develop into unweildy, clumsy and difficult
to manage models, with the user having no clue as to what’s going in the spreadsheet and if the results are
accurate in the first place. Therefore, structuring good financial models is as much an art as a science.

The important aspects this workshop focuses on is to apply the tools effectively while constructing financial
models, caring for scalability, making them flexibile, structuring in such a way that auditing the model results is
not cumbersome. These essential attributes make financial models accurate, flexible and user-friendly. The
workshop would use a ‘learning by doing’ approach, because that’s how the science and art of financial
modeling is learnt.

Results:
We expect that the participants attending the course will be able to learn significant financial modeling
capabilities using Excel that would be pertinent for corporate finance, financial analysis, risk management,
transaction structuring like modeling for M&A, etc. The level of the course is Intermediate to advanced.

KEY BENEFITS
- Master the use of Excel’s financial modelling tools
and capabilities
- How to design a model to suit your purpose
- Understand the different types of financial models
and when each should be applied
- Construct financial models making use of a broad
range of Excel methods and techniques
- Accurate forecasting corporate cash flows for project
finance deals and structures
- Incorporate elements such as risk, sensitivity,
optimisation and forecasting into financial models
- Produce meaningful management reports and charts
for communication
- How to identify and control key sensitivities through
advanced spreadsheet simulation
- How to design a model to maximise flexibility and
reliability
- Practical tips for checking and debugging the mode
PROGRAM FACULTY
Our faculty is an experienced Investment Banker and a guest faculty in finance in IIMs, who specializes in Fixed
Income, Foreign Exchange and Credit Derivative products. We has conducted training programs for banks and
corporates in India, Singapore, Hong Kong, Middle East, and South Africa on topics such as Credit Derivatives,
Fx Derivatives, FI Derivatives, ALM, M&A, Financial Modeling for LBOs, Debt Capital Markets, Basel II and Risk
Management.

WHO SHOULD ATTENTD

 Corporate Finance Professionals
 Quantitative analysts
 Investment Bankers
 Risk professionals
 Treasury managers
 Controllers
 Data analysts and economists

DAY ONE

Session One:  Data Analysis Toolpak

 Important Excel Functions and commands for
Creating the first financial statement model in Excel to
modeling
begin with (with an exercise and hands on practical
 Conditional Formating
session; focus on how to build a model right from the
 Online collaboration
scratch, linkages with excel spread sheets, assumptions,
 Auditing
use of past financial statements for the projections and
 Protecting the workbook
building forecasted financial statements)
 Sharing the workbook
 Data Validation
Important issues for preparation and building of a financial
 Handling external data
model
 Sorting
 Filters
Excel Functions and commands to supercharge worksheets
 Subtotals
(most of the participants may be aware about the
 Pivot Tables
functions, yet just a quick revision and how these functions
are used in financial modelling)
 Different ways of summing and counting: SUMIF; Session Two:
SUMIFS; SUMPRODUCT; DSUM; DCOUNT;  Statistical Data Analysis: trend analysis, regression,
DCOUNTA; COUNTBLANK; COUNTIF; DMAX; moving average
DAVERAGE  Optimisation using
 IF (This Is True, Do This, Else Do This)  Goal Seek
 Lookup & reference: CHOOSE; OFFSET; INDEX;  Scenario Manager
MATCH; HLOOKUP; VLOOKUP  Data Table: Row and Column input cell
 Solver
DAY ONE (Cont.)
 Scenario Building
 Switches
 Forms
 Scenario building optimistic, base case and pessimistic assumptions

DAY TWO

Session Three : Topics in Finance  Modelling term structure of WaCC

 DCF valuation
 Principles of financial modelling—Accuracy, Flexibility
 Relative valuation (PE, EBITDA multiple)
& User-friendliness
 Combining DCF and relative valuation models
 Defining Model objective
 Modelling for Leveraged Buy Out & Management Buy
 Outlining model plan
Out
 Spread sheet maps
 Sources of funds for acquisition
 Flowchart and information flow
 Modelling uses of funds
 Layout and architecture of financial model
 Modelling ESOPs and Earn-Outs
 Setting up modules
 Partial and full dilution due to ESOPs
 Identifying inputs and variables
 IRR calculation for financial sponsor on fully diluted
 Defining deliverables and functionality
basis
 Cataloguing outputs
 Purchase Accounting Model
 Stress testing Models
 Model for Stock-for-Stock Deal
 Model Documentation  Model for Cash-for-Stock Deal
 Financial Statement modelling
 Modelling when M&A financed by issue of debt
 Projection of Revenues, COGS, SG&A and other Income
 Model illustrating Accounting for a partial Acquisition
Statement and Balance Sheet items
 Accretion Dilution Model
 Select model drivers and assumptions
 Deal Structure: Cash, Fixed-Value Stock Offer, Fixed-
 How to create an interlinked model for Income Shares Stock Offer
Statement and Balance Sheet
 How circularity improves accuracy but also destabilizes
the model
 Building a fully integrated Cash Flow Statement
 Modelling need for financing in future time
 Analysing the output and cross-checking with surplus
funds and necessary to finance
 Models for Debt repayment with prepayment option
 Modelling Amortizing & Accreting Loans
 Modelling Pay In Kind (PIK) securities
 Model for computing Beta
 Modelling un-levering and re-levering of betas
 Modelling term structure of Beta
 Model for WaCC with various debt-equity choices
 Also Attend:
Financial Modeling With Excel
–(From the same faculty)
Mumbai – 4th & 5th October, 2010
Program Fee: INR 13,000/- + ST

PROGRAM OBJECTIVE

A common misconception is that understanding derivatives requires knowing a lot of advanced math
which is the privilege of only the geeks. That said, sometimes you probably wonder how do these large bunch of
I-Bankers manage to provide derivative solutions to their clients because they don’t seem to have been rocket
scientists in their previous avatar. There would have also been questions like how do you actually engineer
those financial products? May be, you read something called Black Scholes, Ito’s Lemma, and so on but they
didn’t quite answer those questions convincingly, much less, make sense in the context of the real world of
finance.

In the last two decades, derivatives have become all-pervading in financial markets with outstanding
notionals in excess of US$ 600 trillion. If your profession has anything to do with finance, then there is a pretty
high chance that you will have something to do with derivatives at some point or the other. This course tries to
demystify and simplify derivatives using a tool like Excel. For a practioner, it may be difficult to relate the Black-
Scholes equation but it would probably start to make sense once you start thinking like an accountant about all
these greeks and put the differential equations in excel. In the workshop, we will start to think of each of these
greeks in terms of money, which is what traders do. The program covers a comprehensive list of topics that
derivative practioners need to understand for their day-to-day work.

dSt
 (rnumeraire  rasset ) * dt   * dWt
St

C 1 2 2  2C C
 S  (rnum  rasset ) S  rnumC
t 2 S 2
S

V ( S , K , T , t ,  , rnum, rasset ,  )  e  rnum [ FN (d1 )  KN (d 2 )]

PROGRAM FACULTY
Our faculty is an experienced Investment Banker and a guest faculty in finance in IIMs, who specializes in Fixed
Income, Foreign Exchange and Credit Derivative products. We has conducted training programs for banks and
corporates in India, Singapore, Hong Kong, Middle East, and South Africa on topics such as Credit Derivatives,
Fx Derivatives, FI Derivatives, ALM, M&A, Financial Modeling for LBOs, Debt Capital Markets, Basel II and Risk
Management.

WHO SHOULD ATTENTD

 Capital Market Professionals
 Quantitative analysts
 Investment Bankers
 Risk professionals
 Treasury managers
 Controllers
 Economists

KEY BENEFITS

 Understand financial engineering specifically, how
derivative structures are engineered
 Pricing and risk management of Equity, FX, Interest
Rate and Credit Derivatives
 Demystify and simplify the quantitative techniques in
analysing derivatives using Excel
 Be aware of derivatives as risk management tools
 Learn how to manage a derivative portfolio
 Appreciate how derivatives are structured to suit
client requirements
 Learn simulation techniques for pricing derivatives
 Learn how to solve any stochastic partial deferential
equation (including Black Scholes equation) using
spreadsheets
 Understand Greeks (Delta, Gamma, Vega & Theta)
and the monetary implications of each of them
DAY ONE
Session One:  multiple ways of deriving the Black–Scholes partial
differential equation
 Geometric Brownian Motion  the assumptions that go into the Black–Scholes
 Financial variables with deterministic Jump and equation
stochastic jumps  how to modify the equation for commodity and
 Taylor series currency options
 Our first differential equation
 Binomial Model Session Two:
 Binomial model for an asset price random walk
 delta hedging  Replication of price of a derivative product in general
 no arbitrage is the cost of risk managing it
 the basics of the binomial method for valuing options
 Excel Exercise using a Partial Differential Equation
 Discrete Hedging
 risk neutrality
 the effect of hedging at discrete times
 Pricing exercises using Binomial model
 hedging error
 the real distribution of profit and loss
 Simulating and Manipulating Stochastic Differential
Equations
 Pricing exercises
 Using Ito’s lemma to manipulate stochastic
differential equations
Equity Derivative Products
 Continuous-time stochastic differential equations as
discrete time processes
 Vanilla Options
 Simple ways of generating random numbers in Excel
 Call/Put Options
 Correlated random walks  Contract specifications of Call/Put Options
 Exercise: Pricing with Black Scholes Model and
 Monte Carlo Simulation and Related Methods Monte Carlo Simulation in Excel
 the relationship between option values and  Basic strategies containing vanilla options
expectations  Call and put spread
 how to do Monte Carlo simulations to calculate  Risk reversal
derivative prices  Risk reversal flip
 simulations in many dimensions using Cholesky  Straddle
factorization  Strangle
 Butterfly
 The Black–Scholes Model  Seagull
 the foundations of derivatives theory: delta hedging
and no arbitrage
DAY TWO
Session Three: Fx Derivatives and Interest Rate Derivatives Session Four:

 Fx Forwards, Fx Swaps Credit Derivatives

 When to use an FX forward, Fx Swap  Credit Default Swap Pricing
 Pricing & Hedging Examples  Pricing First-to-default Basket
 Fx Structuring Exercise in Excel: Corporate Client  Copula Models for pricing credit derivatives: Gaussian
 Fx Structuring Exercise: Cross border acquisition Copula
 Pricing CDO
 Interest Rate Swaps
 LIBOR Swaps Risk management of Derivatives
 MIBOR Swaps  Value at Risk
 OIS Swaps  VAR as Downside Risk
 Basis Swaps  VAR Parameters: Confidence Level, Horizon,
 Cross Currency Swaps Application: The Basel Rules
 Standard CCS with principal exchange  VAR Methods
 PO Swaps
 CO Swaps Counterparty Credit Risk for Derivative Transactions
 Interest Rate Options  Counterparty-level exposure
 Receiver and Payer Swaptions  Credit Value Adjustment (CVA)
 Caps and Floors  CVA as the price of counterparty credit risk
 Callable & Puttable Bonds  Expected Exposure - Conditional on Default
 CO Swaps  Peak Exposure - Conditional on Default
 Interest Rate Options  Wrong/Right-Way Risk
 Receiver and Payer Swaptions
 Caps and Floors
 Callable & Puttable Bonds
Registration form
Yes, please register me for : Fees
Financial Modeling With Excel 4th & 5th October, 2010 - Mumbai Rs 13,000/-
(2 Days) *(Service Tax Applicable)

Modeling & Analysing Derivatives Using 6th & 7th October, 2010 - Mumbai Rs 13,000/-
Excel (2 Days) -
*(Service Tax Applicable)

Both (4 Days) 4th - 7th October, 2010 - Mumbai Rs 24,000/-

(Certificate of Participation from Carisma *(Service Tax Applicable)
Brunel University London)

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