Financial Modeling Training

Financial Modeling Training in Mumbai, New Delhi, Gurgaon, Bangalore, Pune

The following is a sample of a customised Training –

Excel-based Financial Modeling (Greenfield Hydro Power Project) – 2.0 days

FAST™ Modelling Standard: – a set of rules on the structure and detailed design of spreadsheet-based models. (Flexible, Structured, Appropriate and Transparent).

General Flow:

  1. Mini-caselets will be used to explain the concept of Flags, Circularity Switch, scenario building formulas and logic building Excel functions
  2. One case study will be taken up to explain the general linkages between Assumptions, Working Schedules, Income Statement, Balance Sheet and Cash Flow Statement. This will ensure that the model is correctly integrated.
  3. A full blown Financial Model (Greenfield Hydro Power Project) will be taken up – refer Annexure

Specific areas which require attention and will be covered as a part of the model:

  1. Assumptions build-up (Project Start Date, Gestation Period, Project Commissioning Date etc.)
    • Accommodating project delays
    • Upfront capex in a phased manner
  2. Building automated timeline (FY)
  3. Timing and Event activation Flags (True/False)
    • Operation Start Flag
    • Operation Continued Flag
    • Operational Year sequence counter
    • Loan Repayment Flag
  4. Revenue Buildup (PPA / Merchant Sale) with YoY escalation in prices
  5. Capex Schedule (The journey from Capex > CWIP > PPE or Gross Fixed Assets) + Expense projection
  6. Use of BASE Analysis (Beginning, Addition, Subtraction, Ending)
  7. Amortization/Depreciation schedule
    • Building depreciation calculations that stops after the book balance is fully depreciated
  8. Interest during Construction (IDC) – to be capitalized
    • Hard Capex vs. Soft Capex (IDC)
    • Dividing Interest accrued between IDC and P/L in the year of start of operation
  9. Waterfall Structure of funding
    • Equity drawdown, followed by Debt and Govt Grant
  10. Incorporating Revolver Balance & Minimum Cash Balances
  11. Debt schedules & repayment
  12. Working Capital schedule & Linkages
  13. Building iterative calculation for Interest
    • Incorporating circularity switch to build a failsafe mechanism in case iteration leads to irreversible errors
  14. Ratios and KPIs: IRR, NPV, Debt Service Coverage Ratio, Interest Coverage Ratio, Asset Turnover Ratio, other standard ratios
  15. Others: What If Analysis (Sensitivity analysis), Relevant Shortcuts
  16. Additional:
  • IDC – When does it start and end, accounting treatment, connection with the circularity
  • Timeline change can be yearly / quarterly / monthly
  • Loan repayment (also know as debt sculpting) – Annuity, Equal principal, Bullet payment (ZCB), moratorium period consideration, balloon payment.
  • Aspect of ‘checks and balances’ to ensure the model being built is error free
  • Calculation of levelised tariff
  • Coal based thermal generation plant: Primary and secondary fuel calculation- SHR, GCV, specific consumption PLF and energy generation calculation, etc
    • Gross Calorific Value (GCV) or Higher Heating Value (HHV) and Net Calorific Value (NCV)or Lower Calorific Value (LHV), heat rate

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