UNIQUE SERIES AKTU Syllabus
BBAFM06

Fundamentals of Financial Modelling

L-T-P3-0-0 Session2026-27 (W.E.F 2024-25) TypeTheory
Appears in 1 semester

BBA · Sem 6 (Specialisation: Financial Management)

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Syllabus

5 units · 40 lecture hours
Unit1

Unit 1: Fundamentals of Financial Modelling

7 hrs

Introduction to financial modelling; role of Excel in finance; structure of financial models; data organisation and cleaning; basic Excel functions for finance; linking worksheets; introduction to financial decision-making models.

Unit2

Unit 2: Financial Statement Basics and Analysis

9 hrs

Structure of financial statements (Income Statement, Balance Sheet, Cash Flow Statement); ratio analysis fundamentals; basic forecasting of revenues and expenses; linking financial statements; introduction to simple financial projections.

Unit3

Unit 3: Investment and Capital Budgeting Models

10 hrs

Simple and compound Interest modelling; Present Value (PV) and Future Value (FV) models; Annuity and Perpetuity models; Loan Amortization and EMI calculation; Cash Flow Forecasting; Capital Budgeting Models: Payback Period, Net Present Value (NPV); Internal Rate of Return (IRR); Basic Investment Decision Modelling in Spreadsheets: Sensitivity Analysis; Scenario Analysis; Goal Seek and What-If Analysis.

Unit4

Unit 4: Basics of Valuation

7 hrs

Introduction to valuation concepts; discounted cash flow basics; free cash flow concept (introductory level); simple growth assumptions; basic valuation framework and interpretation.

Unit5

Unit 5: Introduction to Risk and Simulation

7 hrs

Concept of risk and return; basic volatility measurement; introduction to Value at Risk (conceptual); simple scenario analysis and sensitivity analysis; introduction to simulation concepts in Excel.

Course Objectives5 points
  • Develop basic proficiency in MS Excel for financial modelling applications.
  • Construct simple financial statement and capital budgeting models.
  • Understand foundational valuation concepts using discounted cash flow logic.
  • Apply basic risk measurement techniques in financial decision-making.
  • Translate core financial concepts into structured spreadsheet-based models.
Course Outcomes (COs)5 outcomes

After completion of the course student will be able to:

  1. CO1Explain the fundamentals of financial modelling, Excel tools, and model structuring techniques. (Understand)K2
  2. CO2Apply basic financial statement analysis and forecasting techniques using spreadsheet models. (Apply)K3
  3. CO3Apply time value of money concepts to construct simple capital budgeting models. (Apply)K3
  4. CO4Apply basic discounted cash flow (DCF) frameworks for business valuation. (Apply)K3
  5. CO5Use scenario analysis and basic simulation-based techniques to examine financial risk in spreadsheet models. (Apply) HUMAN RESOURCE MANAGEMENTK3

Suggested Readings (Latest Editions)

  1. C. Sengupta. Financial Modeling Using Excel and VBA. Wiley.
  2. S. Benninga. Financial Modeling. MIT Press.
  3. D.S. Fairhurst. Using Excel for Business and Financial Modelling. Wiley.
  4. P. Chandra. Financial Management: Theory and Practice. McGraw Hill Education.
  5. A. Damodaran. Applied Corporate Finance. Wiley.

Official AKTU syllabus

This subject is on page 43, 44, 45 of the original AKTU PDF.

Official AKTU syllabus PDF ↗