“A BUSINESS ANALYTICS AND FINANCE INTERN”

Summer Training Project Report

Submitted to

Dr. A P J Abdul Kalam Technicial University, Lucknow

In partial fulfillment of the requirements for the degree of

Master Of Business Administration

Submitted by: Training Supervisior:

Achal Rai Alok Yadav
MBA 3rd Semester (Co-founder)
Roll No: 2300400700003 YBI FOUNDATION

2024- 2025

Department Of Business Administration

Technicial Education &Research Institute
 CERTIFICATE

This is to certify that ACHAL RAI , pursuing MBA-3rd Semester from TECHNICAL

EDUCATION AND RESEARCH INSTITUTE, has prepared the summer training project

report,entitled “A BUSINESS ANALYTICS AND FINANCE INTERN” in partial fulfillment

of the requirements of the degree of Master of Business Administration from, Dr A P J Abdul

Kalam Technical University, Lucknow for the session 2024-2025.

This report is based on summer training project undertakrn by ACHAL RAI at YBI Foundation

under the supervision of Mr. Alok Yadav of YBI Foundation, during the period of ONE

MONTHS and fulfills the requirements of regulations relating to the nature and standard of

MBA course of Dr A P J Abdul Kalam Technicial University , Lucknow.

I recommend that this project report may be sent for evaluation.

Dr. Neetu Singh

Associate Professor & Head,
Dept. of Business Administration
 DECLARATION

I, Achal Rai, hereby declare that this summer training project report entitled "A BUSSINESS

ANALYTICS AND FINANCE INTERN" has been prepared by me on the basis of summer

Training done at YBI FOUNDATION during the period of ONE MONTHS, under the

supervision of Mr.Alok Yadav.

This project report is my bona fide work and has not been submitted in any form to any

University or Institute for the award of any degree or diploma prior to the under mentioned date.

I bear the entire responsibility of submission of this project report.

31 October, 2024

Achal Rai
MBA 3 Semester

Department of Business Administration

Technical Education & Research Institute
P. G. College, Ghazipur
 ACKNOWLEDGEMENT

I would like to express my heartfelt gratitude to everyone who contributed to the successful

completion of this internship project.

First and foremost, I extend my sincere thanks to YBI Foundation for providing me with the

opportunity to intern and gain invaluable practical experience in the fields of business analytics

and finance.

I am deeply grateful to my mentor, Mr. Alok Yadav, for their guidance, support, and constructive

feedback throughout the course of this project. Their insights and expertise were instrumental in

shaping my understanding of Business analytics and how finance work in company .

I would also like to thank my team members and colleagues at YBI Foundation for their

collaboration and support. Their shared knowledge and encouragement created an environment

of learning and growth.

Additionally, I am thankful to my academic institution, Technicial Education & Research

Institute, and my professors, especially Dr. Neetu Singh, for their continuous support and for

laying the foundational knowledge that helped me excel during this internship.

Achal Rai
MBA 3rd Semester
 PREFACE

The internship project titled Business Analytics and Finance is a culmination of the skills,

knowledge, and practical experience gained during my internship in the fields of business

analytics and finance. This project not only serves as a bridge between theoretical concepts and

real-world application but also reflects the dynamic nature of decision-making in modern

business environments.

Through out the internship, I had the opportunity to delve into data analysis, financial modeling,

market forecasting, or process optimization], applying analytical tools and financial principles to

address real-world business challenges. This hands-on experience deepened my understanding of

key skills like data-driven decision-making, budgeting, risk assessment, etc.and strengthened my

problem-solving abilities.

The project has been guided by the mentorship and feedback of my supervisors at YBI

Foundation, who provided invaluable support and insights. Their expertise and encouragement

not only enhanced the quality of this work but also enriched my learning journey. Additionally,

the collaboration with team members fostered a deeper appreciation of teamwork and

adaptability, both essential in the ever-evolving landscape of business and finance.

This preface aims to highlight the objectives, experiences, and lessons learned during this

internship, setting the stage for the detailed analysis and findings presented in the subsequent

sections. It is my hope that this project not only demonstrates the application of business

analytics and finance principles but also inspires future endeavors in these fields.
 EXECUTIVE SUMMARY

The internship at YBI Foundation Education Private Limited provided me the

chance to learn about the various aspects of the Ed-tech platform. The traditional

learning is taking over the online learning. It provides me the opportunity to

interact with different people from various IT parks and Co-workings and get to

know about their work experience and the problem they are facing while working.

YBI Foundation Education Private Limited is the India’s

top-rated higher education platform for the working professionals. The company

basically provides the courses into three different segments i.e., Data, Technology

and Management. In the future the traditional education will be taken by the

online education. Working with YBI Foundation provided me the great

opportunity to learn the various aspects of Marketing. I learned how to convince

the people to buy your product. Working with sales team taught me how to deal

with different type of people. I learned that what sort of course would suit to

which type of job profile.

Table of Content
Chapter 1
Industry Profile
 COMPANY PROFILE Introduction

YBI Foundation Education Private Limited is an online education platform that

enables individuals to develop their professional potential in the most engaging

learning environment. Online education is a fundamental disruption to the

traditional model and will be having a far- reaching impact.

At YBI Foundation, we work towards transforming the online education wave

into a tsunami! At YBI Foundation, our objective is to help individual climb their

future career ladder and transition smoothly into promising job profile . YBI

Foundation is an online higher education platform providing rigorous industryrelevant programs

designed and delivered in collaboration with world-class faculty and industry. Merging the latest

technology, pedagogy, and services, YBI Foundation is creating an immersive learning

experience–anytime and anywhere.

Vision

• Building Careers of Tomorrow

Mission

• To provide opportunities to advance your professional journey through rigorous

online programs that offer personalised support, developed in collaboration with

best-in-class faculty and industry professionals.

Founders

Alok Yadav Co-Founder

Arushi Co-Founder

Phalgun Kompalli (Co-Founder and operations)

How it Started?

YBI Foundation began in 2015 with the conviction that in an ever-changing

industry, professionals need to continuously upskill themselves in order to stay

relevant. Since then we have always focused on building a great online learning

experience by collaborating with the right universities and industry partners. We

then steadily built a strong support system around our learners. Starting

with our first program in Entrepreneurship, YBI Foundation has created some of

India’s largest online programs to help thousands of professionals achieve their career goals in

the areas of data technology, and management.

YBI Foundation Values & Cultural Pillars

LEAD the future of education with YBI Foundation

Long Term Thinking with Clinical Execution

E
Empathy and Impact
A
Accountability and Ownership
D
Delivering Excellence
The Company is providing courses include 3 type

1. DATA

2. TECHNOLOGY

3. MANAGEMENT
Chapter 2

What Is Business Analytics

What is Business Analytics?

Data analysis, statistical modeling, and other quantitative methods are applied to business

concerns using various strategies and technologies together, known as business analytics (BA). It

comprises an in-depth, iterative investigation of the data within an organization with a

concentration on statistical analysis to assist in decision-making. Businesses driven by data

actively look for ways to use their data to their advantage. Data quality, knowledgeable analysts

who comprehend the company and technologies, and a dedication to leveraging data to uncover

insights that guide business choices are all necessary for business analytics to be successful.

Types of Business Analytics

Business analytics can be classified into three categories: descriptive, predictive, and

prescriptive.

 Descriptive analytics monitors key performance indicators (KPIs) to understand the current

status of an organization

 Predictive analytics examines trend data to determine the likelihood of future events.

 Prescriptive analytics draws on past results to suggest future strategies for dealing with similar

situations.

 A fourth strategy, diagnostic analytics, similar to descriptive analytics, is also included in

some schools of thinking. It examines a company's current status and diagnoses why specific

occurrences or results occurred.

OBJECTIVES OF BUSINESS ANALYTICS

The objectives of Business Analytics in a company like YBI Foundation with a focus on

innovation, business development, and supporting young businesses or entrepreneurs) would

likely revolve around leveraging data to improve decision-making, optimize performance, and

drive strategic growth. Here are some potential key objectives for Business Analytics in YBI

Foundation:

1. Data-Driven Decision Making

 Objective: To enable management and stakeholders to make informed decisions based

on data, rather than intuition or guesswork.

 Action: Implement analytics tools to collect, clean, and analyze data from various

business processes, such as customer behavior, financial performance, and market trends,

to guide strategic initiatives.

2. Performance Measurement and Improvement

 Objective: To monitor and enhance the performance of the foundation's programs,

services, and initiatives.

 Action: Use KPIs (Key Performance Indicators) and metrics to track the success of

various programs supporting startups or young entrepreneurs. Business analytics could

help identify areas of improvement and optimize resources.

3. Predictive Analytics for Growth

 Objective: To predict future trends, challenges, and opportunities that may impact the

business environment for young businesses.

 Action: Utilize predictive modeling techniques to forecast market trends, customer

demands, and financial outcomes to proactively address potential challenges and

capitalize on emerging opportunities.

4. Customer Insights and Segmentation

 Objective: To gain deeper insights into the needs, behaviors, and preferences of the

customers (e.g., young entrepreneurs or startups).

 Action: Segment the customer base using advanced analytics to create personalized

services, marketing campaigns, and offerings, ensuring the foundation’s programs are

more impactful and tailored to their audience.

5. Cost Optimization and Resource Allocation

 Objective: To optimize the allocation of financial and human resources, ensuring

maximum efficiency and effectiveness.

 Action: Analyze operational costs and resource utilization to identify areas where the

foundation can cut costs or reallocate resources for maximum impact.

6. Risk Management

 Objective: To assess and mitigate potential risks facing the foundation or the startups it

supports.
  Action: Implement risk analytics to identify financial, operational, and market risks,

helping the foundation or its portfolio companies to take preventative actions or make

more informed risk-related decisions.

7. Improving Customer Experience (CX)

 Objective: To enhance the overall experience for clients, whether it be entrepreneurs,

partners, or stakeholders.

 Action: Use analytics to gather feedback, monitor satisfaction levels, and identify pain

points in the customer journey to improve engagement, retention, and outcomes for the

entrepreneurs or startups involved.

8. Support for Innovation and New Services

 Objective: To foster innovation within the organization and among the startups it

supports.

 Action: Use market analysis, competitor benchmarking, and trend analysis to identify

gaps in services, uncover emerging business opportunities, or create new services for the

entrepreneurs.

9. Impact Measurement

 Objective: To measure and report on the social and business impact of YBIFoundation's

initiatives, especially its support for young entrepreneurs.

  Action: Implement analytics to track the outcomes of the foundation’s activities, such as

the growth of the startups it supports, job creation, revenue increases, or other social

outcomes.

10. Improving Stakeholder Communication and Reporting

 Objective: To improve the way the foundation communicates its impact, progress, and

future strategies to various stakeholders.

 Action: Use data visualizations, dashboards, and reports to present meaningful insights to

investors, donors, and partners, helping them understand the foundation’s effectiveness

and potential.

11. Market Trend Analysis and Competitive Benchmarking

 Objective: To stay ahead of market trends and gain insights into the competitive

landscape.

 Action: Use business analytics to conduct market research, track competitors, and

identify industry trends that could affect the foundation's goals and the success of the

startups it works with.

By using business analytics in these ways, YBI Foundation could significantly improve its ability

to support young businesses, foster innovation, and ensure long-term sustainability and growth,

both for the foundation itself and the startups it serves.

IMPORTANCE OF BUSINESS ANALYTICS

Business analytics plays a crucial role in the success and growth of YBI Foundation, which

focuses on youth empowerment and entrepreneurship. Here's why business analytics is

important:

1. Data-Driven Decision Making

 YBI Foundation can use business analytics to assess the impact of its programs and

initiatives by analyzing data related to outcomes such as employment rates, startup

success rates, and skills acquisition.

 This ensures resources are allocated efficiently and interventions are targeted where they

are most needed.

2. Performance Monitoring

 Analytics helps the foundation track the performance of projects, partners, and programs.

By identifying trends, strengths, and weaknesses, they can improve operations and

increase the effectiveness of their initiatives.

3. Impact Assessment
  Measuring the success of its initiatives, such as training programs or mentorship

opportunities, is critical for demonstrating value to stakeholders (e.g., donors,

beneficiaries, and partners).

 Insights derived from analytics can showcase the foundation’s contributions toward youth

development and entrepreneurship.

4. Resource Optimization

 By understanding patterns in data, the foundation can optimize the use of its resources,

whether it's funding, personnel, or time, ensuring maximum output for every unit of

input.

5. Stakeholder Engagement

 Providing clear, data-backed reports and insights to donors, partners, and other

stakeholders fosters trust and encourages continued support.

 Analytics can also identify new partnership opportunities based on trends and gaps.

6. Customization of Programs

 Business analytics allows for the segmentation of beneficiaries based on demographics,

geographic location, or specific needs. This leads to the design of tailored programs that

better address the unique challenges of different groups.

7. Risk Management
  Analytics helps in identifying potential risks, such as economic trends that may impact

funding or program sustainability. The foundation can proactively develop mitigation

strategies.

8. Scaling and Expansion

 By analyzing successful programs and identifying key success factors, YBI Foundation

can replicate and scale its initiatives to new regions or demographics effectively.

9. Predictive Insights

 Predictive analytics can anticipate future trends in youth entrepreneurship, enabling the

foundation to stay ahead of challenges and emerging opportunities.

10. Enhancing Beneficiary Outcomes

 Analyzing data on program participants can help improve curriculum design, mentorship

models, and support systems, directly impacting the success and satisfaction of

beneficiaries.

In essence, business analytics enables the YBI Foundation to operate more effectively, improve

its programs' impact, and build a data-driven culture that enhances its mission of empowering

youth and fostering entrepreneurship. It transforms raw data into actionable insights, supporting

both operational efficiency and strategic growth.

SCOPE OF THE STUDY OF BUSINESS ANALYTICS

The scope of studying Business Analytics (BA) in companies is broad and multifaceted. It spans

across various industries and functions, emphasizing the use of data to enhance decision-making,

improve efficiency, and drive growth. Below is a detailed breakdown of its scope:

1. Strategic Decision-Making

 Predictive Analysis: Forecast future trends and behaviors to inform long-term strategic

plans.

 Prescriptive Analytics: Suggest optimal actions for achieving organizational objectives.

 Scenario Planning: Evaluate various business scenarios using data-driven insights.

2. Operational Efficiency

 Process Optimization: Streamline workflows, reduce waste, and improve productivity.

 Supply Chain Management: Optimize inventory levels, demand forecasting, and

logistics.

 Cost Reduction: Identify areas of overspending and implement cost-saving measures.

3. Customer Insights
  Customer Segmentation: Analyze customer behavior to create targeted marketing

strategies.

 Customer Retention: Use analytics to predict churn and implement retention campaigns.

 Personalization: Develop personalized product or service recommendations based on

data.

4. Marketing and Sales

 Campaign Effectiveness: Measure and optimize the return on investment (ROI) of

marketing campaigns.

 Sales Forecasting: Predict future sales based on historical data and market trends.

 Digital Marketing Analytics: Track online engagement and optimize digital channels.

5. Risk Management

 Fraud Detection: Use analytics to identify anomalies in financial transactions.

 Credit Scoring: Evaluate credit risk using predictive models.

 Crisis Management: Develop early warning systems for operational and reputational

risks.

6. Human Resources (HR) Analytics

  Talent Acquisition: Analyze hiring patterns and optimize recruitment strategies.

 Employee Retention: Predict turnover risks and identify factors affecting employee

satisfaction.

 Performance Management: Use data to assess employee productivity and training

needs.

7. Innovation and R&D

 Product Development: Use market and customer data to identify innovation

opportunities.

 Testing and Prototyping: Conduct experiments and analyze results to refine

products/services.

 Market Entry Analysis: Assess the viability of launching new products in different

markets.

8. Industry-Specific Applications

 Healthcare: Patient care optimization, cost management, and treatment outcome

predictions.

 Retail: Dynamic pricing, inventory management, and customer experience

enhancements.

 Finance: Portfolio management, risk modeling, and algorithmic trading.

  Manufacturing: Predictive maintenance, production forecasting, and quality control.

9. Competitive Advantage

 Benchmarking: Compare performance metrics with competitors.

 Market Trends Analysis: Identify shifts in consumer preferences and industry trends.

 Innovation Leadership: Use analytics to stay ahead of market disruptions.

10. Data Governance and Compliance

 Data Security: Implement robust analytics to detect and prevent breaches.

 Regulatory Compliance: Ensure adherence to legal and ethical standards in data usage.

 Data Quality Management: Maintain accuracy, consistency, and reliability of data.

Key Tools and Technologies in Business Analytics

 Data Visualization Tools: Tableau, Power BI

 Statistical Tools: R, SAS, SPSS

 Big Data Technologies: Hadoop, Spark

 Machine Learning Platforms: TensorFlow, Scikit-learn

 Database Management: SQL, NoSQL systems

Future Trends in Business Analytics

 Integration of AI and machine learning for advanced analytics.

 Real-time data analytics for instant decision-making.

 Growing importance of ethical analytics and data privacy.

 Democratization of analytics through user-friendly tools.

By studying business analytics, companies can unlock immense potential to make informed

decisions, enhance operational efficiency, and gain a competitive edge in their respective

industries.
Common Challenges of Business Analytics

When trying to execute a business analytics plan, companies may run across issues with both

business analytics and business intelligence:

 Too many data sources- There is a wide range of internet-connected gadgets producing

business data. They frequently create new data that need to be incorporated into analytics

strategies. However, the more complex a data set is, the more challenging it is to incorporate it

into an analytics framework.

 Lack of expertise- Employers increasingly seek candidates with the data analytics abilities

required to process BA data. Small- and medium-sized businesses (SMBs) may find it

challenging to find candidates with the necessary BA knowledge and skills.

 Data Storage Limitations- A company must choose a location for data storage before deciding

how to handle the data. For instance, a data lake might gather vast amounts of unstructured data.
Business Analytics Tools

Many BA and BI applications can automate complex data analytics tasks without requiring little

specialist training or an in-depth understanding of the computer languages used in data science.

These solutions assist firms in organizing and utilizing the enormous amounts of data that

contemporary internet of things and commercial cloud apps create. These programs could be a

part of systems for customer relationship management, enterprise resource planning, and supply

chain management. Here are a few of the available business analytics tools:

 Tableau features extensive unstructured text analysis and natural language processing

capabilities

 Dundas BI includes automated trend forecasting and a user-friendly interface

 Tibco Spotfire provides robust, automated statistical and unstructured text analysis.
Roles and Responsibilities in Business Analytics

Collecting and analysing data to inform a company's strategic decisions is the primary duty of

business analytics specialists. The following are some projects for which they could conduct

analysis:

 developing a budget and business forecast

 Identifying potential problems the organization might have and possible answers

 monitoring the effectiveness of company activity

 Examples of strategic possibilities found in data patterns include updating stakeholders on the

status of corporate goals.

 Understanding regulatory and reporting obligations, as well as KPIs.

Career in Business Analytics

A BA background opens up a variety of job options. The following are a few examples of
typical job titles:

 Senior Business Analyst

 Business Systems Analyst

 Business Analyst 3

 Business Intelligence Analyst

 Junior Business Analyst

What is Business Analyst?

Business analysts (BAs) are responsible for bridging the gap between IT and the business by

evaluating processes, identifying requirements, and delivering data-driven suggestions and

reports to executives and stakeholders. Business Analyst Job Description According to Robert

Half, a typical job description for a business analyst includes:

 Preparing a thorough business analysis that identifies issues, opportunities, and potential

solutions for a company

 forecasting and establishing a budget

 Monitoring and planning

 Variance analysis

 Pricing

 Reporting

 Business requirements definition and reporting to stakeholders

Business Analyst Skills

Some of the most crucial qualifications and experience for a business analyst, according to the

IIBA, are:

 both written and spoken communication abilities

 Skills in communication and consultation

 facilitating abilities

 Problem-solving and critical thinking

 Organizing abilities

 knowledge of the organisational structure

CHAPTER 4
 A business analyst is a specialist that collaborates closely with stakeholders to establish goals,

create best practices for data collecting, and assess current processes to discover areas for

improvement to producing the desired result.

Responsibilities of a Business Analyst

 Define the business analysis needs and configuration specifications.

 Execute quality control

 Define the requirements for reporting and alerting

 Own and cultivate partnerships with others, working together to improve and maximize our

integration

 Aid in system process design, documentation, and maintenance

 Inform the product team of familiar sources of technical issues or questions and offer

suggestions.

 Share significant discoveries and insights with the product team.

 Always be on the lookout for ways to enhance monitoring, identify problems, and provide

customers with more value.

I worked for the company as an intern business analyst. As a part of this internship, I worked with

three real datasets, acquired knowledge, and discovered insightful things. My knowledge of data

analysis, in particular, and business in general, has greatly increased. I gained knowledge in data
gathering and analysis to support businesses in developing business plans, implementing new

strategies, and making educated judgments. My ability to create suggestions, create frameworks and

offer solutions improved as a result of this position.

Tools Used

Excel
MS Excel is widely used for many purposes since it makes it easy to maintain data and add and

remove information with no effort.

Here are a few significant benefits of using Microsoft Excel:

 Simple Data Storage: MS Excel is frequently used to store or analyse data because there is no

restriction on the amount of information that can be recorded in a spread sheet. In Excel,

information filtering is simple and practical.

 Easy To Recover Data: If the data is printed on paper, finding it could take longer; with excel

spread sheets, this is not the case. It is simple to locate and retrieve data.

 Application of Mathematical Formulas: MS Excel's formulas feature has made calculations

simpler and quicker.

 More Secure: Compared to data stored on registers or paper, these spread sheets have a much

lower chance of being lost and can be password-secured on a laptop or desktop computer.

 Data in One Location: When the paperwork was completed, data had to be preserved in
various files and registers. This has become convenient now that multiple worksheets may be
added to a single MS Excel file.
Data Visualization in Tableau
A dataset or piece of information is visually represented using maps, graphs, charts, and other

visual elements. Data visualization facilitates simple comprehension of a dataset's trends,

insights, patterns, and other relationships. Many businesses use Tableau, one of the most popular

data visualization tools, to better understand their data and offer the best customer experience.

Here are some examples of Tableau software use:

 Business Intelligence

 Data Visualization

 Data Blending

 Data Collaboration

 Query translation into visualization

 To create no-code data queries

 Real-time data analysis

 To manage large-size metadata

 To import a large size of data

Python
Python is renowned for its versatility, which makes it usable in practically every area of software

development. Python is present in every new field. It can create any application and is the

fastest-growing programming language.

Here are some examples of python use:

1. Web Development

2. Machine Learning and Artificial Intelligence

3. Data Science

4. Game Development

5. Audio and Visual Applications

6. Desktop GUI
OBJECTIVE OF STUDY
1. To obtain an Accountant position by adding value through utilizing my superior

knowledge, prospecting and calculation abilities in the business.

2. To develop and discover my vision into pragmatic action, as a performanceoriented.

3. To build upon my existing corporate finance skill set in both analytics and

transaction execution, leading to increasingly responsible positions in treasury.

4. To employ my knowledge and experience with the intention of securing a

professional career with opportunity for challenges and career advancement,

while gaining knowledge of new skills and expertise.

5. To make a proper study of Documentation, verification,auditing and many more

accounting standards.
NEED OF THE STUDY
1. Helps in identifying need to determine its worth pursuing.

2. The decision-making process takes place to prioritize and select project with

greatest news

3. Business Analytics is used to build skilled knowledge in industrialized countries as

well as in emerging markets.

4. Business analytics helps finance new investment by structuring the financing around

the project's own operating cash flow and assets, without additional sponsor

guarantees.

5. It primarily helps in financing the broad range of economic unit’sworldwide, which

sets many of the examples.

CONTRIBUTION DURING SIP

DOCUMENTS AND INFORMATION DONE WHILE PREPARING Project Report:

1. Past 2 years Audited Financial statement.

2. Provisional Financial for the current year; in the absence of provisional financials,

details of the top line shall be essential.

3. Latest Sanction letter (in case of renewal).

4. Term Loan Repayment Schedule, if any

5. Details of proposed enhancement (if any) along with the terms and conditions

In the third week I learned how to make Project Report of different companies.

Following are the companies who’s Projects were drafted by me:

 SHIVAM CONSTRUCTION

 P R LOGISTICS

 SHREE BALAJI PETROLEOUM

 NARAYAN INDUSTRUES
LIMITATIONS

1. Complexity of the process due to the increase in the number of parties and the

transaction cost.

2. Expensive as the project development and diligence process is a costly affair.

3. Complexity due to lengthy documentation.

4. Requires qualified people for performing the complicated procedures of project

finance.

5. Higher level of control which might be exercised by the banks, which might bring

conflict with the businesses or contracts.

RESEARCH METHEDOLOGY

Data collection is the systematic approach to gather and measure information from

variety of sources to get a complete and accurate picture of an area of interest.

It mainly includes two types of data:

 Primary data

 Secondary data.

Primary data: -

Data used in research originally obtained it through the direct efforts of the researchers

through surveys,interviews and direct observations. For this report primary data is

collected through online survey, forms and interactions with the clients during internship.

Secondary data: -

It refers to the data that was collected by someone other than the user. Secondary data

can be collected through references.

CHAPTER 5:

INTERNSHIP WORK
Learn about what is a financial model?

A financial model is simply a tool that’s built in spreadsheet software such as MS Excel to

forecast a business’ financial performance into the future. The forecast is typically based on the

company’s historical performance, assumptions about the future, and requires preparing an

income statement, balance sheet, cash flow statement, and supporting schedules (known as a 3

statement model). From there, more advanced types of models can be built such as discounted

cash flow analysis (DCF model), leveraged-buyout (LBO), mergers and acquisitions (M&A),

and sensitivity analysis. Below is an example of financial modeling in Excel.

Financial modeling is hard if you’re trying to figure it out on your own, but with the help of a

professional training program like CFI’s, the modeling process becomes a lot easier. Many

finance professionals find it hard to link the three financial statements together in Excel, so once

you know how to do that, you’ll be off to a great start. If you’re interested in financial modeling,

chances are, you’re planning to land a job offer in the finance industry. You may want to be an

investment banker, a private equity research specialist, or an analyst or associate in a hedge

funds firm. It’s really not a question of whether financial modeling is hard or not. It’s about your

willingness and determination to learn new skills or hone your current skill set. Completing a

financial modeling course opens more opportunities for career growth, and in an industry such as

finance, you would need continuous learning so you can quickly adapt to change and be one step

ahead of your peers.

The Basics of Financial Modeling

Financial modeling is a representation in numbers of a company's operations in the past, present,

and the forecasted future. Such models are intended to be used as decision-making tools.

Company executives might use them to estimate the costs and project the profits of a proposed

new project. Financial analysts use them to explain or anticipate the impact of events on a

company's stock, from internal factors, such as a change of strategy or business model to external

factors such as a change in economic policy or regulation. Financial models are used to estimate

the valuation of a business or to compare businesses to their peers in the industry. They also are

used in strategic planning to test various scenarios, calculate the cost of new projects, decide on

budgets, and allocate corporate resources. Examples of financial models may include discounted

cash flow analysis, sensitivity analysis, or in-depth appraisal.

Real-World Example

The best financial models provide users with a set of basic assumptions. For example, one

commonly forecasted line item is sales growth. Sales growth is recorded as the increase (or

decrease) in gross in the most recent quarter compared to the previous quarter. These are the only

two inputs a financial model needs to calculate sales growth. The financial modeler creates one

cell for the prior year's sales, cell A, and one cell for the current year's sales, cell B. The third

cell, cell C, is used for a formula that divides the difference between cell A and B by cell A. This

is the growth formula. Cell C, the formula, is hard-coded into the model. Cells A and B are input

cells that can be changed by the user. In this case, the purpose of the model is to estimate sales
 growth if a certain action is taken or a possible event occurs. Of course, this is just one real-

world example of financial modeling. Ultimately, a stock analyst is interested in potential

growth. Any factor that affects, or might affect, that growth can be modeled. Also, comparisons

among companies are important in concluding a stock. Multiple models help an investor decide

among various competitors in an industry

Accounting of financial modeling

In investment banking, corporate finance, and the accounting profession, financial modeling is

mainly synonymous with cash flow forecasting. This generally includes preparing detailed company

specific models which are used for the purpose of decision making and financial analysis.

The applications mainly include:

 Business valuation, particularly discounted cash flow, but counting other valuation problems.

 Management decision making and scenario planning (like “what is”, “what if”, “what has to be

done”, and similar more.

 Cost of capital

 Capital budgeting

 Project finance

 Financial statement analysis

Why is financial modeling important?

Financial modeling acts as a useful tool which enables business options and risks to be estimated in a

cost-effective way against various assumptions, recognize optimal solutions in estimating financial

returns and understand the effect of resource constraints thus leading to more effective business

decisions. Financial modeling can be referred as an art and like any other art form, it requires

constant [practice and commitment to develop expertise in this area. In the present day world, many

companies are becoming globally integrated with the international economy through the way of

acquiring/establishing international operations. This calls for the requirement of strong financial

models which can assist in performing the evaluation of every country’s operations, reflect on

multiple currencies in their model, estimate varying capacity utilizations to estimate the optimal

capacity under changeable industry demand-supply scenarios and similar more cases. Introduction to

3-statement modeling An integrated 3-statement financial model is a type of model that forecasts a

company’s income statement, balance sheet and cash flow statement.

While accounting enables us to understand a company’s historical financial statements, forecasting

those financial statements enables us to explore how a company will perform under a variety of

different assumptions and visualize how a company’s operating decisions (i.e. “let’s reduce prices”),

investing decisions (i.e. “let’s buy an additional machine”) and financing decisions (i.e. “let’s

borrow a bit more”) all interact to impact the bottom line in the future. A well-built 3-statement

financial model helps insiders (corporate development professionals, FP&A professionals) and

outsiders (institutional investors, sell side equity research, investment bankers and private equity) see

how the various activities of a firm work together, making it easier to see how decisions impact the

overall performance of a business. Formatting a 3-statement model It is critical that a complex

financial model like the 3-statement model adheres to a consistent set of best practices. This makes
both the task of modeling and auditing other people’s models far more transparent and useful. We

have written an Ultimate Guide to Financial Modeling Best Practices, but we’ll summarize some key

takeaways here.

Periodicity

One of the first decisions to make in a 3-statement model concerns the periodicity of the model.

Namely, what are the shortest time periods the model will be partitioned into: annual, quarterly,

monthly or weekly. This will typically be determined by the 3- statement financial model’s purpose.

Below we outline some general rules of thumb: Model structure When models get large, adhering to

a strict structure is critical. Key rules of thumb include:

 Use roll-forward schedules when forecasting balance sheet items.

 Aggregate inputs in one worksheet or one section of the model and separate them from

calculations and outputs.

 Avoid linking files together.

3-statement models include a variety of schedules and outputs, but the core elements of a 3-

statement model are, as you may have guessed, the income statement, balance sheet and cash flow

statement. A key feature of an effective model is that it is “integrated,” which simply means that the

3-statement models are modeled in a way that accurately captures the relationship and inter-linkages

of the various line items across the financial statements. An integrated model is powerful because it

enables the user to change an assumption in one part of the model in order to see how it impacts all

other parts of the model consistently and accurately.

The income statement

The income statement illustrates a company’s profitability. All three statements are presented from

left to right, with at least 3 years of historical results present in order to provide historical rations and

growth rates from which forecasts are based. Inputting the historical income statement data is the

first step in building a 3-statement financial model. The process involves either manual data entry

from the 10K or press release, or the use of an Excel plugin such as Factset or Capital IQ to drop

historical data directly into Excel.

Forecasting typically begins with a revenue forecast followed by the forecasting of various expenses.

The net result is a forecast of the company’s income and earnings per share. The income statement

covers a specified period such as quarter or year. The balance sheet Unlike the income statement,

which shows operating results over a period of time (a year or a quarter), the balance sheet is a

snapshot of the company at the end of the reporting period. The balance sheet shows the company’s

resources (assets) and funding for those resources (liabilities and shareholder’s equity). Inputting

historical balance sheet data is similar to inputting data in the income statement. The data is inputted

either manually or through an Excel plugin. In large part, the balance sheet is driven by the operating

assumptions we make on the income statement. Revenues drive the operating assumptions in the

income statement, and this continues to hold true in the balance sheet: Revenue and operating

forecasts drive working capital items, capital expenditures and a variety of other items.

The final core element of the 3-statement model is the cash flow statement. Unlike on the income

statement or the balance sheet, you aren’t actually forecasting anything explicitly on the cash flow

statement and it isn’t necessary to input historical cash flow statement results before forecasting.

That’s because the cash flow statement is a pure reconciliation of the year-over-year changes in the

balance sheet. Every individual line item on the cash flow statement should be referenced from
elsewhere in the model (it should not be hardcoded) as this is a reconciliation. Constructing the cash

flow statement correctly is critical to getting the balance sheet to balance. To see how this done,

watch this free lesson on cash flow statement modeling.

What is a financial model used for?

The output of a financial model is used for decision making and performing financial analysis,

whether inside or outside of the company. Inside a company, executives will use financial models to

make decisions about: Raising capital (debt and/or equity) Making acquisitions (businesses and/or

assets) Growing the business organically (e.g., opening new stores, entering new markets, etc.)

Selling or divesting assets and business units Budgeting and forecasting (planning for the years

ahead) Capital allocation (priority of which projects to invest in) Valuing a business Financial

statement analysis/ratio analysis Management accounting Who builds financial models? (jobs and

career)
What are financial modeling best practices?

1. Excel tips and tricks –

 It’s very important to follow best practices in Excel when building a model. For more

details you can take our free Excel course, which outlines the following key themes:

Limit or eliminate the use of your mouse (keyboard shortcuts are much faster)

 Use a blue font for hard-codes and inputs (formulas can stay black)

 Keep formulas simple and break down complex calculations into steps

 Ensure you know how to use the most important Excel formulas and functions

 Use INDEX and MATCH instead of VLOOKUP to query data

 Use the CHOOSE function to build scenarios

2. Formatting –

It’s important to clearly distinguish between inputs (assumptions) in a financial model, and

output (calculations). This is typically achieved through formatting conventions, such as making

inputs blue and formulas black. You can also use other conventions like shading cells or using

borders.
3. Model layout and design –

It’s critical to structure a financial model in a logical and easy to follow design. This typically

means building the whole model on one worksheet and using grouping to create different

sections. This way it’s easy to expand or contract the model and move around it easily.

The main sections to include in a financial model (from top to bottom) are:

 Assumptions and drivers

 Income statement

 Balance sheet

 Cash flow statement

 Supporting schedules

 Valuation

 Sensitivity analysis

 Charts and graphs

1. Historical results and assumptions –

Every financial model starts with a company’s historical results. You begin building the

financial model by pulling three years of financial statements and inputting them into

Excel. Next, you reverse engineer the assumptions for the historical period by calculating

things like revenue growth rate, gross margins, variable costs, fixed costs, AP days,

inventory days, and AP days, to name a few. From there you can fill in the assumptions

for the forecast period as hard-codes.

2. Start the income statement –

 With the forecast assumptions in place, you can calculate the top of the income statement

with revenue, COGS, gross profit, and operating expenses down to EBITDA. You will

have to wait to calculate depreciation, amortization, interest, and taxes.

3. Start the balance sheet

With the top of the income statement in place, you can start to fill in the balance sheet.

Begin by calculating accounts receivable and inventory, which are both functions of

revenue and COGS, as well as the AR days and inventory days assumptions. Next, fill in

accounts payable, which is a function of COGS and AP days.

4. Build the supporting schedules –

Before completing the income statement and balance sheet, you have to create a schedule

for capital assets like Property, Plant & Equipment (PP&E), as well as for debt and

interest. The PP&E schedule will pull from the historical period and add capital

expenditures and subtract depreciation. The debt schedule will also pull from the

historical period and add increases in debt and subtract repayments. Interest will be based

on the average debt balance.

5. Complete the income statement and balance sheet –

The information from the supporting schedules completes the income statement and

balance sheet. On the income statement, link depreciation to the PP&E schedule and

interest to the debt schedule. From there, you can calculate earnings before tax, taxes, and

net income. On the balance sheet, link the closing PP&E balance and closing debt

balance from the schedules. Shareholder’s equity can be completed by pulling forward
 last year’s closing balance, adding net income and capital raised, and subtracting

dividends or shares repurchased.

6. Build the cash flow statement –

With the income statement and balance sheet complete, you can build the cash flow

statement with the reconciliation method. Start with net income, add back depreciation,

and adjust for changes in non-cash working capital, which results in cash from

operations. Cash used in investing is a function of capital expenditures in the PP&E

schedule, and cash from financing is a function of the assumptions that were laid out

about raising debt and equity.

7. Perform the DCF analysis –

When the 3 statement model is completed, it’s time to calculate free cash flow and

perform the business valuation. The free cash flow of the business is discounted back to

today at the firm’s cost of capital (its opportunity cost or required rate of return). We

offer a full suite of courses that teach all of the above steps with examples, templates, and

step-by-step instruction. Read more about how to build a DCF model.

8. Add sensitivity
analysis and
scenarios -
Once the DCF analysis
and valuation sections
are complete, it’s time to
incorporate sensitivity
analysis and scenarios
into the model. The point
of this analysis is to
determine how much the
value of the company (or
some other metric) will
be impacted by changes
in underlying
assumptions. This is very
useful for assessing the
risk of an investment or
for business planning
purposes (e.g., does the
company need to raise
money if sales volume
drops by x percent?)
8. Add sensitivity
analysis and
scenarios -
Once the DCF analysis
and valuation sections
are complete, it’s time to
incorporate sensitivity
analysis and scenarios
into the model. The point
of this analysis is to
determine how much the
value of the company (or
some other metric) will
be impacted by changes
in underlying
assumptions. This is very
useful for assessing the
risk of an investment or
for business planning
purposes (e.g., does the
company need to raise
money if sales volume
drops by x percent?)

Theoretical Background of the study

8. Add sensitivity
analysis and
scenarios -
Once the DCF analysis
and valuation sections
are complete, it’s time to
incorporate sensitivity
analysis and scenarios
into the model. The point
of this analysis is to
determine how much the
value of the company (or
some other metric) will
be impacted by changes
in underlying
assumptions. This is very
useful for assessing the
risk of an investment or
for business planning
purposes (e.g., does the
company need to raise
money if sales volume
drops by x percent?).
9. Build charts and
graphs -
Clear communication of
results is something that
really separates great
from merely good
financial analysts. The
most effective way to
show the results of a
financial model is
through
charts and graphs, which
we cover in detail in our
advanced Excel course,
as well as many of the
individual financial
modeling courses. Most
executives don’t have
the time or patience to
look
at the inner workings of
the model, so charts are
much more effective.
8. Add sensitivity
analysis and
scenarios -
Once the DCF analysis
and valuation sections
are complete, it’s time to
incorporate sensitivity
analysis and scenarios
into the model. The point
of this analysis is to
determine how much the
value of the company (or
some other metric) will
be impacted by changes
in underlying
assumptions. This is very
useful for assessing the
risk of an investment or
for business planning
purposes (e.g., does the
company need to raise
money if sales volume
drops by x percent?).
Classification of
Ratios: -
A financial ratio is a
useless piece of
information. In
context, however, a
financial
ratio can give a
financial analyst an
excellent picture of a
company's situation
and
the trends that are
developing. A ratio
gains utility by
comparison to other
data and
standards.
Financial ratios
quantify many
aspects of a business
and are an integral
part of
financial statement
analysis. Financial
ratios are categorized
according to the
financial aspect of the
business which the
ratio measures.
Although these
categories are not
fixed in all over the
world however there
are almost the same,
just with different
names:
Profitability ratios
which use margin
analysis and show the
return on sales and
capital employed.
Classification of
Ratios: -
A financial ratio is a
useless piece of
information. In
context, however, a
financial
ratio can give a
financial analyst an
excellent picture of a
company's situation
and
the trends that are
developing. A ratio
gains utility by
comparison to other
data and
standards.
Financial ratios
quantify many
aspects of a business
and are an integral
part of
financial statement
analysis. Financial
ratios are categorized
according to the
financial aspect of the
business which the
ratio measures.
Although these
categories are not
fixed in all over the
world however there
are almost the same,
just with different
names:
Profitability ratios
which use margin
analysis and show the
return on sales and
capital employed.
Classification of Ratios: -

A financial ratio is a useless piece of information. In context, however, a financial ratio can give

a financial analyst an excellent picture of a company's situation and the trends that are

developing. A ratio gains utility by comparison to other data and standards. Financial ratios

quantify many aspects of a business and are an integral part of financial statement analysis.

Financial ratios are categorized according to the financial aspect of the business which the ratio

measures. Although these categories are not fixed in all over the world however there are almost

the same, just with different names: Profitability ratios which use margin analysis and show the

return on sales and capital employed.

Gross profit ratio: -

This ratio indicates the relation between production cost and sales and the efficiency with which

goods are produced or purchased. If it has a very high gross profit ratio it may indicate that the

organization is able to produce or purchase at a relatively lower cost. Gross profit is the profit we
earn before we take off any administration costs, selling costs and so on. Net profit ratio: - This

ratio is so important because it tells us the amount of net profit of the turnover (sales) a business

has earned. The net profit ratio indicates that’s portion of sales available to the owners after the

consideration of all types of expenses & costs.

Rate of Return Ratio (ROR) or Overall Profitability Ratio the rate of return ratios are thought to

be the most important ratios by some accountants and analysts. One reason why the rate of return

ratios is so important is that they are the ratios that we use to tell if the managing director is

doing their job properly.

1- Return on assets: - This ratio shows the profitability of investment in the firm so higher the

ratio is better and more desirable while the company earning less and less profitability ratio.

Although it is better than four years ago, however it is generally earning less profitability.

2- Return on equity: - This is so crucial ratio from the shareholders point of view. The higher

it is the better will be the position. While in this company the ratio is going down ward

which shows all the problems the company having and a not desirable financial position.

Liquidity ratios measure the availability of cash to pay debt, which give a picture of a

company's short-term financial situation.

1-Current ratio: - This ratio measurers the solvency of the company in the short term.

Current assets are those assets which can be converted into cash within a year. Current

liabilities and provisions are those liabilities that are payable within a year. A current ratio

2:1 indicates a highly solvent position.

 2- Quick ratio: - Liquid ratio indicates the backing available to liquid liabilities in the form

of liquid assets. Primarily because the current ratio includes inventory assets which right not

be able to term to cash immediately. A liquid ratio of 1:1 is supposed to be standard &ideal.

Turn over Ratios:

or activity group ratios indicate efficiency of organization to various kinds of assets by

converting them to the form of sales.

1-Fixed assets turnover ratio - The level of sales generated due to investment in fixed

assets. the greater ratio it is inferred the more intensively the fixed assets have been used.

2-Current assets turnover ratio - This ratio indicates the efficiency with which current

assets turn into sales. A higher ratio implies by and large a more efficient use of funds. Thus,

a high turnover rate indicates reduced lock-up of funds in current assets. An analysis of this

ratio over a period of time reflects working capital management of a firm.

3-Working capital turnover ratio - A high working capital turnover ratio indicates the

capability of the organization to achieve maximum sales with the minimum investment in

working capital.

4-Capital employed turnover ratio - Capital employed can be expressed in different terms,

all generally refer to the investment required for a business to function. By "employing capital"
you are making an investment. So, capital employed indicated the long-term funds supplied by

creditors and owners of the firms.

Which Ratio for whom: -

As before mentioned there are varieties of people interested to know and read these information

and analyses, however different people for different needs. And it is because each of these

groups have different type of questions that could be answered by a specific number and ratio.

Therefore we can say there are different ratios for different groups, these groups with the ratio

that suits them is listed below: 1. Investors: these are people who already have shares in the

business or they are willing to be part of it. So they need to determine whether they should buy

shares in the business, hold on to the shares they already have or sell the shares they already

own. They also want to assess the ability of the business to pay dividends. As a result the Return

on Capital Employed Ratio is the one for this group.

2. Lenders: This group consists of people who have given loans to the company so they want to

be sure that their loans and also the interests will be paid and on the due time. Gearing Ratios

will suit this group.

3. Managers: managers might need segmental and total information to see how they fit into the

overall picture of the company which they are ruling. And Profitability Ratios can show them

what they need to know.

4. Employees: the employees are always concerned about the ability of the business to provide

remuneration, retirement benefits and employment opportunities for them, therefore these

information must be find out from the stability and profitability of their employers who are

responsible to provide the employees their need. Return on Capital Employed Ratio is the

measurement that can help them.

5. Suppliers and other trade creditors: businesses supplying goods and materials to other

businesses will definitely read their accounts to see that they don't have problems, after all, any

supplier wants to know if his customers are going to pay them back and they will study the

Liquidity Ratio of the companies.

6. Customers: are interested to know the Profitability Ratio of the business with which they are

going to have a long term involvement and are dependent on the continuance of presence of that.

8. Add sensitivity analysis and scenarios -

Once the DCF analysis and valuation sections are complete, it’s time to incorporate sensitivity
analysis and scenarios into the model. The point of this analysis is to determine how much the
value of the company (or some other metric) will be impacted by changes in underlying
assumptions. This is very useful for assessing the risk of an investment or for business planning
purposes (e.g., does the company need to raise money if sales volume drops by x percent?).

7. Governments and their agencies: - are concerned with the allocation of resources and, the

activities of businesses. To regulate the activities of them, determine taxation policies and as the

basis for national income and similar statistics, they calculate the Profitability Ratio of

businesses.
8. Local community: - Financial statements may assist the public by providing information about

the trends and recent developments in the prosperity of the business and the range of its activities

as they affect their area so they are interested in lots of ratios.

9. Financial analysts: - they need to know various matters, for example, the accounting concepts

employed for inventories, depreciation, bad debts and so on therefore they are interested in

possibly all the ratios.

10. Researchers: - researchers' demands cover a very wide range of lines of enquiry ranging from

detailed statistical analysis of the income statement and balance sheet data extending over many

years to the qualitative analysis of the wording of the statements depending on their nature of

research.

CONCLUSION

In project period all Foundation member give many information in this project I Calculate some

ratio and analysis some annual accounts to see company’s Financial position this is useful

interpret company financial position with this study here I conclude that, liquidity position of

company is not good so company improve this. Turnover ratios of company increases

continuously and Fund management of company is effective and efficient to generate the sales.

Solvency position of company are good and capital structure of company mostly relay on equity

or own sources and due to that capital more expensive. Profitability position of company good

but Operating expenses of company increases year by year. In overall financial position of
company is good and some improvement are to be needed. This project definitely guides the

company for formulating the financial strategies in the future.

BIBLOGRAPHY

References: -

1. https://corporatefinanceinstitute.com/resources/knowledge/modeli ng/what-is-financial-

modeling/

2. https://cdm.unfccc.int/Projects/DB/SIRIM1277472383.2/view