MBA(A) 231 Financial Modelling Notes from Unnati Educations cover all 4 units of the GGSIPU MBA (Analytics) Semester 3 Finance elective in 61 pages, with 26 solved illustrations, two worked ABC Ltd models and 66 exam-style questions. They follow the MBA (Analytics) Scheme and Syllabus 2022-24 onwards, which applies to batches admitted from 2022-24.
Written by Prateek Talwar, Founder, Unnati Educations (ACS) · Reviewed by Sheetal Kirola, Academic Head, M.Ed. · Checked against GGSIPU MBA (Analytics) Scheme and Syllabus 2022-24 onwards · Updated 14 October 2026 · Editorial policy
Scheme: MBA (Analytics) Scheme and Syllabus 2022-24 onwards | Applies to: batches 2022-24 onwards | Verified against: syllMBAAnalytics180225.pdf, Semesters 3-4 approved 19.07.2023
MBA(A) 231 Financial Modelling at a glance: GGSIPU MBA (Analytics) Sem 3 credits, units and exam pattern
| Code and title | MBA(A) 231 Financial Modelling: application of MS-Excel in financial modelling |
|---|---|
| Course and semester | MBA (Analytics), Semester 3, Finance elective (with MBA(A) 227 and 229) |
| Category and credits | Elective I / II, Skill Enhancement · L 3 · 3 credits |
| Marks | Internal 25: Class Test-I 15 + presentation / viva-voce / group discussion 10. End-term and total marks: not printed in the official PDF. |
| End-term pattern | Paper-setter instructions not printed; the scheme follows GGSIPU Ordinance 11 |
| Units and hours | 4 units: 11 + 10 + 10 + 11 = 42 hours |
| Paired lab | None; Excel practice sits inside this paper |
Compare it with the other GGSIPU MBA (Analytics) Semester 3 papers.
MBA(A) 231 Financial Modelling Notes unit-wise: 26 solved illustrations and 66 exam questions across 4 units
Each unit ends with a Quick Revision table and exam questions. Notes for the other papers are under GGSIPU MBA (Analytics) notes.
MBA(A) 231 Unit 1: Excel as a tool in Financial Modelling
Pages 4 to 20, 7 sections. The Excel toolkit: cell references, six function families, charts and conditional formatting, Advanced Filter, macros, the four what-if tools (Data Table, Scenario Manager, Goal Seek, Solver) and pivot tables.
8 solved illustrations, from a nested IF commission rule to a Solver product mix; 10 short and 7 long questions.
| Formula | Result |
|---|---|
=PMT(9%, 5, -1000000) |
₹2,57,092.46 a year |
=IPMT(9%, 1, 5, -1000000) |
₹90,000 year-1 interest |
=PPMT(9%, 1, 5, -1000000) |
₹1,67,092 year-1 principal |
Quick look: a ₹10 lakh loan at 9% for 5 years in Excel (from page 10)
- Formula
=PMT(9%, 5, -1000000)- Result
- ₹2,57,092.46 a year
- Formula
=IPMT(9%, 1, 5, -1000000)- Result
- ₹90,000 year-1 interest
- Formula
=PPMT(9%, 1, 5, -1000000)- Result
- ₹1,67,092 year-1 principal
MBA(A) 231 Unit 2: Financial Modelling Basic Concepts
Pages 21 to 34, 7 sections. The centrepiece is a three-statement model of ABC Ltd for FY26 to FY28, with fixed-asset, working-capital and debt schedules and a balance check that reads 0.0 every year.
Also: CHOOSE switches, FAST design rules, valuation approaches, DuPont and Monte Carlo cases. 4 illustrations plus the model; 10 short and 6 long questions.
| Case | PAT (₹ crore) | Probability |
|---|---|---|
| Worst | 62.9 | 0.25 |
| Base | 98.4 | 0.50 |
| Best | 132.5 | 0.25 |
| Expected (σ 24.6) | 98.1 | 1.00 |
Quick look: ABC Ltd FY28 PAT across three cases (from page 31)
- Case
- Worst
- PAT (₹ crore)
- 62.9
- Probability
- 0.25
- Case
- Base
- PAT (₹ crore)
- 98.4
- Probability
- 0.50
- Case
- Best
- PAT (₹ crore)
- 132.5
- Probability
- 0.25
- Case
- Expected (σ 24.6)
- PAT (₹ crore)
- 98.1
- Probability
- 1.00
MBA(A) 231 Unit 3: Cash Ratios and Non-Cash Valuations
Pages 35 to 47, 7 sections. The cash ratio, nine cash-flow ratios, a menu-driven model, and the cash flow of XYZ Inc. derived from two balance sheets, with IAS 7, Ind AS 7 and US GAAP compared.
Valuation: adjusted NAV, dividend discount models, P/E and PEG, the EV bridge and a four-peer comparison. 7 illustrations; 10 short and 6 long questions.
| Cost of equity | Working (D1 = ₹2.592, g = 8%) | Value |
|---|---|---|
| 11% | 2.592 ÷ 0.03 | ₹86.40 |
| 12% | 2.592 ÷ 0.04 | ₹64.80 |
| 13% | 2.592 ÷ 0.05 | ₹51.84 |
Quick look: Gordon value of Target Ltd (from page 42)
- Cost of equity
- 11%
- Working (D1 = ₹2.592, g = 8%)
- 2.592 ÷ 0.03
- Value
- ₹86.40
- Cost of equity
- 12%
- Working (D1 = ₹2.592, g = 8%)
- 2.592 ÷ 0.04
- Value
- ₹64.80
- Cost of equity
- 13%
- Working (D1 = ₹2.592, g = 8%)
- 2.592 ÷ 0.05
- Value
- ₹51.84
MBA(A) 231 Unit 4: Forecasting Methods and Initial Valuations
Pages 48 to 60, 6 sections. ABC Ltd's revenue is forecast five ways, strategy is tied to the sustainable growth rate, and linkage problems are fixed with a revolver.
Then FCFF and FCFE, cost of capital through bond yield, APT and CAPM (with its derivation), re-levered beta and a DCF value per share. 7 illustrations plus the valuation; 10 short and 7 long questions.
Quick look: ABC Ltd from FCFF to value per share (from page 57)
- PV of FY26 to FY30 FCFF at 11.7% WACC: ₹263.6 crore.
- Terminal value 91.1 × 1.05 ÷ 0.067 = ₹1,427.7 crore; PV ₹821.0 crore.
- EV ₹1,084.6 crore less net debt ₹110 crore = equity ₹974.6 crore.
- ÷ 26 crore shares = ₹37.5, against a market price of ₹34.
Drivers and assumptions in a financial model: excerpt from page 24 of the MBA(A) 231 notes
Excerpt from page 24
Filling in the historical data
Forecasts are built on the trends of the past, so three to five years of actual financial statements go into the model first. Good sources are annual reports, NSE and BSE filings, the MCA portal, company investor presentations, and databases such as Prowess (CMIE), Capitaline, Bloomberg or Screener.
Before anything is projected, the history is cleaned:
- Standardise the statements: map the company's own line items into the model's format, for example by combining "other expenses" items.
- Separate operating and non-operating items such as one-time gains, exceptional items and discontinued operations.
- Check that each historical balance sheet balances and that its cash matches the cash flow statement.
- Calculate historical ratios (growth, margins, days, capex %), because these become the basis of the assumptions.
- Use consistent units (₹ crore) and the same April to March financial year.
Identifying assumptions and drivers
A driver is a variable that causes a financial line item to change. Instead of forecasting every number directly, the modeller forecasts a few key drivers and links each line item to them. Assumptions are the values chosen for those drivers, such as growth of 12%.
| Line item | Typical driver | ABC Ltd assumption |
|---|---|---|
| Revenue | Growth % (or volume × price) | 12% a year |
| Cost of goods sold | % of revenue | 60% of revenue |
| SG&A expenses | % of revenue, or fixed + variable | 15% of revenue |
| Capital expenditure | % of revenue or planned projects | 8% of revenue |
| Depreciation | % of opening net fixed assets | 10% of opening net block |
| Trade receivables | Debtor days on revenue | 45 days |
| Inventory / payables | Inventory days / creditor days on COGS | 60 days / 50 days |
| Interest and debt repayment | % of opening debt; loan schedule | 10%; ₹20 crore a year |
| Tax and dividend | Effective tax rate on PBT; payout of PAT | 25%; 30% |
Drivers and ABC Ltd assumptions (excerpt, page 24)
- Line item
- Revenue
- Typical driver
- Growth % (or volume × price)
- ABC Ltd assumption
- 12% a year
- Line item
- Cost of goods sold
- Typical driver
- % of revenue
- ABC Ltd assumption
- 60% of revenue
- Line item
- SG&A expenses
- Typical driver
- % of revenue, or fixed + variable
- ABC Ltd assumption
- 15% of revenue
- Line item
- Capital expenditure
- Typical driver
- % of revenue or planned projects
- ABC Ltd assumption
- 8% of revenue
- Line item
- Depreciation
- Typical driver
- % of opening net fixed assets
- ABC Ltd assumption
- 10% of opening net block
- Line item
- Trade receivables
- Typical driver
- Debtor days on revenue
- ABC Ltd assumption
- 45 days
- Line item
- Inventory / payables
- Typical driver
- Inventory days / creditor days on COGS
- ABC Ltd assumption
- 60 days / 50 days
- Line item
- Interest and debt repayment
- Typical driver
- % of opening debt; loan schedule
- ABC Ltd assumption
- 10%; ₹20 crore a year
- Line item
- Tax and dividend
- Typical driver
- Effective tax rate on PBT; payout of PAT
- ABC Ltd assumption
- 25%; 30%
Working-capital drivers turn days into rupees: Receivables = Revenue × Debtor days ÷ 365, Inventory = COGS × Inventory days ÷ 365, and Payables = COGS × Creditor days ÷ 365.
Do the MBA(A) 231 notes cover the full GGSIPU syllabus?
Yes. Every topic printed for Units I to IV of MBA(A) 231 has a matching section in the notes; the check found no gaps.
| Official unit | Official topics | Where in the notes | Status |
|---|---|---|---|
| I Excel as a tool | Excel concepts, commands; maths, logical, look up, date, text, financial functions; chart, conditional formatting, sort, filter; formulas, macros; what if analysis, pivot table, goal seek, solver | Sections 1-7, pp 4-18 | Covered |
| II Basic concepts | Advanced functions; components, template, historical data, assumptions and drivers; forecasting schedules; valuation approaches; ratios; cases, sensitivity, probabilistic analysis | Sections 1-7, pp 21-33 | Covered |
| III Cash ratios | Structured model with a menu; key ratios; international cash flow; accounting methods, dividend discount models, EPS and multiples, EV/EBITDA, EV/Sales, peer groups | Sections 1-7, pp 35-46 | Covered |
| IV Forecasting | Forecasting methods; company and financial strategy; key drivers, linkages, free cash flow; bonds, APT, CAPM, betas; terminal value, equity valuation, share price comparison | Sections 1-6, pp 48-58 | Covered |
MBA(A) 231 official topics mapped to the notes
- Official unit
- I Excel as a tool
- Official topics
- Excel concepts, commands; maths, logical, look up, date, text, financial functions; chart, conditional formatting, sort, filter; formulas, macros; what if analysis, pivot table, goal seek, solver
- Where in the notes
- Sections 1-7, pp 4-18
- Status
- Covered
- Official unit
- II Basic concepts
- Official topics
- Advanced functions; components, template, historical data, assumptions and drivers; forecasting schedules; valuation approaches; ratios; cases, sensitivity, probabilistic analysis
- Where in the notes
- Sections 1-7, pp 21-33
- Status
- Covered
- Official unit
- III Cash ratios
- Official topics
- Structured model with a menu; key ratios; international cash flow; accounting methods, dividend discount models, EPS and multiples, EV/EBITDA, EV/Sales, peer groups
- Where in the notes
- Sections 1-7, pp 35-46
- Status
- Covered
- Official unit
- IV Forecasting
- Official topics
- Forecasting methods; company and financial strategy; key drivers, linkages, free cash flow; bonds, APT, CAPM, betas; terminal value, equity valuation, share price comparison
- Where in the notes
- Sections 1-6, pp 48-58
- Status
- Covered
Check each row on the official file: GGSIPU MBA (Analytics) Scheme and Syllabus, 2022-24 onwards (MBA(A) 231 is on pages 77-78).
The notes use the four official unit titles. Every course in GGSIPU notes is mapped to its official PDF this way.
How to write MBA(A) 231 answers: Excel syntax, rupee numericals and valuation write-ups
MBA(A) 231 answers come in three types: Excel syntax, numericals in rupees, and long write-ups on valuation or forecasting. The exam tips inside the MBA(A) 231 Financial Modelling IPU notes show how to handle each.
Excel syntax. Write the full function with every argument, then one line on where it sits in a model. For lookups, say why INDEX-MATCH beats VLOOKUP: it can look left and does not break when columns are inserted (page 8). For cell references, the page 5 tip asks for the F4 cycle (A1, A$1, $A1, A1) and one line on why absolute references matter: a tax rate must not shift when a formula is copied.
Numericals. Show the formula, the Excel function and the rupee answer, in that order. State the sign rule from page 10 first: Excel treats cash going out as negative. NPV treats its first value as the end of period 1, so the year-0 outlay goes outside the function.
Worked example (page 10): outlay ₹1,00,000; inflows ₹30,000, ₹40,000, ₹50,000, ₹20,000; cost of capital 10%. =NPV(10%, B2:B5) + B1 = 1,11,557 − 1,00,000 = ₹11,557, and =IRR(B1:B5) = 15.32%. Both say accept, so end with that decision.
Ratio and assumption answers. Page 38: group the ratios, give each formula, add a one-line reading, and end with limitations (historical data, accounting policies, need for a benchmark). Page 25: quote "garbage in, garbage out" and keep inputs on one sheet, in blue, with a source.
Valuation write-ups. Cross-check terminal value both ways (page 57): the Gordon value of ABC Ltd implies an exit multiple of only 6.5×. Avoid two errors the notes flag: dividing market cap by EBITDA, and counting the interest tax shield twice in FCFF.
Practise these formats on GGSIPU MBA (Analytics) important questions.
MBA(A) 231 exam corner: 40 short-answer and 26 long-answer questions by unit
| Unit | Short Answer (2–5 Marks) | Long Answer (10–15 Marks) | Solved illustrations |
|---|---|---|---|
| 1 | 10 | 7 | 8 |
| 2 | 10 | 6 | 4 + three-statement model |
| 3 | 10 | 6 | 7 |
| 4 | 10 | 7 | 7 + DCF valuation |
MBA(A) 231 exam questions and solved illustrations by unit
- Unit
- 1
- Short Answer (2–5 Marks)
- 10
- Long Answer (10–15 Marks)
- 7
- Solved illustrations
- 8
- Unit
- 2
- Short Answer (2–5 Marks)
- 10
- Long Answer (10–15 Marks)
- 6
- Solved illustrations
- 4 + three-statement model
- Unit
- 3
- Short Answer (2–5 Marks)
- 10
- Long Answer (10–15 Marks)
- 6
- Solved illustrations
- 7
- Unit
- 4
- Short Answer (2–5 Marks)
- 10
- Long Answer (10–15 Marks)
- 7
- Solved illustrations
- 7 + DCF valuation
Four exam-style samples, one per unit:
- Unit 1 (Long): Explain What-If Analysis with Scenario Manager, Goal Seek and Data Tables. Pointer: use the four-tool table on page 15 and the Goal Seek break-even of 2,00,000 ÷ (500 − 300) = 1,000 units.
- Unit 2 (Short): Find receivables if revenue is ₹730 crore and debtor days are 40. Pointer: 730 × 40 ÷ 365 = ₹80 crore.
- Unit 3 (Short): How is capex derived from two balance sheets? Pointer: closing net fixed assets − opening + depreciation; XYZ Inc.: 460 − 400 + 50 = $110 million.
- Unit 4 (Short): Equity beta 1.3, D/E 0.5, tax 25%: find the asset beta. Pointer: 1.3 ÷ [1 + 0.75 × 0.5] ≈ 0.95.
The MBA(A) 231 notes set 40 short-answer and 26 long-answer exam questions across 4 units, plus 26 solved illustrations.
More practice sits in the MBA(A) 231 important questions.
Who writes and checks the MBA(A) 231 modelling notes?
- Prateek Talwar, author · Founder, Unnati Educations · Associate Company Secretary (ACS), ICSI, membership no. 58704, since 15 May 2019 · B.Com, University of Delhi (School of Open Learning), 2012 · core area: management, commerce and finance · bio
- Sheetal Kirola, reviewer · Academic Head, Unnati Educations · M.Ed. · 7 years of experience · bio
Mapped to the MBA (Analytics) Scheme and Syllabus 2022-24 onwards (Semesters 3-4 approved 19.07.2023). The 2026-27 edition has 61 pages, 22 figures, 7 Excel steps boxes and 4 case studies; last updated 14 October 2026. See our editorial policy.
The same team prepares GGSIPU important questions for every course.
MBA(A) 231 and the GGSIPU MBA (Analytics) Sem 3 papers it connects to
Every paper and elective stream is on the GGSIPU MBA (Analytics) syllabus page. MBA(A) 231 has no paired lab.
Students looking for GGSIPU MBA (Analytics) Sem 3 Financial Modelling notes usually pair 231 with 227 or 229, since the Finance stream asks for two of its three electives.
- Unit 2 sensitivity and Monte Carlo → MBA(A) 227 Financial Risk Analytics
- Unit 4 CAPM, APT and betas → MBA(A) 229 Investment Analysis and Portfolio Management
- Unit 4 trend and regression forecasts → MBA(A) 205 Predictive Analytics and Big Data
- Unit 1 pivot tables and data cleaning → MBA(A) 209 Database Management System
Other Semester 3 papers: MBA(A) 201 Strategic Management, 203 Entrepreneurial Development & Start-Ups, 207 Artificial Intelligence and Machine Learning, 211 Design Thinking and Innovation, 213 Summer Training Project Report and 255 DBMS Lab.
MBA(A) 231 modelling notes FAQs
How do I get the full MBA(A) 231 notes?
Message us on WhatsApp at 9899436384 with the code MBA(A) 231. The full notes come as a printed book only, not as a PDF. Delivery takes a maximum of 5 to 7 days, depending on your location.
Is MBA(A) 231 Financial Modelling compulsory in GGSIPU MBA (Analytics) Semester 3?
No. MBA(A) 231 is one of three Finance electives in Semester 3, next to MBA(A) 227 Financial Risk Analytics and MBA(A) 229 Investment Analysis and Portfolio Management. The scheme lists Elective I and Elective II at 3 credits each and asks students to select any two from their stream. Your institute decides which electives it offers.
What is the passing mark for MBA(A) 231?
The official MBA (Analytics) PDF prints only the internal assessment for MBA(A) 231: 25 marks, made up of Class Test-I for 15 marks and a presentation, viva-voce or group discussion for 10. It prints no end-term marks and no pass percentage. The scheme follows GGSIPU Ordinance 11, so check end-term minimums and re-appear rules there.
Do the MBA(A) 231 notes teach Excel step by step?
Yes. The MBA(A) 231 notes carry 7 Excel steps boxes: Advanced Filter, recording a macro, a two-variable data table, building a template, Monte Carlo simulation, a menu-driven ratio model and finding key drivers. Formulas are written in standard Excel syntax, such as =CHOOSE(C3, D10, E10, F10) for a scenario switch, so you can type them straight into a sheet.
Which MBA(A) 231 unit has the most numericals?
Unit 1 has the most solved illustrations in MBA(A) 231, with 8, covering PMT, NPV and IRR, Goal Seek and Solver. Units 3 and 4 have 7 each. Unit 2 has only 4, but it holds the longest worked item in the book: the ABC Ltd three-statement model on pages 26 to 28, which Unit 4 extends to FY30 for the DCF.
Do the MBA(A) 231 notes follow the current MBA (Analytics) scheme?
The MBA(A) 231 notes follow the MBA (Analytics) Scheme and Syllabus 2022-24 onwards, the file syllMBAAnalytics180225.pdf on ipu.ac.in, whose Semester 3 and 4 papers were approved on 19.07.2023. All four unit titles and every listed topic match the notes. If a revised scheme is announced, compare its unit list with the coverage table above before you study.
Get the full MBA(A) 231 Financial Modelling Notes on WhatsApp
| Unit | Pages | Solved illustrations | Exam questions |
|---|---|---|---|
| 1 | 4-20 (17) | 8 | 17 |
| 2 | 21-34 (14) | 4 + model | 16 |
| 3 | 35-47 (13) | 7 | 16 |
| 4 | 48-60 (13) | 7 + valuation | 17 |
Inside the MBA(A) 231 printed notes book
- Unit
- 1
- Pages
- 4-20 (17)
- Solved illustrations
- 8
- Exam questions
- 17
- Unit
- 2
- Pages
- 21-34 (14)
- Solved illustrations
- 4 + model
- Exam questions
- 16
- Unit
- 3
- Pages
- 35-47 (13)
- Solved illustrations
- 7
- Exam questions
- 16
- Unit
- 4
- Pages
- 48-60 (13)
- Solved illustrations
- 7 + valuation
- Exam questions
- 17
The MBA(A) 231 book has 61 pages including the cover and index. It is written as Financial Modelling notes in English, with formulas in Excel syntax and figures in ₹ crore.
It is sold as a printed book only, not as a PDF. Order on WhatsApp; delivery takes a maximum of 5 to 7 days, depending on your location.
Order the MBA(A) 231 printed notes book on WhatsApp (4 units, 61 pages)
Unnati Educations is an independent education provider based in Vikaspuri, Delhi. We are not affiliated with, authorised by, or endorsed by Guru Gobind Singh Indraprastha University (GGSIPU). 'GGSIPU' and 'IPU' are used only to describe the syllabus our notes follow. For official information, visit ipu.ac.in.
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