IN GENERAL FINANCIAL MODELING IS SHOWING A REPRESENTATION OF A REAL FINANCIAL WORLD SITUATION.BASICALLY,IT IS A MATHEMATICAL MODEL DESIGNED TO REPRESENT THE PERFORMANCE OF AN ASSET, PROJECT OR ANY OTHER INVESTMENT. IN CORPORATE FINANCE IT IS USED TO PREPARE COMPANY SPECIFIC MODELS USED IN DECISION MAKING PROCESSES AND FINANCIAL ANALYSIS. I GUESS YOU WILL UNDERSTAND NOW

Financial Modelling is a process by a firm that aids it in portraying a financial representation of a few, or all aspects of the firm.
This process generally consists of producing company specific models that are essential in decision making.
This assists in the purpose of
1. Cost of Capital
2.Discounted Cash Flow
...etc
Financial Modelling helps in analyzing business options and in estimating risks in a cost effective manner.

Financial modeling is the task of building an abstract representation (a model) of a real world financial situation

thank you all, i ve clearly got it now..