Arter Asha Crafts Project

Investment & Cost Analysis

Cummulative
Sl. No Calculation Particulars Amount
Loss / Profit
1 January ' 2004 to December' 2004
a) Working Capital 2070252
b ) Total Sell 1398581
c ) Total Income 182423
d ) Total Expenditure 554419
e ) Income Over Expenditure (371,996) (371,996)

Planning of Investment & Cost Analysis

Capital/Fund Cummulative
1 December ' 2005 to November' 2006 Amount
Demand Loss / Profit
a) Revolving Working Capital 3105378 1035126
b) Targetted Sell 2797162
c) Total Income 466,194
d ) Total Expenditure ( 10% more than previous year) 609860
e ) Income Over Expenditure (143,666) (515,662)
Capital/Fund
2 December ' 2006 to November' 2007 Amount
Demand
a) Revolving Working Capital 4658067 1552689
b) Targetted Sell 4,475,459
c) Total Income 745,910
d ) Total Expenditure ( 10% more than previous year) 670846
e ) Expenditure Over Income 75,064 (440,598)
Capital/Fund
3 December ' 2007 to November' 2008 Amount
Demand
a) Revolving Working Capital 6987100 2329033
b) Targetted Sell 7,160,735
c) Total Income 1,193,456
d ) Total Expenditure ( 10% more than previous year) 737930
e ) Expenditure Over Income 455,526 14,927

Note : Break even will be ensured at the end of 3rd year as per the above analysis.

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 Arter Asha Crafts Project
Fund Demand

Particulars Sub Total Total

1 New Sell Centre Set Up
a) Space Rent ( Tk. 15000/month x 36 months) 540000
b) Interior Decoration and Maintenance 800000
c) Advertisement Cost( Tk.150000 x 3Years) 450000
1790000
2 Working Capital 4916848

Total Fund Demand 6706848

Note :The initial capital of Tk.20,70,252 for the year 2004 ( Jan-Dec ) which creatinge revolving
working capital is considered as the organizational contribution to the program.This organizational
contribution is not incorporated into the fund demand.

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 Notes on Cost & Fund Demand Analysis

Note - 01 : Revolving working capital is calculated by 1.5 as the standard calculation practice than the
previous year capital utilization and accordingly fund/capital demand has been identified. The
calculation of fund/capital demand is followed in the following way -
Previous year capital/revolving working capital - calculating year revolving working capital = Fund/Capital
demand

Note - 02 :Targeted sell is calculated double in the year 2005 basing on the year 2004 and other 2
years by 1.6 basing on the assessment/feasibility of the scope of the business expansion.

Note - 03 : Income is calculated considering 20% profit of the total sale amount in the year.

Note - 04 : Expenditure is calculated at every year increasing 10% than the previous year.

Note - 05 : Cummulative loss/profit is projected with regard to the continuous year based income over
expenditure/expenditure over income calculation since 2004. It is noticed that the 3 years projection
shows break even at the end of the year 2007 subject to the availability of the said capital/fund
inflow in the business.

Observation on Craft Business Expansion Assessment

Observation - 01 : Present craft shop business set up, increasing public demand, quality &
diversification of products, business expansion opportunities, market segmentation and seasonal
demand & its effect , advertisement strategy and different coping mechanism of Arter asha is
assessed and analyzed carefully ensuring field visit and interviewing some local buyers.

Observation - 02 : Our analysis reveals that this is high time to start expantion of business as the
other similar business has not been ivolved as a compititor here and neighbouring districts. It is also
revealed that the buyer over here has silent fascination to the craft items and accordingly they are
collecting these from dhaka finding no other way.

Observation - 03 : Public satisfaction has already started drawing by the craft items of Arter Asha
having quality / modern fashionable products, diversification of products and reasonable pricing within
the capacity of even lower middle class people resulting repetedly visit of the buyers.

Observation - 04 : As the management of Arter Asha is local and holding excellent social capital, so it
will be an added advantage for them to ensure access and expand local market with their craft items
very easily.

Observation - 05 : Commitment of the sheltered women and their gradually trained skill is an added
advantage regarding the expansion of craft business as backward linkage.

Observation - 06 : The outcomes of successfull expansion and sustainability of the craft shop is the
ultimate result of increased number of unsheltered and supportless women in the income generating
activities and their livelihood security.

Observation - 07 : Securing the employment of the guardian ( sheltered women ), their kids are also
receiving shelter, food, health support, education and social safetynet which ensuring the stability in
the society.
Observation - 08 : Arter Asha has 3 training centres in which the sheltered women from AG ( Adarsha
Gram ) are receiving skill training on craft production ( i.e. block, boutique,hand embroidery,decorative
candle making, tie and die, jute goods production ) and later on producing craft items are being
supplied to the craft shop for selling.Our observation reveals that the present set up of training centre
in terms of hysenicness, space, equipment, technology is not sufficient to train up much more
interested shelterless women based on the inflow trend as because the main objective of the training
centre is to rehabilitate and ensure the livelihood security of the distress women addressed by the
organization.Expansion of craft shop is fully depends on the stable / satisfactory position of the traing
centre which will provide long term financial support to the shelterless women.By the discussion with
them we have come to know that the drop out rate has been reduced because of their job security ,
permanent shelter and health and educational support of their kids provided by the organization which
leads the program towards sustainability.Out analysis reveals that the success of craft shop will ensure
more distressed women participation in the training centre.