Detailed Project Report
Saddlery and Harness
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹2.73 L
- Term loan from bank
- ₹2.46 L
- Promoter’s contribution
- ₹0.27 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.43 L
- Average DSCR
- -6.04
- Break-even (% of capacity used)
- —
02 Promoter and unit
| Promoter name | — |
|---|---|
| Business / firm name | — |
| Legal form | Proprietorship |
| Address of the unit | — |
| Applicant category | General · Rural |
03 The project
Cut, mould and finish vegetable-tanned leather into horse saddles and harness for riders, clubs, police and the army.
| Main product or service | Saddlery and Harness |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Race clubs and riding schools
- Defence and police departments
- Model and sports schools
- Overseas equestrian importers
- Government tenders
- Direct supply to clubs and schools
- Export orders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Hydraulic clicking press with cutting dies, 1.5 HP | 1 | 80,000 | 80,000 |
| Hydraulic moulding press with heating and moulds | 1 | 75,000 | 75,000 |
| Heavy leather splitting machine, 60 cm | 1 | 25,000 | 25,000 |
| Buffing machine with dust removal | 1 | 25,000 | 25,000 |
| Trimming machine | 1 | 15,000 | 15,000 |
| Spray booth with two guns and compressor (× 1 set) | 1 | 15,000 | 15,000 |
| Hot chamber for drying | 1 | 15,000 | 15,000 |
| Strap cutting machine | 1 | 10,000 | 10,000 |
| Total | 2,60,000 |
Pre-filled from: DC-MSME project profile — Saddlery and Harness; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Vegetable-tanned leather — 20,000 kg a month at ₹60 a kg (4 kg per saddle, 5,000 pieces a month)
- Pigments, binders, lacquer, straps, buckles and other fittings — ₹20 per piece
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 2.60 |
| Contingency | 0.13 |
| Total fixed capital | 2.73 |
| Working capital margin | 0.00 |
| Total project cost | 2.73 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.27 | 10.0 |
| Term loan from bank | 2.46 | 90.0 |
| Total | 2.73 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
09 Key assumptions
| Selling price | ₹0 per units |
|---|---|
| Raw material & packing cost | ₹0 per units |
| Capacity used each year | 60% · 70% · 80% · 80% · 80% · 80% · 80% |
| Term loan interest rate (% a year) | 11% · 84 months (Moratorium 6) |
| Working capital method | Turnover method (RBI) · Working capital interest (% a year) 11% |
| Income tax rate | 25% |
| Yearly price and cost rise | 0% |
10 Production and sales
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capacity used | 60% | 70% | 80% | 80% | 80% | 80% | 80% |
| Production (units) | 6,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
11 Projected profitability
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Raw material and packing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Power and fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Salaries and wages | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Rent | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Administration | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Selling and distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Repairs and maintenance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 |
| Operating profit (EBITDA) | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 |
| Depreciation | 0.41 | 0.35 | 0.30 | 0.25 | 0.21 | 0.18 | 0.15 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.27 | 0.23 | 0.19 | 0.15 | 0.11 | 0.06 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.62 | -3.53 | -3.43 | -3.35 | -3.27 | -3.19 | -3.13 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.62 | -3.53 | -3.43 | -3.35 | -3.27 | -3.19 | -3.13 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.62 | -3.53 | -3.43 | -3.35 | -3.27 | -3.19 | -3.13 |
| Depreciation | 0.41 | 0.35 | 0.30 | 0.25 | 0.21 | 0.18 | 0.15 |
| Cash accruals (PAT + depreciation) | -3.21 | -3.18 | -3.14 | -3.10 | -3.05 | -3.01 | -2.97 |
| Term loan repaid | 0.19 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.40 | -3.56 | -3.52 | -3.47 | -3.43 | -3.39 | -3.35 |
| Cash and bank | -3.40 | -6.96 | -10.47 | -13.95 | -17.38 | -20.77 | -24.12 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 |
| Reserves and surplus | -3.62 | -7.15 | -10.58 | -13.93 | -17.20 | -20.39 | -23.52 |
| Term loan outstanding | 2.27 | 1.89 | 1.51 | 1.13 | 0.76 | 0.38 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.08 | -4.99 | -8.80 | -12.52 | -16.17 | -19.74 | -23.24 |
| Net fixed assets | 2.32 | 1.97 | 1.68 | 1.43 | 1.21 | 1.03 | 0.88 |
| Preliminary expenses not written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current assets (stock and debtors) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash and bank | -3.40 | -6.96 | -10.47 | -13.95 | -17.38 | -20.77 | -24.12 |
| Total assets | -1.08 | -4.99 | -8.80 | -12.52 | -16.17 | -19.74 | -23.24 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -6.48 | -4.85 | -5.20 | -5.61 | -6.10 | -6.67 | -7.36 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -6.04 |
|---|---|
| Lowest DSCR | -7.36 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.41 | 0.35 | 0.30 | 0.25 | 0.21 | 0.18 | 0.15 |
Written-down value method at Income-tax Rules block rates (building 10%, plant & machinery 15%, furniture 10%, computers 40%). Change them if your CA uses other rates.
16 Term loan repayment
| Year | Opening | Interest | Term loan repaid | Closing |
|---|---|---|---|---|
| 1 | 2.46 | 0.27 | 0.19 | 2.27 |
| 2 | 2.27 | 0.23 | 0.38 | 1.89 |
| 3 | 1.89 | 0.19 | 0.38 | 1.51 |
| 4 | 1.51 | 0.15 | 0.38 | 1.13 |
| 5 | 1.13 | 0.11 | 0.38 | 0.76 |
| 6 | 0.76 | 0.06 | 0.38 | 0.38 |
| 7 | 0.38 | 0.02 | 0.38 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Trade licence
- Importer-Exporter Code for exports
- BIS standard IS 1637 where buyers specify it
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Saddlery and Harness — https://www.dcmsme.gov.in/publications/pmryprof/leather/ch19.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
This report is a projection from the figures entered by the promoter. It is not a bank appraisal or a guarantee of a loan or subsidy. Check every figure with current quotations and your chartered accountant before submitting it.