LONG-TERM CAPITAL LEASE

9 Months Ended

Dec. 31, 2013

NOTE 8 – LONG-TERM CAPITAL LEASE

On April 13, 2013, the company entered into a long-term capital leasing arrangement with Wells Fargo Equipment Finance (“Wells Fargo”) to finance the lease of two used forklift vehicles with a total purchase price of $39,312 of which $36,388 was financed under a capital lease. The lease requires monthly payments in the amount of $1,082 per month over a total lease term of 36 months which commenced on May 19, 2013. The agreement has an effective interest rate of 4.5% and the company has the option to purchase the equipment at the end of the lease term for one dollar. As of December 31, 2013 and March 31, 2013 the outstanding amount due to Wells Fargo was $28,718 and $0, respectively.

As of December 31, 2013 and March 31, 2013, the Company had obligations under the capital lease repayable as follows:

	December 31, 2013		March 31, 2013

Total minimum lease payments
Within one year	$	12,984	$	-
After one year but within 3 years		17,312		-
		30,296		-
Interest payments relating to future periods		(1,578)		-

Present Value of minimum lease payments	$	28,718	$	-

For the three month periods ended December 31, 2013 and December 31, 2012 the amount of interest related to the capital lease were $343 and $0, respectively. For the nine month periods ended December 31, 2013 and December 31, 2012 the amount of interest related to the capital lease were $986 and $0, respectively.