LONG-TERM CAPITAL LEASE

9 Months Ended

Dec. 31, 2014

NOTE 7 – 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 in the amount of $36,388. 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, 2014 and March 31, 2014 the outstanding amount due to Wells Fargo was $16,776 and $25,782 respectively.

As of December 31, 2014 and March 31, 2014, the Company had obligations under the capital lease payable as follows:

	December 31, 2014		March 31, 2014

Total minimum lease payments
Within one year	$	12,984	$	12,984
After one year but within 3 years		4,328		14,066
		17,312		27,050
Interest payments relating to future periods		(536)		(1,268)

Present Value of minimum lease payments	$	16,776	$	25,782

For the three month periods ended December 31, 2014 and December 31, 2013 the amount of interest related to the capital lease was $211 and $343, respectively. For the nine month periods ended December 31, 2014 and December 31, 2013 the amount of interest related to the capital lease was $732 and $986, respectively.