LONG-TERM CAPITAL LEASE

12 Months Ended

Mar. 31, 2015

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 $38,952 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 March 31, 2015 and March 31, 2014 the outstanding amount due to Wells Fargo was $13,706 and $25,782, respectively.

As of March 31, 2015 and March 31, 2014, the Company had obligations under the capital lease repayable as follows:

	March 31, 2015		March 31, 2014

Total minimum lease payments
Within one year	$	12,984	$	12,984
After one year but within 3 years		1,078		14,066
		14,062		27,050
Interest payments relating to future periods		(356)		(1,268)

Present Value of minimum lease payments	$	13,706	$	25,782

For the fiscal years ended March 31, 2015 and March 31, 2014 the amount of interest related to the capital lease were $901 and $1,296, respectively.