LONG-TERM CAPITAL LEASE

6 Months Ended

Sep. 30, 2015

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 September 30, 2015 and March 31, 2015 the outstanding amount due to Wells Fargo was $7,462 and $13,706 respectively.

As of September 30, 2015 and March 31, 2015, the Company had obligations under the capital lease payable as follows:

	September 30, 2015		March 31, 2015

Total minimum lease payments
Within one year	$	7,574	$	12,984
After one year but within three years		-		1,078
		7,574		14,062
Interest payments relating to future periods		(112)		(356)

Present Value of minimum lease payments	$	7,462	$	13,706

For the three month periods ended September 30, 2015 and September 30, 2014 the amount of interest related to the capital lease was $107 and $244, respectively. For the six month periods ended September 30, 2015 and September 30, 2014 the amount of interest related to the capital lease was $249 and $521, respectively.