Note 8 – Capital Leases

The Company has acquired assets under the provisions of long-term leases expiring through June 2016. For financial reporting purposes, minimum lease payments relating to these assets have been capitalized.

The assets under capital leases have cost and accumulated amortization as follows:

	December 31, 2014		June 30, 2014
	(Unaudited)		(Audited)
Motor vehicles	$	78,881	$	78,881
Plant and equipment		90,127		90,127
Furniture and equipment		235,349		235,349
Less: accumulated depreciation		(110,828)		(88,910)
Total:	$	293,529	$	315,447

Maturities of capital lease obligations as of June 30, 2014 are as follows:

2015	$	75,722
2016		9,935
Total minimum lease payments		85,657
Amount representing interest		(8,434)
Present value of minimum lease payments		77,223
Less: current portion		(68,463)
Total:	$	8,760

Interest expense related to capital lease was $2,492 and $2,889 for the three months period ended December 31, 2014 and 2013, respectively. For the six months period ended December 31, 2014 and 2013, the interest expense related to capital leases was $3,420 and $5,585, respectively.