Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Property and Equipment

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Note 7 - Property and Equipment
 3 Months Ended
Sep. 30, 2012
Property, Plant and Equipment Disclosure [Text Block]
NOTE 7 - PROPERTY AND EQUIPMENT

Property and equipment, net, consisted of the following:

   
As of September 30
2012
   
As of June 30
2012
 
             
Office furniture and equipment
  $ 1,950,176     $ 1,917,221  
Computer equipment
    15,843,251       14,986,148  
Assets under capital leases
    2,065,524       1,877,145  
Building
    2,109,511       2,133,174  
Land
    2,021,330       2,044,003  
Capital work in progress
    4,396,095       4,163,730  
Autos
    603,460       648,305  
Improvements
    232,214       230,759  
Subtotal
    29,221,561       28,000,485  
Accumulated depreciation
    (11,784,092 )     (11,087,690 )
    $ 17,437,469     $ 16,912,795  

For the three months ended September 30, 2012 and 2011, depreciation expense totaled $754,108 and $636,568 respectively.  Of these amounts, $454,745 and $462,543 respectively, are reflected in cost of goods sold.

The Company’s capital work in progress consists of ongoing enhancements to its facilities and infrastructure as necessary to meet the Company’s expected long term growth needs. The Company recorded capitalized interest of $424,589 and $331,145 as of September 30, 2012 and June 30, 2012, respectively.

Assets acquired under capital leases were $2,065,524 and $1,877,145 as of September 30, 2012 and June 30, 2012, respectively. Accumulated amortization related to these leases was $900,790 and $807,562 for the years ended June 30, 2012 and 2011, respectively.