Annual report pursuant to Section 13 and 15(d)

Note 8 - Property And Equipment

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Note 8 - Property And Equipment
 12 Months Ended
Jun. 30, 2012
Property, Plant and Equipment Disclosure [Text Block]
NOTE 8 – PROPERTY AND EQUIPMENT

Property and equipment, net, consisted of the following:

   
As of June 30
   
As of June 30
 
   
2012
   
2011
 
             
Office furniture and equipment
  $ 1,917,221     $ 1,179,993  
Computer equipment
    14,986,148       13,463,560  
Assets under capital leases
    1,877,145       2,024,282  
Building
    2,133,174       2,337,758  
Land
    2,044,003       2,240,036  
Capital work in progress
    4,163,730       2,659,750  
Autos
    648,305       794,617  
Improvements
    230,759       162,896  
Subtotal
    28,000,485       24,862,892  
Accumulated depreciation
    (11,087,690 )     (8,848,431 )
    $ 16,912,795     $ 16,014,461  

For the years ended June 30, 2012 and 2011, depreciation expense totaled $2,875,883 and $2,013,388, respectively. Of these amounts, $1,879,358 and $1,450,723 are reflected as part of cost of revenues as of June 30, 2012 and 2011, respectively.

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 $331,145 and 278,308 as of June 30, 2012 and 2011, respectively.

Assets acquired under capital leases were $1,877,145 and $2,024,282 as of June 30, 2012 and 2011, respectively. Accumulated amortization related to these leases were $900,790 and $807,562 for the years ended June 30, 2012 and 2011, respectively.