Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Property, Plant and Equipment

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Note 7 - Property, Plant and Equipment
 3 Months Ended
Sep. 30, 2011
Property, Plant and Equipment Disclosure [Text Block]
NOTE 7 - PROPERTY AND EQUIPMENT

Property and equipment, net, consisted of the following:

   
As of September 30
   
As of June 30
 
   
2011
   
2011
 
             
Office furniture and equipment
  $ 1,162,054     $ 1,179,993  
Computer equipment
    13,937,589       13,463,560  
Assets under capital leases
    2,075,151       2,024,282  
Building
    2,287,618       2,337,758  
Land
    2,191,991       2,240,036  
Capital work in progress
    3,277,018       2,659,750  
Autos
    643,246       794,617  
Improvements
    160,013       162,896  
Subtotal
    25,734,679       24,862,892  
Accumulated depreciation
    (9,264,932 )     (8,848,431 )
    $ 16,469,748     $ 16,014,461  

For the three months ended September 30, 2011 and 2010, depreciation expense totaled $636,568 and $369,565 respectively.  Of these amounts, $462,543 and $256,484 respectively, are reflected as part of 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 $77,627 and $278,308as of September 30, 2011 and June 30, 2011, respectively.