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
 6 Months Ended
Dec. 31, 2011
Property, Plant and Equipment Disclosure [Text Block]
NOTE 7 - PROPERTY AND EQUIPMENT

Property and equipment, net, consisted of the following:

   
As of December 31
   
As of June 30
 
   
2011
   
2011
 
             
Office furniture and equipment
  $ 1,450,058     $ 1,179,993  
Computer equipment
    14,558,695       13,463,560  
Assets under capital leases
    2,133,802       2,024,282  
Building
    2,234,866       2,337,758  
Land
    2,141,444       2,240,036  
Capital work in progress
    3,473,202       2,659,750  
Autos
    617,623       794,617  
Improvements
    235,784       162,896  
Subtotal
    26,845,474       24,862,892  
Accumulated depreciation
    (9,926,132 )     (8,848,431 )
    $ 16,919,342     $ 16,014,461  

For the six months ended December 31, 2011 and 2010, depreciation expense totaled $1,374,116 and $765,004 respectively.  Of these amounts, $953,898 and $537,424 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 $155,739 and $278,308 as of December 31, 2011 and June 30, 2011, respectively.