Annual report pursuant to Section 13 and 15(d)

Note 21 - Non-Controlling Interest In Subsidiary

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Note 21 - Non-Controlling Interest In Subsidiary
 12 Months Ended
Jun. 30, 2012
Noncontrolling Interest Disclosure [Text Block]
NOTE 21 – NON-CONTROLLING INTEREST IN SUBSIDIARY

The Company had non-controlling interests in several of its subsidiaries. The balance of non-controlling interest as of June 30, 2012 and 2011 was as follows:

SUBSIDIARY
 
Non Controlling
Interest %
   
Non-Controlling
Interest at
June 30, 2012
 
             
NetSol PK
    39.48 %   $ 13,600,492  
NetSol-Innovation
    49.90 %     1,076,832  
VLS
    49.00 %     722,096  
                 
Total
          $ 15,399,421  

SUBSIDIARY
 
Non Controlling
Interest %
   
Non-Controlling
Interest at
June 30, 2011
 
                 
NetSol PK
    39.48 %   $ 11,531,694  
NetSol-Innovation
    49.90 %     968,790  
                 
Total
          $ 12,500,484  

(A)  
NetSol Technologies, Limited (“NetSol PK”)

For the fiscal years ended June 30, 2012 and 2011, NetSol Technologies Ltd. (“NetSol PK”) had net income of $9,438,135 and $8,506,045. The related non-controlling interest was $3,736,175 and $3,469,710, respectively.

(B)  
NetSol Innovation (Private) Limited (“NetSol Innovation”)

For the fiscal years ended June 30, 2012 and 2011, NetSol Innovation (Private) Limited (“NetSol Innovation”) had net income of $1,102,318 and $1,012,368. The related non-controlling interest was $550,057 and $505,172, respectively.

During the fiscal year-ended June 2012, NetSol Innovation declared a cash dividend of $690,314, of which the Company’s interest was $348,747. The amount attributable to the non-controlling interest was $341,567 and is reflected in the accompanying consolidated financial statements.

(C)  
VIRTUAL LEASE SERVICES “VLS”)

For the period ended June 30, 2012, VLS had a net loss of $150,013. The related 49% non-controlling interest was $73,506.