Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Investment Under Equity Method

v2.4.0.6
Note 11 - Investment Under Equity Method
 9 Months Ended
Mar. 31, 2013
Equity Method Investments and Joint Ventures Disclosure [Text Block]
NOTE 11 – INVESTMENT UNDER EQUITY METHOD

On April 10, 2009, the Company entered into an agreement to form a joint venture with the Atheeb Trading Company, a member of the Atheeb Group (“Atheeb”). The joint venture entity Atheeb NetSol Saudi Company Ltd. is a company organized under the laws of the Kingdom of Saudi Arabia. The venture was formed with an initial capital contribution of $268,000 by the Company and $266,930 by Atheeb with a profit sharing ratio of 50.1:49.9, respectively. The final formation of the company was completed on March 7, 2010.

Investment during the period
    100,000  
Net loss for the year ended June 30, 2012
    (503,303 )
NetSol's share (50.1%)
    (252,155 )
Unabsorbed losses brought forward
    (51,731 )
Total loss
    (303,886 )
Loss adjusted against investment
    (100,000 )
Loss adjusted against advance to investee
    (200,000 )
Net book value at June 30, 2012
  $ -  
         
Investment during the period
    -  
Net income for the period ended March 31, 2013
    1,067,007  
NetSol's share (50.1%)
    534,571  
Unabsorbed losses brought forward
    (3,657 )
Total income
    530,914  
Income adjusted against investment
    530,914  
Net book value at March 31, 2013
  $ 530,914