Annual report pursuant to Section 13 and 15(d)

Note 10 - Investment Under Equity Method

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Note 10 - Investment Under Equity Method
12 Months Ended
Jun. 30, 2014
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments and Joint Ventures Disclosure [Text Block]
NOTE 10 – 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. (“Atheeb NetSol”) 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. Currently the Company does not have control over the operational and financial matters of Atheeb NetSol; therefore, it is considered as an associated company and accounted for under the equity method.

The Company's investment in equity for the years ended June 30, 2014 and 2013 is as follows:

Net book value at June 30, 2012
  $ -  
Investment during the period
    -  
Net income for the year ended June 30, 2013
    1,096,086  
NetSol's share (50.1%)
    549,140  
Unabsorbed losses brought forward
    (3,657 )
Total income
    545,483  
Income adjusted against investment
    545,483  
Net book value at June 30, 2013
  $ 545,483  
Investment during the period
    -  
Net loss for the year ended June 30, 2014
    (1,072,535 )
Net loss applicable to NetSol
    (545,483 )
Total loss
    (545,483 )
Loss adjusted against investment
    (545,483 )
Net book value at June 30, 2014
  $ -