Related Party Transactions
|12 Months Ended|
Jun. 30, 2017
|Related Party Transactions [Abstract]|
|Related Party Transactions||
NOTE 4 – RELATED PARTY TRANSACTIONS
In November 2004, the Company entered into a joint venture agreement with 1insurer formerly Innovation Group called NetSol-Innovation. NetSol-Innovation provides support services to 1insurer. During the years ended June 30, 2017 and 2016, NetSol Innovation provided services of $5,665,872 and $8,161,015, respectively. Accounts receivable at June 30, 2017 and 2016 were $1,462,078 and $4,689,322, respectively.
Investec Asset Finance
In October 2011, NTE entered into an agreement with Investec Asset Finance to acquire VLS. NTE and VLS provide support services to Investec. During the year ended June 30, 2017 and 2016, NTE and VLS provided maintenance and services of $1,299,784 and $4,437,917, respectively. Accounts receivable at June 30, 2017 and 2016 were $133,218 and $1,001,856, respectively. Revenue in excess of billing was $Nil and $804,168 as of June 30, 2017 and 2016, respectively. Included in the provision for bad debts is $557,909 related to Investec.
On May 31, 2017, Faizaan Ghauri, son of CEO Najeeb Ghauri, and an employee of the Company was appointed CEO of WRLD3D, a non-public company. On March 2, 2016, the Company purchased a 4.9% interest in WRLD3D for $1,111,111 and the Company’s subsidiary NetSol PK purchased a 12.2% investment in WRLD3D for $2,777,778 which will be earned over future periods by providing IT and enterprise software solutions. See Note 6 and Note 10.
Najeeb Ghauri, CEO and Chairman of the Board, and Naeem Ghauri, Director, have a financial interest in G-Force, LLC which purchased a 4.9% investment in WRLD3D, Inc.) for $1,111,111. See Note 10 “Other Long Term Assets”
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef