Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Investment Under Equity Method

v2.4.0.6
Note 10 - Investment Under Equity Method
 9 Months Ended
Mar. 31, 2012
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. 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.

Net book value at June 30, 2010
  $ 200,506  
         
Net loss for the year ended June 30, 2011
    (542,929 )
NetSol's share (50.1%)
    (272,007 )
Loss adjusted against investment
    (200,506 )
         
Net book value at June 30, 2011
  $ -  
         
Investment during the period
    100,000  
Net loss for the nine months ended March 31, 2012
    (377,350 )
NetSol's share (50.1%)
    (189,052 )
Unabsorbed losses brought forward
    (51,731 )
Total loss
    (240,784 )
Loss adjusted against investment
    (100,000 )
Loss adjusted against advance to investee
    (140,784 )
Net book value at March 31, 2012
  $ -