Investment Under Equity Method

12 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Investment Under Equity Method

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. The Company had no control over the operational and financial matters of Atheeb NetSol; therefore, it was considered as an associated company and accounted for under the equity method. Due to change in foreign laws and losses the Company has withdrawn from the joint venture. As a result, the net value of the investment in the accompanying financial statements as of June 30, 2015 & 2014 was $Nil.