NetSol Technologies

NetSol Technologies

Subject: Organizational theory Submitted to: Col. Manzoor Iqbal AwanDate of Submission: 13-May-2014Project by:Abdul Basit IrfanReg. No. 1431-112016

Contents

1- Introduction to NetSol Technologies Limited:32- Mission and Objective of the Organization:33- Strategies to achieve the objectives:44- Organizational Chart55- Fundamentals of Organizational structure:66- External and Internal Environment of the Organization:87- Relations with other Organizations:148- Use of manufacturing and service technologies and IT in the organization:159- Life Cycle of the organization, at what stage it is now, future:1510- The process of innovation and change:1811- Culture and Ethic value of the Organization:2012- Evolution, criticism and suggestions:23

1- Introduction to NetSol Technologies Limited:NetSol Technologies Limited is one of Pakistan's leading software companies. Being a multi-dimensional technology company, NetSol offers to its customers, which are mostly foreign clientele, a range of information technology servicesand custom software offerings including technology outsourcing, systems integration, application development, and consulting for business intelligence and information security.Founded in 1995, NetSol Technologies (NASDAQ: NTWK) is a global provider of software solutions andITservices, Headquartered in Calabasas, California, NetSol employs over550 employees globally, with locations in the U.S. , Europe, China and Asia Pacific. NetSol Technologies specializes in quality customer software development. As one of the few companies inthe world with aSEI-CMMI Level 5rating qualifies NetSol as a globalpreferredsoftwaresolutions provider. NetSols unique approachcombinesdeep domain expertise in financial services and emerging technologies with a world-class development team that delivers critical solutions on time and within budget.

NetSol provides a range of software products, custom development and consulting services. Lease Soft, an end-to-end core asset finance accounting and portfolio management solution, is an industry standard in a growing number of countries. NetSols list of clients include companies,nonprofit sector, technologyandtelecommunications,and Financial institutions amongthose who haveused theirservicesareMercedes-Benz,Motorola,citigroup,BMW,DaimlerChrysler,Toyota,Yamaha,QuestCommunicationsandthe InnovationGroup(TIG).

2- Mission and Objective of the Organization:Mission Statement: Deliver high quality, innovation and best class, IT solutions and services to help our customer achieve their business objectives and operational efficiencies

Sole Mission at NetSol Technologies:Sole mission of the organization is to us their top down dedication to the highest ethical principles and quality standards, their worldwide domain and subject matter expertise, their incomparable Best Shoring methodology, and their proven track record to give truly cost-effective solution that not only meets, but surpasses our needs.

Objectives of NetSol:In the year 2005, NetSol established its training division NetSol technology institute(NTI) with a vision to provide a common platform, bridging the gap between academic world and Industry itself. The major objectives of NetSol programs and activities are:

Giving due emphasis on practical principles and processes, focus on providing both the employed and unemployed workforce the knowledge, skills, and practices required for continuous improvement, overcome the challenges at work and face changes, committed to provide a healthy, safe and risk free environment to its employees, conducting comprehensive health and safety program, To make the company equal opportunity employer. To determine HR needs both in short term and long term. To attract right pool of candidates. To generate new recruitment channels. To create good relationship with other departments. To give best services to the employees. To maintain and keep database of quality applicants. The main objective is to optimize the efficiency of both human capital and businesses involved.

3- Strategies to achieve the objectives:In order to have a collaborative effort toward increasing customer value, they have made two strategic acquisitions in the U.S. and U.K. These acquisitions were intended to develop a superior vehicle to launch a combined product offering with significant brand awareness within those particular regions. The strategy they adopted is:

Demonstrated their ability as a skilled, strategic partner to deliver cost-effective, highest-quality software and consulting services to their prestigious clients. Providing customers on every continent with well-priced, innovative products developed with the highest quality standards. Keep bringing innovative products and solutions using latest tools and technology. Proper HR strategic management to meet and maintain employees commitment and their satisfaction level.4- Organizational Chart 5- Fundamentals of Organizational structure:Board of directors:Najeeb GhauriFounder, Chairman & Chief Executive OfficerNaeem Ghauri:Founder, DirectorPresident, NetSol Technologies Europe, Ltd,Head of Global Sales NetSol Technologies, Inc.

Eugen beckertDirector & Chair of Nomination and Corporate Governance CommitteeShahid Javed BurkiDirector & Chair of Audit CommitteeMark CatonDirector & Chair of Compensation CommitteeJeff BilbreyDirector

Management team:Najeeb GhauriFounderChairmanChief Executive Officer

Roger AlmondChief Financial Officer

Salim GhauriChief Executive Officer - NetSol TechnologiesNaeem GhauriPresident Global Sales - NetSol TechnologiesShaz KhanChief Operating Officer - NTABoo AliChief Accounting Officer

Patti L. W. McGlassonSenior Vice President & Legal and Corporate Affairs

Paul BankeDirector Software Development - NetSol Technologies North America

Rich ChalaVice President

Jeffrey AndrewsCommercial Director

Ivy MontgomeryVice President Marketing

Working of management team:Najeeb Ghauri (CEO) is highest-rankingcorporate officer(executive) oradministratorin charge of totalmanagementof NetSol. Najeeb Ghauri reports to theboard of directors. Najeeb Ghauri is linked with Roger Almond CFOprimarily responsible for managing thefinancialrisksof the corporation. Roger is also responsibleforfinancial planningand record-keeping, as well as financial reporting to higher management and for theanalysisof data. Imran Haider (Chief Operations Officer North America) is responsible for daily operation of NetSol and routinely reports to CEO. Imran Haider controls the working of software development department by consulting with Paul Banke director of software development department. CEO of NetSol further looks after the Vroozi workings for this purpose he gets the report of daily operations of Vroozi department by staying connected with Shaz Khan (Chief operating officer Vroozi). Salim Ghauri president of Pakistan and Naeem Ghauri president eroupe, director and head of global sales report board of directors and CEO.

6- External and Internal Environment of the Organization: External environment:The external environment of an organization is those factors outside the company that affect the company's ability to function. Some external elements can be manipulated by company marketing, while others require the organization to make adjustments. Monitor the basic components of your company's external environment, and keep a close watch at all times.Customers:NetSol customers are among the external elements; attempt to influence its customer, via marketing and strategic release of corporate information. But their relationship with their clients is based on finding ways to influence them to purchase NetSols products. NetSol frequently conduct market research under the supervision of experts which is used to determine market size, effectiveness of NetSols marketing messages, and to decide what changes should be made to future marketing programs to improve sales.Government:Government regulations in product development, packaging and shipping play a significant role in the cost of doing business and ability to expand business into new markets. Up till now government regulations imposed related with NetSol are favorable and therefore revenue of NetSol is increasing day by day. International laws create processes that NetSol is following therefore their product and services are highly acceptable in foreign markets.Economy:As NetSol deals in international market therefore majority of their elements are linked with external environment, NetSol is efficient at monitoring the economy and learning how to react to it, rather than trying to manipulate it. Economic factors guide the management team of NetSol to find the answers of these questions how to market products, how much money to be spend on business growth, and the kind of target markets to be pursued.Competition:Competition has a significant effect on how to do business and how to address target market. Competition for NetSol is almost negligible in Pakistan and also in Asia, as NetSol is the 3rd firm of Asia to be registered from NASDAQ. Furthermore they are providing quality services to their clients contributing to NetSols goodwill.

Internal environment:Internal environment of NetSol is being discussed under the following headings:Functions:NetSol is delivering quality and customization for over a period of four decades; they offer superior IT solutions that help streamline the operational needs of your business. With more than 150 satisfied clients in over 30 countries and 250 implementations globally. NetSol understand the value of customizability and strive to continually deliver unprecedented solutions which cater directly to your business needs.Product: NetSol Financial SuiteNetSol Financial Suite is a comprehensive solution that satisfies the wide and varied needs of your organizationOverview: NFS enables you to get the most out of your business, resulting in considerable cost reductions. The Core Contract Management System offers the basic functionality required by asset finance and leasing companies. There are additional, cost-effective applications that can be added to the system that increase the variety of products on offer and provide an interface with external systems. Starting from credit/loan origination to credit evaluation and onwards to contract management, NFS is the end-to-end software solution which gives you complete control of your credit portfolio.Benefits: Global System meeting local requirements Incorporating latest industry regulations and trends Customizable and flexible workflow architecture Effective and efficient risk management Point Scoring engine for accurate credit evaluation

smartOCIThe smartOCI Search Engine provides organizations with the capability to search multiple external and internal supplier catalogs from one user interface.Overview: smartOCIis a new search engine technology providing corporate buyers and shoppers a simpleand intuitiveuser interface to search multiple supplier catalogs simultaneously within the SAP SRM application.smartOCIwas designed to meet the everyday challenges of searching, locating, and ordering products from multiple web-based supplier catalogs.Features: Flexible search results layout Display list of all OCI fields Shopping cart creator Ability to block OCI vendor Configuration filters Upload company logo Define additional users Secure administration panel Integrated shopping cart Detailed statistics report Uniform cross-catalog search Easy and quick setupBenefits: Catalog Comparison Quick and Efficient Searching Empower Your eProcurement and Increase Contract Compliance Build Your Own CatalogsServices:NetSol Technologies also offers a vast variety of services. With our extensive experience in a number of fields, you can be sure to get what youre looking for, be it SAP Consultancy, Business Intelligence or Information Security.Information SecurityWe have the expertise for providing the latest technology information integrity solutions addressing your business vital security needs. Our services are designed to first comprehensively understand your organizations technological and business requirements, and inherent vulnerabilities. By working in close collaboration with you, we ensure that you have complete control of your business infrastructure, communications, and critical data.Independent System ReviewWith a broad range of testing services we cover all important aspects of development and ensure quality of your software products. Be it a complete developed application or still under development, with our ISR we can help assess the quality of your product.Business ConsultancyOur aim is to guide and enable you to innovate & change your business effectively. Our initiatives are focused towards growth; cost reduction, risk and regulations management, and streamlining of the operational process of your business.Core values:According to NetSol the core values of the organization are:

Quality: The highest level of quality assurance is what makes us who we are. Our quality standards ensure that you get the high value that you need. Our commitment to quality is demonstrated by our successfully cleared ISO 9001, ISO 27001, and SEI CMMI Maturity Level 5 (V1.2) assessments; a distinction shared by fewer than 140 companies worldwide. Innovation: At NetSol, innovation has always been a primary focus along with adherence to the highest quality assurance and control standards in software development. Driven by innovation we turn ideas into great executions which are suited to your operational needs. Expertise: With more than 1100 skilled experts strategically located in 8 service-and-delivery-centers worldwide, our team of highly qualified experts is what we take pride in. We drive success by providing the right solution to your business problems in the most efficient of ways. We rigorously follow our rules and processes which has earned us immense respect amongst our clients in major Dow-Jones 30 Industrials and Fortune 500 manufacturers.Behavior:According to NetSol the appropriate corporate behaviors adopted by organization are,

While they grow in size and scale they will continue to improve their quality ofservice and scale. They will continue to improve our quality of service delivery. They will continue to invest in training in quality. They will grow quality initiative with best practices and more quality accreditations. NetsSol will implement better tools for measuring quality both in production and customer services. Quality is not a domain with the few chosen ones but is a responsibility of all. NetSol will not pass the bucks to the Quality People when we can see and address deficiencies ourselves.

Employees importance: They care for their employees who are their most valuable assets. NetSol offers its employees a challenging and harmonious work environment where they encourage everyone to work to his or her utmost potentials. NetSol will always aim to develop long lasting relationship with its customers by delivering value for their investments.

The work place will be an environment of great learning, extra ordinary customer service, consideration for the colleagues and self-development. A place where they are happy to spend their working days.

They will be diligent expending company resources. They will use them to serve our clients better and perform our roles more effectively.

While they grow in size and scale they will continue to improve their quality of service delivery.

They will work tirelessly to grow in the efficiency and productivity using Best Practices, Innovation and Imagination.

As they are global company they will respect every other culture, religion and embrace the change and the challenges that come with such diversity.

Statement of ethical practices:Following practices are observed by each and every family member of NetSol regardless of the cadre to which he or she belongs. All the directors, employees and other personnel must observe the laws and regulations.

NetSol does not permit bribery in any form of any person involved in the companys business.

NetSol requires competition in the market place and compliance with antitrust and competition rules.

All employees and personnel must maintain the confidentiality of prices incentive information.

Employees and others should not use the price sensitive inside information for their personal advantage.

Employees and other personnel should avoid situations where personal interests could conflict, or appear to conflict, with the interest of their employer.

HR department:The department was established for meeting the following needs of the company, Acquiring Human Recourses Training Human Recourses Developing Human Recourses HR functions at NetSolThe HR department performs the following functions at NetSol, although the main heads are till the same but overall the following functions are performed by the HR department of NetSol. These include: Strategic HR management HR planning Designing and implementation of Human Resource Policies/ Procedures Human Resource Development (HRD) Career Management Compensation/ Benefits/ Perks Management Performance management Employee relationship management Job satisfaction Environment, health and safety management (EHS) HR auditing Travel management Entertainment management

Recruitment strategies:

Like everywhere the main factor that should be considered is the cost so the entire process should be an efficient and effective at the same time. To control hiring costs after selection, orientation, and start-up (training etc.) as well as costs associated with employee replacement. Choosing Recruitment Sources Untapped Recruitment Sources Diversity

Types of employment: Contract (Part Time Consultants/employees, Full time Consultants/employees) Intern Permanent

7- Relations with other Organizations:NetSol have maintained good relations with other organizations particularly their clients, which includes Scania finance great Britain ltd, D&D leasing UK ltd, Singers health care finance ltd, Investec asset finance plc and Minsheng financial leasing. NetSol have been able to maintain good relations with other organization because of adapting inter organizational system. This system allows the flow of information to be automated between organizations in order to reach a desiredsupply-chain managementsystem, which enables the development of competitive organizations. This supports forecasting client needs and the delivery of products and services. IOS helps to better manage buyer-supplier relationships by encompassing the full depths of tasks associated with business processes company-wide. In doing these activities, an organization is able to increase the productivity automatically; therefore, optimizing communication within all levels of an organization as well as between the organization and the supplier.

8- Use of manufacturing and service technologies and IT in the organization:NetSol Technologies, Inc. (NasdaqCM: NTWK) (NasdaqDubai: NTWK) is a worldwide provider of IT and enterprise application solutions, NetSol Technologies, Inc. executes its mission of focusing technology on the operational needs of its clients. NetSols services and solutions enable businesses to streamline their operations and compete more effectively. NetSol is information technology consultant and software developer firm and it is leading Internet Service Provider in Pakistan. NetSol which has clinched worldclass orders from a number of blue-chip companies globally including Mercedes Benz, ICI UK. Etc.NetSol is also focusing on the company's e-Business initiatives. It comprises of three divisions Internet connectivity (ISP), Internet technology (development tools and communications), and e-Business communities. The three divisions are working towards developing on-line and broadband businesses, localized Internet communities, and portal and shopping services.NetSol-CONNECT is also offering latest technology and Internet services using an aggregate connection. Technical Affiliations The Company currently has technical affiliations such as: a Microsoft Certified GOLD Partner; a member of the Intel Solution blueprint Program; IBM Business Partner and, an Oracle Certified Partner. 9- Life Cycle of the organization, at what stage it is now, future:Entrepreneurial stage:Network Solutions Inc.(NSI) started as a technology consulting company incorporated by Gary Desler, Ty Grigsby, Emmit J. McHenry, and Ed Peters in Washington D.C. in January 1979.In its first few years, the company focused on systems programming services, primarily in the IBM environment. Annual revenues passed $1 million in 1982, growing to $18.5 million in 1986.Network Solutions was acquired byScience Applications International Corporation(SAIC) in March 1995.John Dillon reports in MediaFilter.org: "Initially, the service was subsidized by the government. But, in May 1993, theNational Science Foundationprivatized the name registry (InterNIC - Internet Network Information Center) and paid NSI $5.9 million to administer it. In September 1995, NSI instituted the fee system. A few months earlier, it had been bought out by Science Applications International Corp (SAIC).The company issued an IPO, and was listed on NASDAQ in 1997.In 2000, Network Solutions was acquired byVeriSign, Inc. for $21 billion.On October 17, 2003, VeriSign announced the sale of the registrar business, which continued to operate under the branding Network Solutions, to Pivotal Equity Group.(VeriSign still retains the registry business which had been originally created within Network Solutions prior to VeriSign's acquisition of the company.)During January, 2006, Network Solutions acquired e-commerce solutions companyMonster Commerceco-founded by Stephanie Leffler and Ryan Noble inBelleville, Illinois.In 2008, Roy Dunbar was appointed CEO.On November 2, 2009, Tim Kelly, President of Network Solutions replaced Roy Dunbar as CEO. Roy continues to act as Chairman and advisor to Network Solutions.At the end of July, 2007, Network Solutions had 6,659,150 domains under management and was in the top five wholesale domain registrars followingGo Daddywith 19,709,215 domains andeNomwith 7,646,676 domains.Tucows, the largest publicly traded registrar, has 6,622,982 domains under management with its recent acquisition of ItsYourDomain.com.Melbourne IT, a publicly traded company located in Australia, trailed with 4,664,019 domains under management.

Collectivity stage:NetSol technologies started its journey as a US based software solution provider with a vision creates superior technology solution. Relentlessly following our vision we now stand as one of the global leader IT services and enterprise solution.

Formalization stage:NetSol Technologies, Inc. NetSol (NASDAQ: NTWK) (NASDAQ DUBAI: NTWK), a U.S corporation providing global business services and enterprise application solutions to private and public sector organizations worldwide, in conjunction with their Middle East partner Atheeb Group, announced official operational launch of the Atheeb NetSol Limited joint venture. The formalization of the legal operating entity and official operational launch mark a major milestone in the development of the dynamic fast growing Middle East market fir IT services and software development.The Atheeb NetSol limited joint venture is focused on market development opportunities around penetrating the software engineering arena in key business sectors such as telecommunications, defense, public sectors and finance, among others. Atheeb NetSol limited will leverage the strength of Atheebs local; presence in key geographical where Atheeb is operating as well as supporting private, public and governmental customer business activities. NetSol will provide best practices project management and the comprehensive delivery capabilities of its CMMI level 5 certified Center of Excellence for software engineering, research and development, as well as customer support and training. The latest activity builds up early stage business development efforts which resulted in NetSol Asia Pacific being awarded an IT services contract by Atheeb Intergraph Saudi Company (AISC) of Saudi Arabia.The first Atheeb NetSol limited board meeting was recently held at Atheeb Group world headquarters where a five year business and operational plan was ratified. The meeting was chaired by HRH Prince Abdul Aziz Bin Ahmed Bin Abdul-Aziz AlSaud, Chairman and CEI of NetSol Technologies, Inc., as well as fellow board members including Mr. Alabad Abdul-Azis, Mr. Ted Millspaugh, Mr Saad O Albaiz, Mr, Salim Ghauri and Mr. Sajjad Kirnai. In addition, a seven member management tean based in Riyadh was appointed.

Elaboration stage:At the elaboration stage we create architectural base of the system. Fast Services technical experts model and test several approaches in order to define the best one to meet Customers business goals and system needs. Upon completion of this phase the skeleton of the system is outlined. It will be the base for the creation of the final product.In the course of the specification phase one or several different prototypes (users or functional interfaces) will be presented to the Customer for confirmation. At the end of the phase the project contains exact time and cost estimate of the system construction in accordance with the demands and the architecture chosen.Present stage of NetSol:Received three new orders for NetSol financial suit solution, representing more than $15 million in combined license, maintenance and service billing. Sign a major agreement with one of Australias largest non-bank leaders with approximately $5 billion of loan and lease assets under management. Continued expansion of the customer base and business volume in the virtual lease services subsidiary, with contract numbers managed by VLS 35% higher than the previous year. Obtained the first lease PAK saas customer in North America. Broadened Vroozs channel partners in North America with addition of three new partners to facilitate increased adoption the subsidiary solution. Recently registered thirty new customers for the vrozzi purchase manager platform.

Future of NetSol:NetSol aggressive 3 to 5 year growth strategy is aimed at increasing competitiveness enhancing global delivery capabilities and increasing financial strength to become a leading global IT institution in the finance space. Achieve 15 to 25% annual revenue in next five years. Achieve 55 to 60% gross margins in 2014 and maintain 60% or better for the next three years. Achieve 70 to 75% organic growth and, 25 to 30% growth through alliances, partnerships and new markets penetration.

10- The process of innovation and change:In the course of this phase we create the final product (functional information system). The working team (programmers, designers, testers, project managers) realizes a step-by-step (iteration) construction of the project. It makes it flexible and easy to change and modify the process. International approach allows the experts to make a more effective technical planning of the different aspects of the project, including functional ones.As the Customer confirms the plan of iteration all the demands influencing the budget and the date of project conclusion are postponed and are to be turned over during next iterations. Every other iteration adds certain amount of functional opportunities and specific details to the system. It enables the Customer to follow the process of the system development more efficiently.NetSol Makes a Major Breakthrough in North American Market:NetSol Technologies Ltd., a Pakistani multinational Information Technologies company providing global business services and enterprise application solutions to private and public sector organizations worldwide, has made a major breakthrough in the North American market by signing a contract with a local company with huge portfolio to implement key components of the NetSol Financial Suite (NFS) group of products, based on a deployment for an estimated 160 dealers in the Mexican market.The implementation builds upon a successful proof of concept stage and will include the NFS Wholesale Finance System (WFS), a robust and flexible system for Floor plan lending business.

NetSol Wins Information Security Contract from a Pakistani Telco:NetSol Technologies has announced that the company has won a major contract in the area of Information Security with a leading mobile telecommunications company in Pakistan.This contract award further strengthens NetSols position as a leader in the information security services sector in Pakistan. The client selected NetSol based on the companys strong information security practices, technical expertise and proven track record in deploying large scale information security solutions for information sensitive organizations. As part of the contract, NetSols Information Security team will ensure the provisioning of hardware and software, lead the design and implementation, as well as train appropriate staff. The award of this contract reaffirms NetSols position in the market as a trusted partner for enterprise security management.NetSol Agrees New Global Framework With Auto Finance Company:NetSol Technologies Ltd., announced that it has agreed upon terms for a new global framework agreement with a blue chip captive auto finance company.This global framework is another feather in NetSols cap. It may be noted that NetSol has recently earned global recognition bysecuring CMMI Level 5certification. According to him, the NetSol Financial Suite, with component products including WFS, is adaptable to all market conditions, making it the suitable choice for large customers operating on a global framework who are looking for a cost-efficient, scalable enterprise solution for their credit and portfolio management needs. Under the terms, NetSol would expand its service delivery to the client in nine countries and install the complete NetSol Financial Suite(TM) software solution in Japan, Korea and another big economy in South Asia.NetSol Signs Contract with an Indian Firm:Citing NetSol Senior Executive Vice President Sajjad Kirmani,Pakistan Todayreported NetSol has deployed a team to setup the solution and provide trainings to local Indian staff. According to Sajjad, India is a giant of the IT industry and Pakistan is far behind in this capacity, yet entering such a big market is welcoming for the IT industry. NetSol is a Pakistani IT firm competing world over and earning foreign exchange for the countrys economy.2011 in Focus: Pakistan IT Industry Records Golden Year in History:2011 marked as a golden year in the Information and Technology (IT) industry of Pakistan with lots of unprecedented achievements, solid developments and emerging potential, building a strong hope towards the bright future of the country.Here are highlights of major achievement of Pakistan in 2011Pakistan Fast Growth 25, a ranking of fast growth entrepreneurial companies, listed 10 IT companies on its index first time. It was a tremendous achievement from the industry to get recognized at national level.Pak-India ICT Firms Vow To Enhance Trade up to $5 billionPakistani and Indian IT committee of Aman Ki Asha successfully held the bilateral talks separately on both sides of borders in March aimed at enhancing trade ties in the field of IT, which is one of six sectors with great trade attraction between two countries.Pakistanis and Indian IT titans have decided to carry on their efforts for developing an India-Pakistan e-land at the border where people can meet, interact, teach, learn and jointly develop intellectual property.Pepper.pk Mobile Apps Hit No.1 SpotPepper.pk application has hit the number one spot on the global Blackberry marketplace, App World. The application, called LED Notifier Pro, has been immensely popular since its launch and is currently ranked the best-selling Blackberry application in the world.Pepper.pk is no stranger to success or the world number one spot. Their Photo Editor for BlackBerry Smartphones has occupied the #1 rank on App World twice in the past three months and has received an overwhelming amount of global media coverage.

11- Culture and Ethic value of the Organization:Ethics:Following practices are observed by each and every family member of NetSol regardless ofthe cadre to which he or she belongs.

All the directors, employees and other personnel must observe the laws and regulations. NetSol does not permit bribery in any form of any person involved in the companys business. NetSol requires competition in the market place and compliance with anti trustand competition rules. Allemployeesandpersonnelmustmaintaintheconfidentialityofpricesensitive information. Employees and others should not use the price sensitive inside information fortheir personal advantage. Employeesandotherpersonnelshouldavoidsituationswherepersonalinterests could conflict, or appear to conflict, with the interest of their employer.

Culture:The Company believes it has developed a strong corporate culture that is critical to its success. Its key values are delivering world-class quality software, client-focused timely delivery, leadership, long-term relationships, creativity, openness and transparency and professional growth. The services provided by NetSol require proficiency in many fields, such as software engineering, project management, business analysis, technical writing, sales and marketing, communication and presentation skills. To encourage all employees to build on our core values, we reward teamwork and promote individuals who demonstrate these values. NetSol offers all of its employees the opportunity to participate in its stock option program. Also, the Company has an intensive orientation program for new employees to introduce our core values and a number of internal communications and training initiatives defining and promoting these core values. We 12believe that our growth and success are attributable in large part to the high caliber of our employees and our commitment to maintain the values on which our success has been based. NetSol worldwide is an equal opportunity employer. NetSol believes it should give back to the community and employees as much as possible. Certain of our subsidiaries are located in regions where basic services are not readily available. Where possible, NetSol acts to not only improve the quality of life of its employees but the standard of living in these regions. Examples of such programs are: Humanitarian Relief: We are all aware of the devastation that can be wrought by natural disasters. NetSol has historically supported earthquake and flood relief where the need is the greatest. As recently as last year, the company established a fund raising effort on a worldwide basis to encourage outside and employee contributions to relief efforts. Literacy Program-- launched to educate low paid illiterate employees of the organization. The main objective of this program is to enable these resources to acquire basic reading, writing and arithmetic skills. The first phase of the plan was completed with astounding accomplishments; the people who could not even write a single word are now able to write complete letters within a span of 6 months. This initiative has been extremely successful and NetSol intends to further support this program. Noble Cause Fund--A noble cause fund has been established to meet medical and education expenses of the children of the low paid employees. NetSol employees voluntarily contribute a fixed amount every month to the fund and the Company matches the employee subscriptions with an equivalent amount contribution. A portion of this fund is utilized to support social needs of certain institutions and individuals, outside NetSol. Day Care Facility--NetSols human resources are its key assets and thus the Company takes numerous steps to ensure the provision of basic comforts to its employees. In Pakistan, the provision of outside pre-school child care is a rarity. Keeping in view this requirement, a Child Day Care facility has been created in close proximity to the work premises equipped with the necessary essential staff and equipment. Married female employees are offered the opportunity to entrust complete care of their young ones to a trained and experienced staff. Child day care allows female employees to pay unhindered focused attention to work requirements while their child remains safe and comfortable. The premises and environment are neat and clean with all basic needs fulfilled to ensure complete care of the children. Preventative Health Care Program--In addition to the comprehensive out-patient and in-patient medical Benefits, preventive health care has also been introduced. This phased program focuses on vaccination of our Employees against Hepatitis A/B, Tetanus, Typhoid and Flu, etc. This is a regular annual immunization Program to keep employees healthy. NetSol Corporate University-- NetSol Corporate University (NCU) was established for developing human Resources at NetSol. A need was felt to further develop and retain the talent at hand through strategic learning Interventions to respond to growing competition and challenges. Overall, NetSol as a global IT company has over 25% female employees with the biggest concentration in our Development facility in Lahore and in the U.S headquarters. The Company is an equal opportunity employer. Being a successful company with a well-respected name in the business community, NetSol encourages its employees to Actively participate and contribute to charitable contributions for catastrophic tragedies anywhere in the globe. There is significant competition for employees with the skills required to perform the services we offer. The company runs an elaborate training program for different cadre of employees ranging from technical knowledge, business domains as well as communication, management and leadership skills. The Company believes that it has Been successful in its efforts to attract and retain the highest level of talent available, in part because of the emphasis on core values, training and professional growth. We intend to continue to recruit, hire and promote employees who share this vision. As of June 30, 2012, we had 854 full-time employees and 3part-time employees; comprised of 657 IT project and technical personnel; and 197 non-IT personnel. The non-IT personnel include 23 employees in management, 35 employees in sales and marketing, 27 employees in accounting, 18 in customer support, and 94 in general and administration. None of our employees are subject to a collective bargaining agreement.

12- Evolution, criticism and suggestions:Evolution: Management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the end of the period covered by this Annual Report on Form 10-K. Based upon that evaluation, the Chief Financial Officer and Chief Executive Officer concluded that our disclosure controls and procedures were not effective.

Criticism:Front running happens when someone observes domain searches being made by another person, and registers that domain out from under the searcher. Its a long-rumored practice that infuriates legitimate domain searchers. In addressing their regular practice of front running domains, Network Solutions told Circled they are trying to thwart the domain tasters who try to take advantage of the five-day test period for domains. We are trying to take an arrow out of the quiver of the tasters," Jonathon Nevett, Vice President of Policy at Network Solutions, said at Circled. "Due to no fault of registrars, Front Runners purchase search data from Internet Service Providers and/or registries and then taste those names."If one searches for a domain at Network Solutions, but doesnt purchase it immediately, Network Solutions puts it on reserve. During the next four days, it can only be purchased from Network Solutions before being released back to the registry.Network Solutions charges $34.99 for a standard registration. Over a decade ago, that was the going rate. Today, numerous registrars offer far more competitive pricing.This has caused much of the criticism about the Network Solutions policy. People who search for the domain on Network Solutions and go elsewhere to buy it find they cannot. Waiting for it to expire at Network Solutions could allow someone else who is willing to pay the going rate to grab it first. People who are waiting for ICANN to resolve the situation probably wont get satisfaction from that group.Domain Name Newsnoted a study by ICANN found the practice isnt expressly prohibited by the terms of ICANNs registrar agreements.

Suggestion:NetSol is committed to conducting its business operations in a manner that sustainstheenvironmentandprotectsthehealthandsafetyofitsemployees.NetSolstrivesforcontinuous improvement in its environmental, health and safety program and has set forth the following objectives: Compliance with all applicable laws, regulations, and standards. Conservation of energy and natural resources. Consideration for employee safety and well-being. Cooperation and positive relationships with Suppliers and Subcontractors. Encourage alignment with its Environmental, Health and Safety Policy. Communication of NetSol Environmental, Health and Safety policy to employees, partners, and associates.

They care for their employees who are their most valuable assets. NetSol offers itsemployeesachallengingandharmoniousworkenvironmentwherethey encourage everyone to work to his or her utmost potentials. NetSol will always aim to develop long lasting relationship with its customers by delivering value for their investments. The work place will be an environment of great learning, extra ordinary customerservice, consideration for the colleagues and self-development. A place where they are happy to spend their working days. They will be diligent expending company resources. They will use them to serve our clients better and perform our roles more effectively. While they grow in size and scale they will continue to improve their quality ofservice delivery.

The end