Quarterly report pursuant to Section 13 or 15(d)

SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES (Details)

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SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES (Details) - USD ($)
Dec. 31, 2021
Jun. 30, 2021
Debt Instrument [Line Items]    
Total $ 10,157,358 $ 11,897,905 [1]
Current Maturities 10,095,035 11,246,678
Long-Term Maturities 62,323 651,227
Subsidiary Finance Leases, Total [2] 110,912 168,107
Subsidiary Finance Leases, Current Maturities [2] 52,958 119,493
Subsidiary Finance Leases, Long-Term Maturities [2] 57,954 48,614
Total 10,268,270 12,066,012
Current Maturities 10,147,993 11,366,171
Long-Term Maturities 120,277 699,841
D And O Insurance [Member]    
Debt Instrument [Line Items]    
Total [1] 146,959 73,143
Current Maturities [1] 146,959 73,143
Long-Term Maturities [1]
Bank Overdraft Facility [Member]    
Debt Instrument [Line Items]    
Total [3]
Current Maturities [3]
Long-Term Maturities [3]
Term Finance Facility [Member]    
Debt Instrument [Line Items]    
Total [4] 979,250 1,648,818
Current Maturities [4] 979,250 1,090,259
Long-Term Maturities [4] 558,559
Loan Payable Bank One [Member]    
Debt Instrument [Line Items]    
Total [5] 2,817,219 3,162,555
Current Maturities [5] 2,817,219 3,162,555
Long-Term Maturities [5]
Loan Payable Bank Two [Member]    
Debt Instrument [Line Items]    
Total [6]
Current Maturities [6]
Long-Term Maturities [6]
Loan Payable Bank Three [Member]    
Debt Instrument [Line Items]    
Total [7] 2,141,086 2,403,542
Current Maturities [7] 2,141,086 2,403,542
Long-Term Maturities [7]
Loan Payable Bank Four [Member]    
Debt Instrument [Line Items]    
Total [8]
Current Maturities [8]
Long-Term Maturities [8]
Loan Payable Bank Five [Member]    
Debt Instrument [Line Items]    
Total [9] 3,944,107 4,427,578
Current Maturities [9] 3,944,107 4,427,578
Long-Term Maturities [9]
Sale and Lease Back Financing [Member]    
Debt Instrument [Line Items]    
Total [10] 64,193 85,313
Current Maturities [10] 26,442 28,183
Long-Term Maturities [10] 37,751 57,130
Term Finance Facility One [Member]    
Debt Instrument [Line Items]    
Total [11] 44,280 55,182
Current Maturities [11] 19,708 19,644
Long-Term Maturities [11] 24,572 35,538
Insurance Financing [Member]    
Debt Instrument [Line Items]    
Total [12] 20,264 41,774
Current Maturities [12] 20,264 41,774
Long-Term Maturities [12]
[1] The Company finances Directors’ and Officers’ (“D&O”) liability insurance and Errors and Omissions (“E&O”) liability insurance, for which the D&O and E&O balances are renewed on an annual basis and, as such, are recorded in current maturities. The interest rate on these financings were ranging from 5.0% to 7.0% as of December 31, 2021 and June 30, 2021.
[2] The Company leases various fixed assets under finance lease arrangements expiring in various years through 2024. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are secured by the assets themselves. Depreciation of assets under finance leases is included in depreciation expense for the three months ended December 31, 2021 and 2020.
[3] The Company’s subsidiary, NTE, has an overdraft facility with HSBC Bank plc whereby the bank would cover any overdrafts up to £300,000, or approximately $405,405. The annual interest rate was 5.12% as of December 31, 2021. The total outstanding balance as of December 31, 2021 and June 30, 2021 was £Nil. Thisoverdraft facility requires that the aggregate amount of invoiced trade debtors (net of provisions for bad and doubtful debts and excluding intra-group debtors) of NTE, not exceeding 90 days old, will not be less than an amount equal to 200% of the facility. As of December 31, 2021, NTE was in compliance with this covenant.
[4] The Company’s subsidiary, NetSol PK, has a term finance facility from Askari Bank Limited, approved by the Government of Pakistan to protect the employment situation during the COVID-19 pandemic. This is a term loan payable in three years. The availed facility amount was Rs. 173,797,255 or $979,250, at December 31, 2021, which is shown as current. The availed facility amount was Rs. 260,678,818 or $1,648,818, at June 30, 2021, of which $1,090,259 is shown as current and the remaining $558,559 is shown as long term. The interest rate for the loan was 3% at December 31, 2021 and June 30, 2021.
[5] The Company’s subsidiary, NetSol PK, has an export refinance facility with Askari Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs. 500,000,000 or $2,817,219 at December 31, 2021 and Rs. 500,000,000 or $3,162,555 at June 30, 2021. The interest rate for the loan was 3% at December 31, 2021 and June 30, 2021.
[6] The Company’s subsidiary, NetSol PK, has a running finance facility with Askari Bank Limited, secured by NetSol PK’s assets. The total facility amount is Rs. 75,000,000 or $422,583, at December 31, 2021. The balance outstanding at December 31, 2021 and June 30, 2021 was Rs. Nil. The interest rate for the loan was 12.5% and 9.5% at December 31, 2021 and June 30, 2021, respectively. This facility requires NetSol PK to maintain a long-term debt equity ratio of 60:40 and the current ratio of 1:1. As of December 31, 2021, NetSol PK was in compliance with this covenant.
[7] The Company’s subsidiary, NetSol PK, has an export refinance facility with Samba Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs. 380,000,000 or $2,141,086 and Rs. 380,000,000 or $2,403,542 at December 31, 2021 and June 30, 2021, respectively. The interest rate for the loan was 3% at December 31, 2021 and June 30, 2021.
[8] The Company’s subsidiary, NetSol PK, has a running finance facility with Samba Bank Limited, secured by NetSol PK’s assets. The total facility amount is Rs. 120,000,000 or $676,133 and Rs. 120,000,000 or $759,013, at December 31, 2021 and June 30, 2021, respectively. The interest rate for the loan was 12.0% and 9.0% at December 31, 2021 and June 30, 2021, respectively. The balance outstanding at December 31, 2021 and June 30, 2021 was Rs. Nil.
[9] The Company’s subsidiary, NetSol PK, has an export refinance facility with Habib Metro Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs.
[10] The Company’s subsidiary, NetSol PK, availed sale and leaseback financing from First Habib Modaraba secured by the transfer of the vehicles’ title. As of December 31 2021, NetSol PK used Rs. 11,392,924 or $64,193 of which $37,751 was shown as long term and $26,442 as current. As of June 30, 2021, NetSol PK used Rs. 13,487,949 or $85,313 of which $57,130 was shown as long term and $28,183 as current. The interest rate for the loan was 9.0% at December 31, 2021, and June 30, 2021.
[11] In March 2019, the Company’s subsidiary, VLS, entered into a loan agreement. The loan amount was £69,549, or $93,985, for a period of 5 years with monthly payments of £1,349, or $1,823. As of December 31, 2021, the subsidiary has used this facility up to $44,280, of which $24,572 was shown as long-term and $19,708 as current. As of June 30, 2021, the subsidiary has used this facility up to $55,182, of which $35,538 was shown as long-term and $19,644 as current. The interest rate was 6.14
[12] The Company’s subsidiary, VLS, finances Directors’ and Officers’ (“D&O”) liability insurance, and the $20,264 and $41,774 was recorded in current maturities, at December 31, 2021 and June 30, 2021, respectively. The interest rate on this financing ranged from 9.7% to 12.7% as of December 31, 2021 and was 9.7% as of June 30, 2021.