Annual report pursuant to Section 13 and 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 ($)
Jun. 30, 2022
Jun. 30, 2021
Debt Instrument [Line Items]    
Total $ 8,974,797 $ 11,897,905
Current Maturities 8,532,050 11,246,678
Long-Term Maturities 442,747 651,227
Subsidiary Finance Leases, Total [1] 68,571 168,107
Subsidiary Finance Leases, Current Maturities [1] 35,095 119,493
Subsidiary Finance Leases, Long-Term Maturities [1] 33,476 48,614
Total 9,043,368 12,066,012
Current Maturities 8,567,145 11,366,171
Long-Term Maturities 476,223 699,841
D And O Insurance [Member]    
Debt Instrument [Line Items]    
Total [2] 89,552 73,143
Current Maturities [2] 89,552 73,143
Long-Term Maturities [2]
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] 423,101 1,648,818
Current Maturities [4] 423,101 1,090,259
Long-Term Maturities [4] 558,559
Loan Payable Bank One [Member]    
Debt Instrument [Line Items]    
Total [5] 2,434,749 3,162,555
Current Maturities [5] 2,434,749 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] 1,850,409 2,403,542
Current Maturities [7] 1,850,409 2,403,542
Long-Term Maturities [7]
Loan Payable Bank Four [Member]    
Debt Instrument [Line Items]    
Total [8] 3,408,648 4,427,578
Current Maturities [8] 3,408,648 4,427,578
Long-Term Maturities [8]
Sale and Lease Back Financing [Member]    
Debt Instrument [Line Items]    
Total [9] 619,108 85,313
Current Maturities [9] 189,226 28,183
Long-Term Maturities [9] 429,882 57,130
Term Finance Facility One [Member]    
Debt Instrument [Line Items]    
Total [10] 31,204 55,182
Current Maturities [10] 18,339 19,644
Long-Term Maturities [10] 12,865 35,538
Insurance Financing [Member]    
Debt Instrument [Line Items]    
Total [11] 118,026 41,774
Current Maturities [11] 118,026 41,774
Long-Term Maturities [11]
[1] The Company leases various fixed assets under capital lease arrangements expiring in various years through 2024. The assets and liabilities under capital 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 capital leases is included in depreciation expense for the years ended June 30, 2022 and 2021.
[2] 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 range from 5.0% to 7.0% as of June 30, 2022 and 2021, respectively.
[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 $365,854. The annual interest rate was 5.5% and 5.1% as of June 30, 2022 and 2021, respectively. The total outstanding balance as of June 30, 2022 and 2021 was £nil.
[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 is Rs. 86,887,974 or $423,101, at June 30, 2022, which is shown as current. The availed facility amount was Rs. 260,678,180 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 June 30, 2022 and 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 six months. The total facility amount is Rs. 500,000,000 or $2,434,749 and Rs. 500,000,000 or $3,162,555 at June 30, 2022 and 2021, respectively. The interest rate for the loan was 3% at June 30, 2022 and 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. 53,600,000 or $261,005 and Rs. 75,000,000 or $474,383, at June 30, 2022 and 2021, respectively. The balance outstanding at June 30, 2022 and 2021 was Rs. Nil. The interest rate for the loan was 14.0% and 9.5% at June 30, 2022 and 2021, respectively.
[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 six months. The total facility amount is Rs. 380,000,000 or $1,850,409 and Rs. 380,000,000 or $2,403,542, at June 30, 2022 and 2021, respectively. The interest rate for the loan was 3% at June 30, 2022 and 2021.
[8] 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. 900,000,000 or $4,382,548 and Rs. 900,000,000 or $5,692,600, at June 30, 2022 and 2021, respectively. NetSol PK used Rs. 700,000,000 or $3,408,648 and Rs. 700,000,000 or $4,427,578, at June 30, 2022 and 2021, respectively. The interest rate for the loan was 3% at June 30, 2022 and 2021.
[9] 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 June 30, 2022, NetSol PK used Rs. 127,140,038 or $619,108 of which $429,882 was shown as long term and $189,226 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 ranging from 9.0% to 16.0% at June 30, 2022 and 2021.
[10] In March 2020, the Company’s subsidiary, VLS, entered into a loan agreement with Investec Bank PLC. The loan amount was £69,549, or $84,816, for a period of 5 years with monthly payments of £1,349, or $1,645. As of June 30, 2022, the subsidiary has used this facility up to $31,204, of which $12,865 was shown as long-term and $18,339 as current. The interest rate was 6.14% at June 30, 2022.
[11] The Company’s subsidiary, VLS, finances Directors’ and Officers’ (“D&O”) liability insurance, and the $96,781 and $41,774 was recorded in current maturities, at March 31, 2022 and June 30, 2021, respectively. The interest rate on this financing ranged from 9.7% to 12.7% as of June 30, 2022 and was 9.7% as of June 30, 2021.