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, 2023
Jun. 30, 2022
Line of Credit Facility [Line Items]    
Total $ 5,927,409 $ 8,974,797
Current Maturities 5,754,560 8,532,050
Long-Term Maturities 172,849 442,747
Subsidiary Finance Leases, Total [1] 28,330 68,571
Subsidiary Finance Leases, Current Maturities [1] 24,950 35,095
Subsidiary Finance Leases, Long-Term Maturities [1] 3,380 33,476
Total 5,955,739 9,043,368
Current Maturities 5,779,510 8,567,145
Long-Term Maturities $ 176,229 $ 476,223
Askari Bank Limited [Member] | NetSol PK [Member]    
Line of Credit Facility [Line Items]    
Debt Instrument, Interest Rate, Stated Percentage 17.00% 3.00%
Askari Bank Limited [Member] | NetSol PK [Member] | Refinance Facility [Member]    
Line of Credit Facility [Line Items]    
Debt Instrument, Interest Rate, Stated Percentage 3.00% 3.00%
D&O Insurance [Member]    
Line of Credit Facility [Line Items]    
Total [2] $ 89,823 $ 89,552
Current Maturities [2] 89,823 89,552
Long-Term Maturities [2]
Bank Overdraft Facility [Member]    
Line of Credit Facility [Line Items]    
Total [3]
Current Maturities [3]
Long-Term Maturities [3]
Term Finance Facility [Member]    
Line of Credit Facility [Line Items]    
Total [4] 423,101
Current Maturities [4] 423,101
Long-Term Maturities [4]
Loan Payable Bank - Export Refinance [Member]    
Line of Credit Facility [Line Items]    
Total [5] 1,741,493 2,434,749
Current Maturities [5] 1,741,493 2,434,749
Long-Term Maturities [5]
Loan Payable Bank - Running Finance [Member]    
Line of Credit Facility [Line Items]    
Total [6]
Current Maturities [6]
Long-Term Maturities [6]
Loan Payable Bank - Export Refinance II [Member]    
Line of Credit Facility [Line Items]    
Total [7] 1,323,535 1,850,409
Current Maturities [7] 1,323,535 1,850,409
Long-Term Maturities [7]
Loan Payable Bank - Export Refinance III [Member]    
Line of Credit Facility [Line Items]    
Total [8] 2,438,089 3,408,648
Current Maturities [8] 2,438,089 3,408,648
Long-Term Maturities [8]
Sale and Leaseback Financing [Member]    
Line of Credit Facility [Line Items]    
Total [9] 321,113 619,108
Current Maturities [9] 148,264 189,226
Long-Term Maturities [9] 172,849 429,882
Term Finance Facility One [Member]    
Line of Credit Facility [Line Items]    
Total [10] 13,356 31,204
Current Maturities [10] 13,356 18,339
Long-Term Maturities [10] 12,865
Insurance Financing [Member]    
Line of Credit Facility [Line Items]    
Total [11] 118,026
Current Maturities [11] 118,026
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, 2023 and 2022.
[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 7.9% and 5.0% to 7.0% as of June 30, 2023 and 2022, 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 $379,747. The annual interest rate was 9.5% and 5.5% as of June 30, 2023 and 2022, respectively. The total outstanding balance as of June 30, 2023 and 2022 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. nil or $nil, at June 30, 2023. The availed facility amount is Rs. 86,887,974 or $423,101, at June 30, 2022, which is shown as current. The interest rate for the loan was 3% at June 30, 2023 and 2022.
[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 $1,741,493 and Rs. 500,000,000 or $2,434,749 at June 30, 2023 and 2022, respectively. The interest rate for the loan was 17.0% and 3.0% at June 30, 2023 and 2022, respectively.
[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 $186,688 and Rs. 53,600,000 or $261,005, at June 30, 2023 and 2022, respectively. The balance outstanding at June 30, 2023 and 2022 was Rs. Nil. The interest rate for the loan was 24.9% and 14.0% at June 30, 2023 and 2022, 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 $1,323,535 and Rs. 380,000,000 or $1,850,409, at June 30, 2023 and 2022, respectively. The interest rate for the loan was 18.0% and 3.0% at June 30, 2023 and 2022, respectively.
[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 $3,134,687 and Rs. 900,000,000 or $4,382,548, at June 30, 2023 and 2022, respectively. NetSol PK used Rs. 700,000,000 or $2,438,089 and Rs. 700,000,000 or $3,408,648, at June 30, 2023 and 2022, respectively. The interest rate for the loan was 18.0% and 3.0% at June 30, 2023 and 2022, respectively.
[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, 2023, NetSol PK used Rs. 92,194,774 or $321,113 of which $172,849 was shown as long term and $148,264 as current. 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. The interest rate for the loan was ranging from 9.0% to 16.0% at June 30, 2023 and 2022.
[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 $88,037, for a period of 5 years with monthly payments of £1,349, or $1,708. As of June 30, 2023, the subsidiary has used this facility up to $13,356, which was shown as current. The interest rate was 6.14% at June 30, 2023.
[11] The Company’s subsidiary, VLS, finances Directors’ and Officers’ (“D&O”) liability insurance, and $nil and $96,781 was recorded in current maturities, at June 30, 2023 and 2022, respectively. The interest rate on this financing ranged from 9.7% to 12.7% as of June 30, 2023 and 2022.