Quarterly report pursuant to Section 13 or 15(d)

Debts - Components of Notes Payable and Capital Leases (Details)

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Debts - Components of Notes Payable and Capital Leases (Details) - USD ($)
Sep. 30, 2017
Jun. 30, 2017
Sep. 30, 2016
Total $ 9,679,777 $ 9,861,787  
Current Maturities 9,679,777 9,861,787  
Long-Term Maturities  
Subsidiary Capital Leases, Total [1] 644,549 727,770  
Subsidiary Capital Leases, Current Maturities [1] 336,920 361,008  
Subsidiary Capital Leases, Long-Term Maturities [1] 307,629 366,762  
Total 10,324,326 10,589,557  
Current Maturities 10,016,697 10,222,795 $ 4,408,173
Long-Term Maturities 307,629 366,762 $ 539,859
D&O Insurance [Member]      
Total [2] 31,153 87,485  
Current Maturities [2] 31,153 87,485  
Long-Term Maturities [2]  
Bank Overdraft Facility [Member]      
Total [3] 216,442 221,379  
Current Maturities [3] 216,442 221,379  
Long-Term Maturities [3]  
Loan Payable Bank - Export Refinance [Member]      
Total [4] 4,716,090 4,776,461  
Current Maturities [4] 4,716,090 4,776,461  
Long-Term Maturities [4]  
Loan Payable Bank - Export Refinance II [Member]      
Total [5] 3,301,265 1,910,585  
Current Maturities [5] 3,301,265 1,910,585  
Long-Term Maturities [5]  
Loan Payable Bank - Running Finance [Member]      
Total [6] 1,414,827 2,865,877  
Current Maturities [6] 1,414,827 2,865,877  
Long-Term Maturities [6]  
[1] The Company leases various fixed assets under capital lease arrangements expiring in various years through 2022. 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 three months ended September 30, 2017 and 2016.
[2] The Company finances Directors' and Officers' ("D&O") liability insurance, Errors and Omissions ("E&O") liability insurance and some account payables, 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 4.8% to 7.69% as of September 30, 2017 and June 30, 2017.
[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 $400,000. The annual interest rate was 4.75% as of September 30, 2017. Total outstanding balance as of September 30, 2017 was £162,332 or approximately $216,442. Interest expense for three months ended September 30, 2017 and 2016, was $2,054 and $Nil, respectively.This overdraft 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 September 30, 2017, NTE was in compliance with this covenant.
[4] 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. Total facility amount is Rs. 500,000,000 or $4,716,090 at September 30, 2017 and June 30, 2017. The interest rate for the loans was 3% at September 30, 2017 and June 30, 2017. Interest expense for the three months ended September 30, 2017 and 2016 was $35,898 and $29,065, 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 September 30, 2017, NetSol PK was in compliance with this covenants.
[5] 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. Total facility amount is Rs. 350,000,000 or $3,301,265 and Rs. 200,000,000 or $1,910,585, at September 30, 2017 and June 30, 2017, respectively. The interest rate for the loans was 3% at September 30, 2017 and June 30, 2017. Interest expense for the three months ended September 30, 2017 and 2016 was $22,122 and $Nil, respectively.
[6] The Company's subsidiary, NetSol PK, has a running finance facility with Samba Bank Limited, secured by NetSol PK's assets. Total facility amount is Rs. 150,000,000 or $1,414,827 and Rs. 300,000,000 or $2,865,877, at September 30, 2017 and June 30, 2017, respectively. The interest rate for the loans was 8.13% at September 30, 2017 and June 30, 2017, respectively. Interest expense for the three months ended September 30, 20147 and 2016 was $44,095 and $Nil, respectively.During the tenure of loan, the facilities from Samba Bank Limited require NetSol PK to maintain at a minimum a current ratio of 1:1, an interest coverage ratio of 4 times, a leverage ratio of 2 times, and a debt service coverage ratio of 4 times. As of September 30, 2017, NetSol PK was in compliance with these covenants.