Quarterly report pursuant to Section 13 or 15(d)

Debts - Schedule of Components of Notes Payable and Finance Leases (Details)

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Debts - Schedule of Components of Notes Payable and Finance Leases (Details) - USD ($)
Sep. 30, 2019
Jun. 30, 2019
Total $ 6,799,908 $ 6,608,385
Current Maturities 6,738,446 6,541,254
Long-Term Maturities 61,462 67,131
Subsidiary Finance Leases, Total [1] 790,520 861,784
Subsidiary Finance Leases, Current Maturities [1] 358,579 364,343
Subsidiary Finance Leases, Long-Term Maturities [1] 431,941 497,441
Total 7,590,428 7,470,169
Current Maturities 7,097,025 6,905,597
Long-Term Maturities 493,403 564,572
D&O Insurance [Member]    
Total [2] 15,753 67,671
Current Maturities [2] 15,753 67,671
Long-Term Maturities [2]
Bank Overdraft Facility [Member]    
Total [3]
Current Maturities [3]
Long-Term Maturities [3]
Loan Payable Bank - Export Refinance [Member]    
Total [4] 3,184,714 3,066,355
Current Maturities [4] 3,184,714 3,066,355
Long-Term Maturities [4]
Loan Payable Bank - Running Finance [Member]    
Total [5] 337,580 325,034
Current Maturities [5] 337,580 325,034
Long-Term Maturities [5]
Loan Payable Bank - Export Refinance II [Member]    
Total [6] 2,420,382 2,330,431
Current Maturities [6] 2,420,382 2,330,431
Long-Term Maturities [6]
Loan Payable Bank - Running Finance II [Member]    
Total [7] 764,331 735,925
Current Maturities [7] 764,331 735,925
Long-Term Maturities [7]
Related Party Loan [Member]    
Total [8] 77,148 82,969
Current Maturities [8] 15,686 15,838
Long-Term Maturities [8] $ 61,462 $ 67,131
[1] 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 September 30, 2019 and 2018.
[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 were ranging from 6.0% to 7.0% as of September 30, 2019 and June 30, 2019.
[3] The Companys subsidiary, NTE, has an overdraft facility with HSBC Bank plc whereby the bank would cover any overdrafts up to £300,000, or approximately $370,370. The annual interest rate was 5.12% as of September 30, 2019. Total outstanding balance as of September 30, 2019 was £Nil. 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, 2019, NTE was in compliance with this covenant.
[4] The Companys subsidiary, NetSol PK, has an export refinance facility with Askari Bank Limited, secured by NetSol PKs assets. This is a revolving loan that matures every six months. Total facility amount is Rs. 500,000,000 or $3,184,714 at September 30, 2019 and Rs. 500,000,000 or $3,066,355 at June 30, 2019. The interest rate for the loan was 3% at September 30, 2019 and June 30, 2019.
[5] The Companys subsidiary, NetSol PK, has a running finance facility with Askari Bank Limited, secured by NetSol PKs assets. Total facility amount is Rs. 75,000,000 or $477,707, at September 30, 2019. NetSol PK used Rs. 53,000,000, or $337,580 at September 30, 2019. The interest rate for the loan was 15.0% and 13.0% at September 30, 2019 and June 30, 2019, respectively.
[6] The Companys subsidiary, NetSol PK, has an export refinance facility with Samba Bank Limited, secured by NetSol PKs assets. This is a revolving loan that matures every six months. Total facility amount is Rs. 380,000,000 or $2,420,382 and Rs. 380,000,000 or $2,330,431 at September 30, 2019 and June 30, 2019, respectively. The interest rate for the loan was 3% at September 30, 2019 and June 30, 2019.
[7] The Companys subsidiary, NetSol PK, has a running finance facility with Samba Bank Limited, secured by NetSol PKs assets. Total facility amount is Rs. 120,000,000 or $764,331 and Rs. 120,000,000 or $735,925, at September 30, 2019 and June 30, 2019, respectively. The interest rate for the loan was 15.3% and 14.3% at September 30, 2019 and June 30, 2019, 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, 2019, NetSol PK was in compliance with these covenants.
[8] In March 2019, the Company's subsidiary, VLS, entered into a loan agreement. The loan amount was £69,549, or $85,863, for a period of 5 years with monthly payment of £1,349, or $1,665. As of September 30, 2019, the subsidiary has used this facility up to $77,148, of which $61,462 was shown as long-term and $15,686 as current. The interest rate was 6.14% at September 30, 2019.