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Debts (Tables) | 3 Months Ended
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Sep. 30, 2017
Debt Disclosure [Abstract] |
Components of Notes Payable and Capital Leases | Notes payable and capital leases consisted of the following:
|  |  |  |  | As of September 30, 2017 |
|  |  |  |  |  |  |  | Current |  |  | Long-Term |
Name |  |  |  |  | Total |  |  | Maturities |  |  | Maturities |
D&O Insurance |  |  | (1 | ) |  | $ | 31,153 |  |  | $ | 31,153 |  |  | $ | - |
Bank Overdraft Facility |  |  | (2 | ) |  |  | 216,442 |  |  |  | 216,442 |  |  |  | - |
Loan Payable Bank - Export Refinance |  |  | (3 | ) |  |  | 4,716,090 |  |  |  | 4,716,090 |  |  |  | - |
Loan Payable Bank - Export Refinance II |  |  | (4 | ) |  |  | 3,301,265 |  |  |  | 3,301,265 |  |  |  | - |
Loan Payable Bank - Running Finance |  |  | (5 | ) |  |  | 1,414,827 |  |  |  | 1,414,827 |  |  |  | - |
|  |  |  |  |  |  | 9,679,777 |  |  |  | 9,679,777 |  |  |  | - |
Subsidiary Capital Leases |  |  | (6 | ) |  |  | 644,549 |  |  |  | 336,920 |  |  |  | 307,629 |
|  |  |  |  |  | $ | 10,324,326 |  |  | $ | 10,016,697 |  |  | $ | 307,629 |
|  |  |  |  |  | As of June 30, 2017 |
|  |  |  |  |  |  |  |  |  |  | Current |  |  |  | Long-Term |
Name |  |  |  |  |  |  | Total |  |  |  | Maturities |  |  |  | Maturities |
D&O Insurance |  |  | (1 | ) |  | $ | 87,485 |  |  | $ | 87,485 |  |  | $ | - |
Bank Overdraft Facility |  |  | (2 | ) |  |  | 221,379 |  |  |  | 221,379 |  |  |  | - |
Loan Payable Bank - Export Refinance |  |  | (3 | ) |  |  | 4,776,461 |  |  |  | 4,776,461 |  |  |  | - |
Loan Payable Bank - Export Refinance II |  |  | (4 | ) |  |  | 1,910,585 |  |  |  | 1,910,585 |  |  |  | - |
Loan Payable Bank - Running Finance |  |  | (5 | ) |  |  | 2,865,877 |  |  |  | 2,865,877 |  |  |  | - |
|  |  |  |  |  |  | 9,861,787 |  |  |  | 9,861,787 |  |  |  | - |
Subsidiary Capital Leases |  |  | (6 | ) |  |  | 727,770 |  |  |  | 361,008 |  |  |  | 366,762 |
|  |  |  |  |  | $ | 10,589,557 |  |  | $ | 10,222,795 |  |  | $ | 366,762 |
(1) 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. (2) 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. (3) 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. (4) 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. (5) 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. Interest expense for the three months ended September 30, 2017 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. (6) 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.
Schedule of Aggregate Minimum Future Lease Payments Under Capital Leases | Following is the aggregate minimum future lease payments under capital leases as of September 30, 2017:
|  | Amount |
Minimum Lease Payments |  |  |  |
Due FYE 9/30/18 |  | $ | 372,280 |
Due FYE 9/30/19 |  |  | 262,626 |
Due FYE 9/30/20 |  |  | 53,872 |
Due FYE 9/30/21 |  |  | 6,486 |
Due FYE 9/30/22 |  |  | 541 |
Total Minimum Lease Payments |  |  | 695,805 |
Interest Expense relating to future periods |  |  | (51,256 | )
Present Value of minimum lease payments |  |  | 644,549 |
Less: Current portion |  |  | (336,920 | )
Non-Current portion |  | $ | 307,629 |

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- Definition Tabular disclosure of future minimum lease payments as of the date of the latest balance sheet presented, in aggregate and for each of the five years succeeding fiscal years, with separate deductions from the total for the amount representing executor costs, including any profit thereon, included in the minimum lease payments and for the amount of the imputed interest necessary to reduce the net minimum lease payments to present value. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84164817&loc=d3e45280-112737 + Details
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