XML 93 R43.htm IDEA: XBRL DOCUMENT
v3.20.1

Debts (Tables) | 9 Months Ended
--- | ---
Mar. 31, 2020
Debt Disclosure [Abstract] |
Schedule of Components of Notes Payable and Finance Leases | Notes payable and finance leases consisted of the following:
|  |  |  |  | As of March 31, 2020 |
|  |  |  |  |  |  |  | Current |  |  | Long-Term |
Name |  |  |  |  | Total |  |  | Maturities |  |  | Maturities |
D&O Insurance |  |  | (1 | ) |  | $ | 164,731 |  |  | $ | 164,731 |  |  | $ | - |
Bank Overdraft Facility |  |  | (2 | ) |  |  | - |  |  |  | - |  |  |  | - |
Loan Payable Bank - Export Refinance |  |  | (3 | ) |  |  | 3,005,350 |  |  |  | 3,005,350 |  |  |  | - |
Loan Payable Bank - Running Finance |  |  | (4 | ) |  |  | - |  |  |  | - |  |  |  | - |
Loan Payable Bank - Export Refinance II |  |  | (5 | ) |  |  | 2,284,065 |  |  |  | 2,284,065 |  |  |  | - |
Loan Payable Bank - Running Finance II |  |  | (6 | ) |  |  | - |  |  |  | - |  |  |  | - |
Loan Payable Bank - Export Refinance III |  |  | (7 | ) |  |  | 3,005,350 |  |  |  | 3,005,350 |  |  |  | - |
Related Party Loan |  |  | (8 | ) |  |  | 69,425 |  |  |  | 16,174 |  |  |  | 53,251 |
|  |  |  |  |  |  | 8,528,921 |  |  |  | 8,475,670 |  |  |  | 53,251 |
Subsidiary Finance Leases |  |  | (9 | ) |  |  | 571,639 |  |  |  | 319,188 |  |  |  | 252,451 |
|  |  |  |  |  | $ | 9,100,560 |  |  | $ | 8,794,858 |  |  | $ | 305,702 |
|  |  |  |  | As of June 30, 2019 |
|  |  |  |  |  |  |  | Current |  |  | Long-Term |
Name |  |  |  |  | Total |  |  | Maturities |  |  | Maturities |
D&O Insurance |  |  | (1 | ) |  | $ | 67,671 |  |  | $ | 67,671 |  |  | $ | - |
Bank Overdraft Facility |  |  | (2 | ) |  |  | - |  |  |  | - |  |  |  | - |
Loan Payable Bank - Export Refinance |  |  | (3 | ) |  |  | 3,066,355 |  |  |  | 3,066,355 |  |  |  | - |
Loan Payable Bank - Running Finance |  |  | (4 | ) |  |  | 325,034 |  |  |  | 325,034 |  |  |  | - |
Loan Payable Bank - Export Refinance II |  |  | (5 | ) |  |  | 2,330,431 |  |  |  | 2,330,431 |  |  |  | - |
Loan Payable Bank - Running Finance II |  |  | (6 | ) |  |  | 735,925 |  |  |  | 735,925 |  |  |  | - |
Loan Payable Bank - Export Refinance III |  |  | (7 | ) |  |  | - |  |  |  | - |  |  |  | - |
Related Party Loan |  |  | (8 | ) |  |  | 82,969 |  |  |  | 15,838 |  |  |  | 67,131 |
|  |  |  |  |  |  | 6,608,385 |  |  |  | 6,541,254 |  |  |  | 67,131 |
Subsidiary Finance Leases |  |  | (9 | ) |  |  | 861,784 |  |  |  | 364,343 |  |  |  | 497,441 |
|  |  |  |  |  | $ | 7,470,169 |  |  | $ | 6,905,597 |  |  | $ | 564,572 |
(1) 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 5.0% to 7.0% as of March 31, 2020 and June 30, 2019. (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 $370,370. The annual interest rate was 5.12% as of March 31, 2020. Total outstanding balance as of March 31, 2020 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 March 31, 2020, 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 nine months. Total facility amount is Rs. 500,000,000 or $3,005,350 at March 31, 2020 and Rs. 500,000,000 or $3,066,355 at June 30, 2019. The interest rate for the loan was 3% at March 31, 2020 and June 30, 2019. (4) The Company’s subsidiary, NetSol PK, has a running finance facility with Askari Bank Limited, secured by NetSol PK’s assets. Total facility amount is Rs. 75,000,000 or $450,802, at March 31, 2020. NetSol PK used Rs. Nil, or $Nil at March 31, 2020. The interest rate for the loan was 13.2% and 13.0% at March 31, 2020 and June 30, 2019, 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 March 31, 2020, NetSol PK was in compliance with this covenant. (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 nine months. Total facility amount is Rs. 380,000,000 or $2,284,065 and Rs. 380,000,000 or $2,330,431 at March 31, 2020 and June 30, 2019, respectively. The interest rate for the loan was 3% at March 31, 2020 and June 30, 2019. (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. 120,000,000 or $721,284 and Rs. 120,000,000 or $735,925, at March 31, 2020 and June 30, 2019, respectively. The interest rate for the loan was 12.9% and 14.3% at March 31, 2020 and June 30, 2019, respectively. Total outstanding balance at March 31, 2020 was Rs. Nil. 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 March 31, 2020, NetSol PK was in compliance with these covenants. (7) 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. Total facility amount is Rs. 900,000,000 or $5,409,629 and NetSol PK used Rs. 500,000,000 or $3,005,350 at March 31, 2020. The interest rate for the loan was 3% at March 31, 2020. (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 $1,666. As of March 31, 2020, the subsidiary has used this facility up to $69,425, of which $53,251 was shown as long-term and $16,174 as current. The interest rate was 6.14% at March 31, 2020. (9) 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 March 31, 2020 and 2019.
Schedule of Aggregate Minimum Future Lease Payments Under Finance Leases | Following is the aggregate minimum future lease payments under finance leases as of March 31, 2020:
|  | Amount |
Minimum Lease Payments |  |  |  |
Within year 1 |  | $ | 365,384 |
Within year 2 |  |  | 228,102 |
Within year 3 |  |  | 19,852 |
Within year 4 |  |  | 18,198 |
Total Minimum Lease Payments |  |  | 631,536 |
Interest Expense relating to future periods |  |  | (59,897 | )
Present Value of minimum lease payments |  |  | 571,639 |
Less: Current portion |  |  | (319,188 | )
Non-Current portion |  | $ | 252,451 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121616839&loc=d3e45280-112737 + Details
Name: | us-gaap_ScheduleOfFutureMinimumLeasePaymentsForCapitalLeasesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration