Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 35

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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,796,558 at June 30, 2024. The interest
rate for the loan was 10.0% and 17.5% at December 31, 2024 and June 30, 2024, respectively.

(5)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. 3,550,937 or $12,740, at December
31, 2024. The balance outstanding at December 31, 2024 and June 30, 2024 was Rs. Nil. The interest rate for the loan was 14.1% at December
31, 2024 and 22.2% at June 30, 2024.

This facility requires NetSol PK to maintain a long-term debt equity
                                                                                     ratio of 60:40 and a current ratio of 1:1. As of December 31, 2024, NetSol PK was in compliance with this covenant.

(6)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. The total
facility amount is Rs. 380,000,000 or $1,363,375 and Rs. 380,000,000 or $1,365,384 at December 31, 2024 and June 30, 2024, respectively.
The interest rate for the loan was 10.0% and 17.5% at December 31, 2024 and June 30, 2024, respectively.

During the tenure of the 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 December 31, 2024, 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.
The total facility amount is Rs. 1,300,000,000 or $