GHL System Berhad Annual Report 2018

G H L S y s t e m S B e r h a d ( 2 9 3 0 4 0 - D ) 136 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 28. TRADE AND OTHER PAYABLES (cont’d) (d) Other payable of the Group consist contingent consideration of acquisition of PMSB. The Group has agreed to issue the Sellers in 2 years’ time additional consideration of 20,122,412 ordinary shares of the Company if the acquiree achieves the stipulated profit tax targets for 2018 and 2019. The Group has included RM30,111,050 as contingent consideration related to additional consideration which represents its fair value at the date of acquisition (Note 15(g)). As at 31 December 2018, the fair value of contingent consideration had decreased to RM29,803,840. (e) Contingent consideration of the Group are categorised as Level 3 in the fair value hierarchy. Fair values of the contingent consideration are estimated based on the income approach. (f) The following table shows a reconciliation of Level 3 fair values of contingent consideration: Group 2018 RM Balance as at 1 January - Fair value gain 307,210 Balance as at 31 December 307,210 (g) Amounts owing to subsidiaries represent payments on behalf are unsecured, interest free and payable within next 12 months. (h) The maturity profile of trade and other payables of the Group and of the Company at the reporting date based on contractual undiscounted repayment obligations is repayable on demand or within one year. (i) The currency exposure profiles of trade and other payables are as follows: Group Company 2018 2017 2018 2017 RM RM RM RM Ringgit Malaysia (“RM”) 170,384,725 94,830,736 6,449,646 13,542,407 Philippines Peso (“PHP”) 6,459,249 6,605,350 - - Thai Baht (“THB”) 5,885,597 10,691,020 - - Australian Dollar (“AUD”) 24,102 916,379 - - Indonesian Rupiah (“IDR”) 28,766 - - - United States Dollar (“USD”) 2,749,494 - 3,102 - Singapore Dollar (“SGD”) 355,980 - - - 185,887,913 113,043,485 6,452,748 13,542,407