GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 158 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 27. TRADE AND OTHER PAYABLES (cont’d) (c) Other payables of the Group consist prepayments received from retailers, merchants payables and general administrative expenses payable which are non-interest bearing. (d) Other payable of the Group consist of contingent consideration arising from acquisition of PMSB. The Group has agreed to issue the Sellers in one (1) year time additional consideration of 10,061,206 (2018: 20,122,412) ordinary shares of the Company if the acquiree achieves the stipulated profit tax targets for 2019. In the previous financial year, the Group had included RM29,803,840 (2018: RM30,111,050) as contingent consideration related to additional consideration which represents its fair value at the date of acquisition. As at 31 December 2019, the fair value of contingent consideration had decreased to RM12,874,737 (2018: RM29,803,840). (e) Contingent consideration of the Group is 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 2019 2018 RM RM Balance as at 1 January 29,803,840 - Addition during the financial year - 30,111,050 Fair value gain (2,541,578) (307,210) Issuance of shares during the financial year (14,387,525) - Balance as at 31 December 12,874,737 29,803,840 (g) Amounts owing to subsidiaries represent payments on behalf are unsecured, interest free and payable in cash and cash equivalents within next twelve (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 2019 2018 2019 2018 RM RM RM RM Ringgit Malaysia (“RM”) 144,381,281 170,384,725 8,316,858 6,449,646 Philippines Peso (“PHP”) 7,714,194 5,325,085 - - Thai Baht (“THB”) 3,151,115 5,885,597 - - Australian Dollar (“AUD”) 12,220 24,102 - - Indonesian Rupiah (“IDR”) 1,064,542 28,766 - - United States Dollar (“USD”) 3,431,358 2,749,494 53,004 3,102 Singapore Dollar (“SGD”) 244 355,980 - - 159,754,954 184,753,749 8,369,862 6,452,748