GHL System Berhad Annual Report 2020

156 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 ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 26. 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) Contingent consideration of the Group arose from the Group’s acquisition of subsidiary in Paysys (M) Sdn Bhd (“PMSB”) in 2018. Based on the term of the SSA, the Group agreed to issue the Sellers 10,061,206 ordinary shares of the Company in each year over 2 years for a total additional consideration of 20,122,412 ordinary shares of the Company if PMSB achieves the stipulated profit tax targets for 2018 and 2019 each. During the year, the Company has issued 10,061,020 (2019: 10,061,206) new ordinary shares of RM1.19 (2019: RM1.19) per ordinary shares to the Sellers as disclosed in Note 23(a)(i) to the financial statements as PMSB has achieves its stipulated profit targets for each year of 2019 and 2018. As at 31 December 2020, the fair value of contingent consideration is RM Nil (2019: RM12,874,737). (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 2020 2019 RM RM Balance as at 1 January 12,874,737 29,803,840 Fair value loss/(gain) 6,140,942 (2,541,578) Issuance of shares during the financial year (19,015,679) (14,387,525) Balance as at 31 December - 12,874,737 (g) Non-trade amounts owing to subsidiaries represent payments on behalf which 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 (1) year. (i) The currency exposure profiles of trade and other payables are as follows: Group Company 2020 2019 2020 2019 RM RM RM RM Ringgit Malaysia (“RM”) 136,898,685 144,381,281 3,293,789 8,316,858 Philippines Peso (“PHP”) 10,128,429 7,714,194 - - Thai Baht (“THB”) 8,317,917 3,151,115 - - Australian Dollar (“AUD”) 108,445 12,220 - - Indonesian Rupiah (“IDR”) 578,641 1,064,542 - - United States Dollar (“USD”) 3,311,789 3,431,358 31,935 53,004 Singapore Dollar (“SGD”) 191,975 244 - - 159,535,881 159,754,954 3,325,724 8,369,862