ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS Annual Report 2021 | ENRA Group Berhad 149 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 21. TRADE AND OTHER PAYABLES (cont’d) (a) Trade and other payables, except for land entitlement payment and contingent consideration for business acquisition, are classified as financial liabilities measured at amortised cost. (b) Trade payables are non-interest bearing and the normal trade credit terms granted to the Group ranged from 30 days to 60 days (2020: 30 days to 60 days). (c) Non-current other payables amounting RM13,489,000 (2020: RM9,450,000) relates to land entitlement payment for the Group’s property development project. The entitlement is payable to the landowner upon completion of the development project. (d) Contingent consideration for business acquisition arose from the Group’s acquisition of a subsidiary, International Chemicals Engineering Pty. Ltd., in the previous financial year. The total contingent consideration of up to AUD1,800,000 is payable in proportion to ICE meeting the target of achieving EBITDA in excess of the EBITDA Guarantee each year for the next three (3) years from the acquisition date. In the previous financial year, the Group renegotiated the terms of payment of contingent consideration with the former shareholders of ICE, resulting in the extension of the Guarantee period to four (4) years from the acquisition date. During the year, the Group made the second tranche payment of AUD600,000 (RM1,896,000 equivalent) (2020: first tranche payment of AUD409,000 (RM1,094,000 equivalent)) upon ICE meeting its target for the second year (2020: first year). (e) Amount owing to a related party represents advances received from a non-controlling interest, amounting to RM13,371,000 (2020: RM11,334,000) which are unsecured, non-interest bearing and payable on demand in cash and cash equivalents. (f) Amounts due to subsidiaries represents payments on behalf, which are unsecured, interest free and payable within next twelve months in cash and cash equivalents. (g) The currency exposure profile of payables are as follows: Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Ringgit Malaysia 23,326 24,379 4,081 6,058 US Dollar 8,975 11,141 – – British Pound 14,317 11,884 – – Euro – 5,981 – – Australian Dollar 2,931 3,222 – – 49,549 56,607 4,081 6,058 (h) Information on financial risks of trade and other payables is disclosed in Note 40 to the financial statements.