ENRA Group Berhad | Annual Report 2022 137 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2022 19. TRADE AND OTHER PAYABLES Group Company 2022 2021 2022 2021 Note RM’000 RM’000 RM’000 RM’000 Non-current Other payables – third parties 22,833 13,658 – – Current Trade payables - third parties 8,836 12,220 – – Other payables Amounts due to subsidiaries – – 94 2,658 Other payables – third parties 2,896 4,444 253 70 Contingent consideration for business acquisition (d) – 2,271 – – Accruals 12,408 3,550 1,535 1,353 Deposits and advances received 9 35 12 – Amount due to a related party 13,095 13,371 – – 28,408 23,671 1,894 4,081 Total current trade and other payables 37,244 35,891 1,894 4,081 Total trade and other payables 60,077 49,549 1,894 4,081 (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 (2021: 30 days to 60 days). (c) Non-current other payables amounting RM22,668,000 (2021: RM13,489,000) 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 former subsidiary, International Chemicals Engineering Pty. Ltd. (“ICE”) in the financial year ended 31 March 2019. The contingent consideration of up to AUD1.80 million is payable proportion to ICE meeting the target of achieving EBITDA in excess of the EBITDA Guarantee for each for the next three (3) years from the date of acquisition. The term of payment of contingent consideration was subsequently extended to four (4) years from the date of acquisition in the financial year ended 31 March 2020. In the previous financial year, the Group made the second payment of AUD600,000 (RM1,896,000 equivalent) upon ICE meeting its target for the second year. During the financial year, the Group settled the remaining AUD790,000 (RM2,456,000 equivalent) contingent consideration in full as part of the agreement with the Proposed Acquirer prior to the disposal of ENRA Kimia Group as disclosed in the Note 6(c) to the financial statements.
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