139 FINANCIAL STATEMENTS & OTHERS ENRA GROUP BERHAD ANNUAL REPORT 2023 Notes To The Financial Statements 31 March 2023 (Cont’d) 19. 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 (2022: 30 days to 60 days). (c) Non-current other payables amounting RM22,668,000 (2022: RM22,668,000) 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 2020. 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 previous financial year. In the financial year ended 31 March 2021, the Group made the second payment of AUD600,000 (RM1,896,000 equivalent) upon ICE meeting its target for the second year. In the previous financial year, the Group settled the remaining AUD790,000 (RM 2,456,000 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(d) to the financial statements. (e) Amount due to a related party represents advances received from a non-controlling interest of a subsidiary amounting to RM2,519,000 (2022: RM13,095,000) which are unsecured, non-interest bearing and payable on demand in cash and cash equivalents. (f) Amounts due to subsidiaries represent advances and payments on behalf, which are unsecured and payable within next twelve months (12) in cash and cash equivalents. These amounts are interest-free except for advance amounting to RM1,500,000 (2022: RM nil), which is subject to interest at 10% (2022: nil) per annum. (g) The currency exposure profile of payables are as follows: Group Company 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 Ringgit Malaysia 30,984 38,059 2,348 1,894 US Dollar 5,495 8,517 - - British Pound 5,849 13,501 - - 42,328 60,077 2,348 1,894 (h) Information on financial risks of trade and other payables is disclosed in Note 36 to the financial statements.
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