Statement of Cash Flows
Statement of Cash Flows
For the year ended 31 December 2020
| Notes | 2020 | 2019 | |
| AED | AED | ||
| OPERATING ACTIVITIES | |||
| Profit for the year | 10,885,879 | 16,166,174 | |
| Adjustments for non-cash items: | |||
| Depreciation of property and equipment | 4 | 1,843,455 | 1,829,476 |
| Write-off of long outstanding payables | – | 973,907 | |
| Changes in fair value of investment carried at FVTPL | 14 | (381,687) | (402,277) |
| Realised gain on sale of investments carried at FVTPL | 14 | (1,164,015) | (349,626) |
| Realised loss/(gain) on sale of debt investments carried at FVTOCI |
14 |
159,350 | (48,064) |
| Interest and dividend income | 14 | (5,428,037) | (6,020,922) |
| Provision for employees’ end-of-service benefits | 11 | 603,272 | 280,843 |
| Expected credit losses | 15 | 1,022,416 | 1,084,985 |
| Impairment of investment properties |
– |
– |
|
| Operating profit before changes in working capital | 7,540,633 | 13,514,496 | |
| Changes in working capital | |||
| Premium and insurance balances receivables | (3,789,087) | (13,200,089) | |
| Reinsurance contract assets | 3,885,623 | (3,675,417) | |
| Technical provisions | (17,176,912) | 1,451,963 | |
| Other receivables and prepayments | (576,083) | (5,917,688) | |
| Insurance and other payables |
14,534,974 |
(6,025,020) |
|
| Net cash flow used in operating activities | 4,419,148 | (13,851,755) | |
| Employees’ end-of-service benefits paid | 11 | (127,992) | (80,766) |
| Directors’ remuneration |
(1,450,000) |
(839,000) |
|
| Net cash flow used in operating activities |
2,841,156 |
(14,771,521) |
|
| INVESTING ACTIVITIES | |||
| Payments for purchase of property and equipment | 4 | (3,987,615) | (538,727) |
| Purchase of investments carried at FVTOCI | 5 | – | (12,034,256) |
| Proceeds from sale of investments carried at FVTOCI | 5 | 10,771,227 | 18,101,759 |
| Purchase of investments carried at FVTPL | 5 | (5,997,765) | (2,094,970) |
| Proceeds from sale of investments carried at FVTPL | 5 | 10,596,279 | 8,444,655 |
| Payments for fixed deposits | (16,000,000) | – | |
| Interest and dividend received |
5,428,037 |
6,020,922 |
|
| Net cash generated from investing activities |
810,163 |
17,899,383 |
|
| FINANCING ACTIVITIES | |||
| Tier 1 Capital | (1,237,500) | 14,037,496 | |
| Dividends paid |
(4,751,220) |
(1,187,805) |
|
| Net cash (used in)/generated from financing activities |
(5,988,720) |
12,849,691 |
|
| Net change in cash and cash equivalents | (2,337,401) | 15,977,553 | |
| Cash and cash equivalents, beginning of the year | 74,964,225 | 58,986,672 | |
| Cash and cash equivalents, end of the year | 9 |
72,626,824 |
74,964,225 |
