Statement of Cash Flows
Statement of Cash Flows
For the year ended 31 December 2021
| Notes | 2021 | 2020 | |
| AED | AED | ||
| OPERATING ACTIVITIES | |||
| Profit for the year | 9,519,956 | 10,885,879 | |
| Adjustments for non-cash items: | |||
| Depreciation of property and equipment | 4 |
1,652,709 |
1,843,455 |
| Changes in fair value of investment carried at FVTPL | 14 | (675,387) | (381,687) |
| Realised gain on sale of investments carried at FVTPL | 14 | (428,993) | (1,164,015) |
| Realised loss on sale of debt investments carried at FVTOCI |
14 |
164,493 | 159,350 |
| Interest and dividend income | 14 | (3,948,945) | (5,428,037) |
| Provision for employees’ end-of-service benefits | 11 | 420,674 | 603,272 |
| Expected credit losses | 15 | 1,124,458 | 1,022,416 |
| Operating profit before changes in working capital | 7,828,965 | 7,540,633 | |
| Changes in working capital | |||
| Premium and insurance balances receivables | (28,165,225) | (3,789,087) | |
| Reinsurance contract assets | (35,055,205) | 3,885,623 | |
| Technical provisions | 27,795,174 | (17,176,912) | |
| Other receivables and prepayments | (85,214) | (576,083) | |
| Insurance and other payables |
9,403,545 |
14,534,974 |
|
| Net cash flow (used in) / generated from operating activities | (18,277,960) | 4,419,148 | |
| Employees’ end-of-service benefits paid | 11 | (790,600) | (127,992) |
| Directors’ remuneration |
(937,360) |
(1,450,000) |
|
| Net cash flow (used in) / generated from operating activities |
(20,005,920) |
2,841,156 |
|
| INVESTING ACTIVITIES | |||
| Payments for purchase of property and equipment | 4 | (1,564,810) | (3,987,615) |
| Proceeds from sale of investments carried at FVTOCI | 5 | 4,437,578 | 10,771,227 |
| Purchase of investments carried at FVTPL | 5 | (3,152,212) | (5,997,765) |
| Proceeds from sale of investments carried at FVTPL | 5 | 2,562,016 | 10,596,279 |
| Proceed from redemption of short-term investments | 2,000,000 | – | |
| Payments for fixed deposits | – | (16,000,000) | |
| Interest and dividend received |
3,942,802 |
5,428,037 |
|
| Net cash generated from investing activities |
8,225,374 |
810,163 |
|
| FINANCING ACTIVITIES | |||
| Tier 1 Capital | (1,237,500) | (1,237,500) | |
| Dividends paid |
(4,751,220) |
(4,751,220) |
|
| Net cash used in financing activities |
(5,988,720) |
(5,988,720) |
|
| Net change in cash and cash equivalents | (17,769,266) | (2,337,401) | |
| Cash and cash equivalents, beginning of the year | 72,626,824 | 74,964,225 | |
| Cash and cash equivalents, end of the year | 9 |
54,857,557 |
72,626,824 |
The notes from 1 to 24 form an integral part of these financial statements.
