Statement of Cash Flows
Statement of Cash Flows
For the year ended 31 December 2022
| Notes | 2022 | 2021 | |
| AED | AED | ||
| OPERATING ACTIVITIES | |||
| Profit for the year | 4,358,311 | 9,519,956 | |
| Adjustments for non-cash items: | |||
| Depreciation of property and equipment | 4 | 1,364,693 | 1,652,710 |
| Changes in fair value of investment carried at FVTPL | 14 | (903,959) | (675,387) |
| Realised gain on sale of investments carried at FVTPL | 14 | (1,369,367) | (428,993) |
| Transfer of unrealized loss on disposal of debt investment carried at FVTOCI | 23,225 | – | |
| Interest and dividend income | 14 | (3,800,961) | (3,948,945) |
| Provision for employees’ end-of-service benefits | 11 | 667,476 | 420,674 |
| Expected credit losses | 15 |
– |
1,124,458 |
| Operating profit before changes in working capital | 339,418 | 7,664,473 | |
| Changes in working capital | |||
| Premium and insurance balances receivables | (48,464,736) | (28,165,225) | |
| Other receivables and prepayments | (22,682,538) | (85,214) | |
| Reinsurance contract assets | (25,298,592) | (35,055,205) | |
| Insurance and other payables | 36,848,855 | 9,403,544 | |
| Technical reserves |
39,966,475 |
27,795,174 |
|
| Net cash flow used in operating activities | (19,291,118) | (18,442,453) | |
| Employees’ end-of-service benefits paid | 11 | (342,174) | (790,600) |
| Directors’ remuneration |
(856,796) |
(937,360) |
|
| Net cash flow used in operating activities |
(20,490,088) |
(20,170,413) |
|
| INVESTING ACTIVITIES | |||
| Purchase of property and equipment | 4 | (1,113,223) | (1,564,810) |
| Proceeds from sale of investments carried at FVTOCI | 5 | 21,530,100 | 4,602,071 |
| Purchase of investments carried at FVTOCI | 5 | (11,330,115) | – |
| Purchase of investments carried at FVTPL | 5 | (10,119,102) | (3,152,212) |
| Proceeds from sale of investments carried at FVTPL | 5 | 10,692,630 | 2,562,016 |
| Proceed from redemption of short-term investments | – | 2,000,000 | |
| Interest and dividend received | 14 |
3,800,961 |
3,942,802 |
| Net cash generated from investing activities |
13,461,251 |
8,389,867 |
|
| FINANCING ACTIVITIES | |||
| Tier 1 Capital | (1,237,499) | (1,237,500) | |
| Purchase of treasury shares | (4,660,318) | – | |
| Dividends paid |
– |
(4,751,220) |
|
| Net cash used in financing activities |
(5,897,817) |
(5,988,720) |
|
| Net change in cash and cash equivalents | (12,926,654) | (17,769,266) | |
| Cash and cash equivalents, beginning of the year |
54,857,557 |
72,626,824 |
|
| Cash and cash equivalents, end of the year | 9 |
41,930,903 |
54,857,557 |
The notes from 1 to 23 form an integral part of these financial statements.
