Financial Report
Consolidated Statement of Cash Flows
(All amounts in Saudi Riyals unless otherwise stated)
For the year ended 31 December
| Notes | 2022 | 2021 | |
| OPERATING ACTIVITIES | |||
| Profit before zakat and income tax | 1,171,498,965 | 904,025,183 | |
| Adjustments for: | |||
| Depreciation, impairment and amortization – property and equipment and intangible assets | 214,167,272 | 191,116,049 | |
| (Reversal)/allowance of bad debt of accounts receivable and contract assets | (297,741) | 150,859,346 | |
| End of service indemnities expense | 68,033,605 | 60,124,352 | |
| Depreciation – right-of-use assets | 21 | 17,915,894 | 17,429,938 |
| (Reversal of provision)/provision against lease contracts, advances to supplier & other receivables | (708,503) | 12,120,951 | |
| Share-based payment expense | 28,474,707 | 9,640,352 | |
| Provision for slow moving and obsolete inventories | 17 | 2,313,310 | 7,054,771 |
| (Reversal of provision)/provision for future contract losses | (4,877,606) | 3,988,030 | |
| Finance charges | 16,059,507 | 1,072,276 | |
| Gain on disposal of property and equipment | – | (162,142) | |
| Finance income | 10 | (53,955,919) | (3,889,722) |
| 1,458,623,491 | 1,353,379,384 | ||
| Changes in operating assets and liabilities: | |||
| Accounts receivable | (948,435,137) | (367,665,197) | |
| Prepayments and other assets | 191,834,946 | (142,593,233) | |
| Contract assets | 96,537,069 | 248,342,778 | |
| Inventories | 50,367,247 | (168,671,773) | |
| Accounts payable and accruals | 422,215,135 | (35,743,731) | |
| Deferred revenue | 863,142,179 | 571,536,599 | |
| Contract liabilities | 56,673,180 | 18,081,516 | |
| Cash flows generated from operating activities | 2,190,958,110 | 1,476,666,343 | |
| Zakat and income taxes paid | 11 | (65,171,343) | (51,978,119) |
| End of service indemnities paid | 27 | (55,743,454) | (32,669,849) |
| Finance charges paid | (15,635,241) | – | |
| Finance income received | 36,841,741 | 3,265,255 | |
| NET CASH GENERATED FROM OPERATING ACTIVITIES | 2,091,249,813 | 1,395,283,630 | |
| INVESTING ACTIVITIES | |||
| Proceeds from disposal of property and equipment | – | 191,787 | |
| Payment for acquisition of subsidiary, net of cash acquired | 1 | (371,829,411) | – |
| Placement of short term murabahas | 13 | (2,700,800,000) | – |
| Purchase of property and equipment and intangible assets | (133,895,416) | (154,949,278) | |
| Contract costs | 15,250,004 | (16,487,138) | |
| NET CASH USED IN INVESTING ACTIVITIES | (3,191,274,823) | (171,244,629) | |
| FINANCING ACTIVITIES | |||
| Lease liabilities payment | (21,799,502) | (28,756,121) | |
| Dividends paid to company’s shareholders | 32 | (475,200,000) | (400,000,000) |
| Proceeds from long term loan | 497,363,613 | – | |
| Bank overdraft and short term borrowing | 56,520,109 | – | |
| Treasury shares | – | (181,200,000) | |
| NET CASH GENERATED/(USED) IN FINANCING ACTIVITIES | 56,884,220 | (609,956,121) | |
| NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | (1,043,140,790) | 614,082,880 | |
| Cash and cash equivalents at the beginning of the year | 12 | 1,607,556,524 | 993,473,644 |
| Net foreign exchange difference | (20,440,198) | – | |
| CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | 12 | 543,975,536 | 1,607,556,524 |
| Significant non-cash items: | |||
| Refer to note 1 for non-cash items related to the acquisition |
Chief Financial Officer
Chief Executive Officer
Authorized Board Member
The accompanying notes 1 to 43 form an integral part of these consolidated financial statements
