Notes forming part of accounts [line items] | | |
Disclosure of notes and other explanatory information [text block] | | |
Disclosure of general information about reporting entity [abstract] | | |
Disclosure of general information about reporting entity [text block] |
GENERAL
Saudi Tadawul Group Holding Company (formerly “Saudi Stock Exchange Company”) (the Company) is a Saudi joint stock company registered in the Kingdom of Saudi Arabia under Commercial Registration number 1010241733 dated 2/12/1428 H (corresponding to 12 December 2007). The Company was established by the Royal Decree no. M/15 dated 01/03/1428 H (corresponding to 20 March 2007) and the Ministry of Commerce resolution no. 320/k dated 1/12/1428 H (corresponding to 11 December 2007).
On 1 June 2021, the Company announced its restructuring which resulted in transforming the Saudi Stock Exchange Company (Tadawul) into a holding company under the name of Saudi Tadawul Group Holding Company, a parent company of four wholly owned subsidiaries; Saudi Exchange Company (Exchange), Securities Clearing Center Company (Muqassa), the Securities Depository Center Company (Edaa), and Tadawul Advance Solution Company (Wamid). The details of these subsidiaries are given in note 1.1. From 1 June 2021, the operations of the Company, that included listing, trading and dissemination of securities information, were transferred to Exchange.
The Company was wholly owned by the Government of the Kingdom of Saudi Arabia (the “Government”) as ultimate controlling party through the Public Investment Fund (“PIF”). On 8 December, 2021, the Company completed its Initial Public Offering (“IPO”) and its ordinary shares were listed on the Saudi Stock Exchange. In connection with the IPO, the Government through PIF sold 30% of their stake representing 36 million ordinary shares. Accordingly, PIF now holds 70% (31 December 2021: 70%) of the share capital. As at 30 September 2022, the authorized, issued and fully paid-up share capital of the Company is SAR 1,200 million (31 December 2021: SAR 1,200 million) divided into 120 million shares (31 December 2021: 120 million shares) of SAR 10 each.
These condensed consolidated interim financial statements comprise the financial statements of the Company and its subsidiaries (collectively referred to as “the Group”).
The Company’s main activities, after becoming a holding company, are managing and supporting subsidiaries or participating in the management of other companies in which it owns shares, investing its funds in shares and other securities, owning real estate and other properties in connection with its businesses, granting loans, guarantees and financing to its subsidiaries, and owning and leasing industrial property rights to its subsidiaries or other companies.
The Group’s main activities through dedicated subsidiaries (given in note 1.1) is to provide a listing service, create and manage the mechanisms of trading of securities, providing depository and registration services for securities ownership, clearing of securities trades, dissemination of securities information and engage in any related other activity to achieve the objectives as defined in the Capital Market Law.
The Company’s registered office address is as follows:
6897 King Fahd Road - Al Olaya Unit Number: 15 Riyadh 12211-3388 Kingdom of Saudi Arabia
GENERAL (CONTINUED)
1.1Details of the Company’s subsidiaries
Name of Subsidiary | Country of Incorporation & Legal Status |
Commercial Registration dated | Business Activity | Ownership, Direct and Effective | Paid up Share capital - SAR | September 2022 | December 2021 |
Securities Depository Center Company “Edaa”
| Kingdom of Saudi Arabia, Closed Saudi Joint Stock Company |
27/11/1437 H (corresponding to 30 August 2016 G) |
Depository and registration of securities |
100% |
100% |
400,000,000 | Securities Clearing Center Company “Muqassa”
| Kingdom of Saudi Arabia, Closed Saudi Joint Stock Company |
02/06/1439 H (corresponding to 18 February 2018 G) | Clearing services of securities | 100% | 100% | 600,000,000 | Tadawul Advance Solution Company “Wamid”
| Kingdom of Saudi Arabia, Closed Saudi Joint Stock Company |
10/02/1442 H (corresponding to 28 September 2020 G) | Financial technology solutions, innovative capital market solutions for stakeholders | 100% | 100% | 75,000,000 | Saudi Exchange Company “Exchange” | Kingdom of Saudi Arabia, Closed Saudi Joint Stock Company
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17/08/1442 H (corresponding to 31 March 2021G) | Listing and trading of securities, market information dissemination | 100% | 100% | 600,000,000 |
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Other disclosures about reporting entity [text block] |
NEW STANDARDS AND AMENDMENTS ISSUED
New standards or amendments for 2022 and forthcoming requirements
A number of standards, amendments and interpretations have been issued. The new requirements that have been issued by the International Accounting Standards Board as at 20 March 2022, and contains two tables, as follows:
New currently effective requirements: This table lists the recent changes to the Standards that are required to be applied by an entity with an annual reporting period beginning on 1 January 2022. Forthcoming requirements: This table lists the recent changes to the Standards that are required to be applied for an annual period beginning on 1 January 2023 and that are available for early adoption in annual periods beginning on 1 January 2022. These requirements are not included in this guide.
New currently effective requirements:
Effective date | New standards or amendments | 1 January 2022 | Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) | Annual Improvements to IFRS Standards 2018-2020 | Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) | Reference to the Conceptual Framework (Amendments to IFRS 3) | Amendment to IFRS 16, ‘Leases’ – COVID-19 related rent concessions extension of the practical expedient (effective for annual periods beginning on or after 1 April 2021) |
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Standards issued but not yet effective
A number of new standards and amendments to standards are effective for annual periods beginning after 1 January 2023 and earlier application is permitted. The Group has not early adopted any of the forthcoming new or amended standards in preparing these condensed consolidated interim financial statements.
Effective date | New standards or amendments | 1 January 2023 | Classification of Liabilities as Current or Non-current – Amendments to IAS 1 | IFRS 17 Insurance Contracts , as amended in June 2020 | Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2 | Definition of Accounting Estimate – Amendments to IAS 8 | Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12
| 1 January 2024 | Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback | Available for optional adoption/effective date deferred indefinitely | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28) |
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Disclosure of basis of preparation of financial statements [abstract] | | |
Disclosure of basis of preparation of financial statements [text block] |
BASIS OF PREPARATION
2.1 Statement of compliance
These interim condensed consolidated interim financial statements for the period ended 30 September 2022 have been prepared in compliance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting” as endorsed in the Kingdom of Saudi Arabia, other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”) and in compliance with the provisions of the Regulations for Companies in the Kingdom of Saudi Arabia and the by-laws of the Company. The accounting policies in these condensed consolidated interim financial statements are consistent with those in the Group’s annual consolidated financial statements for the year ended 31 December 2021.
These condensed consolidated interim financial statements do not include all information and disclosures required for a complete set of financial statements and should be read in conjunction with the Group’s last annual consolidated financial statements for the year ended 31 December, 2021. In addition, results for the three-month and nine-month periods ended 30 September 2022 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2022.
2.2 Basis of measurement
These condensed consolidated interim financial statements have been prepared on a historical cost basis, except for financial assets measured at fair value through profit or loss and employees’ end-of-service benefits which is using the projected unit credit method and discounted to their present value.
2.3 Functional and presentation currency
These condensed consolidated interim financial statements are presented in Saudi Arabian Riyals (“SAR”), which is the functional and presentational currency of the Group. All amounts have been rounded to the nearest SAR.
2.4 Critical accounting estimates and judgments
In preparing these condensed consolidated interim financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual consolidated financial statements for the year ended December 31, 2021.During the period ended 30 September 2022, there was an addition in the intangible assets whereby the estimated useful life of intangible assets ranges from 6 to 10 years. | |
Disclosure of statement of compliance [text block] |
2.1 Statement of compliance
These interim condensed consolidated interim financial statements for the period ended 30 September 2022 have been prepared in compliance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting” as endorsed in the Kingdom of Saudi Arabia, other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”) and in compliance with the provisions of the Regulations for Companies in the Kingdom of Saudi Arabia and the by-laws of the Company. The accounting policies in these condensed consolidated interim financial statements are consistent with those in the Group’s annual consolidated financial statements for the year ended 31 December 2021.
These condensed consolidated interim financial statements do not include all information and disclosures required for a complete set of financial statements and should be read in conjunction with the Group’s last annual consolidated financial statements for the year ended 31 December, 2021. In addition, results for the three-month and nine-month periods ended 30 September 2022 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2022. | |
Disclosure of basis of measurement [text block] |
2.2 Basis of measurement
These condensed consolidated interim financial statements have been prepared on a historical cost basis, except for financial assets measured at fair value through profit or loss and employees’ end-of-service benefits which is using the projected unit credit method and discounted to their present value. | |
Disclosure of functional and presentation currency [text block] |
2.3 Functional and presentation currency
These condensed consolidated interim financial statements are presented in Saudi Arabian Riyals (“SAR”), which is the functional and presentational currency of the Group. All amounts have been rounded to the nearest SAR.
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Disclosure of basis of consolidation of financial statements [text block] |
BASIS OF CONSOLIDATION
These condensed consolidated interim financial statements comprise the financial statements of Tadawul and its subsidiaries (collectively referred to as “the Group”). Control is achieved when the Group is exposed to or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
In assessing control, the Group considers both substantive rights that it holds and substantive rights held by others. The financial statements of subsidiaries are included in the condensed consolidated interim financial statements from the date that control commences until the date control ceases and it derecognises the assets and liabilities of the subsidiary and any related non-controlling interest (NCI) and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.
Intra-group balances and transactions and any unrealised gain / loss arising from intra-group transactions, are eliminated.
Unrealised gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
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Disclosure of critical accounting judgements, estimates and assumptions [abstract] | | |
Disclosure of critical accounting judgements, estimates and assumptions, general [text block] |
2.4 Critical accounting estimates and judgments
In preparing these condensed consolidated interim financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual consolidated financial statements for the year ended December 31, 2021.During the period ended 30 September 2022, there was an addition in the intangible assets whereby the estimated useful life of intangible assets ranges from 6 to 10 years. | |
Disclosure of other notes forming part of accounts [abstract] | | |
Disclosure of bank balances and cash [text block] |
CASH AND CASH EQUIVALENTS
| Note | 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) | Cash at banks – current accounts |
| 374,021,436 |
| 76,197,458 | Deposit with SAMA | 10.1 | 16,500,500 |
| 10,000,000 | Time deposits with original maturities equal to or less than three month from the date of acquisition | 10.2 | 1,708,585,582 |
| - |
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| 2,099,107,518 |
| 86,197,458 |
10.1 Commission is earned on deposit with SAMA at the prevailing market rates offered by SAMA.
10.2 These time deposits are placed with commercial banks in the Kingdom of Saudi Arabia with maturities of less than three months. Commission is also earned on these time deposits as per the prevailing market rates.
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Disclosure of financial assets [text block] |
INVESTMENTS
Investment securities portfolios are summarized as follows:
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Notes | 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) | Non-current |
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| Investments at amortized cost | 6.1 | 55,557,254 |
| 55,272,377 |
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| 55,557,254 |
| 55,272,377 | Current |
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| Investments at amortized cost |
| - |
| 101,292,699 | Investments at FVTPL | 6.2 | 615,193,648 |
| 2,530,440,109 | Sub-total |
| 615,193,648 |
| 2,631,732,808 |
6.1Investments at amortized cost:
This represents investment in Sukuks issued by counterparties operating in the Kingdom of Saudi Arabia having sound credit ratings. The Sukuk carry an average commission rate of 3.4% per annum during the nine-month period ended 30 September 2022 (31 December 2021: 2.4% - 2.5%).
The details of these investments are as follow:
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Investment in Sukuk – Bank Albilad | 55,572,116 |
| 55,286,298 | Investment in Sukuk – GACA | - |
| 101,325,640 | Impairment loss on investments at amortized cost (6.1.1) | (14,862) |
| (46,862) | Total | 55,557,254 |
| 156,565,076 |
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Investment at amortized cost – non current | 55,557,254 |
| 55,272,377 | Investment at amortized cost – current | - |
| 101,292,699 | Total | 55,557,254 |
| 156,565,076 |
6.1.1 The movement of the expected credit losses on investments held at amortized cost is summarized as follows:
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Balance at the beginning of the period / year | 46,862 |
| 43,865 | (Reversal) / charge for the period / year | (32,000) |
| 2,997 | Balance at the end of the period / year | 14,862 |
| 46,862 |
Below is the break-up of investment at amortized cost:
30 September 2022 Description | Maturity date | Face value | Classification | Bank Albilad SAR Denominated Tier 2 | 15 April 2031 | 55,000,000 | Non-current asset |
31 December 2021 Description | Maturity date | Face value | Classification | General Authority of Civil Aviation (GACA) | 18 January 2022 | 100,000,000 | Current asset | Bank Albilad SAR Denominated Tier 2 | 15 April 2031 | 55,000,000 | Non-current asset |
INVESTMENTS (CONTINUED)
6.2 Investments at fair value through profit or loss (“FVTPL”)
This represents investments in units of mutual funds which are governed by the regulation issued by the CMA. The cost and fair value of investments held at FVTPL are as follows:
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| 30 September 2022 (Unaudited) |
| 31 December 2021(Audited) | |
| Cost |
| Fair value |
| Cost |
| Fair value | Money market funds | 594,245,942 |
| 605,292,898 |
| 2,464,606,786 |
| 2,499,724,667 | Real estate funds | 20,250,000 |
| 9,900,750 |
| 40,000,000 |
| 30,715,442 | Total | 614,495,942 |
| 615,193,648 |
| 2,504,606,786 |
| 2,530,440,109 |
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Disclosure of trade account receivables [text block] |
ACCOUNTS RECEIVABLE
| Notes | 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) | Accounts receivable: |
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| - Related parties | 26.1 | 16,741,701 |
| 11,652,168 | - Others |
| 88,421,359 |
| 74,691,162 | Less: allowance for expected credit losses | 7.1 | (29,132,785) |
| (25,795,719) | Total |
| 76,030,275 |
| 60,547,611 |
7.1 The movement in the allowance for expected credit losses is summarized as follows:
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Balance at the beginning of the period / year | 25,795,719 |
| 26,613,594 | Charge / (reversal) for the period / year | 3,337,066 |
| (817,875) | Balance at the end of the period / year | 29,132,785 |
| 25,795,719 |
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Disclosure of prepayments [text block] |
PREPAID EXPENSES AND OTHER CURRENT ASSETS
| Note | 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Advance against purchase of property | 8.1 | 77,500,000 |
| 77,500,000 | Prepaid insurance expenses |
| 8,454,796 |
| 7,920,038 | Accrued operational revenue |
| 6,656,700 |
| 9,064,755 | Advance to employees |
| 6,122,746 |
| 5,404,641 | Prepaid maintenance expenses |
| 12,892,740 |
| 2,744,593 | Other receivables |
| 5,561,505 |
| 5,425,592 | Total |
| 117,188,487 |
| 108,059,619 |
8.1 This represents an advance paid to SAMA as partial payment for purchasing part of a property in King Abdullah Financial District. | |
Disclosure of other current assets [text block] |
CLEARING PARTICIPANT FINANCIAL ASSETS
Financial assets at amortised cost: | Notes | 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Deposits with Saudi Central Bank (SAMA) | 9.1 | 2,495,435,117 |
| 18,013,567 | Investment in SAMA Bills | 9.2 | 1,998,031,618 |
| - |
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| 4,493,466,735 |
| 18,013,567 |
9.1 Deposits with Saudi Central Bank (SAMA):
This represents cash collateral received from clearing participants in the form of initial margin, variation margin and default funds for the equity and derivatives markets. Commission is earned on such deposits at the prevailing market rates offered by SAMA. A portion of the commission is recorded as commission income from SAMA deposits in investment income (refer note 22) by the Group and the clearing members’ share of the commission earned is added to their collateral accounts. These funds are restricted in use for the operations of the Group.
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| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Deposits with SAMA - relating to Derivatives |
| 30,071,471 |
| 18,013,567 | Deposits with SAMA - relating to Equities |
| 2,465,363,646 |
| - |
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| 2,495,435,117 |
| 18,013,567 |
9.2 Investment in SAMA Bills:
| Note | 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Investment in SAMA Bills | 9.2.1 | 1,998,031,618 |
| - |
9.2.1 These represent investment in SAMA Bills from deposits (refer note 9.1) received from clearing participants in the form of initial margin, variation margin and default funds for the equity and derivatives markets. Commission is earned on such Bills at the prevailing market rates offered by SAMA. A portion of the commission is recorded as commission income from SAMA Bills in investment income (refer note 22) by the Group and the clearing members’ share of the commission earned is added to their collateral accounts. These funds are restricted in use for the operations of the Group. As of each reporting date, all deposits with SAMA and SAMA Bills are assessed to have low credit risk as these are placed/issued by Government sovereign financial institutions and there has been no history of default with any of the Group’s deposit and investments in bills. Therefore, the probability of default based on forward looking factors and any loss given defaults are considered to be negligible. | |
Disclosure of investment in joint ventures and associates [text block] |
EQUITY-ACCOUNTED INVESTEE
This represents the Group’s share of investment in Tadawul Real Estate Company (“the Associate”), a company incorporated in the Kingdom of Saudi Arabia, where the Company has significant influence through voting rights. As at 30 September 2022, the Group owns 33.12% (31 December 2021: 33.12%) of the share capital of the Associate. The main activity of the Associate is to develop a commercial office tower in King Abdullah Financial District, Riyadh, where the Group expects to be headquartered.
The Group has recognized its share of loss for the nine-month period ended 30 September 2022, based on the quarterly management accounts of the Associate.
The movement of investment in the Associate is as follows:
| For the nine-month period ended 30 September 2022 (Unaudited) |
| For the year ended 31 December 2021 (Audited) |
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| Balance at beginning of the period / year | 375,616,085 |
| 378,895,293 | Share of loss for the period / year | (1,692,944) |
| (3,279,208) | Balance at end of the period / year | 373,923,141 |
| 375,616,085 |
The following table summarizes the financial information of the Associate as included in the management accounts as at 30 September 2022 and audited financial statements as at 31 December 2021:
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) | Summarized statement of financial position |
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| Total current assets | 91,367,730 |
| 86,103,297 | Total non-current assets | 2,279,769,621 |
| 2,233,751,094 | Total current liabilities | 63,908,391 |
| 1,073,045,160 | Total non-current liabilities | 1,115,127,177 |
| 49,595,898 | Net assets (100%) | 1,192,101,783 |
| 1,197,213,333 |
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) | Summarized statement of profit or loss and other comprehensive income |
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| Total revenue | - |
| - | Net loss | (5,111,550) |
| (9,900,948) | Total comprehensive loss for the period / year | (5,111,550) |
| (9,900,948) |
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Disclosure of trade account payable [text block] |
ACCOUNTS PAYABLE
| Note | 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) | Trade payables: |
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| 16,983,056 |
| 6,701,240 | | 26.4 | 96,968 |
| 84,470 | Total |
| 17,080,024 |
| 6,785,710 |
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Disclosure of accrued expenses [text block] |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
| Notes | 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Accrued employee expenses |
| 96,437,406 |
| 100,154,729 | Accrued social insurance – General Organization for Social Insurance |
| 2,014,295 |
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1,979,001 | Value added tax (VAT), net |
| 6,240,838 |
| 6,637,535 | Board of Directors remuneration payable | 26.5 | 6,348,333 |
| 8,376,167 | Accrued supplier expenses: |
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| | 26.4 | 8,493,571 |
| 10,296,790 | |
| 101,762,738 |
| 108,640,852 | Total |
| 221,297,181 |
| 236,085,074 |
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Disclosure of zakat [text block] |
ZAKAT PAYABLE
From 1 January 2021, the Group is subject to Zakat in accordance with the Zakat regulation issued by Zakat, Tax and Customs Authority (ZATCA) based on Royal Decree 35657 issued on 29/6/1442H.
The movement in zakat payable is as follows:
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Balance at the beginning of the period / year | 66,663,698 |
| 83,561,274 | Provision for Zakat for the period / year |
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| | 52,922,360 |
| 66,663,698 | | 468,544 |
| (440,338) |
| 53,390,904 |
| 66,223,360 | Zakat paid during the period / year | (67,132,242) |
| (83,120,936) | Balance at the end of the period / year | 52,922,360 |
| 66,663,698 |
18.1The Group has already filed and paid its consolidated Zakat return for the year ended 31 December 2021 with ZATCA, however, the 2021 and 2020 Zakat assessment is pending finalization.
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Disclosure of deferred revenue [text block] |
DEFERRED REVENUE
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Balance at the beginning of the period / year | 3,214,902 |
| 3,223,464 | Invoiced during the period / year | 191,365,609 |
| 169,346,097 | Recognised as revenue during the period / year | (143,782,735) |
| (169,354,659) | Balance at the end of the period / year | 50,797,776 |
| 3,214,902 |
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Disclosure of dividends [text block] |
DIVIDEND
The Board of Directors of the Company in their meeting on 5 March 2022 recommended the General Assembly which approved the distribution of dividends on 12 May 2022 to the shareholders for the fiscal year ended 31 December 2021 with a total amount of 360 million Saudi Riyals, equivalent to 3 Saudi Riyals per share representing 30% of the share par value, provided that the dividend eligibility shall be to the Shareholders who own the Company’s shares and registered in the Company’s register at the Securities Depository Center Company (Edaa) by the end of the second trading day following the date of the Company’s General Assembly (the “Eligibility Date”), and the date of the dividend distribution shall be within fifteen days from the Eligibility Date.
During the year ended 31 December 2021, the Board of Directors of the Company in their meeting dated 18 May 2021 recommended the declaration of dividends amounting to SR 120 million to the PIF which was approved in their fourteenth Ordinary General Assembly held on 02 June 2021 and payment was made.
On 24 June 2021, The Board of Directors of the Company recommended declaration of an additional dividends amounting to SR 1,000 million to the PIF. In their Fifteenth Extra Ordinary General Assembly held on 28 June 2021, PIF approved the dividends declaration and payment was made. | |
Disclosure of other current liabilities [text block] |
CLEARING PARTICIPANT FINANCIAL LIABILITIES
Financial liabilities at amortised cost: | Notes | 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Collateral from clearing members | 13.1 | 4,476,989,163 |
| 14,386,707 | Members' contribution to clearing house funds | 13.2 | 3,553,412 |
| 3,626,642 |
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| 4,480,542,575 |
| 18,013,349 |
13.1 The margin deposits from clearing participants represents amounts received from clearing participants as collateral in lieu of initial margin, variation margin and default funds for the equity and derivatives markets.
13.2 This represents a prefunded default arrangement that is composed of assets contributed by clearing members that may be used by the Group in certain circumstances to cover the losses or liquidity pressure resulting from participant defaults. BALANCE DUE TO CAPITAL MARKET AUTHORITY (CMA)
The CMA is entitled to receive a financial return equal to 60% (31 December 2021:64%) of the equity trading commission. The Group collects this return on behalf of the CMA and deposits into the CMA’s account based on its instructions. | |
Disclosure of employees' terminal benefits [text block] |
EMPLOYEES’ END-OF-SERVICE BENEFITS LIABILITY
The movement in employees’ end-of-service benefits is as follows:
| For the nine-month period ended 30 September 2022 (Unaudited) |
| For the year ended 31 December 2021 (Audited) |
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| Balance at beginning of the period / year | 96,876,185 |
| 91,024,046 | Current service cost | 7,608,091 |
| 9,691,734 | Interest cost | 1,676,126 |
| 1,738,972 | Amount recognised in profit or loss | 9,284,217 |
| 11,430,706 | Re-measurement loss recognized in other comprehensive income | - |
| 9,885,004 | Benefits paid during the period/year | (5,753,497) |
| (15,463,571) | Balance at the end of the period / year | 100,406,905 |
| 96,876,185 |
12.1 Net end-of-service benefits liability is as follows:
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
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| Present value of benefits liability | 100,406,905 |
| 96,876,185 | Fair value of plan assets | - |
| - | Net defined benefits liability | 100,406,905 |
| 96,876,185 |
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Disclosure of statutory reserves [text block] |
STATUTORY RESERVE
In accordance with the Company’s by-law and Saudi Arabian Regulations for Companies in the Kingdom of Saudi Arabia, the Company is required to set aside 10% of its net profit each year as statutory reserve. The shareholder in the extraordinary general assembly held on 17th August 2021 has decided to discontinue setting aside such percentage when said reserve reaches 30% of paid-in capital. The Company has reached the required reserve level. The statutory reserve in the condensed consolidated interim financial statements is the statutory reserve of the Company. This reserve is currently not available for distribution to the shareholders of the Company. | |
Disclosure of sales [text block] |
OPERATING REVENUE
| For the three-month period ended 30 September (Unaudited) |
| For the nine-month period ended 30 September (Unaudited) |
| 2022 |
| 2021 |
| 2022 |
| 2021 | Revenue recognized over-time |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Post trade services | 22,638,034 |
| 21,567,917 |
| 69,202,693 |
| 64,306,701 | Listing services | 20,364,926 |
| 18,224,406 |
| 60,267,921 |
| 52,352,933 | Data and technology services | 26,160,398 |
| 21,776,043 |
| 69,505,794 |
| 64,364,199 | Membership | 830,364 |
| 742,300 |
| 2,351,087 |
| 2,227,064 | Derivatives services | 73,687 |
| 81,948 |
| 221,062 |
| 234,798 |
| 70,067,409 |
| 62,392,614 |
| 201,548,557 |
| 183,485,695 |
|
|
|
|
|
|
|
| Services transferred at point-in-time |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Post trade services | 115,019,768 |
| 114,070,742 |
| 374,900,554 |
| 388,605,304 | Trading services | 66,102,138 |
| 81,368,476 |
| 254,064,302 |
| 324,873,224 | Data and technology services | 1,441,573 |
| 1,468,513 |
| 4,961,147 |
| 6,425,072 | Listing services | 3,922,500 |
| 3,090,800 |
| 12,136,696 |
| 4,280,800 | Derivatives services | 490,369 |
| 218,707 |
| 712,214 |
| 645,040 | Membership | 136,300 |
| 25,500 |
| 917,800 |
| 228,000 |
| 187,112,648 |
| 200,242,738 |
| 647,692,713 |
| 725,057,440 | Revenue from contracts with customers | 257,180,057 |
| 262,635,352 |
| 849,241,270 |
| 908,543,135 |
19.1 On 26 March 2022 a resolution was passed by the Council of CMA - resolution no. (1/41/2022) according to which effective from 3 April 2022, CMA is entitled to receive 60 % of the equity trading commission from trading services (30 September 2021: 64%). | |
Disclosure of cost of sales [text block] |
OPERATING COSTS
Operating costs include direct expenses incurred by the Group to provide services to its customers and the Saudi financial market. A breakdown of operating costs is as follows:
| Notes | For the three-month period ended 30 September (Unaudited) |
| For the nine-month period ended 30 September (Unaudited) |
|
| 2022 |
| 2021 |
| 2022 |
| 2021 | Salaries and related benefits |
| 39,256,163 |
| 29,499,996 |
| 110,644,178 |
| 92,725,060 | CMA fees | 20.1 | 32,500,000 |
| 32,500,000 |
| 93,500,000 |
| 83,000,000 | Technology and network |
| 18,219,401 |
| 6,014,401 |
| 41,245,547 |
| 36,675,799 | Depreciation and amortization |
| 11,118,760 |
| 10,142,241 |
| 32,214,806 |
| 30,820,841 | Consultancy |
| 3,196,081 |
| 76,456 |
| 7,614,528 |
| 863,111 | Accommodation and utilities |
| 1,208,000 |
| 1,255,426 |
| 3,801,214 |
| 3,590,385 | Others |
| 5,812,300 |
| 4,671,194 |
| 11,342,751 |
| 11,102,345 | Total |
| 111,310,705 |
| 84,159,714 |
| 300,363,024 |
| 258,777,541 |
20.1 This represents fees payable to the CMA in relation to services provided to the Group in accordance with the council of CMA resolution no. (17/268/6) dated 18 January 2017 and the CMA Board decision no. (3-2-2020) dated 7 January 2020.
| |
Disclosure of general and administrative expenses [text block] |
GENERAL AND ADMINISTRATIVE EXPENSES
| For the three-month period ended 30 September (Unaudited) |
| For the nine-month period ended 30 September (Unaudited) |
| 2022 |
| 2021 |
| 2022 |
| 2021 | Salaries and related benefits | 35,898,438 |
| 33,444,347 |
| 109,840,452 |
| 99,773,538 | Technology and network | 4,561,837 |
| 2,663,889 |
| 11,725,703 |
| 11,776,613 | Depreciation and amortization | 3,187,622 |
| 5,077,178 |
| 12,415,397 |
| 12,949,074 | Consultancy | 4,179,167 |
| 3,475,200 |
| 7,129,226 |
| 7,183,216 | Marketing and public relations | 1,413,409 |
| 650,309 |
| 6,682,413 |
| 1,906,873 | Accommodation and utilities | 2,314,649 |
| 427,614 |
| 5,787,312 |
| 4,410,028 | Board of Directors' remuneration | 2,365,000 |
| 2,251,500 |
| 6,507,093 |
| 6,240,833 | Others | 422,327 |
| - |
| 1,457,296 |
| 1,263,966 | Total | 54,342,449 |
| 47,990,037 |
| 161,544,892 |
| 145,504,141 |
| |
Disclosure of other income, net [text block] |
INVESTMENT INCOME
| Note | For the three-month period ended 30 September (Unaudited) |
| For the nine-month period ended 30 September (Unaudited) |
|
| 2022 |
| 2021 |
| 2022 |
| 2021 | Commission income on SUKUK |
| 615,290 |
| 982,338 |
| 1,490,723 |
| 2,534,105 | Dividend income |
| 1,339,552 |
| 1,137,329 |
| 4,227,815 |
| 4,714,359 | Realised gain on sale investments, net |
| 1,804,221 |
| 4,382,647 |
| 17,707,106 |
| 8,803,788 | Unrealised gain / (loss) on investments, net |
| 2,748,071 |
| 1,705,706 |
| 5,805,030 |
| 9,315,757 | Commission from SAMA deposits | 9 | 1,544,683 |
| 3,550 |
| 2,789,982 |
| 10,254 | Commission from SAMA Bills |
| 4,994,830 |
| - |
| 5,296,789 |
| - | Commission from time deposit |
| 237,352 |
| - |
| 237,352 |
| - | Total |
| 13,283,999 |
| 8,211,570 |
| 37,554,797 |
| 25,378,263 |
| |
Disclosure of other expenses, net [text block] |
FINANCE COST
|
| For the three-month period ended 30 September (Unaudited) |
| For the nine-month period ended 30 September (Unaudited) |
|
| 2022 |
| 2021 |
| 2022 |
| 2021 | Interest expense on lease liabilities |
| 26,381 |
| 573,931 |
| 121,551 |
| 717,363 | Interest cost employees’ end-of-service benefits liabilities |
| 518,869 |
| 434,742 |
| 1,676,126 |
| 1,304,228 | Total |
| 545,250 |
| 1,008,673 |
| 1,797,677 |
| 2,021,591 |
| |
Disclosure of earnings per share [text block] |
BASIC AND DILUTED EARNINGS PER SHARE
Basic and diluted earnings per share is computed by dividing profit attributable to the ordinary shareholders of the Company by the weighted average outstanding number of shares for the period ended 30 September 2022, totaling 120 million shares (30 September 2021: 120 million shares).
| For the three-month period ended 30 September (Unaudited) |
| For the nine-month period ended 30 September (Unaudited) |
| 2022 |
| 2021 |
| 2022 |
| 2021 | Net profit for the period | 89,118,446 |
| 115,189,409 |
| 367,422,752 |
| 477,233,627 | Weighted average outstanding number of shares | 120,000,000 |
| 120,000,000 |
| 120,000,000 |
| 120,000,000 | Earnings per share | 0.74 |
| 0.96 |
| 3.06 |
| 3.98 |
| |
Disclosure of related party transactions [text block] |
TRANSACTIONS WITH RELATED PARTIES
In the ordinary course of its activities, the Group transacts with its related parties. Related parties include PIF (“the shareholder”), Tadawul Real Estate Company (“the Associate”), the Group’s Board of Directors (BOD) and key executives. The related parties also include affiliated entities which: Are owned by the shareholders; Have common directors on the Company’s BOD; and Have common directors on the shareholder’s BOD.
26.1 The Group has disclosed the transactions with related parties by each Group company. The revenue services provided by each Group company are explained below.
Transactions with Saudi Tadawul Group Holding represents the trading services, listing fees and technology & information services which were provided by the parent prior to the Group restructuring. However, from 1 June 2021 these services are being provided by Saudi Exchange Company and are reported under Saudi Exchange Services. Transaction with Securities Depository Services represents the post trade services, and Securities Clearing Services represents the clearing services of derivatives.
The transactions with related parties in relation to the Group’s activities carried out through the companies of the Group are as follows: For the nine-month period ended:
| Nature of transactions by Group companies |
Nature of relationship | Saudi Tadawul Group Holding Services |
| Securities Depository Services |
| Securities Clearing Services |
| Saudi Exchange Services |
| Tadawul Advance Solution Services |
| Nine month period ended 30 September 2022 |
|
|
|
|
|
|
|
|
|
|
|
| Affiliated entities: |
|
|
|
|
|
|
|
|
|
|
| - owned by the shareholder | - |
| 47,313,996 |
| 9,734,586 |
| 412,840,615 |
| 931,500 |
| 470,820,697 | - with common directors on the Company’s BOD | - |
| - |
| - |
| 77,996,953 |
| - |
| 77,996,953 | - with common directors on the shareholder’s BOD | - |
| 3,795,907 |
| 18,184,282 |
| 579,726 |
| - |
| 22,559,915 | Total | - |
| 51,109,903 |
| 27,918,868 |
| 491,417,294 |
| 931,500 |
| 571,377,565 |
| Nature of transactions by Group companies |
Nature of relationship | Saudi Tadawul Group Holding Services |
| Securities Depository Services |
| Securities Clearing Services |
| Saudi Exchange Services |
| Tadawul Advance Solution Services |
| Nine month period ended 30 September 2021 |
|
|
|
|
|
|
|
|
|
|
|
| Affiliated entities: |
|
|
|
|
|
|
|
|
|
|
| - owned by the shareholder | 170,652,605 |
| 33,149,608 |
| - |
| 126,676,739 |
| - |
| 330,478,952 | - with common directors on the Company’s BOD | 193,729,572 |
| 2,525,646 |
| - |
| 29,664,660 |
| - |
| 225,919,878 | - with common directors on the shareholder’s BOD | 1,157,798 |
| - |
| 37,927 |
| - |
| - |
| 1,195,725 | Total | 365,539,975 |
| 35,675,254 |
| 37,927 |
| 156,341,399 |
| - |
| 557,594,555 |
TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
26.1 The transactions with related parties in relation to the Group’s activities carried out through the companies of the Group are as follows (continued):
For the three-month period ended:
| Nature of transactions by Group companies |
Nature of relationship | Saudi Tadawul Group Holding Services |
| Securities Depository Services |
| Securities Clearing Services |
| Saudi Exchange Services |
| Tadawul Advance Solution Services |
| Three month period ended 30 September 2022 |
|
|
|
|
|
|
|
|
|
|
|
| Affiliated entities: |
|
|
|
|
|
|
|
|
|
|
| - owned by the shareholder | - |
| 11,798,035 |
| 3,622,487 |
| 114,805,129 |
| - |
| 130,225,651 | - with common directors on the Company’s BOD | - |
| - |
| - |
| 15,340,817 |
| - |
| 15,340,817 | - with common directors on the shareholder’s BOD | - |
| 1,184,580 |
| 8,203,751 |
| 579,726 |
| - |
| 9,968,057 | Total | - |
| 12,982,615 |
| 11,826,238 |
| 130,725,672 |
| - |
| 155,534,525 |
| Nature of transactions by Group companies |
Nature of relationship | Saudi Tadawul Group Holding Services |
| Securities Depository Services |
| Securities Clearing Services |
| Saudi Exchange Services |
| Tadawul Advance Solution Services |
| Three month period ended 30 September 2021 |
|
|
|
|
|
|
|
|
|
|
|
| Affiliated entities: |
|
|
|
|
|
|
|
|
|
|
| - owned by the shareholder | 587,524 |
| 7,677,825 |
| - |
| 81,388,009 |
| - |
| 89,653,358 | - with common directors on the Company’s BOD | - |
| 904,547 |
| - |
| 19,482,445 |
| - |
| 20,386,992 | - with common directors on the shareholder’s BOD | - |
| - |
| 861 |
| - |
| - |
| 861 | Total | 587,524 |
| 8,582,372 |
| 861 |
| 100,870,454 |
| - |
| 110,041,211 |
26.2 The account receivables balance arising from the above transactions is as follows:
| For the period ended 30 September 2022 (Unaudited) |
Nature of relationship | Opening balance |
| Invoiced |
| Collections |
| Ending balance |
| Loss allowance |
|
|
|
|
|
|
|
|
|
| Affiliated entities: |
|
|
|
|
|
|
|
|
| - owned by the shareholder | 10,312,176 |
| 470,820,697 |
| (466,919,164) |
| 14,213,709 |
| 430,338 | - with common directors on the Company’s BOD | 1,046,038 |
| 77,996,953 |
| (78,038,497) |
| 1,004,494 |
| - | - with common directors on the shareholder’s BOD | 293,954 |
| 22,559,915 |
| (21,330,371) |
| 1,523,498 |
| - | Total | 11,652,168 |
| 571,377,565 |
| (566,288,032) |
| 16,741,701 |
| 430,338 |
| For the year ended 31 December 2021 (Audited) |
Nature of relationship | Opening balance |
| Invoiced |
| Collections |
| Ending balance |
| Loss allowance |
|
|
|
|
|
|
|
|
|
| Affiliated entities: |
|
|
|
|
|
|
|
|
| - owned by the shareholder | 2,823,849 |
| 598,285,037 |
| (590,796,710) |
| 10,312,176 |
| 1,440 | - with common directors on the Company’s BOD | - |
| 176,336,199 |
| (175,290,161) |
| 1,046,038 |
| 4 | - with common directors on the shareholder’s BOD | 4,393,976 |
| 72,808,723 |
| (76,908,745) |
| 293,954 |
| 156,240 | Total | 7,217,825 |
| 847,429,959 |
| (842,995,616) |
| 11,652,168 |
| 157,684 |
TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
26.3 Other balances with related parties included in investments at “FVTPL” are as follows:
| For the period ended 30 September 2022 (Unaudited) |
Nature of relationship | Opening balance |
| Purchases/ (Disposals) |
| Unrealized gain |
| Ending balance |
|
|
|
|
|
|
|
| Affiliated entities with common directors on the Company’s BOD | 345,367,216 |
| (336,018,960) |
| 4,217,874 |
| 13,566,130 |
| For the year ended 31 December 2021 (Audited) |
Nature of relationship | Opening balance |
| Purchases/ (Disposals) |
| Unrealized gain |
| Ending balance |
|
|
|
|
|
|
|
| Affiliated entities with common directors on the Company’s BOD | 1,142,833,446 |
| (803,923,117) |
| 6,456,887 |
| 345,367,216 |
26.4 Other balances with related parties arising out of services received and included within accounts payables and accrued expenses are as follows:
| For the period ended 30 September 2022 (Unaudited) |
Nature of relationship | Opening balance |
| Services Received |
| Payments made |
| Ending balance |
|
|
|
|
|
|
|
| Affiliated entities: |
|
|
|
|
|
|
| - owned by the shareholder (Note 14,17) | 10,381,260 |
| 5,025,106 |
| (6,815,827) |
| 8,590,539 | - with common directors on the Company’s BOD | 8,376,167 |
| 9,807,568 |
| (11,835,402) |
| 6,348,333 | Total | 18,757,427 |
| 14,832,674 |
| (18,651,229) |
| 14,938,872 |
| For the year ended 31 December 2021 (Audited) |
Nature of relationship | Opening balance |
| Services Received |
| Payments made |
| Ending balance |
|
|
|
|
|
|
|
| Affiliated entities: |
|
|
|
|
|
|
| - owned by the shareholder (Note 14,17) | 7,743,772 |
| 9,039,557 |
| (6,402,069) |
| 10,381,260 | - with common directors on the Company’s BOD | 5,903,691 |
| 8,184,167 |
| (5,711,691) |
| 8,376,167 | Total | 13,647,463 |
| 17,223,724 |
| (12,113,760) |
| 18,757,427 |
26.5Key management consists of the directors and the executive management. The compensation of key management personnel is as follows:
| For the three-month period ended 30 September (Unaudited) |
| For the nine-month period ended 30 September (Unaudited) |
| 2022 |
| 2021 |
| 2022 |
| 2021 | Salaries and other short-term benefits | 5,051,119 |
| 6,607,346 |
| 17,639,028 |
| 14,867,198 | Post-employment benefits | 362,891 |
| 331,449 |
| 1,817,755 |
| 2,770,189 | Board of Directors’ remuneration | 2,365,000 |
| 2,251,500 |
| 6,507,093 |
| 6,240,833 | Total | 7,779,010 |
| 9,190,295 |
| 25,963,876 |
| 23,878,220 |
| |
Disclosure of segments reporting [text block] |
SEGMENT INFORMATION
The Group operates solely in the Kingdom of Saudi Arabia. For management purposes, the Group is organized into business units based on services provided. The reportable segments of the Group are:
Capital markets The activities of this segment include trading commission for securities and derivatives, admission fees from initial listing and further capital raises, annual fees charged for securities traded on the Group’s markets and fees from our secondary market services.
Post trade The activities of this segment include registration of investment portfolios in the filing and settlement system, register and file its ownership, transfer, settlement, clearing and safekeeping its ownership, registering any restriction of ownership on the file securities, and associate with members of the market and settlement agents to filing and settlement system. Furthermore, linking and managing records of securities issuers, organizing general assemblies for issuers including remote voting service for such assemblies, providing reports, notifications and information in addition to providing any other service relating to its activities according to financial market regulations.
Data and technology services The activities of this segment are to grow the business of Data and Technology Services which includes offering high-quality real-time trading data, reference data, market indices, financial information to the financial community, financial technology solutions, research & development in the field of engineering & technology and innovative capital market solutions for stakeholders.
Corporate Corporate manages future corporate development and controls all treasury related functions. All investments are incubated within this category, which also comprises managing strategy for business development, legal, finance, operations, human resources and customer relations management.
27.1Information about reportable segments: For the nine-month period ended:
30 September 2022 (Unaudited) | Capital markets |
| Data and technology services |
| Post- trade |
| Total |
|
|
|
|
|
|
|
| Segment revenue | 328,576,004 |
| 74,466,941 |
| 446,198,325 |
| 849,241,270 | Segment profit before Zakat | 190,158,181 |
| 37,815,896 |
| 175,042,551 |
| 403,016,628 | Depreciation and amortisation | (14,395,682) |
| (2,304,898) |
| (22,834,163) |
| (39,534,743) | Segment profit after Zakat | 190,158,181 |
| 37,815,896 |
| 175,042,551 |
| 403,016,628 | 30 September 2021 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment revenue | 383,384,392 |
| 70,789,271 |
| 454,369,472 |
| 908,543,135 | Segment profit before Zakat | 258,286,923 |
| 44,917,115 |
| 215,048,697 |
| 518,252,735 | Depreciation and amortisation | (18,456,662) |
| (2,518,986) |
| (20,212,530) |
| (41,188,178) | Segment profit after Zakat | 258,286,923 |
| 44,917,115 |
| 215,048,697 |
| 518,252,735 |
For the three-month period ended:
30 September 2022 (Unaudited) | Capital markets |
| Data and technology services |
| Post- trade |
| Total |
|
|
|
|
|
|
|
| Segment revenue | 91,435,738 |
| 27,601,971 |
| 138,142,348 |
| 257,180,057 | Segment profit before Zakat | 42,757,414 |
| 14,258,638 |
| 41,266,911 |
| 98,282,963 | Depreciation and amortization | (3,124,362) |
| (773,800) |
| (9,196,694) |
| (13,094,856) | Segment profit after Zakat | 42,757,414 |
| 14,258,638 |
| 41,266,911 |
| 98,282,963 | 30 September 2021 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment revenue | 103,262,074 |
| 23,244,556 |
| 136,128,722 |
| 262,635,352 | Segment profit before Zakat | 62,204,354 |
| 12,467,578 |
| 61,203,407 |
| 135,875,339 | Depreciation and amortization | (6,219,408) |
| (861,715) |
| (6,958,599) |
| (14,039,722) | Segment profit after Zakat | 62,204,354 |
| 12,467,578 |
| 61,203,407 |
| 135,875,339 |
SEGMENT INFORMATION (CONTINUED)
27.2Reconciliation of information on reportable segments to the amounts reported in the financial statements: i. Net profit for the period
For the nine-month period ended:
30 September 2022 (Unaudited) | Capital markets |
| Data and technology services |
| Post- trade |
| Total |
|
|
|
|
|
|
|
| Total profit before Zakat for reportable segments | 190,158,181 |
| 37,815,896 |
| 175,042,551 |
| 403,016,628 | Profit before Zakat for other segments |
|
|
|
|
|
|
| Unallocated amounts: |
|
|
|
|
|
|
| - Other corporate income | - |
| - |
| - |
| 36,785,368 | - Other corporate expenses | - |
| - |
| - |
| (18,988,340) | Consolidated profit before Zakat | 190,158,181 |
| 37,815,896 |
| 175,042,551 |
| 420,813,656 | Zakat expense | - |
| - |
| - |
| (53,390,904) | Consolidated profit after Zakat | 190,158,181 |
| 37,815,896 |
| 175,042,551 |
| 367,422,752 |
30 September 2021 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total profit before Zakat for reportable segments | 258,286,923 |
| 44,917,115 |
| 215,048,697 |
| 518,252,735 | Profit before Zakat for other segments |
|
|
|
|
|
|
| Unallocated amounts: |
|
|
|
|
|
|
| - Other corporate income | - |
| - |
| - |
| 26,398,035 | - Other corporate expenses | - |
| - |
| - |
| (15,247,205) | Consolidated profit before Zakat | 258,286,923 |
| 44,917,115 |
| 215,048,697 |
| 529,403,565 | Zakat expense | - |
| - |
| - |
| (52,169,938) | Consolidated profit after Zakat | 258,286,923 |
| 44,917,115 |
| 215,048,697 |
| 477,233,627 |
For the three-month period ended:
30 September 2022 (Unaudited) | Capital markets |
| Data and technology services |
| Post- trade |
| Total |
|
|
|
|
|
|
|
| Total profit before Zakat for reportable segments | 42,757,414 |
| 14,258,638 |
| 41,266,911 |
| 98,282,963 | Profit before Zakat for other segments |
|
|
|
|
|
|
| Unallocated amounts: |
|
|
|
|
|
|
| - Other corporate income | - |
| - |
| - |
| 13,325,513 | - Other corporate expenses | - |
| - |
| - |
| (6,556,295) | Consolidated profit before Zakat | 42,757,414 |
| 14,258,638 |
| 41,266,911 |
| 105,052,181 | Zakat expense | - |
| - |
| - |
| (15,933,735) | Consolidated profit after Zakat | 42,757,414 |
| 14,258,638 |
| 41,266,911 |
| 89,118,446 | 30 September 2021 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total profit before Zakat for reportable segments | 62,204,354 |
| 12,467,578 |
| 61,203,407 |
| 135,875,339 | Profit before Zakat for other segments |
|
|
|
|
|
|
| Unallocated amounts: |
|
|
|
|
|
|
| - Other corporate income | - |
| - |
| - |
| 11,710,917 | - Other corporate expenses | - |
| - |
| - |
| (5,575,806) | Consolidated profit before Zakat | 62,204,354 |
| 12,467,578 |
| 61,203,407 |
| 142,010,450 | Zakat expense | - |
| - |
| - |
| (26,821,041) | Consolidated profit after Zakat | 62,204,354 |
| 12,467,578 |
| 61,203,407 |
| 115,189,409 |
SEGMENT INFORMATION (CONTINUED)
ii. Operating revenue
For the nine-month period ended:
30 September 2022 (Unaudited) | Capital markets |
| Data and technology services |
| Post- trade |
| Total |
|
|
|
|
|
|
|
| Revenue recognised at a point-in-time
|
|
|
|
|
|
|
| Trading services | 254,064,302 |
| - |
| - |
| 254,064,302 | Data & technology services | - |
| 4,961,147 |
| - |
| 4,961,147 | Post trade services | - |
| - |
| 374,900,554 |
| 374,900,554 | Listing services | 12,136,696 |
| - |
| - |
| 12,136,696 | Derivatives | 693,393 |
| - |
| 18,821 |
| 712,214 | Membership | 197,800 |
| - |
| 720,000 |
| 917,800 |
|
|
|
|
|
|
|
| Revenue recognised over-time
|
|
|
|
|
|
|
| Trading services | - |
| - |
| - |
| - | Data & technology services | - |
| 69,505,794 |
| - |
| 69,505,794 | Post trade services | - |
| - |
| 69,202,693 |
| 69,202,693 | Listing services | 60,267,921 |
| - |
| - |
| 60,267,921 | Derivatives | 86,062 |
| - |
| 135,000 |
| 221,062 | Membership | 1,129,830 |
| - |
| 1,221,257 |
| 2,351,087 | Consolidated revenue | 328,576,004 |
| 74,466,941 |
| 446,198,325 |
| 849,241,270 |
For the nine-month period ended:
30 September 2021 (Unaudited) | Capital markets |
| Data and technology services |
| Post- trade |
| Total |
|
|
|
|
|
|
|
| Revenue recognised at a point-in-time |
|
|
|
|
|
|
| Trading services | 324,873,224 |
| - |
| - |
| 324,873,224 | Technology services | - |
| 6,425,072 |
| - |
| 6,425,072 | Post trade services | - |
| - |
| 388,605,304 |
| 388,605,304 | Listing services | 4,280,800 |
| - |
| - |
| 4,280,800 | Derivatives | 573,260 |
| - |
| 71,780 |
| 645,040 | Membership | 108,000 |
| - |
| 120,000 |
| 228,000 |
|
|
|
|
|
|
|
| Revenue recognised over-time |
|
|
|
|
|
|
| Trading services | - |
| - |
| - |
| - | Data & technology services | - |
| 64,364,199 |
| - |
| 64,364,199 | Post trade services | - |
| - |
| 64,306,701 |
| 64,306,701 | Listing services | 52,352,933 |
| - |
| - |
| 52,352,933 | Derivatives | 94,275 |
| - |
| 140,523 |
| 234,798 | Membership | 1,101,900 |
| - |
| 1,125,164 |
| 2,227,064 | Consolidated revenue | 383,384,392 |
| 70,789,271 |
| 454,369,472 |
| 908,543,135 |
27. SEGMENT INFORMATION (CONTINUED)
ii. Operating revenue (continued)
For the three-month period ended:
30 September 2022 (Unaudited) | Capital markets |
| Data and technology services |
| Post- trade |
| Total |
|
|
|
|
|
|
|
| Revenue recognised at a point-in-time |
|
|
|
|
|
|
| Trading services | 66,102,138 |
| - |
| - |
| 66,102,138 | Data & technology services | - |
| 1,441,573 |
| - |
| 1,441,573 | Post trade services | - |
| - |
| 115,019,768 |
| 115,019,768 | Listing services | 3,922,500 |
| - |
| - |
| 3,922,500 | Derivatives | 486,388 |
| - |
| 3,981 |
| 490,369 | Membership | 136,300 |
| - |
| - |
| 136,300 |
|
|
|
|
|
|
|
| Revenue recognised over-time
|
|
|
|
|
|
|
| Trading services | - |
| - |
| - |
| - | Data & technology services | - |
| 26,160,398 |
| - |
| 26,160,398 | Post trade services | - |
| - |
| 22,638,034 |
| 22,638,034 | Listing services | 20,364,926 |
| - |
| - |
| 20,364,926 | Derivatives | 28,687 |
| - |
| 45,000 |
| 73,687 | Membership | 394,799 |
| - |
| 435,565 |
| 830,364 | Consolidated revenue | 91,435,738 |
| 27,601,971 |
| 138,142,348 |
| 257,180,057 |
30 September 2021 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue recognised at a point-in-time |
|
|
|
|
|
|
| Trading services | 81,368,476 |
| - |
| - |
| 81,368,476 | Technology services | - |
| 1,468,513 |
| - |
| 1,468,513 | Post trade services | - |
| - |
| 114,070,742 |
| 114,070,742 | Listing services | 3,090,800 |
| - |
| - |
| 3,090,800 | Derivatives | 154,167 |
| - |
| 64,540 |
| 218,707 | Membership | 25,500 |
| - |
| - |
| 25,500 |
|
|
|
|
|
|
|
| Revenue recognised over-time |
|
|
|
|
|
|
| Trading services | - |
| - |
| - |
| - | Data & technology services | - |
| 21,776,043 |
| - |
| 21,776,043 | Post trade services | - |
| - |
| 21,567,917 |
| 21,567,917 | Listing services | 18,224,406 |
| - |
| - |
| 18,224,406 | Derivatives | 31,425 |
| - |
| 50,523 |
| 81,948 | Membership | 367,300 |
| - |
| 375,000 |
| 742,300 | Consolidated revenue | 103,262,074 |
| 23,244,556 |
| 136,128,722 |
| 262,635,352 |
| |
Disclosure of risk management [abstract] | | |
Disclosure of credit risk [text block] |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Group has exposure to the following risks from its activities and use of financial instruments: - Market risk; - Credit risk; - Operational risk; and - Liquidity risk.
This note presents information about the Group’s exposure to each of the above risks and the Group’s objectives, policies & processes for measuring & managing these risks. Furthermore, quantitative disclosures are included throughout these condensed consolidated interim financial statements.
Risk management framework
The Board of Directors has an overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board is responsible for approving the Group’s risk management policies. Furthermore, the Risk Management Committee is responsible for overseeing the effective implementation of the risk management policies.
The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits & controls, and to monitor risks & adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training, management standards and procedures aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
Risk management structure A cohesive organisational structure is established within the Group in order to identify, assess, monitor and control risks.
Board of Directors The apex of risk governance is the centralised oversight of the Board of Directors providing direction and the necessary approvals of strategies and policies in order to achieve defined corporate goals.
Senior management Senior management is responsible for the day to day operations in respect of achieving the strategic goals within the Group’s pre-defined risk appetite.
In order to manage the Group’s Clearing services activities risks, the Group through one of its subsidiary (Muqassa) has an integrated and comprehensive risk management system and ensures that its risk management framework identifies, measures, monitors and manages the risks that it bears from Clearing Members as well as other key institutions. Group has as a low risk appetite for financial, liquidity, operational, market and credit concentration risk. This appetite helps drive the setting of conservative values when deciding on key measures such as the Default Fund Cover or Investment Duration. These risk management policies, procedures, systems and controls have been developed to adhere to the CMA’s Securities Central Counterparties Regulation as well as align to both CPMI-IOSCO’s Principles for Financial Market Infrastructures (PFMIs) and international best practices.
The risks faced by the Group and the way these risks are mitigated by management are summarised below:
28.1 Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate, because of changes in market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer or factors affecting all similar financial instruments traded in the market. The Group limits market risk by maintaining a diversified portfolio and by monitoring the developments in financial markets. Market risk reflects price risk, currency risk and commission rate risk.
Price risk Price risk is the risk that the value of financial instruments will fluctuate due to changes in market prices (other than risk arising from commission rate and foreign currency). The Group believes price risk does not arise for the Group based on the investment portfolio held.
Currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. The Group is subject to fluctuations in foreign exchange rates in the normal course of its business. The Group did not undertake significant transactions in currencies other than Saudi Arabian Riyals.
Commission rate risk Commission risk is the exposure to multiple risks related to the impact of changes in commission rates in the market on the Group’s financial position and cash flows. The Group monitors the fluctuations in commission rates and believes that the impact of the risk is on certain financial instruments held by the Group. Commission on clearing participant financial assets is shared with clearing participant.
A 1% change in the commission rates, with all other variables held constant, would impact the condensed consolidated interim statement of profit or loss and other comprehensive income as set out below:
| For the three-month period ended 30 September (Unaudited) |
| For the nine-month period ended 30 September (Unaudited) |
| 2022 |
| 2021 |
| 2022 |
| 2021 | Effect on profit for the period | 13,063,285 |
| 7,064,700 |
| 39,189,855 |
| 21,194,099 |
28. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED)
28.2 Credit risk Credit risk is the risk of a financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers and investment in debt securities.
The below schedule shows the maximum limit for exposure to credit risk of the condensed consolidated interim statement of financial position elements:
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) | Investments at amortized cost | 55,557,254 |
| 156,565,076 | Advance for purchase of property | 77,500,000 |
| 77,500,000 | Cash and cash equivalents | 2,082,607,018 |
| 76,197,458 | Accounts receivable | 76,030,275 |
| 60,547,611 | Accrued operational revenue | 6,656,700 |
| 9,064,755 | Other receivables | 5,561,505 |
| 5,425,592 | Advance to employees | 6,122,746 |
| 5,404,641 | Total | 2,310,035,498 |
| 390,705,133 |
Cash and cash equivalents The Group keeps its surplus funds with banks having sound credit ratings. Currently the surplus funds are kept with banks that have ratings as follows:
Current accounts
|
| STANDARD & POOR |
| Moody’s |
| Fitch |
Bank name |
| Long term | Short term |
| Long term | Short term |
| Long term | Short term | SABB |
| - | - |
| A1 | P-1 |
| BBB+ | F2 | SNB |
| A- | A-2 |
| A1u | P-1u |
| - | - |
Time deposit
|
| STANDARD & POOR |
| Moody’s |
| Fitch |
Bank name |
| Long term | Short term |
| Long term | Short term |
| Long term | Short term | SABB |
| - | - |
| A1 | P-1 |
| BBB+ | F2 | SNB |
| A- | A-2 |
| A1u | P-1u |
| - | - | Alinma Bank |
| - | - |
| - | - |
| BBB+ | F2 | ANB |
| BBB+ | A-2 |
| A1 | P-1 |
| BBB+ | F2 | SAIB |
| BBB | A-2 |
| A2 | P-1 |
| BBB+ | F2 |
Investments at amortized cost This represents investments in sukuks issued by counter parties operating in the Kingdom of Saudi Arabia having sound credit ratings.
Accounts receivable Accounts receivable are shown net of the allowance for credit losses. The Group applies the IFRS 9 simplified approach in measuring expected credit losses which uses a lifetime expected loss allowance. To measure the expected credit losses, account receivables have been grouped based on the days past due. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.
Accrued operational revenue Accrued operating revenue represents earned revenue which is yet to be billed to customers. These are short-term in nature and no significant credit risk exists in the balance.
Advance to employees This represents advances provided to employees on their request. Such advances are deducted from their monthly salaries. Therefore, no significant credit risk exists in the balance.
Advance for purchase of property The Group is in the process of acquiring the second floor of the data center in the King Abdullah Financial District in Riyadh (the “Data Centre”) for the purposes of its operations. The payment is made to SAMA which is the central bank of Kingdom of Saudi Arabia. Hence no significant credit risk exists in the balance.
Other receivables Other receivables represent receivables from low credit risk counterparties and are short-term in nature. 28.FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED) 28.3 Concentration of credit risk The following table provides information about the exposure to credit risk and expected credit losses for receivables as at 30 September 2022.
| Weighted average loss rate % |
| Gross carrying amount |
| Loss allowance |
| Credit impaired |
|
|
|
|
|
|
|
| 0-30 days (not past due) | 0.01 |
| 50,375,154 |
| 3,807 |
| No | 30-60 days | 0.48 |
| 2,870,607 |
| 13,855 |
| No | 61-90 days | 4.63 |
| 801,555 |
| 37,079 |
| No | 91-120 days | 1.99 |
| 442,742 |
| 8,819 |
| Yes | 121-180 days | 13.34 |
| 1,418,672 |
| 189,196 |
| Yes | 181-360 days | 49.33 |
| 2,422,476 |
| 1,195,064 |
| Yes | More than 360 days past due | 59.12 |
| 46,831,854 |
| 27,684,965 |
| Yes |
|
|
| 105,163,060 |
| 29,132,785 |
|
|
The following table provides information about the exposure to credit risk and expected credit losses for receivables as at 31 December 2021:
| Weighted average loss rate % |
| Gross carrying amount |
| Loss allowance |
| Credit impaired |
|
|
|
|
|
|
|
| 0-30 days (not past due) | 0.01 |
| 34,934,306 |
| 4,343 |
| No | 30-60 days | 1.07 |
| 1,238,314 |
| 13,222 |
| No | 61-90 days | 1.87 |
| 500,119 |
| 9,361 |
| No | 91-120 days | 3.73 |
| 446,877 |
| 16,662 |
| Yes | 121-180 days | 15.08 |
| 857,750 |
| 129,380 |
| Yes | 181-360 days | 51.07 |
| 40,145,024 |
| 20,500,343 |
| Yes | More than 360 days past due | 62.31 |
| 8,220,940 |
| 5,122,408 |
| Yes |
|
|
| 86,343,330 |
| 25,795,719 |
|
|
28.4 Operational risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Group’s processes, personnel, technology & infrastructure and from external factors other than credit, market & liquidity risks such as those arising from legal & regulatory requirements and generally accepted standards of corporate behavior. Operational risks arise from all of the Group’s operations.
The Group’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the Group’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity.
Compliance with the Group’s standards is supported by a program of periodic reviews undertaken by Internal Audit. The results of Internal Audit reviews are discussed with the management of the business unit to which they relate, with summaries submitted to the Audit Committee and senior management of the Group. | |
Disclosure of liquidity risk [text block] |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED) 28.5 Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
The below schedule shows an analysis of financial assets and liabilities based on the contractual maturities:
|
|
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
| Carrying amount |
| Less than 12 months |
| More than 12 months |
| Total |
| Less than 12 months |
| More than 12 months |
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial assets at fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
| Investments | 670,750,902 |
| 615,193,648 |
| 55,557,254 |
| 670,750,902 |
| 2,631,732,808 |
| 55,272,377 |
| 2,687,005,185 | Financial assets at amortised cost: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents | 2,099,107,518 |
| 2,099,107,518 |
| - |
| 2,099,107,518 |
| 86,197,458 |
| - |
| 86,197,458 | Clearing participant financial assets | 4,493,466,735 |
| 4,493,466,735 |
| - |
| 4,493,466,735 |
| 18,013,567 |
| - |
| 18,013,567 | Account receivables | 76,030,275 |
| 76,030,275 |
| - |
| 76,030,275 |
| 60,547,611 |
| - |
| 60,547,611 | Accrued operational revenue | 6,656,700 |
| 6,656,700 |
| - |
| 6,656,700 |
| 9,064,755 |
| - |
| 9,064,755 | Advance to employees | 6,122,746 |
| 6,122,746 |
| - |
| 6,122,746 |
| 5,404,641 |
| - |
| 5,404,641 | Advance for purchase of property | 77,500,000 |
| 77,500,000 |
| - |
| 77,500,000 |
| 77,500,000 |
| - |
| 77,500,000 | Other receivables | 5,561,505 |
| 5,561,505 |
| - |
| 5,561,505 |
| 5,425,592 |
| - |
| 5,425,592 | Total financial assets | 7,435,196,381 |
| 7,379,639,127 |
| 55,557,254 |
| 7,435,196,381 |
| 2,893,886,432 |
| 55,272,377 |
| 2,949,158,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial liabilities at amortised cost |
|
|
|
|
|
|
|
|
|
|
|
|
| Clearing participant financial liabilities | 4,480,542,575 |
| 4,480,542,575 |
| - |
| 4,480,542,575 |
| 18,013,349 |
| - |
| 18,013,349 | Lease liability | 3,518,948 |
| 3,518,948 |
| - |
| 3,518,948 |
| 982,913 |
| - |
| 982,913 | Accounts payable | 17,080,024 |
| 17,080,024 |
| - |
| 17,080,024 |
| 6,785,710 |
| - |
| 6,785,710 | Balance due to Capital Market Authority | 22,857,323 |
| 22,857,323 |
| - |
| 22,857,323 |
| 22,280,843 |
| - |
| 22,280,843 | Accrued expenses and other current liabilities | 221,297,181 |
| 221,297,181 |
| - |
| 221,297,181 |
| 236,085,074 |
| - |
| 236,085,074 | Total financial liabilities | 4,745,296,051 |
| 4,745,296,051 |
| - |
| 4,745,296,051 |
| 284,147,889 |
| - |
| 284,147,889 | Net financial assets | 2,689,900,330 |
| 2,634,343,076 |
| 55,557,254 |
| 2,689,900,330 |
| 2,609,738,543 |
| 55,272,377 |
| 2,665,010,920 |
| |
Disclosure of currency risk [text block] |
Currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. The Group is subject to fluctuations in foreign exchange rates in the normal course of its business. The Group did not undertake significant transactions in currencies other than Saudi Arabian Riyals. | |
Disclosure of subsequent events [text block] |
SUBSEQUENT EVENTS
Subsequent to the period ended 30 September 2022, on 25 October 2022 the Company in participation with the PIF announced the establishment of the Regional Voluntary Carbon Market Company (RVCMC) which aim to offer guidance and resourcing to support businesses and industries in the region as they play their part in the global transition to net zero, ensuring that carbon credit purchases go above and beyond meaningful emission reductions in value chains. The RVCMC’s capital will amount to SAR 500 million, where PIF holds 80% stake and the Company holds 20% stake. RVCMC will be headquartered in Riyadh, Kingdom of Saudi Arabia.
Other than abovementioned, there is no other event subsequent to the period which requires disclosure in these condensed consolidated interim financial statements. There is no event subsequent to the period which required any adjustment in the condensed consolidated interim financial statements. | |
Disclosure of commitments and contingencies [text block] |
CONTINGENCIES AND COMMITMENTS
25.1 Commitments represent the value not yet executed from supply contracts of assets and services to the Group as follows:
| 30 September 2022 (Unaudited) |
| 31 December 2021 (Audited) |
|
|
|
| Capital expenditure commitments | 104,025,971 |
| 87,143,300 | Operating expenditure commitments | 56,099,926 |
| 26,022,315 | Letters of guarantee | 1,147,940 |
| 1,147,940 |
| 161,273,837 |
| 114,313,555 |
25.2 On 18 Muharram 1444H corresponding to 16 August 2022, the Group’s subsidiary Wamid has entered into a non-binding preliminary agreement with Direct Financial Network Company LLC and its indirect majority shareholder National Technology Group in order to begin the due diligence process and to negotiate the definitive agreements in relation to the potential acquisition of 51% of the issued capital of DFNC from its direct and indirect shareholders.
25.3 The Group, in its ordinary course of business, is subject to proceedings, lawsuits and other claims. However, these matters are not expected to have any material impact on the Group’s financial position or on the results of its operations as reflected in these condensed consolidated interim financial statements. | |
Disclosure of board of director's approval of the financial statements [text block] |
APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements have been approved by the Board of Directors on 2 Rabi Al-Thani 1444H corresponding to 27 October 2022. | |
Disclosure of fair value hierarchy [text block] |
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Underlying the definition of fair value is the presumption that the Group is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
When measuring the fair value, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the measurement date
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. The fair value of all other / remaining financial assets and financial liabilities not mentioned below approximates to their carrying values.
Investments at FVTPL classified as level 2 include units of mutual funds, the fair value of which is determined based on the latest reported net assets value (NAV) as at the date of condensed consolidated interim statement of financial position.
| 30 September 2022 (Unaudited) |
| Carrying Value |
| Fair value |
| Total fair value |
|
|
| Level 1 |
| Level 2 |
| Level 3 |
|
| Investments – at FVTPL |
|
|
|
|
|
|
|
|
| | 605,292,898 |
| - |
| 605,292,898 |
| - |
| 605,292,898 | | 9,900,750 |
| - |
| 9,900,750 |
| - |
| 9,900,750 |
| 31 December 2021 (Audited) |
| Carrying Value |
| Fair value |
| Total fair value |
|
|
| Level 1 |
| Level 2 |
| Level 3 |
|
| Investments – at FVTPL |
|
|
|
|
|
|
|
|
| | 2,499,724,667 |
| - |
| 2,499,724,667 |
| - |
| 2,499,724,667 | | 30,715,442 |
| - |
| 30,715,442 |
| - |
| 30,715,442 |
There were no transfers between level 1 and level 2 fair value measurements, and no transfers into or out of level 3 fair value measurements as of 30 September 2022 (31 December 2021: Nil). | |
Disclosure of other notes relevant to understanding of financial statements [text block] |
RECLASSIFICATIONS
Certain comparative figures have been reclassified to conform to the current period presentation. | |