2023

BHM CAPITAL FINANCIAL SERVICES PSC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 December 2023
2023 2022
Note AED AED
INCOME
Commission and advisory income 15 77,487,532 53,149,573
Income from margin trading 46,283,366 22,043,923
Finance income 274,479 116,782
Other income 16 12,682,022 10,026,106
136,727,399 85,336,384
EXPENSES
General and administrative expenses 17 (93,039,113) (62,590,793)
Reversals/ (obliged ) allowance for receivables 7 1,710,877 (17,700)
Financial charges (10,054,705) (2,905,040)
(101,382,941) (65,513,533)
PROFIT FOR THE YEAR 35,344,458 19,822,851
STATEMENT OF COMPREHENSIVE INCOME
Items that will not be reclassified subsequently to profit or loss:

Other comprehensive (loss) (3,806,484) (4,141,962)
Net other comprehensive (loss) not to be reclassified
subsequently to profit or loss (3,806,484) (4,141,962)
Items that will be reclassified subsequently to profit or loss:
Net other comprehensive (loss) to be reclassified
subsequently to profit or loss - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 31,537,974 15,680,889
Basic and diluted profit/earnings per share (AED per

share) 0.221 0.119
The attached notes 1 to 22 form an integral part of the consolidated financial information.
7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Fair value
Treasury through OCI
Share capital shares Legal reserve Merger reserve reserve Retained earnings Total
AED AED AED AED AED AED AED
Note 10 Note 10(a) Note 10(b)
Balance at 1 January 2022 173,431,068 (2,000,000) 5,540,272 - (875,793) 14,087,949 190,183,496
Purchase of Treasury Shares - - -
Comprehensive income
Profit for the year - - - - - 19,822,851 19,822,851
Other comprehensive income for the year
Change in investment at fair value through other
comprehensive income - - - - (4,141,962) - (4,141,962)
Total comprehensive income for the year - - - (4,141,962) 19,822,851 15,680,889
Transactions with owners:
Acquisition of treasury shares - (12,650,274) - - - - (12,650,274)
Transfer to legal reserve - - 1,982,285 - - (1,982,285) -
Balance at 31 December 2022 173,431,068 (14,650,274) 7,522,557 - (5,017,755) 31,928,515 193,214,111
Comprehensive income
Profit for the year - - - - - 35,344,458 35,344,458
Other comprehensive income for the year
Change in investment at fair value through other
comprehensive income - - - - (3,806,484) - (3,806,484)
Total comprehensive profit / (loss) for the period - - - - (3,806,484) 35,344,458 31,537,974
Transactions with owners:
Acquisition of treasury shares - (4,358,013) - - - - (4,358,013)
Disposal of treasury shares - 6,028,077 - - - - 6,028,077
Transfer to legal reserve - - 3,534,446 - - (3,534,446) -
Balance at 31 December 2023 173,431,068 (12,980,210) 11,057,003 - (8,824,239) 63,738,527 226,422,149
Balances in (brackets) indicate debit amounts
The attached notes 1 to 22 form an integral part of the consolidated financial information.
8
CONSOLIDATED STATEMENT OF CASH FLOWS
2023 2022
AED AED
OPERATING ACTIVITIES
Profit for the year 35,344,458 19,822,851
Adjustment for:
Depreciation and amortisation 2,024,264 1,975,736
Depreciation on right of use asset 22,660 -
Amortization of intangible assets 793,611 790,000
Interest expense on lease liability 12,967 -
Unrealised gain on investments 243,432 495,012
Interest on bank borrowings 9,224,926 1,736,900
Interest income on deposits (274,479) (116,782)
Exchange gain or (loss) (4,282,191) (1,225,299)
Allowance for expected credit loss - 17,700
Reversal of provision (1,710,877) -
Provision for employees’ end of service benefits 1,296,260 977,868
Gain on sale of investment property - (80,248)
(Loss) / gain on disposal of property and equipment - (58,000)
Operating profit before working capital changes 42,095,031 24,335,738
Change in short term deposit under lien (50,000,000) (5,000,000)
Change in trade and other receivables (435,410,518) (144,594,628)
Change in trade and other payables 144,082,724 110,439,420
Gross cash flow (used in) / generated from operating activities (298,632,763) (14,819,469)
Interest received on deposits 274,479 116,782
Less: employees' end of service benefits paid (262,656) (174,295)
Net cash flow (used in) operating activities (298,620,940) (14,876,982)
INVESTING ACTIVITIES
Purchase of property and equipment (901,467) (473,408)
Purchase of goodwill and other intangible assets (189,200) -
Proceeds from the sale of fixed asset - 102,190
Purchase / (disposals) of financial assets through profit and loss 8,900,666 (711,871)
Payment for investment properties - (232,000)
Proceeds from the sale of investment properties - 5,040,000
(Purchase) of financial assets through OCI - (4,954,500)
Net cash flow generated from / (used in) investing activities 7,809,999 (1,229,589)
FINANCING ACTIVITIES
Repayment of bank borrowings (717,136) (717,136)
Interest paid on bank borrowings (9,224,926) (1,736,900)
Purchase of treasury shares (4,358,013) (12,650,274)
Disposal of treasury shares 6,028,077 -
Additions of Bank facility 305,000,000 -
Additions of short-term loan - 36,700,000
Repayment of lease liability (167,449) -
Net cash flow generated from financing activities (296,560,553) 21,595,690
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CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
2023 2022
AED AED
INCREASE IN CASH AND CASH EQUIVALENTS 5,749,612 5,489,119
Exchange gain 4,282,191 1,225,299
Net Increase in cash and cash equivalents after exchange loss 10,031,803 6,714,418
Cash and cash equivalents at 1 January 28,539,355 21,824,937
CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER 38,571,158 28,539,355
Represented by:
Cash and bank balances 349,365,124 359,177,119
Customers’ deposits (310,793,966) (330,637,764)
Cash and cash equivalents at the end of year (Note 9) 38,571,158 28,539,355
The attached notes 1 to 22 form an integral part of the consolidated financial information
10
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 December 2023
1 LEGAL STATUS AND PRINCIPAL ACTIVITIES
BHM Capital Financial Services PSC was incorporated on 11 March 2006 in accordance with the provisions of UAE
Federal Law No. (32) of 2021 (“Commercial Companies Law”).
As further explained in Note 3, on 8 December 2016, the operations of Mubasher Financial Services LLC (“MFS”)
merged with Al Safwa and the combined entity was renamed as Al Safwa Mubasher Financial Services PrJSC. Al
Safwa was listed on the Dubai Financial Market (“DFM”) as a Private Joint Stock Company (PrJSC). The merged
Company continued to be listed on the DFM as a Private Joint Stock Company.
On 14 July 2009, Al Safwa Islamic Financial Services established a subsidiary by subscribing to 10,000,000 shares of
AED 1 each representing 100% equity shares in Al Safwa Capital LLC (the “Subsidiary”) incorporated in the Emirates
of Sharjah in accordance with the provision of the UAE Federal Law No. (32) of 2021 (“Commercial Companies Law”).
The principal activity of the subsidiary is to hold investment properties and investment securities.
The consolidated financial statements comprise the financial results and financial position of the Company and its
wholly owned subsidiary, Al Safwa Capital LLC (collectively referred to as the “Group”).
The principal activity of the Company is to act as an intermediary in dealings in shares, stocks, debentures and other
securities including margin trading.
The registered office of the Company is P.O. Box 26730, Dubai, United Arab Emirates.
The consolidated financial statements have been approved by Board of Directors on 05 February 2024.
2 SIGNIFICANT ACCOUNTING POLICIES
2.1 BASIS OF PREPARATION
Statement of compliance
The consolidated financial statements have been prepared on going concern basis and in accordance with International
Financial Reporting Standards (IFRS) as issued and adopted by the International Accounting Standards Board (“IASB”)
and the interpretations issued by the International Financial Reporting Interpretation Committee of the IASB enforce at 31
December 2023 and the requirements of the local laws and regulations.
Accounting convention
The consolidated financial statements have been prepared under the historical cost convention, except for, where
applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair
value through other comprehensive income, investment properties, certain classes of property, plant and equipment
and derivative financial instruments.
Functional and presentation currency
The consolidated financial statements are measured using the currency of the primary economic environment in which
the Group operates. These consolidated financial statements are presented in Arab Emirates Dirham (AED), which is
the Group’s functional currency.
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and entity controlled by the
Company (its subsidiary) as at 31 December 2023. Control is achieved where all the following criteria are met:
a) The Company has power over an entity;
b) The Company has exposure, or rights, to variable returns from its involvement with the entity; and
c) The Company has the ability to use its power over the entity to affect the amount of the Company’s returns.
11
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
31 December 2023
2 SIGNIFICANT ACCOUNTING POLICIES (continued)
2.1 BASIS OF PREPARATION (continued)
Basis of consolidation (continued)
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
- The contractual arrangement with the other vote holders of the investee
- Rights arising from other contractual arrangements
- The Group’s voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control
over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses
of a subsidiary acquired or disposed of during the year are included in the statement of comprehensive income from
the date the Group gains control until the date the Group ceases to control the subsidiary.
Subsidiaries are fully consolidated from the date of acquisition or incorporation, being the date on which the Group
obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of
the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All
intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends
are eliminated in full.
Share of comprehensive income/loss within a subsidiary is attributed to the non-controlling interest even if that results
in a deficit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
If the Group loses control over a subsidiary, it:
- Derecognises the assets (including goodwill) and liabilities of the subsidiary;
- Derecognises the carrying amount of any non-controlling interest;
- Derecognises the cumulative translation differences recorded in equity;
- Recognises the fair value of the consideration received;
- Recognises the fair value of any investment retained;
- Recognises any surplus or deficit in profit and loss;
- Reclassifies the parent’s share of components previously recognized in other comprehensive income to profit
and loss or retained earnings, as appropriate, as would be required if the Group had directly disposed of the
related assets or liabilities.
For the year ended on 31 December 2023, the Company has one subsidiary which was established on 14 July 2009
by subscribing to 10,000,000 shares of AED 1 each representing 100% equity shares in Al Safwa Capital LLC (the
“subsidiary”) incorporated in the Emirates of Sharjah. The principal activity of the subsidiary is to hold investment
properties and investment securities.
2.2 Changes in accounting policies and disclosures
a) New and amended standards and interpretations
Standards and amendments that are effective for the first time in 2023 (for an entity with a 31 December 2023 year-
end) and could be applicable to the Group are:
- IFRS 17 ‘Insurance Contracts’
- Amendments to IFRS 17 Insurance Contracts (Amendments to IFRS 17 and IFRS 4)
- Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
- Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
- Definition of Accounting Estimates (Amendments to IAS 8)
- International Tax Reform—Pillar Two Model Rules (Amendments to IAS 12)
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31 December 2023
2.2 Changes in accounting policies and disclosures(continued)
a) New and amended standards and interpretations(continued)
These amendments do not have an impact on these Consolidated Financial Statements and therefore the disclosures
have not been made.
b) Standards, amendments and Interpretations to existing Standards that are not yet effective and have
not been adopted early by the Group:
Standards and amendments that are not yet effective and have not been adopted early by the Group include:
- IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information effective
- IFRS S2 Climate Related Disclosures
- Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
- Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
- Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
- Non-current Liabilities with Covenants (Amendments to IAS 1)
- Lack of Exchangeability (Amendments to IAS 21)
These amendments are not expected to have a significant impact on the financial statements in the period of initial
application and therefore no disclosures have been made.
At the date of authorisation of these consolidated financial statements, several new, but not yet effective, Standards
and amendments to existing Standards, and Interpretations have been published by the IASB or IFRIC. None of these
Standards or amendments to existing Standards have been adopted early by the Group and no Interpretations have
been issued that are applicable and need to be taken into consideration by the Group at either reporting date.
Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the
effective date of the pronouncement. New Standards, amendments and Interpretations not adopted in the current year
have not been disclosed as they are not expected to have a material impact on the Group consolidated financial
statements.
Topics covered by these standards/interpretations are either not relevant for the preparations of this set of IFRS
financial statements or the Group does not foresee that the application of these standards/interpretations will result in
a significant impact on figures and disclosures on the reporting period they will be adopted except in certain cases
where it is not practicable to provide a reasonable estimate of the effect until a detailed review has been completed.
2.3 Summary of significant accounting policies
A summary of the significant accounting policies, which have been applied consistently in the preparation of these financial
statements, is set out below.
Current versus non-current classification
The Group presents assets and liabilities in statement of financial position based on current / non-current
classification. An asset is classified as current when it is:
• Expected to be realized or intended to be sold or consumed in normal operating cycle;
• Held primarily for the purpose of trading;
• Expected to be realized within twelve months after the reporting period; or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.
All other assets are classified as non-current.
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31 December 2023
2.3 Summary of significant accounting policies (continued)
Current versus non-current classification (continued)
A liability is current when:
• It is expected to be settled in normal operating cycle;
• It is held primarily for the purpose of trading;
• It is due to be settled within twelve months after the reporting period; or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period
The Group classifies all other liabilities as non-current
Property and equipment and depreciation
Property and equipment are initially recorded at cost. Cost includes the purchase price and related expenses. Subsequent
to initial recognition as an asset, each asset is carried at cost less accumulated depreciation less any impairment losses.
Depreciation is provided on all property and equipment, at rates calculated to write off the cost, less estimated recoverable
value based on prices prevailing at the date of acquisition of each asset, over its expected useful life.
Expected future cash flows are not discounted to their present values in determining the recoverable amount of items of
fixed assets. The estimated useful lives of the fixed assets are estimated as follows:
Years
Office equipment 6-7
Furniture and fixtures 8
Computer hardware and related software 4
Machinery and Equipment 4
Building 15 – 33
Intangible assets
Goodwill
Goodwill that arises on business combination is presented with intangible assets. Subsequent to initial recognition,
goodwill is measured at cost less accumulated impairment losses.
Other intangible assets
Accounting policies for initial recognition and subsequent measurement of separately acquired intangible assets which
comprise of customer relationship and software.
Amortization
Customer relationships and software are amortized over their estimated useful life of 10 years and 3 years respectively.
Goodwill is not amortized.
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31 December 2023
Financial instruments
Classification of financial assets
Initial recognition
On initial recognition, a financial asset is classified as measured at (i) amortised cost, (ii) Fair Value through Other
Comprehensive Income (FVOCI) or (iii) Fair Value through Profit or Loss (FVTPL).
a) Financial assets measured at amortised cost:
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated
as at FVTPL;
• It is held within a business model whose objective is to hold the financial assets to collect contractual cash
flows; and
• Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
For the year ended on 31 December 2023, the Group’s financial assets at amortised cost include trade receivables,
other receivables, deposits, short term deposit under lien and cash and bank balances.
b) Financial assets measured at FVOCI:
• Debt Instruments: Debt Instruments may be classified as at FVOCI, where contractual cash flows are solely
for payments of principal and interest on the outstanding principal, and the objective of the Group’s business
model is achieved both by collecting contractual cash flows and selling the underlying financial assets.
• Equity Instruments: In case of equity instruments which are not held for trading or designated at FVTPL,
the Group may irrevocably elect to recognise subsequent changes in other comprehensive income. This
election is made on an investment-by-investment basis.
For the year ended on 31 December 2023, there are no investments carried through FVOCI.
c) Financial assets measured at FVTPL:
On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the
requirements to be measured at amortised cost or at FVOCI as FVTPL, if doing so eliminates or significantly
reduces an accounting mismatch that would otherwise arise.
All other financial assets are classified as measured at FVTPL.
For the year ended on 31 December 2023, the Group carries trading investments in quoted shares which are to be
classified as measured at FVTPL.
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31 December 2023
Financial instruments (continued)
Classification of financial assets (continued)
Business model assessment
The Group makes an assessment of the objective of a business model in which a financial asset is held at a portfolio
level because this best reflects the way the business is managed and information is provided to management. The
information considered includes:
• the frequency, volume and timing of trades of financial assets in prior years, the reasons for such trades and
its expectations about the future trading activity. However, information about trading activity is not
considered in isolation, but as part of an overall assessment of how the Group’s stated objective for
managing the financial assets is achieved and how cash flows are realized;
• how the performance of the portfolio is evaluated and reported to the management; and
• the risks that affect the performance of the business model (and the financial assets held within that business
model) and how those risks are managed.
Financial assets that are held for trading and whose performance is evaluated on a fair value basis are measured at
FVTPL because they are neither held to collect contractual cash flows, nor held both to collect contractual cash flows
and to sell financial assets.
Assessment, whether contractual cash flows are solely payments of principal and interest:
For the purposes of this assessment, ‘principal’ is defined as fair value of financial asset on initial recognition. ‘interest’
is defined as consideration for the time value of money and for the credit risk associated with the outstanding principal.
In assessing whether the contractual cash flows are solely payments of principal and interest on the outstanding
principal, the Group considers the contractual terms of the instruments. This includes assessing whether the financial
assets contain a contractual terms that could change the timing or amount of contractual cash flows such that it would
not meet this condition.
Reclassification of financial assets:
Financial assets are not reclassified subsequent to their initial recognition, except in the year after the Group changes
its business model for managing such financial assets.
Derecognition of financial assets:
Any cumulative gain/loss recognised in the statement of other comprehensive income in respect of an equity
instruments designated as FVOCI is reclassified to retained earnings upon derecognition.
Impairment of financial assets
IFRS 9 Impairment model uses a three-stage approach based on the extent of credit deterioration since origination:
Stage 1 – 12-month ECL applies to all financial assets that have not experienced a significant increase in credit risk
(SICR) since origination and are not credit impaired. The ECL will be computed using a 12- month PD that represents
the probability of default occurring over the next 12 months. For those assets with a remaining maturity of less than 12
months, a PD is used that corresponds to remaining maturity.
Stage 2 – When a financial asset experiences a SICR subsequent to origination but is not credit impaired, it is
considered to be in stage 2. This requires the computation of ECL based on lifetime PD that represents the probability
of default occurring over the remaining estimated life of the financial asset. Provisions are higher in this stage because
of an increase in risk and the impact of a longer time horizon being considered compared to 12 months in stage 1.
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31 December 2023
Financial instruments (continued)
Impairment of financial assets (continued)
Stage 3 – Financial assets that are impaired will be included in this stage. Similar to stage 2, the allowance for credit
losses will continue to capture the lifetime expected credit losses.
The impairment model will apply to financial assets measured at amortised cost or FVOCI – debt instruments. A number
of significant judgements are also required in applying the accounting requirements for measuring ECL, such as:
• Determining criteria for significant increase in credit risk (SICR);
• Choosing appropriate models and assumptions for the measurement of ECL; and
• Establishing the number and relative weightings of forward-looking scenarios for each type of product/market and
the associated ECL.
IFRS 9 considers the calculation of ECL by multiplying the probability of default (PD), loss given default (LGD) and
exposure at default (EAD).
PD – The probability of default is an estimate of the likelihood of default over a given time horizon. LGD – The loss
given default is an estimate of the loss arising in case a default occurs at a given time. It is based on the difference
between the contractual cash flows due and those that the lender would expect to receive, including from the realization
of any collateral. It is usually expressed as a percentage of the EAD. EAD – The exposure at default is an estimate of
the expected exposure in the event of a default and the potential changes to the current amount allowed under the
contract including amortisation.
Measurement of ECL
The Company recognises loss allowances for expected credit losses (ECLs) on the following financial instruments that
are not measured at FVPL:
• Cash at bank; and
• Receivables;
No impairment loss is recognised on equity investments.
Credit-impaired financial assets
A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future
cash flows of the financial asset have occurred. Credit-impaired financial assets are referred to as Stage 3 assets.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for ECL are presented in the statement of financial position as follows:
• for financial assets measured at amortised cost: as a deduction from the gross carrying amount of the assets; and
• for financial guarantee contracts: generally, as a provision
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31 December 2023
Financial liabilities
Initial recognition
Financial liabilities are classified, at initial recognition (i) at amortised cost or (ii) at FVTPL, or (iii) as derivatives
designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognised initially
at fair value, net of directly attributable transaction costs, wherever applicable.
Measurement of financial liabilities:
The measurement of financial liabilities depends on their classification, as described below:
a) Financial liabilities at FVTPL:
Financial liabilities at FVTPL including financial liabilities held for trading and financial liabilities designated upon initial
recognition as at FVTPL, shall be measured at fair value.
For the year ended on 31 December 2023, the Group has not designated any financial liability as at FVTPL.
b) Other financial liabilities:
After initial recognition, these are subsequently measured at amortised cost using the EIR method. Gains and losses
are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisitions and fees or costs that are
an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.
For the year ended on 31 December 2023, the Group’s trade and other payables, bank borrowing and short-term loan
were designated under this category of financial liability.
Derecognition of financial liabilities:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender with substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised
in the statement of profit or loss.
Offsetting of financial instruments:
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position if,
and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
Operating segments
A segment is a distinguishable component of the Group that is engaged either in providing products or services
(business segment), or in providing products or services within a particular economic environment (geographical
segment), which is subject to risks and rewards that are different from those of other segments. The Group has two
segments, one segment as its primary activity is to act as an intermediary in dealings in shares, stocks, debentures
and other securities in the UAE and second segment is to provide advisory services to customers.
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31 December 2023
Trade and other receivables
Amount due from investors and other receivables are initially recognized at fair value plus any directly attributable
transaction cost. Subsequent to initial recognition, these are measured at amortised cost using the effective interest
method, less any impairment losses.
An impairment allowance is calculated using the ECL approach as defined in IFRS 9. The additional information on the
calculation of ECL is described above under the heading of financial instruments. Gains and losses are recognised in
profit or loss when the asset is derecognised, modified or impaired. Bad debts are written off when there is no possibility
of recovery.
Cash and cash equivalents
Cash and cash equivalents consist of cash in hand, bank balances, net of outstanding bank overdrafts and customer
deposit.
Provisions
Provisions are recognised when the Group has a legal or constructive obligation arising from a past event and the costs
to settle the obligation are both probable and can be reliably measured.
Employees’ end of service benefits
Provision is made for employees’ end of service benefits. Such provision is not less than the amounts payable under the
UAE Federal Labour Law and is based on the liability that would arise if the services of all employees were terminated on
the reporting date.
Revenue from contracts with customers
The Group recognises revenue from contracts with customers based on a five-step model as set out in ‘IFRS 15 –
Revenue from Contracts with Customers’ as follows:
Step 1. Identify the contract(s) with a customer: A contracts is defined as an agreement between two or more
parties that creates enforceable rights and obligations and set out the criteria for every contract that
must be met.
Step 2. Identify the performance obligations in the contract: A performance obligations is a promise in a contract
with a customer to transfer to the customer either a good or service (or a bundle of goods or services)
that is distinct; or a series of distinct goods or services that are substantially the same and that have the
same pattern of transfer to the customer.
Step 3. Determine the transaction price: The transaction price is the amount of consideration to which an entity
expects to be entitled in exchange for transferring promised goods or services to a customer, excluding
amounts collected on behalf of third parties.
Step 4. Allocate the transaction price to the performance obligations in the contract: For a contract that has
more than one performance obligation, the Group will allocate the transaction price to each performance
obligation in an amount that depicts the amount of consideration to which the Group expects to be
entitled in exchange for satisfying each performance obligation.
Step 5. Recognise revenue when (or as) the entity satisfies a performance obligation
The Group satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:
1. The customer simultaneously receives and consumes all of the benefits provided by the Group’s performance as
the Company performs; or
2. The Company’s performance creates or enhances an asset that the customer controls as the asset is created or
enhanced; or
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31 December 2023
Revenue from contracts with customers (continued)
3. The Company’s performance does not create an asset with an alternative use to the Company and the Company
has an enforceable right to payment for performance completed to date.
For performance obligations where one of the above conditions is not met, revenue is recognised at the point in time
at which the performance obligation is satisfied.
When the Group satisfies a performance obligation by delivering the promised goods or services it creates a contract
asset based on the amount of consideration earned by the performance. Where the amount of consideration received
from a customer exceeds the amount of revenue recognised this gives rise to a contract liability.
The Company’s revenue is derived from brokerage services and company act as an agent, revenue recognised as
follows:
Commission income
Brokerage commission income is recognized at the point in time when the services have been rendered and when
the Group’s right to receive the income has been established. The commissions are recognized on net basis i.e
commission earned from the customer less commission collected on behalf of the exchange. The Group believes this
is the most appropriate because it acts as an agent in the transaction rather than a principle.
Interest income
Interest income is recognized as interest accrues using the effective interest method. This is the method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant year using the effective
interest rate, which is the rate that exactly discounts estimated future cash receipt through the expected life of the
financial asset to the net carrying amount of the financial asset.
Consultancy income
Income from consultancy services is recognized at the point in time when the services have been rendered and when
the Group’s right to receive the income has been established. Income is recognised at the amount which the Group
expected to receive from the customers.
Asset management and liquidity provider fees
Revenue from asset management and liquidity provider services are recognised over time as the services are
provided. Income from asset management and as liquidity provider recognised as revenue over the period for which
a customer is expected to continue receiving asset management services.
Other income
Other income is recognized when it is received or when the right to receive is established.
Foreign currencies
The functional and reporting currency of the Group is the Arab Emirates Dirhams (AED). Transactions denominated in
foreign currencies are translated into (AED) and recorded at the rates of exchange ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into AED at the exchange rates ruling at
the reporting date. Realized and unrealized foreign exchange gains and losses arising on translation are recognized in
the profit or loss.
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are
included in profit or loss for the year.
20
31 December 2023
2.4 Significant accounting judgements, estimates and assumptions
In preparing its consolidated financial statements in conformity with International Financial Reporting Standards, the Group
has to make significant judgment, estimates and assumptions that impact the carrying value of certain assets and
liabilities, income and expenses as well as other information reported in the notes. The Group periodically monitors such
estimates and assumptions to make sure they incorporate all relevant information available at the date when consolidated
financial statements are prepared. However, this does not prevent actual figures from differing from estimates.
Key judgment, estimates and assumptions are subject to management approval. At the statement of financial position
date, management has mainly made the following key judgments, estimates and assumptions that have the most
significant effect on the amounts recognized in the financial statements:
• Useful lives of property and equipment
The Group determines the estimated useful lives and related depreciation charges for its property and equipment.
Any changes to the estimated useful life would impact the depreciation charge for the year.
• Useful life of investment property
The Group determines the estimated useful life and related depreciation charges for its investment property.
However, the investment property still under construction and not yet available for use, management has decided
not to charge depreciation until construction is complete.
• Impairment charge on financial assets:
Establishing the number and relative weightings of forward-looking scenarios for each type of product / market
and determining the forward looking information relevant to each scenario: When measuring Expected Credit
Losses (“ECL”) the Company uses reasonable and supportable forward looking information, which is based on
assumptions for the future movement of different economic drivers and how these drivers will affect each other.
Probability of default (“PD”): PD constitutes a key input in measuring ECL. PD is an estimate of the likelihood of
default over a given time horizon, the calculation of which includes historical data, assumptions and expectations
of future conditions.
Loss Given Default (“LGD”): LGD is an estimate of the loss arising on default. It is based on the difference
between the contractual cash flows due and those that the lender would expect to receive, taking into account
cash flows from collateral and integral credit enhancements.
Exposure at Default: EAD is an estimate of the exposure at a future default date, taking into account expected
changes in the exposure after the reporting date.
• Impairment of Goodwill
Goodwill is tested annually for impairment. For impairment testing, assets are grouped together into the smallest
group of assets that generates cash inflows from continuing use that are largely independent of the cash inflow
of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs
that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell.
Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset or CGU.
21
31 December 2023
2.4 Significant accounting judgements, estimates and assumptions (continued)
• Impairment of Goodwill (continued)
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any
goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro
rata basis.
An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to
the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment loss had been recognized.
• Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The Group assesses impairment of non-financial assets other than goodwill and other indefinite life intangible
assets at each reporting date by evaluating conditions specific to the Group and to the particular asset that may
lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves
fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and
assumptions.
• Lease term
The lease term is a relevant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or
purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when
ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances
that create an economical incentive to exercise an extension option, or not to exercise a termination option, are
considered at the lease commencement date. Factors considered may include the importance of the asset to the
company's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant
penalties; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The
company reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination
option, if there is a significant event or significant change in circumstances.
3 GOODWILL AND OTHER INTANGIBLE ASSETS

Pursuant to a merger agreement between Al Safwa and MFS and shareholder resolutions of respective entities dated
21 January 2016,
Ministerial Resolution number (499)/2016 issued by Ministry of Economy on 19 September 2016, and Emirates
Securities and Commodities Authority (“ESCA”) approval dated 11 October 2016 approving the merger, the Company
commenced operations and traded as a combined entity under the revised name of Al Safwa Mubasher Financial
Services PSC with effect from 8 December 2016, on completion of the formalities of the UAE exchanges. As a result
of the merger goodwill and client relationship arose, goodwill is tested annually for the impairment and client relationship
is being amortised over its useful life.
The movement in goodwill and other intangible assets during the year is as follows:
22
31 December 2023
3 GOODWILL AND OTHER INTANGIBLE ASSETS (continued)
Client
Goodwill relationships Software Capital WIP Total
AED AED AED AED AED
Cost:
As at 1 January 2022 38,379,061 7,900,000 32,715 - 46,311,776
Addition during the year - - - - -
As at 31 December 2022 38,379,061 7,900,000 32,715 46,311,776
Addition during the year - - 65,000 124,200 189,200
As at 31 December 2023 38,379,061 7,900,000 97,715 124,200 46,500,976
Amortization:
As at 1 January 2022 - 3,950,000 32,715 - 3,982,715
Charge for the year - 790,000 - - 790,000
As at 31 December 2022 - 4,740,000 32,715 - 4,772,715
Charge for the year - 790,000 3,611 793,611
As at 31 December 2023 - 5,530,000 36,326 - 5,566,326
Net book amounts:
As at 31 December 2023 38,379,061 2,370,000 61,389 124,200 40,934,650
As at 31 December 2022 38,379,061 3,160,000 - - 41,539,061
Goodwill is not impaired during the year and other intangible assets are amortized as disclosed in note 2.3. Capital WIP
relates to the new software’s which are under development
The recoverable amount of the consolidated entity’s goodwill has been determined by a value-in-use calculation using a
discounted cash flow model, based on 3 year projected period approved by the management.
Key assumptions are those to which the recoverable amount of a cash-generating unit is most sensitive.
The following key assumptions were used in the discounted cash flow model for the business:
• 14.3% discount rate;
• Average 12% per annum projected revenue growth rate
• Average 12% per annum increase for 2024, 2025 and 2026 in the operating cost and overhead. Management
believes the forecasted revenue growth rate is prudent, in the UAE stock markets over the 3 years.
23
31 December 2023
4 PROPERTY AND EQUIPMENT
Furniture Computer Machinery & Office Land &

& Fixture equipment equipment equipment Vehicle Building Total
AED AED AED AED AED AED AED
Cost:
At 1 January 2022 2,583,940 7,883,757 6,114,046 2,377,242 946,034 21,996,021 41,901,040
Additions 34,930 150,667 53,102 234,709 - - 473,408
Disposal during the year - (14,000) (60,300) - (279,406) - (353,706)
At 31 December 2022 2,618,870 8,020,424 6,106,848 2,611,951 666,628 21,996,021 42,020,742
Additions 50,501 136,692 117,963 491,522 104,789 901,467
Disposal during the year - - - - (79,431) - (79,431)
At 31 December 2023 2,669,371 8,157,116 6,224,811 3,103,473 691,986 21,996,021 42,842,778
Depreciation:
At 1 January 2022 2,124,453 7,799,701 4,793,897 1,821,873 393,601 14,288,920 31,222,445
Charge for the year 146,872 65,265 648,115 229,842 128,679 756,963 1,975,736
Disposal during the year - (14,000) (60,300) - (257,464) - (331,764)
At 31 December 2022 2,271,325 7,850,966 5,381,712 2,051,715 264,816 15,045,883 32,866,417
Charge for the year 131,362 98,970 658,540 261,143 117,286 756,963 2,024,264
Disposal during the year - - - - (79,431) - (79,431)
At 31 December 2023 2,402,687 7,949,936 6,040,252 2,312,858 302,671 15,802,848 34,811,250
Net book amounts:
At 31 December 2023 266,684 207,183 184,558 790,614 389,316 6,193,173 8,031,528
At 31 December 2022 347,545 169,458 725,136 560,236 401,812 6,950,138 9,154,325
Building includes the office premises in Dubai which is mortgaged with the facility provided by bank (Note 10).
24
31 December 2023
5 LEASES
This note provides information for leases where the Company is a lessee. The Company has only one lease arrangement
which is for Abu Dhabi office. Rental contract is for fixed period of three years.
5(a) RIGHT-OF-USE ASSET

2023 2022
AED AED
Initial recognition 815,775 -
Accumulated depreciation (Note 5(b)) (22,660) -
Balance at 31 December 793,115 -
5(b) ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSET

2023 2022
AED AED
Balance at 1 January - -
Charge for the year 22,660 -
5(c) LEASE LIABILITY

2023 2022
AED AED
Initial recognition 815,775 -
Accretion of interest 12,967 -
Repayment of lease liability (167,449) -
Disclosed as under:
Non-current liabilities 453,062 -
Current liabilities 208,231 -
661,293 -
6 FINANCIAL ASSETS
The Group have the following financial assets:
FINANCIAL ASSETS THROUGH OTHER COMPREHENSIVE INCOME
2023 2022
AED AED
Investment in private joint stock company - 2,993,946
Investment in quoted shares - 812,538
Total financial assets through other comprehensive income - 3,806,484
25
31 December 2023
6 FINANCIAL ASSETS (continued)
Reconciliation of the fair values at the beginning and end of the current and previous financial year are set out below:
Listed Unlisted Total
AED AED AED
As at 01 January 2022 - 2,993,946 2,993,946
Addition 4,954,500 - 4,954,500
Change in fair value (4,141,962) - (4,141,962)
As at 31 December 2022 812,538 2,993,946 3,806,484
Change in fair value (812,538) (2,993,946) (3,806,484)
As at 31 December 2023 - - -
Investment in securities classified as fair value through other comprehensive income (FVTOCI) represents 2.5% of interest
held in National Real Estate Development and Investment SAOC, a private joint stock company incorporated in the Sultanate
of Oman and primarily involved in real estate development. The investment was acquired through the business combination.
During the year, the Group created the reserves for the net book value as of 31 December 2022 the investment in securities
classified as fair value through other comprehensive income (FVTOCI),and was based on purely management discretion.
FINANCIAL ASSETS THROUGH PROFIT AND LOSS

2023 2022
AED AED
As at 1 January 11,992,836 11,775,977
(Disposals) / additions during the year (8,900,666) 711,871
Fair value change during the year (unrealised) (243,432) (495,012)
As at 31 December 2,848,738 11,992,836
Investment in securities classified as fair value through profit and loss (FVTPL) represent a portfolio of investments in the
quoted shares.
7 TRADE AND OTHER RECEIVABLES
2023 2022
AED AED
Trade receivables (note 7.1) 578,773,945 260,308,538
Allowances for expected credit losses (note 7.2) (2,361,871) (4,536,408)
576,412,074 255,772,130
Prepayments 3,488,243 1,359,257
Other receivables:
Net settlement due from:
- DFM 42,689,086 13,036,944
- ADX 77,646,585 -
- NASDAQ 584 -
Deposits 11,651,298 8,429,518
Receivable from broker - 3,673,672
Others 38,644,753 31,139,707
Total trade and other receivables 750,532,623 313,411,228
26
31 December 2023
7 TRADE AND OTHER RECEIVABLES (continued)
7.1 The Group has obtained the brokerage license from SCA under registration No.604097 dated 05/08/2006, whereby
the Group provides finance to its clients as a percentage of the market value of securities. These securities are
considered as collateral and remains under the client's portfolio. The financing agreements are short term and the
bearing interest on it. However, if the customer fails to settle within prescribed time, the management can levy
interest at its own discretion.
Investors who borrow from the Group will need to provide additional cash or securities if the price of a stock drops
against the product's minimum eligibility. In the absence of adequate collateral, the Group is also allowed to
liquidate the position. The fair value of securities held as collateral against margin trading receivables as at 31
December 2023 amounts to AED 15 billion (31 December 2022: AED 2.1 billion).
The Company charges interest to Margin Trading clients based on signed agreements. Interest income during the
year amounted to AED 46,283,366 (31 December 2022: AED 22,043,923).
7.2 Movement in allowance for expected credit losses:
2023 2022
AED AED
At 1 January 4,536,408 4,518,708
Reversal of provision (1,710,877) -
Provision during the year - 17,700
Written off during the year (463,660) -
At 31 December 2,361,871 4,536,408
When determining whether the risk of default on a financial instrument has increased significantly since initial recognition,
the Group considers reasonable and supportable information that is relevant and available without undue cost or effort.
This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and
expert credit assessment and including forward- looking information.
Given the nature of business of BHM Capital Financial Services PSC which is margin lending and is primarily fully
collateralised with daily netting-off, the assets monitored closely and collateral may be liquidated when margins are below
threshold or non-payment of commitment. When margin lending experiences significant increase in credit risk but is not
considered to be impaired is included in stage 2. When margin lending are considered to be impaired is treated as stage 3.
8 RELATED PARTY TRANSACTIONS AND BALANCES

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence
over the other party in making financial and operating decisions. Related parties include, parent, subsidiaries, key
management personnel or their close family members.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the Group, directly or indirectly, including any director, executive or otherwise, of the Group. Transactions
with related parties are conducted on terms agreed mutually between the parties.
Details of the balances with related parties at the reporting date and the significant transactions with related parties during
the year are as follows:
8(a) Transactions during the year
2023 2022
AED AED
Salary and benefits provided to key management personnel 9,926,420 5,624,625
27
31 December 2023
9 CASH AND BANK BALANCES
2023 2022
AED AED
Cash and bank
- Group’s deposits 38,570,920 28,539,231
- Petty cash 238 124
- Customers’ deposits (note 9.1) 310,793,966 330,637,764
Cash and bank 349,365,124 359,177,119
Customers’ deposits (310,793,966) (330,637,764)
Cash and cash equivalents 38,571,158 28,539,355
9.1 In accordance with the regulations issued by the Emirates Securities and Commodities Authority (“SCA”), the
Company maintains separate bank accounts for money received from its customers (“client money”) and represent
the client money as part of financial statements under bank and cash balances amounting to AED 310,793,966 (31
31 December 2022: AED 330,637,764) with the corresponding liability in amount due to investors. The client money
is not available to the Company other than to settle transactions executed in trading accounts of the customers.
10 SHARE CAPITAL
2023 2022
Number of Number of
shares shares
In issue at 1 January 173,431,068 173,431,068

Cancellation of shares - -
In issue at 31 December 173,431,068 173,431,068
Total paid in capital (AED) 173,431,068 173,431,068
Capital Adequacy Management
The Group manages its capital adequacy to ensure compliance with decision no. (27) of 2014 concerning the criteria for
capital adequacy of the brokerage firms in securities and commodity contracts. The primary objective of the Group’s
capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximize
shareholders value.
The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions. No
changes were made in the objectives, policy or processes during the years ending 31 December 2023 and 31 December
2022.
10(a) Treasury shares
2023 2022 2023 2022
No. of shares No. of shares AED AED
Employee Stock Options Program 11,843,106 14,688,143 12,980,210 14,650,274
10(b) Legal reserve
In accordance with UAE Federal Law (32) of 2021 (“Commercial Companies Law”), a minimum of 10% of the annual
profit is to be transferred to this non-distributable statutory reserve. Such transfers may cease when the statutory reserve
becomes equal to half of the paid-up share capital. In the current year, 3,534,446 (2022: AED 1,982,285) has been
transferred to legal reserve.
28
31 December 2023
11 BANK BORROWINGS
2023 2022
AED AED
Ijarah Facility (note a) 2,808,778 3,525,914
Short-term borrowings (note b) 36,700,000 36,700,000
Bank overdraft (note c) 305,000,000 -
344,508,778 40,225,914
Disclosed under statement of financial position as follows:
Non-current portion of borrowings 2,091,642 2,808,778
Current portion of borrowings 342,417,136 37,417,136
344,508,778 40,225,914
a. In 2008, the Group was granted a forward Ijarah facility from the Islamic Bank to purchase an office space in
the Emirate of Dubai. On 8 November 2012, the Group obtained the possession of office premises and the Ijarah
facility of AED 24,051,620 was rescheduled to be repayable in 180 equal monthly instalments commencing from
8 December 2012. The Ijarah facility bears a profit rate and is secured by a first-degree registered mortgage
over the property.
b. Short term loan amounting AED 36.7 million is interest bearing loan which is re-payable on demand
c. The Company has obtained a bank overdraft facility of AED 305 million (31 December 2022: AED 45 million).
As on the reporting date, the Company has drawn down AED 305 million (31 December 2022: Nil). The loan
amount is re-payable within a year.
At the reporting date, the Group has below letters of guarantee from bank
Facility Limit (AED)

Letters of guarantee 50,000,000
12 EMPLOYEES’ END OF SERVICE BENEFITS
2023 2022
AED AED
Bal Balance as at 01 January 3,400,271 2,596,698
Charge for the year 1,296,260 977,868
Paid during the year (262,656) (174,295)
Balance as at 31 December 4,433,875 3,400,271
An actuarial valuation has not been performed as the net impact of discount rate and future increase in staff salaries is
deemed by management to be insignificant and immaterial to the financial statements.
29
31 December 2023
13 TRADE AND OTHER PAYABLES
2023 2022
AED AED
Customers’ deposits 310,793,966 330,637,764
Customers’ deposits with foreign markets 7,530,218 37,560,507
Customers’ Unsettled Balances 164,865,384 7,844,195
Net settlement due to:
- Dubai Financial Market - -
- Abu Dhabi Securities Exchange - 40,355,969
- Nasdaq Dubai - 1,149
Short term advances 4,956,329 10,507,012
Other payables and accruals 156,434,786 93,435,161
Total trade and other payables 644,580,683 520,341,757
In accordance with the regulations issued by the Emirates Securities and Commodities Authority (“SCA”), the Company
maintains separate bank accounts for money received from its customers (“client money”) and represent the client money
as part of financial statements under bank and cash balances amounting to AED 310,793,966 (31 31 December 2022:
AED 330,637,764) with the corresponding liability in amount due to investors. The client money is not available to the
Company other than to settle transactions executed in trading accounts of the customers.
14 CONTINGENT LIABILITIES
2023 2022
AED AED
Abu Dhabi Securities Exchange (ADX) 33,000,000 33,000,000
Dubai Financial Markets (DFM) 17,000,000 17,000,000
NASDAQ Dubai Limited (NASDAQ) 5,527,500 5,527,500
55,527,500 55,527,500
The guarantees issued are secured by fixed deposits of AED 19,196,900 (31 December 2022: AED 19,196,900).
As per SCA regulations, a broker is required to have an enforceable bank guarantee payable to the respective stock
markets. This guarantee was provided to the Abu Dhabi Securities Exchange and the Dubai Financial Market, remains
valid till a written letter from the market stated end of its purpose is received to bank.
15 COMMISSION AND ADVISORY INCOME

2023 2022
AED AED
Commission income net – at point in time 69,276,130 52,199,923
Advisory income 8,211,402 949,650
Total commission and advisory income 77,487,532 53,149,573
30
31 December 2023
16 OTHER INCOME
2023 2022
AED AED
Foreign exchange gain 4,282,191 1,225,299
Other miscellaneous income 3,586,117 3,687,902
Gain on sale of investment properties - 58,000
Gain on financial assets through profit and loss 4,813,714 5,054,905
Total other income 12,682,022 10,026,106
17 GENERAL AND ADMINISTRATIVE EXPENSES

2023 2022
AED AED
Staff cost 61,401,807 38,906,406
Trading cost 11,560,709 7,699,480
Depreciation on property and equipment 2,024,264 1,975,736
Depreciation on right of use assets 22,660 -
Amortization on intangible assets 793,611 790,000
Short term lease expenses 359,237 444,229
Legal and professional 2,800,098 2,278,860
Registration and licensing 1,080,439 880,052
Communication 263,597 327,840
Other expenses 12,732,691 9,288,190
Total general and administration expenses 93,039,113 62,590,793
18 BASIC AND DILUTED EARNINGS PER SHARE

Basic and diluted earnings per share are calculated by dividing the profit or loss for the year attributable to owners of the
Group by the weighted average number of shares outstanding during the year as follows:
2023 2022
AED AED
Profit for the year attributable to shareholders of the Group 35,344,458 19,822,851
Weighted average number of shares outstanding during the year 160,096,884 166,084,453
Basic and diluted profit per share (AED per share) 0.221 0.119
19 FINANCIAL INSTRUMENTS
The financial asset of the Group comprises investment at FVTOCI & FVTPL, trade receivables, other receivables,
deposits, short term deposit under lien and cash and bank balances. The financial liabilities of the Group include trade
and other payables, bank borrowing and short-term loan. The accounting policies for financial assets and liabilities are
set out in note (2.3).
31
31 December 2023
19 FINANCIAL INSTRUMENTS (continued)
The following table summarizes the carrying amount of financial assets and liabilities recorded as at reporting date:
2023 2022
FINANCIAL ASSETS AED AED
At amortised cost 1,164,510,504 689,330,090
Financial assets at fair value through profit and loss 2,848,738 11,992,836
Financial assets through other comprehensive income - 3,806,484
Balance at 31 December 1,167,359,242 705,129,410
FINANCIAL LIABILITIES
At fair value through profit and loss
Measured at amortised cost:
- Borrowings 344,508,778 40,225,914
- Other financial liabilities 645,241,976 520,341,758
Balance at 31 December 989,750,754 560,567,672
Fair value
The fair values of the Group’s financial instruments are not materially different from their carrying values at the reporting
date.
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
assets or liabilities.
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within 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 fair value measurements are those derived from valuation techniques that include inputs for the asset or
liability that are not based on observable market data (unobservable inputs).
Transfers between levels of the fair value hierarchy are recognized by the Group at the end of the reporting year during
which the change occurred. The disclosures for fair value hierarchy in respect of Investment at the fair value through OCI
are disclosed in note 20.
20 INFORMATION ON FINANCIAL RISKS

The main market risks to which the Group is exposed are credit risk and equity price risk.
Market risks
Market risk is the potential change in an instrument’s value caused by fluctuations in interest and currency exchange
rates, equity and commodity prices, credit spreads, or other risks. The level of market risk is influenced by the volatility
and the liquidity in the markets in which financial instruments are traded. The Group mainly faces the following market
risks:
Equity price risk:
Equity price risk arises from the possibility that equity security prices will fluctuate, affecting the value of equity securities
and other instruments that derive their value from a particular stock, a defined basket of stocks, or a stock index. The Group
tries to manage equity price risks by closely monitoring the market fluctuations in the prices of equities.
32
31 December 2023
20 INFORMATION ON FINANCIAL RISKS (continued)
Risk of disputes:
Following margin trading, the Group’s exposure to risk of disputes reduced significantly as the Group immediately
communicates investors of the transactions executed through SMS notification and daily emails. Further, the Group sends
statement of accounts to active investors at the end of each month.
However, the Group still has limited exposure to this risk where the Group execute a wrong trade and it may have to rectify
it by purchasing or selling financial instruments at unfavorable market prices.
Credit risk:
Credit risk is the risk of 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 balances due from stock markets and bank balances.
Exposure to credit risk
The carrying amount of financial assets which has been disclosed in respective notes in these financial statements
represents the maximum credit exposure.
Due from stock market
Due from stock markets represents the net amount receivable from recognised stock exchanges against trades executed
on the last two working days of the year.
Margin trading receivables
The margin is the amount contributed by the Group to its clients towards the purchase of securities in their margin
account. The Group secures its financial asset against collateral from the counterparties and enters into an agreement
with its clients covering the financial risks.
The Group holds the right to liquidate the customer's collateral to cover the margin facility due to the drop in market value
of the collateral below the threshold and the same has been agreed with the customer, hence no loss was incurred. The
total collateral liquidated by the Company during the year is nil (31 December 2022: nil).
Cash and bank balances
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short
maturities of the exposure. The Company considers that its cash and cash equivalents have low credit risk based on the
external credit ratings of the counterparties.
Guarantees
The Group has provided guarantees to NASDAQ, Abu Dhabi Securities Exchange and Dubai Financial Market in
accordance with stock exchange listing regulations.
Settlement risk
The Group's activities may give rise to risk at the time of settlement of the transactions and trades. Settlement risk is the
risk of loss due to the failure of a counterparty to honour its obligations to deliver cash, securities or other assets as
contractually agreed. Any delay in settlement is rare and monitored.
33
31 December 2023
Liquidity risk
The Group limits its liquidity risk by ensuring bank facilities and adequate cash from operations are available. The Group’s
terms of brokerage contracts require the amounts to be received and settled in accordance with the settlement terms of
the securities market. Outstanding receivables are monitored on continues basis.
The table below summaries the maturities of the Group undiscounted financial liabilities at 31 December 2023 and 31
December 2022, based on contractual payments.
Carrying Contractual Up to 3 3 months to 1 to 5 Over 5

2023 amount cash flows months 1 year years years
AED AED AED
Amounts due to investors 483,189,568 483,189,568 483,189,568 - - -
Bank borrowing 2,808,778 3,079,081 211,764 623,179 2,244,138 -
Short-term loan 341,700,000 341,700,000 - 341,700,000 - -
Total 827,698,346 827,968,649 483,401,332 342,323,179 2,244,138 -
2022
Amounts due to investors 376,042,466 376,042,466 376,042,466 - - -
Bank borrowing 3,525,914 3,947,649 219,793 648,775 3,079,081 -
Short-term loan 36,700,000 36,700,000 - 36,700,000 - -
Total 416,268,380 416,690,115 376,262,259 37,348,775 3,079,081 -
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes
in the market rates.
The Group is not exposed to any significant interest rate risk on its financial assets since all financial assets either interest
free or carried at fixed interest rate. Interest rate risk mainly concerns to financial liabilities.
The following table analyses financial assets and financial liabilities by interest rate:
2023 2022
FINANCIAL ASSETS AED AED
Non-interest bearing 520,484,297 426,719,872
Fixed rate 646,874,945 278,409,538
1,167,359,242 705,129,410
FINANCIAL LIABILITES
Non-interest bearing 645,241,976 520,341,757
Floating rate 344,508,778 40,225,914
989,750,754 560,567,671
The Group is not exposed to any interest risk since its financial assets and liabilities are either interest free or at fixed rate
interest. Financial assets at fixed rate include amounts receivables from investors and guarantee deposits. T.
Financial liabilities at fixed rate interest include short-term loan. financial liabilities at floating rate of interest include bank
borrowings.
Sensitivity analysis
A hypothetical increase in the interest rate by 100 basis points would increase loss by AED 3,445,088 (2022: AED
402,259).
34
31 December 2023
Currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Group’s financials assets designated in Saudi Riyals and US Dollars constitute the major foreign receivable
which do not fluctuate much. Foreign receivables designated in currencies other than Saudi Riyals and US Dollars are
insignificant in terms of amount and management believes that currency risk associated is minimal.
Financial assets analysed by currency are as follows:
2023 2022
AED AED
Saudi Riyal - 1,425,820
US Dollar 3,577,889 1,468,555
Kuwaiti Dinar 1,618 7,993
Egyptian Pounds 294,560 451,465
Sterling Pound 18,926 69,863
Euro 548,456 -
Hong Kong Dollar 21,755 284
Canadian Dollar 12,927 869
Qatari Riyal 178,492 126,074
Norwegian Krone - 87,982
Swiss Franc 17,200 -
Singapore Dollar 4,481 -
Japanese Yen 252,455 30,767
United Arab Emirates Dirham 1,162,430,483 701,459,738
Balance as at 31 December 1,167,359,242 705,129,410
Currency risk
Financial liabilities analysed by currency are as follows:
2023 2022
AED AED
Saudi Riyal 23,303,639 4,636,854
US Dollar 11,973,862 29,975,720
Kuwaiti Dinar 19,357 7,869
Bahraini Dinar - (4)
Egyptian Pounds 335,460 577,017
Omani Riyal 4,519 3,836
Sterling Pound 15,195 67,530
Euro 550,899 596,012
Hong Kong Dollar 380,211 12,865
Australian Dollar (5) (507)
Canadian Dollar 14,179 15,837
Qatari Riyal 172,868 123,514
United Arab Emirates Dirham 952,980,570 524,551,128
Balance as at 31 December 989,750,754 560,567,671
35
31 December 2023
Fair value estimation

The Group classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in
making the measurements. The fair value hierarchy has the following levels:
Level 1 – Quoted prices in active markets
Level 2 – Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is, derived from prices)
Level 3 – Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
The following table analyses, within the fair value hierarchy, the Group’s financial assets measured at fair value at 31
December 2023.
Level 1 Level 2 Level 3 Total
AED AED AED AED
31 December 2023
Financial assets – Investment at fair value
through P&L 2,848,738 - - 2,848,738
through OCI - - - -
31 December 2022
through P&L 11,992,836 - - 11,992,836
through OCI - - 3,806,484 3,806,484
21 SUBSEQUENT EVENTS: PROPOSED DIVIDEND AND BONUS SHARES

The Board has proposed a dividend of 7.75% of capital, amounting to AED 13,440,907 for the year ended 31 December
2023 as decided in the board meeting held on 5 February 2023. Further, Board has recommended to distribute Bonus
shares for shareholders of 28.83% of the capital, amounting to AED 50,000,000. The corresponding liability for both
proposed dividends and bonus shares is not recognized in the financial statements.
22 SIGNIFICANT EVENT
Corporate Income Tax
On December 9, 2022, the UAE Ministry of Finance released the Federal Decree-Law No. 47 of 2022 on the Taxation of
Corporations and Businesses (the Law) to enact a Federal corporate tax (CT) regime in the UAE. The CT regime will become
is now effective for accounting periods beginning on or after June 1, 2023.
The Cabinet of Ministers Decision No.116/2022 effective from January 2023, has confirmed the threshold of income over
which the 9% tax rate would apply, and the Law is considered to be substantively enacted. A tax rate of 9% will apply to
taxable income exceeding AED 375.000, however a rate of 0% could be applied to taxable income not exceeding a particular
threshold or to certain types of entities, to be prescribed by way of a Cabinet Decision.
As the Group’s accounting year ends on 31 December, accordingly the effective tax period implementation of date for the
Group is effective start from 1 January 2024 to 31 December 2024, with the first CT return to be filed on or before 30
September 2025.
36
31 December 2023
22 SIGNIFICANT EVENT (continued)
Corporate Income Tax (continued)
In accordance with IAS 12 Income Taxes, the related deferred tax accounting impact has been considered for the financial
period ended 31 December 2023. The Group has assessed the deferred tax implications for the year ended 31 December
2023 and concluded that it is not considered to be significant for the year ended 31 December 2023, after considering its
the interpretations of applicable tax law, official pronouncements, cabinet decisions and ministerial decisions (especially with
regard to transition rules). it has been concluded that it is not expected to be material.
The Group shall continue to monitor critical relevant Cabinet Decisions to determine the impact on the Group’s financial
statements, from deferred tax perspective.
37

2023

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BHM CAPITAL FINANCIAL SERVICES PSC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF COMPREHENSIVE INCOME

Items that will not be reclassified subsequently to profit or loss:

Basic and diluted profit/earnings per share (AED per

All other assets are classified as non-current.

3 GOODWILL AND OTHER INTANGIBLE ASSETS

Furniture Computer Machinery & Office Land &

At 31 December 2022 347,545 169,458 725,136 560,236 401,812 6,950,138 9,154,325

5(a) RIGHT-OF-USE ASSET

5(b) ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSET

5(c) LEASE LIABILITY

FINANCIAL ASSETS THROUGH PROFIT AND LOSS

8 RELATED PARTY TRANSACTIONS AND BALANCES

In issue at 1 January 173,431,068 173,431,068

Facility Limit (AED)

12 EMPLOYEES’ END OF SERVICE BENEFITS

15 COMMISSION AND ADVISORY INCOME

17 GENERAL AND ADMINISTRATIVE EXPENSES

18 BASIC AND DILUTED EARNINGS PER SHARE

20 INFORMATION ON FINANCIAL RISKS

Carrying Contractual Up to 3 3 months to 1 to 5 Over 5

Fair value estimation

21 SUBSEQUENT EVENTS: PROPOSED DIVIDEND AND BONUS SHARES

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