Georgia Healthcare Group PLC Annual Report 2018 Financial Statements Notes to Consolidated Financial Statements continued (Thousands of Georgian Lari unless otherwise stated) 23. Other liabilities Other liabilities comprise: 31 December 2018 31 December 2017 Deferred revenues 4,867 4,138 Insurance claims payable 3,802 2,615 Operating taxes payable 3,461 4,767 Advances received 3,170 71 Reinsurance liability 1,799 – Commissions payable 1,339 1,293 Dividend payable to non-controlling interest shareholders 990 – Provision for ongoing litigations 540 1,657 Derivative financial liability – 1,091 Other 675 279 Total other liabilities 20,643 15,911 24. Commitments and contingencies Legal In the ordinary course of business, the Group is subject to legal actions and complaints. Management believes that the ultimate liability, if any, arising from such actions or complaints will not have a material adverse effect on the financial condition or the results of future operations of the Group. As at 31 December 2018, the Group had litigation with the Social Service Agency (“SSA”) in relation to an aggregate amount of GEL 7,233 (2017: GEL 6,631). The litigation with SSA was mainly related to procedural violations in medical documentation as well as the billing and invoicing process. Financial commitments and contingencies The Group’s financial commitments and contingencies comprise the following: 31 December 2018 31 December 2017 Capital commitments 1,099 5,550 Operating lease commitments – Leases due not later than one year 20,252 18,298 – Leases due later than one year but not later than five years 65,388 71,004 Total minimum operating lease commitments 85,640 89,302 Total financial commitments 86,739 94,852 As at 31 December 2018 and 31 December 2017, capital commitments mainly comprised contracts related to the construction of Mega Lab and ambulatory clinics in Georgia. The commitments fully result from subsidiaries. The Company does not have any commitments or contingencies. The Group did not have contingent rents or sublease payments. The Company does not have any lease commitments. Rent expense recognised during the year equalled GEL 19,488 (2017: GEL 19,083). 25. Equity Share capital Share capital of Georgia Healthcare Group PLC is denominated in GBP and shareholders are entitled to dividends in GBP. No dividends were announced or distributed in the period ended 31 December 2018 or 31 December 2017. As at 31 December 2018 and 31 December 2017, number of ordinary shares comprised 131,681,820 totalling GEL 4,784 (GBP 1,310). As at 31 December 2018 and 31 December 2017, number of shares issued and fully paid comprised 128,181,820. As at 31 December 2018 and 31 December 2017, number of shares issued but not paid comprised 3,500,000. Nominal amount of each share comprises GBP 0.01. Treasury shares The number of treasury shares held by the Company as at 31 December 2018 was 2,937,273 (2017: 3,379,629). The treasury shares are kept by the Company for the purposes of its future employee share-based compensation. During 2018 the Group purchased treasury shares of GEL 3,055 (2017: GEL 1,950). Additional-paid in capital Additional paid-in-capital comprises credits or debits to equity on GHG share-related transactions. Any GHG share-related transaction impact (including share-based compensations) on top of nominal amount of GHG shares (GBP 0.01) is posted in additional paid-in-capital account. Nature and purpose of other reserves Revaluation reservefor property and equipment The revaluation reserve for property and equipment is used to record increases in the fair value of office buildings and hospitals and clinics and decreases to the extent that such decrease relates to an increase on the same asset previously recognised in equity. As at 31 December 2018 the revaluation reserve for property and equipment equalled GEL 15,646 (2017: GEL 15,646). 158