Georgia Healthcare Group PLC Annual Report 2018 Financial Statements Notes to Consolidated Financial Statements continued (Thousands of Georgian Lari unless otherwise stated) 39. Risk management continued Liquidity risk and funding management Liquidity risk is the risk that the Group will be unable to meet all its payment obligations when they fall due under normal or stress circumstances. To limit this risk, management has arranged diversified funding sources in addition to its capital, manages assets with liquidity in mind, and monitors future cash flows and liquidity on a regular basis. This incorporates daily monitoring of expected cash flows and liquidity needs. The Group manages the maturities of its assets and liabilities for better matching, which helps the Group additionally mitigate the liquidity risk. The major liquidity risks confronting the Group are the daily calls on its available cash resources in respect of supplier contracts, claims arising from insurance contracts and the maturity of borrowings. The table below analyses assets and liabilities of the Group into their relevant maturity groups based on the remaining period at the reporting date to their contractual maturities or expected repayment dates. Less than More than 31 December 2018 one year one year Total Assets Cash and cash equivalents 36,154 – 36,154 Amounts due from credit institutions 11,807 – 11,807 Insurance premiums receivables 23,643 – 23,643 Receivables from healthcare services 90,006 16,835 106,841 Receivables from sales of pharmaceuticals 20,440 – 20,440 Inventory 146,164 – 146,164 Prepayments 10,255 2,809 13,064 Current income tax assets 1,007 – 1,007 Investment in associate – 3,124 3,124 Property and equipment – 698,037 698,037 Goodwill and other intangible assets – 152,298 152,298 Other assets 9,109 18,818 27,927 Total assets 348,585 891,921 1,240,506 Liabilities Accruals for employee compensation 26,615 – 26,615 Insurance contract liabilities 22,544 – 22,544 Accounts payable 97,921 7,171 105,092 Current income tax liabilities 41 – 41 Finance lease liabilities 8,676 – 8,676 Payable for share acquisitions 8,285 83,189 91,474 Borrowings 106,102 190,715 296,817 Debt securities issued 4,648 88,925 93,573 Other liabilities 17,680 2,963 20,643 Total liabilities 292,512 372,963 665,475 Net position 56,073 518,958 575,031 Accumulated gap 56,073 575,031 168