Notes to the Company annual financial statements

for the period ended 3 March 2013
10.   FINANCIAL INSTRUMENTS  
  Overview  
  Pick n Pay Stores Limited and Pick n Pay Holdings Limited have limited exposure to risk in respect of financial instruments, as their only financial assets are their loans to subsidiary companies. There is minimal credit risk relating to these items as it is payable by the main operating company within the Group. Market risk is negated as the financial assets and liabilities have no exposure to changes in exchange rates and have very limited exposure to changes in interest rates.  
10.1   Liquidity risk  
  Liquidity risk is the risk that the companies will not be able to meet their financial obligations as they fall due. Pick n Pay Stores Limited and Pick n Pay Holdings Limited have unlimited access to the funds of the Group companies. Therefore, Pick n Pay Stores Limited and Pick n Pay Holdings Limited’s liquidity risk is linked to the liquidity of the Group companies. Refer to note 28.2 of the related Group financial statements here.  
  The following are the contractual maturities of financial liabilities, including estimated interest payments:  
    Pick n Pay Stores Pick n Pay Holdings
    Carrying  
amount  
Rm  		 Contractual  
cash flows  
Rm  		 Within  
1 year  
Rm  		 Carrying  
amount  
Rm  		 Contractual  
cash flows  
Rm  		 Within  
1 year  
Rm  
  2013              
  Non-derivative financial liabilities              
  3-month corporate paper   400.0   405.7   405.7   —   —   —  
  Trade and other payables   5.6   5.6   5.6   3.9   3.9   3.9  
  Total financial obligations   405.6   411.3   411.3   3.9   3.9   3.9  
  2012              
  Non-derivative financial liabilities              
  3-month corporate paper   400.0   405.7   405.7   —   —   —  
  Trade and other payables   4.5   4.5   4.5   3.1   3.1   3.1  
  Total financial obligations   404.5   410.2   410.2   3.1   3.1   3.1  
10.2   Capital management  
  The Companies consider the management of capital with reference to the Group policy which can be found on here of the Group annual financial statements.