NOTES TO THE COMPANY FINANCIAL STATEMENTS

Note 1 - Accounting policies Note 2 - Administration expenses Note 3 - Tax Note 4 - Dividends Note 5 - Investments in subsidiaries and trust Note 6 - Share capital Note 7 - Borrowings Note 8 - Related party transactions Note 9 - Financial instruments

Notes to the Company financial statements
for the period ended

9.   FINANCIAL INSTRUMENTS  
  Overview  
  Pick n Pay Stores Limited and Pick n Pay Holdings Limited RF 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 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.  
9.1   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 RF have unlimited access to the funds of the Group companies. Therefore, Pick n Pay Stores Limited and Pick n Pay Holdings Limited RF’s liquidity risk is linked to the liquidity of the Group companies. Refer to note 28 of the related Group financial statements.  
   The following are the contractual maturities of financial liabilities, including estimated interest payments:  
    Pick n Pay Stores Limited   Pick n Pay Holdings Limited RF
     Carrying  
amount  
Rm  		 Contractual  
cash flows  
Rm  		 Within  
1 year  
Rm  		    Carrying  
amount  
Rm  		 Contractual  
cash flows  
Rm  		 Within  
1 year  
Rm  
   2014                       
  Non-derivative financial liabilities                
  Three-month corporate paper   700.0   710.1   710.1     —   —   —  
   Trade and other payables   7.0   7.0   7.0      3.8   3.8   3.8  
   Total financial obligations   707.0   717.1   717.1      3.8   3.8   3.8  
   2013                       
  Non-derivative financial liabilities                
  Three-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  
9.2   Capital management  
   The Companies consider the management of capital with reference to the Group policy which can be found here.