PPS Integrated Report 2021 Notes to the Consolidated Financial Statements | 188 Notes to the Consolidated Financial Statements (continued) for the year ended 31 December 2021 36.RELATED PARTIES Holding Company The Professional Provident Society Holdings Trust is the holding entity of the group. The Professional Provident Society Holdings Trust is a trust incorporated in South Africa and has as its sole investment in 100% of the shares of Professional Provident Society Insurance Company Limited, which it acquired from Professional Provident Society NPC during 2011. Professional Provident Society NPC formerly was a company “limited by guarantee” and has been deregistered. Subsidiaries PPS's related parties are its subsidiary company Professional Provident Society Insurance Company Limited, as well as Professional Provident Society Insurance Company (Namibia) Limited, Plexus Properties Proprietary Limited, Professional Provident Society Healthcare Administrators Proprietary Limited, Professional Provident Society Short-Term Insurance Company Limited, Professional Provident Society Investments Proprietary Limited, Professional Provident Society Multi-Managers Proprietary Limited, Professional Provident Society Investment Administrators Proprietary Limited, PPS Nominees Proprietary Limited, Professional Provident Society Wealth Advisory Proprietary Limited, Professional Provident Society Management Company (RF) Proprietary Limited, PPS Property Fund Trust, Financial Solutions 4 Professionals Proprietary Limited and Six Anerley Road Holdings Proprietary Limited, which are subsidiary companies/trusts of Professional Provident Society Insurance Company Limited. Other controlled entities Entities listed below are controlled through board representation: Professional Provident Society Foundation Trust, Professional Provident Society Collective Investment Scheme and Professional Provident Society Global Equity Fund. Associates PPS Mutual Limited and PPS Mutual Insurance Proprietary Limited (Australian entities) are Associates of the Group. PPS Insurance Company has significant influence over PPS Mutual Limited Group, through its representation on their boards. The PPS Group has no shareholding in PPS Mutual Limited Group and therefore no rights to either net profits/losses, or net assets. The Group received R15.0 million (2020: R12.8 million) of interest for the year on loan funding of R432.9 million (2020: R334.5 million) provided to PPS Mutual Limited Group, of which R234.4 million (2020: R234.4 million) has been impaired. Intembeko Investment Administrators Proprietary Limited (Intia) is an associate of the Professional Provident Society Group due to Professional Provident Society Investments (Pty) Limited deemed to having significant influence over the operations of Intia as a result of a) total loan funding provided of R22.2 million (2020: R22.2 million) and b) technical know-how made available. PPS Foundation Trust holds a 10% shareholding in Intia. Profits of R0.5 million (2020: Nil) have accrued to the Group from this associate for the year ended 31 December. Transactions between Group entities Transactions between related parties are made on terms equivalent to those that prevail in arm's-length transactions. Transactions that take place between Group entities, are eliminated on consolidation, and are disclosed in the separate annual financial statements of those entities. Key management information Key management personnel have been defined as all trustees of The Professional Provident Society Holdings Trust and group executive committee members, their families (as defined in IAS 24) and entities significantly influenced or controlled by key management personnel. A complete list of trustees of The Professional Provident Society Holdings Trust is disclosed in the trustees’ report. The PPS Group appoints its prescribed officers at the PPS Insurance entity level.
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