EFTA01366840.pdf

Amendment rr4 Page 411 of 868 ( ?dn. lit. Core Energy (RF) Proprietary Limited and Erika Energy (RF) Proprietary Limited Notes to the unaudited combined financial statements For the three months ended March 31. 2015 1. Nature of operations The Operatng Erases gte 'Operating Ensues') cartons. Core Energy (RF) Proprietary Limited (tore') and Enka Energy (RE) Propretary Limited CErikal The Operating Entities are not a singe standalone legal entity, but are a combination of entities that are under common control of SisiEdson Green Power Renewable Energy Sondem mica Proprietary Lorded ('SEGP Renewable Energy Southern Africa (Pry) Uct) anis ofprosentotion Tre accompanying unaudited cornbe-ed fRefloat statements rave been prepared in accordance with U S generally accepted accounting prinoples CU $ GAAP). Tre (mowing notes should to read in contuncten with the smarting policies and other osolosures as set fortn in the notes to the Operating Entities' corrtined financial statements for the year ended Cecerrter 31, 2014 Interim results are rot necessaniy Ind catve d reads for a full year in me opinion of management Ire accontenying unaudited combined financial statements contain M material adjustments consisting of normal and rectrnrg accruals necessary to present Panty tie Operating EnteeS unaudited Cantsned financial poach as d March 31. 2015, art the results of operations. comprehensive onCorne and cash lbws br the three months ended March 31. 2015. and 2014. Cuing the three months ended Mardi 31. 2015 and 2014 there were no mate's transactor), among me combined !Milts that required eliminatOn The Operating POWS' linchonal and presentation Currency is the South Alnean Rand rZAFt1 2. Summary of significant accounting policies Use of mamas In preparing the unaudited combined frercel statements. the Operating Entities used estimates and assumptions that affect the reported amounts of assets and Imbibes at tie date of the corrOned finance' statements Such estmates also affect the reported amounts of revenues. expenses and cash flows bluing the reporting penod Acker results may differ from estimates under dfferent assumptions or con:Stone Revenue Paver purchase agreements Substantially all of the Operating Ertites revenues are °Vaned through the sale of energy to Eskom pursuant to teens of We PPM Concentration risk does exist as tie Operating Entities transact with only one customer, namely Eskom This concentraton risk cannot be negated Oa to the Irritations of at energy market within South Africa All PPAs are accounted for as operating eases have no minmtrn base payments and an of the rental income under these leases are contingent rental recorded as income when the electnoty *delivered Leans Tre land on wrich the solar energy systems are stinted is leased under operating lease agreements with a lease term of 25 years Rentals applicable to operating leases, wtere substantially all of the benefits and risks F-91 http://cfdocs.btogo com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058368 CONFIDENTIAL SDNY_GM_00204552 EFTA01366840