EFTA01367056.pdf

Amendment rr4 Page 627 of 868 ( t ri.111% Core Energy (RF) Proprietary Limited and Erika Energy (RF) Proprietary Limited Notes to the combined financial statements For the years ended December 31. 2014 and 2013 1. Nature of operations The Operating Entities (the *Operating Ensues') as used in the combined financ.al statements compose the ent ties Isted below and the' solar energy systems • Core Energy (RF) Proixietary Urnted ('Core') • Enka Energy (RF) Proprietary urorted [Erika.) Tre Operating Entries are not a singe standalone legal entity txl are a corematon of enit es Mal are under common contra of SunEdison Green Power Renewable Energy Southern Africa Proprietary tinted ('SEGP Renewable Energi Southern Africa (Pry) Leg The primary assets cl the Operating Entities censer of two solar parks (Soutpan Solar Park and %Velma Solar Park) located in South Nrca, wth a maximum contracted capacity of 58 Megawatts Apart from haveg separate signed Power Purchase Agreements ('PPM) with Eskom Hording% SOC Landed (EskoM). the mtkonty sacprier of etednaly to the South Noon public the Operating Entire* have obtained the necessary licenses to perform their activities from the Nal coal Energy Regulator of South Africa ENERSAC) SaApan Solar Park achieved Commercial Operation Date ('COO') on 4 ati 2014 wire Yekop Solar Park achieved COD on 20 Segtermer 2014 The PPM are valid for a period of 20 years from COO Basis ofpresentation Financial (lonelier is reclined as part of a lestrg for certain entities withn the SunEdson LiC Group (Via SunEdson Group') that are under common control These entries, however are rot part of a legal SOngrOop whOSe finance' statements are consolidated As such coreired !manual statements of the Operating Entries have teen prepared as at and for the years ended, December 31 2014 and 2013 The Operating E allies' combined financial statements have been prepared in accordance wth U S generally acoerxea attaining princpMs S GAAP') The Financial Accouning Standards (bard (PASS) Accounting Standards Codification (*ASC.) is the saute of &tett:we U S GAAP to be applied by en-govemmertal creams During the years ended December 31 2014 and 1013 tee were no material transactions among the combed entities that required elimineon The Operating Entities' functional and preSentaton currency s the South African Rand (7AR') 2. Summary of significant accounting policies Use of *ninnies in preparing the combined financial statements and in codomity with U S GAAP. management uses estrnales and oast/near% that may affect reported amounts and diselowes EStrnaley and ass(rnpticns are used when determring the lair value of firereel instruments useful Ikea of assets. ace:rutting for asset retirement obligations and deferred taxes_ as well as dentlyng ectangencres These esbmates and assumptions are based on ctsrent lads hatontal experience, and venous other factors that managernere believes 10 tie reasonable Older the Cot umstarces. the resuts Of which form the basis ICemakng ',Agree res about the carrying value& Of assets and tabilitieS and tee recording or revenue, income. Cents and expenses that are not readly apparent from ether sources Actual results could deter from these estimates F-307 http://cfdocs.btogo. corn:27638/cf/dry7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0058584 CONFIDENTIAL SDNY_GM_00204768 EFTA01367056