EFTA01366989.pdf

Amendment #4 Page 560 of 868 IA!! itt.(,.54 mil, Revenue The CJI ic y earns revenue from the sale of electric* under 20 year Power Purchase Agreements CPPAs-) with atom Holdnera SOC Larded a South African state owned entity The Company is recsared to sell al ear* end related energy attributes generated by the facet es at specific rates as determined by the PPM The Company recognizes revere* from the sale of electncly and related energy attributes when the electricity Is generated and dowered The Company recognizes reventheveren all of the blowing criteria are met. (i)persuasrve evidence of an arrangement exists, (ii) delwery a ped°mance has occurred. fig the sales price is fixed or determinable, and (iv) colectaCdty is reasonably assured The Company generates revenue through power purchase agreements Revenue associated with power purchase agreements are Metier' within revenue The Company's revenuegenerab rig actmty consists of long-term power purchase agreements with Eskom Holdngs SOC Lmitea Leder which the customer agrees to purdsse all of the power generated by the wind and solar energy systems for the term of the contracts which are 20 years The agreement ncludes a fixed woe per "sleeved hour with a fixed annual pica escalabcn percentage go address the impact of elation and udity rate increases over the period of the contract) The Compare, has determined that power purchase agreements shoed be accounted for aSoperabng leases after evaluating the lease dessfocation criteria As customer payments under a power purchase agreement are dependent on power generation, they are considered contingent rentals and are excluded from future rrtrernum annual lease payments Revenue from power purchase agreements is recognized based on the actual an-ourit d poorer generated at rates specified under the contracts. assuming the other revenue recognition criteria discussed above are met Concentrations Maeda risk Al of the Company's revenue and net room° ns dewed from burl sales Financial instruments that potentially aped the Company to concentrations of credit risk consist pnrcpaly el cash and accounts receivable The Company places its cash, conststng mostly of deposes, with high credit waited fnancial retumons Tre Company per-rows periodic evaluabons of the relative credit stardrg of those francs' Waitrons The credit risk in accounts receivable is subetanbally nvbgeted as all sales we made to Eskom Holdings SOC Limited a state owned entity. The Company does rot obtain ngitsto collateral to reduce its credit mat Foreign currency translation The reporting currency of the Company is the U. S. Dollar. The functional currency d the Company is the Sixth African Rand. The frictional currency of the Company rs the South African Rand as it is the currency of the primary economic environmere n which its operations are conducted Transactors n curenoes other than Me (Lectors' currency of the Company are recorded at the rates of exchange prevailing at the date of Ire transactor Monetary assets and liabilities in currencies other Than the operations finch :nal currency are translated at rates of exchange prevailing at the Warne fl eet date to the operations functional currency The Company translates its assets arid babbles nto U.S Dollars at the exchange rates in effect at the balance sheet dates revenue and expense terra we translated at the average exchange rates for the reportng period. The Company recorded a foreign currency translation net loss of 53 M and 52 ElM in the years ended 31 December 201a and 2013 respectively presented as a component of accumulated other cornorehenswe loss in the accompanying combined Statement of Income and Comprehensive toss F.243 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-0058517 CONFIDENTIAL SDNY_GM_00204701 EFTA01366989