Arc Finance, Ltd. Exhibit G of Grant Agreement Annual Grant Report Form Organization name: MILAAP SOCIAL VENTURES PVT LTD Address: 26, Upper Serangoon View, Singapore. Person responsible for grant administration: ANOJ VISWANATHAN Title: CO-FOUNDER AND PRESIDENT Phone: +91 9611 631 386

1. Describe the measureable goals for the project, including benchmarks for success: The goal of this project was to provide access to clean energy services in underserved, hard-to-reach geographies and communities across India that are not financed by traditional microfinance institutions, through a credit based delivery approach. The three key indicators of success were –

Diversity in products, services and financing models.

Outreach in terms of clients and geographies reached and

Repayment rate of the program.

2. Report the organization’s success in reaching those goals, including data indicating that you met these goals. Additional sheets may be attached if necessary.

1. Since the inception of partnership in late 2012, the ARC-Milaap program has disbursed $442,738 in loan capital (Rs 27.34 Million) towards energy lending, exceeding the initial goal of $200,000 set for the period.

2. Of this ~ 10.9 Mn INR has come from Arc's capital (incl. relending capital) and 16.4Mn INR from Milaap's sources. Arc’s initial capital of $100K (5.7Mn INR) has now been relent and has achieved 1.9X the original impact.

3. 100% repayment of loans from partners to the energy program – strong validation of sustainability and business proposition of energy lending.

4. The loan impacted over 5929 families across 6 states in India – West Bengal (East), Odisha (East), Bihar (East), Manipur (Northeast), Uttar Pradesh (North), Tamil Nadu (South) as against the initial goal of just 3 states – West Bengal, Odisha and Mizoram.

5. We worked with the following 8 partners as against the initial target of 3 partners (details in Qn 3) 6. Energy lending is the 2nd largest sector portfolio on Milaap after enterprise development (loans for micro and small businesses)

3. Provide a short narrative of the implementation of this project, including the involvement of other agencies or organizations.

Milaap used investment for Arc to raise matching capital from our crowdfunding platform Milaap.org and from a number of High Networth Individuals and family foundations. This was sub-lent to the following partners

1. DCBS – West Bengal – MFI involved in consumer finance of solar lanterns ($25 - $30) and home systems ($130 - $250) 2. WSDS – Fastest growing MFI in Manipur/North east, involved in consumer finance of solar home systems ($200 - $300) 3. MSF – Odisha – MFI involved in consumer finance of solar lanterns ($25 - $30) and smokeless cookstoves ($45 – 50) 4. MGP – Uttar Pradesh – Microgrid solutions provider involved in village level electrification ($5000 - $8000) 5. MLINDA – West Bengal – NGO involved in Microgrid installations for villages and infrastructure needs (schools, health centers,

markets etc) ($5000 - $10000) 6. GMF – Tamil Nadu – MFI involved in consumer finance of solar lanterns ($45 – 50) and smokeless cookstoves ($20-25) 7. Utkarsh – Uttar Pradesh – MFI involved in consumer finance of solar lanterns. ($60-65) 8. CDOT – Bihar – MFI involved in solar home lighting systems ($80-100)

4. Provide a summary of the lessons learned from this project, including any unanticipated positive or negative results.

1. The program has shown that energy finance is possible with tier 2 and tier 3 MFIs, in hard-to-reach geographies – where it’s needed the most, given the low electrification levels in these regions.

2. The program in fact helped many of these MFIs, which were finding it difficult to raise commercial credit post-2010 microfinance crisis in India for their regular business lending programs, overcome the tide and use their field force for energy programs.

3. New innovations – like lending for microgrid installations, considered as asset financing with 3 year tenors, have been kickstarted.

4. Large MFIs like Bandhan are now looking to learn from small partners like DCBS and replicate the model. 5. Barring a few distribution and product challenges in the initial stages, the program has been by and large successful.

The money is continued to be relent to our partners and increase our outreach. 100% of the money goes towards sub-lending to our on-ground field partners for their energy loan portfolio needs. The program will greatly benefit from additional infusion of more capital to help us increase our outreach in more geographies as well as expand our portfolio with current partners.

Plans for FY 2015-2016 - Our goal is to do 55Cr INR in disbursements ($9Mn). Based on our estimates and current numbers, energy lending will be around 12% of the overall disbursements, expected to be around Rs 6.6 Cr ($1.1Mn) in this period.

.

2013 USD 2014 USD

Q1 & Q2

Q3 Q4 Q1 Q2 Q3 Q4 Total

Total Disbursements Type of Product State 70,655 34,502 29,279 48,799 0 1,31,897 1,27,586 4,42,718

Arc 27,672 21,344 16,266 48,799 0 53,448 8,621 1,76,150

Milaap 42,983 13,158 13,013 0 0 78,448 1,18,966 2,66,568

Partner Wise Disbursements

DCBS Solar lanterns, Solar Home Lighting systems

West Bengal

33,760 25,748 13,013 0 0 17,241 0 89,762

Mahashakti Solar lanterns, Smokeless cookstoves

Odisha 36,896 8,754 16,266 0 0 17,241 15,517 94,675

WSDS Solar Home Lighting systems

Manipur 0 0 0 48,799 0 0 24,138 72,937

MGP Village level, solar microgrids

Uttar Pradesh

17,241 0 17,241

GMF Solar lanterns, Smokeless cookstoves

Tamil Nadu 18,966 22,414 41,380

MLINDA Solar microgrids - village level and small businesses

West Bengal, Jharkand (Mar '15)

35,345 51,724 87,069

Utkarsh Solar lanterns Uttar Pradesh

25,862 0 25,862

CDOT Solar Home Lighting systems

Bihar 13793 13,793